DeFi TrustBoost: Blockchain and AI for Trustworthy Decentralized Financial Decisions
This addresses trust and compliance issues for lenders in decentralized finance, though it appears incremental as it builds on existing blockchain and AI technologies.
The research tackled the problem of underwriting small business loans for low-wealth households by developing a framework combining blockchain and Explainable AI to ensure trustworthy decisions, resulting in a system designed for tamper-proof auditing and secure data handling.
This research introduces the Decentralized Finance (DeFi) TrustBoost Framework, which combines blockchain technology and Explainable AI to address challenges faced by lenders underwriting small business loan applications from low-wealth households. The framework is designed with a strong emphasis on fulfilling four crucial requirements of blockchain and AI systems: confidentiality, compliance with data protection laws, resistance to adversarial attacks, and compliance with regulatory audits. It presents a technique for tamper-proof auditing of automated AI decisions and a strategy for on-chain (inside-blockchain) and off-chain data storage to facilitate collaboration within and across financial organizations.