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I have actually come to discover that whenever there seems to be a shift in the digital space, it will start gradually before it finally spread all across every aspect that needs to be spread to. That is just what Decentralised finance is doing right now and I am very optimistic that if it continues that way, it will definitely be the future of the financial space beyond what we can ever imagine of.

The fact that Defi market offer this unique nature compared to the centralised fiance we have always been familiar with for years and that is possible because Decentralised finance works much more better on what I called smart contracts. Recently, there have been a solution that have been provided by Artificial intelligence to even make the usage of the smart contracts in the Decentralised finance to be more efficient. Today I will be going deep to discuss with us how I believe artificial intelligence can actually help to make smart contracts to run effectively and efficiently.

Let me first start by establishing what are the role of Smart contracts in the DeFi world. First of all, when I talked about smart contracts, I mean a self executing agreements that is written in codes. These codes helps to carry out transactions on the DeFi world making it automated. Automated in the aspect of helping to eliminate any middlemen or intermediaries. But even though smart contracts helps to offer a whole lot of advantages in the DeFi world, it still comes with its own challenges that it is facing.

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Most of the time, when those issues or challenges are not addressed, it can go a long way to affect the effective of those smart contracts in the DeFi world. Come to think of it, there is something called Predictive strategies in the DeFi world. When I talked about the predictive strategies in the Decentralised finance world, it helps to predict market trends and the way asset moves so that risk can be eliminated and so that the return can be fully gotten in high level. Most of the time, those predictive strategies make use of data analysis. Years ago, we usually make use of the traditional predictive but thanks be to the advancements of technology, we now have artificial intelligence to help us do that ones.

Now talking about how artificial intelligence comes in for smart contracts. There are a whole lot of solutions that artificial intelligence offers so that it can help conquer some of the challenges I talked about earlier. The first is artificial intelligence solutions helps to give data driven insights. Since artificial intelligence works on machine learning algorithms, it becomes easy to analyse data from lots of data collected together. By doing so, it helps to make sure that smart contracts performance is fully optimized even beyond the automation aspect.

The second benefit is in the aspect of the Real time adaptability. Since the DeFi world is highly volatile most especially because it works on 24 hours in seven days, then with artificial intelligence, it will help smart contracts to also be able to know market conditions and know when and where to respond to them so that those contracts written will still be relevant according to the trend of the market.

Not only that, with artificial intelligence solutions, it will go a long way to enhance security. Even though the nature of smart contracts automatically will enhance the security since those transactions are carried out automatically, but nevertheless with artificial intelligence, it will take it to a high level. Why? Because with AI, vulnerabilities that might want to exist in the smart contracts code will easily be recognised and then needed measures can be taken concerning this. By doing so, it will go a long way to reduce issues like hacks, scams, fraud and any other criminal activities also.

There are a whole lot of applications when it comes to the Predictive DeFi strategies I talked about. Some of them I will be discussing below. The first is in the aspect of Yield Optimisations. With smart contracts that are controlled by AI, there will be high return given on assets and not only that, it will go a long way to help in risk management. Like I said earlier, one of the major factor of the DeFi world is the high volatile nature of the market. But with the AI data analysis, you will be able to know when the market is about to fall or rise thereby helping in your decision making and generally helping you to mitigate risk.

The second aspect is in the aspect of Algorithmic Stablecoins. With AI, market demand can be know and with the necessary information, you are able to adjust and know how those stablecoins perform in the market. We have a lot of applications that I haven't mentioned. Like the Flash loan Arbitrage and many more. Even though there might be some challenges associated to it. Challenges like Transparency, Regulatory concerns, and many more, but I strongly believe it is just a matter of time before it is finally overcomed in due season.

As I conclude, I will like to say that the future of smart contracts Optimisations likes in Artificial intelligence which will help to take the Decentralised Finance to another level in the future. It is just a matter of time trust me before we see the manifestation.