DeFi TrustBoost: Blockchain and AI for Trustworthy Decentralized Financial Decisions

TL;DR

DeFi TrustBoost integrates blockchain and Explainable AI to enhance trustworthiness, security, and compliance in decentralized financial decision-making for small business loans from low-wealth households.

Contribution

It introduces a novel framework combining blockchain and AI with tamper-proof auditing and data storage strategies for DeFi lending.

Findings

Framework ensures confidentiality and legal compliance.

Provides tamper-proof audit trail for AI decisions.

Facilitates secure collaboration across financial organizations.

Abstract

This research introduces the Decentralized Finance (DeFi) TrustBoost Framework, which combines blockchain technology and Explainable AI to address challenges faced by lenders underwriting small business loan applications from low-wealth households. The framework is designed with a strong emphasis on fulfilling four crucial requirements of blockchain and AI systems: confidentiality, compliance with data protection laws, resistance to adversarial attacks, and compliance with regulatory audits. It presents a technique for tamper-proof auditing of automated AI decisions and a strategy for on-chain (inside-blockchain) and off-chain data storage to facilitate collaboration within and across financial organizations.