The Function of the Blockchain System in Enhancing Financial Integrity and the Confidence of Society

Abstract

Artificial Intelligence (AI) and Blockchain (BC) are combined to obtain a new way to make banking safer. The benefits of AI and BC are combined to deal with security risks like fraud, hacking, and identity theft. This builds trust and confidence in financial operations. This research examines how AI and BC work together, focusing on their combined abilities, uses, and possible benefits for the financial services industry. Combining Machine Learning (ML) and Natural Language Processing (NLP) techniques lets financial institutions look at vast amounts of data in real time, finding patterns, oddities, and malicious behavior. Companies can make the banking system safer and more open by combining Explainable AI (XAI) systems to find scams with systems that use BC to handle transactions. The record of BC ensures that transactions are secure and people are held accountable. XAI systems provide advanced analytics and predictive data that help spot and stop fraud. By combining XAI with BC-based identity systems, financial companies can make it easier to onboard new clients, improve security, and keep sensitive data safe from people who shouldn't have access to it. Intelligent contracts that XAI drives ensure promises are kept, and actions are taken. This lowers the risk of financial transaction mistakes, fraud, and disagreements. Businesses can make deals safe, clear, and unchangeable by connecting XAI-driven intelligent contract systems to BC systems. This gets rid of middlemen and lowers the cost of transactions. By joining forces with BC, XAI can follow the rules and lower risks in the banking industry. XAI-powered options for compliance with regulations, finding compliance problems, and ensuring regulatory requirements are met.