AI optimizing crypto exchange functions

Satoshi Prime Uncategorized July 19, 2023 | 0

Cryptocurrency exchanges are finding novel ways to improve internal departments and functions using artificial intelligence, according to Bitget managing director Gracy Chen.

Speaking to Cointelegraph editor Zhiyuan Sun during EthCC in Paris, the exchange’s MD highlighted a number of ways in which the exchange is incorporating AI tools into everyday processes. Chen said that the company has actively asked its management team to give feedback on which AI tools and services they are using and experimenting with across departments.

AI has been a major focal point for the wider technology industry in 2023, with large language learning models like OpenAI’s ChatGPT chatbot which has a myriad of use cases that promises to revolutionize a number of industries.

Chen said that AI tools were particularly useful for its translation team which leverages AI to handle translation for its multi-language services as well as its customer service department. Meanwhile, with the help of a third-party company, Bitget is working on a “customizable, crypto version of ChatGPT” intended to assist users trading activity:

“Users can talk to the bot to get faster responses for certain queries, including tailored information and trading data.”

As Cointelegraph previously explored, Bitget launched an AI-powered feature for its grid trading strategies which allows users to make use of trading algorithms to automate transactions.

The bot is designed to reduce the complexity of grid trading, requiring users to only fill in a desired strategy and investment amount. The bot then iterates parameters and creates a variety of trading strategies with the given trading pair.

Grid trading uses trading algorithms to automate transactions for users. The algorithm allows the bot to create buy and sell orders within specific price ranges and time intervals making use of a “buy low, sell high” strategy.

“I would say every department is experimenting with some sort of application through AI.”

Zero-knowledge proof (ZK-proofs) technology is another solution that could improve cryptocurrency exchanges according to Chen. The Bitget MD highlighted the privacy-enhancing features of the technology as an additional means to ensure user funds and data is not mishandled.

“ZK is very useful for protecting users’ data. There are a few things we’ve been experimenting with, one of them is to have our users’ information protected through zk-rollups.”

Chen said that zk-proofs would also prevent its internal systems from accessing certain data for user confidentiality reasons. Zero-knowledge proofs could also provide an alternative to centralized exchanges custodying user funds by enabling self-custody using zk-rollups.

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