Anomaly detection and facilitation AI to empower decentralized autonomous organizations for secure crypto-asset transactions

Abstract

This proposal introduces a novel decision-making framework to advance safe economic activities in cyberspace. We focus on identifying anomalies within crypto-asset trading, recognized as potential sources of criminal activity, severely undermining the credibility of such assets. Detecting and mitigating such anomalies holds significant societal implications, particularly in fostering trust within blockchain networks. We aim to bolster the “social trust” inherent to blockchain technology by facilitating informed economic activities in cyberspace. To achieve this, we propose integrating two artificial intelligence (AI) systems into a blockchain-based decentralized autonomous organization (DAO). The first AI application involves amalgamating various anomaly indicators, spanning from cluster coefficient, entropy, triangular motif analysis, correlation tensor analysis, loop component by Hodge decomposition, loop causality detection, network classification using graph Laplacian, and persistent homology analysis, into a comprehensive indicator using a Boltzmann machine. The second AI application entails deploying conversational AI to guide and support traders, aiding them in making informed trading decisions. This system is designed to alert DAO members to anomalies based on the integrated indicators, especially during massive price fluctuations. We operate under the assumption of close collaboration between governments, experts, traders, system developers, and operators to effectively organize DAOs. The primary technical challenge in our proposal lies in developing a wallet assisted by an intelligent software agent capable of safe interactions with traders within a unified DAO. With this organization, we envision fostering a global economic ecosystem where physical and cyber worlds converge, allowing democratic economic participation.