Capital One to help protect crypto users with a new AI fact-checker

The crypto trading sector has been around for over 11 years. While this might seem like more than enough time for it to evolve into a stable and safe version of itself, the fact is that this has yet to happen. Crypto trading itself will likely continue to evolve and change for as long as cryptos themselves are changing.

This leaves a lot of space for potential pitfalls that could cause damage to unsuspecting traders. As a result, the US banking group, Capital One, announced that it has recently patented an AI system that would save traders from such dangers.

What is the new system all about?

The new AI system will analyze the credibility of information related to cryptocurrencies. In essence, it is a fact-checker, that would estimate the trustworthiness of claims and expose false information.

According to the filing, such a solution is quite necessary, as humans face plenty of barely-surmountable obstacles while trading digital currencies.

The crypto market is active at all hours of the day, every day. As such, it requires that investors know every detail of every protocol in order to keep track of various events, such as forks, airdrops, and even hacks. Such data is coming from all sides, including Medium posts, Reddit, Twitter, Telegram, and countless others.

It is extremely overwhelming and impossible for people to keep absorbing all of this data and quickly assess whether or not it is correct and credible, especially when quick reactions are crucial in order to use these opportunities to make a profit. The fact that information is often intertwined with personal opinions and assessments of others makes it all even more confusing.

How will the system work?

The new Capital One patent was awarded by the US Patent and Trademark Office, and it only happened last week.

The new system, as presented in the filing, would have three components that will work together to collect and assess the information. The AI system will actively seek out information, collect it, and send it to the fact-checker that would use credibility analysis engine to cross-reference the data and determine whether the events are plausible and credible, based on previous examples.

The system might also become capable of detecting fake volumes, evaluating the speed at which news go viral, and more, thanks to machine learning technology. The patent will need time before it can be launched, however, and it is unknown whether it can be used for executing trades automatically, or if it will require human approval.