Top cryptocurrency risk management firm Elliptic last Thursday, June 1 their move to integrate large-language model (LLM) ChatGPT for their risk management and intelligence gathering operations. According to the statement, Elliptic expects that they “will be able to synthesize and organize intelligence on new risk factors in higher volumes and at a quicker speed than ever before.”
Elliptic has been at the forefront of cryptocurrency risk management and security. It a report (commissioned by Nikkei Asia) on the cryptocurrency losses inflicted by North Korean hackers from 2017-2022. The report said that Asian countries, with Japan at the top, made up three of the four hotspots of hacking. Japan is estimated to have lost $721 million in cyberattacks. Now, Elliptic has taken steps to improve their solutions with the help of ChatGPT.
With the ChatGPT integration, Elliptic aims to bolster its capabilities in risk analysis and threat detection. According to CEO Simone Maini, their continuous pursuit of cutting-edge technology is crucial to their mission. "We pride ourselves in being on the forefront of blockchain innovation, and incorporating cutting-edge technologies to enhance how we work without compromising the high standards for which we are known is part of our DNA,” she stated.
The success of ChatGPT has of many in the crypto space and see a world full of potentials enabled by the LLM. Solana (SOL) has recently to integrate the LLM through a plug-in and enable user interaction with the Solana network itself. The plug-in will enable users to ask questions and have them promptly answered by ChatGPT. At the same time, Solana has also announced a grant program for AI-focused projects built on the network.
The use of AI for crypto projects, and especially for risk management and security is not without its risks. Many have noted the LLM’s shortcomings and limitations especially when dealing with more complex queries. There is still a very big room for improvements in the LLM and for a security firm as big as Elliptic, mistakes can be very costly.