Can Machine Learning Improve DeFi Security?
Can Machine Learning Improve DeFi Security? The decentralized finance (DeFi) ecosystem has experienced exponential growth in recent years, offering users financial services without intermediaries. However, this innovation comes with risks—smart contract vulnerabilities have led to billions of dollars in losses due to hacks and exploits. As the industry searches for solutions, artificial intelligence (AI) and machine learning (ML) have emerged as potential tools to enhance DeFi security. But can AI truly make smart contracts more secure? The Challenges of Smart Contract Security Smart contracts are self-executing agreements written in code and deployed on blockchains. While they remove the need for intermediaries, they are also vulnerable to coding errors, logic flaws, and unforeseen attack vectors. Some common security risks include: Reentrancy Attacks – Malicious contracts repeatedly call a function before its previous execution is completed, allowing an attacker to drain funds. Fla...