Back in April this year, banking giant Capital One had filed a patent for an AI-based crypto fact-checking platform. The patent is now officially published. Will it find enough takers, given the bank’s massive 2019 data breach?
Capital One Files Patent For AI-Based Crypto Information Analyzer
According to Capital One’s patent, its artificial intelligence-led platform would dissect publicly available cryptocurrency information online to help traders make informed decisions on their crypto bets.
This translates to sifting through all digital asset communication on the internet, ranging from popular platforms like Telegram, Twitter, Reddit, YouTube, to news headlines, blog articles, etc.
The AI-based ‘credibility analysis engine’ would then measure the available information against official sources to pop put a prediction as to where the cryptocurrency market is heading. Consequentially, crypto traders could utilize the analysis to conduct better trades.
And why does Capital One think it is useful? Because as per the corporation’s claims in the patent:
It would be impossible for human traders to track,” digest, decipher and trade on the entire breadth of cryptocurrencies intelligence alone
How Will the Platform Function?
Initially, the program would find a trending discussion or topic from crypto Twitter, Reddit, news, etc. It will then feed it to the credibility analysis engine, which in turn would determine the genuineness of the information and how the market has reacted to such updates in the past. Based, on that it would churn out insights for traders to call their shots.
Capital One said in the patent that the system could become potent enough to detect fake cryptocurrency trading volumes. It could also determine the rate at which news of an exchange hack goes viral on social media platforms and news sites.
But The Bank Blocked Crypto Purchases in 2018 and Suffered a Massive Data Breach in 2019
It is interesting to note the reversal in the stance of mainstream financial market players towards the cryptocurrency industry. Capital One blocked its users from making crypto purchases using credit cards in 2018. And now, the bank has filed a patent to help make cryptocurrency trading safe.
Also, Capital One suffered a massive data breach last year. The hacker allegedly gained access to information of around 100 million customers. As a result, the United States government and Federal Reserve, the country’s apex financial institution, slapped an $80 million fine on the bank.
The change in the attitude towards crypto and the gigantic loss of data, begs the question. Can Capital One deliver on the claims it made in its cryptocurrency trading platform patent? That still remains to be seen.
Featured image courtesy of Fox Business
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