The Many Perils of Self-Custody and the Bird Solution
The advent of cryptocurrencies has reshaped the financial landscape, opening up a world of opportunities for global transactions. One of the most appealing aspects of this digital revolution is the ability to self-custody assets. This means individuals can have complete control over their cryptocurrency wallets, without the need for an intermediary, like a bank or a broker. However, with great power comes great responsibility. The risks associated with self-custody wallets can be significant, and many users are ill-equipped to deal with them.
Enter Bird, a technology company leading the charge in blockchain risk mitigation. Bird, whose acronym represents Blockchain Integrated Risk Detection, is using artificial intelligence (AI) and machine learning (ML) to predict the level of risk associated with a receiving wallet address, by analyzing on-chain and off-chain indicators.
The Perils of Self-Custody
Self-custody of digital assets, while empowering, comes with a variety of potential dangers. These risks range from personal errors, such as losing access to the wallet due to forgotten keys, to falling victim to elaborate scams and hacks. According to the Chainalysis Crime Report 2023, the value of cryptocurrencies held by criminals or obtained through illicit means in 2022 was a staggering $20.6 billion. These figures underscore the need for better security and risk management in the world of crypto finance.
Understanding Risk in Traditional and Crypto Finance
In traditional finance, risk management tools, such as the risk matrix, play an essential role in visualizing the severity and probability of potential risks. In the context of cryptocurrencies and decentralized finance, however, Bird has redefined this concept with a unique model for risk analytics. This model incorporates the actual causes and effects that impact risk in cryptocurrency transactions, helping minimize exposure to hazards.
Bird’s Solution: The Nest
To counter the perils of self-custody, Bird is introducing Nest, a decentralized crypto wallet middleware and developer API. Nest uses advanced AI and predictive analytics to detect and help prevent fraudulent transactions in real-time. This provides users with unparalleled risk mitigation when transacting with nefarious wallets while ensuring they maintain complete control over their digital assets.
Bird Risk Matrix and Rating
At the heart of Bird’s risk mitigation approach is the Bird Risk Matrix. Unlike traditional matrices, the Bird Risk Matrix takes into account all potential hazards, assesses their severity, and evaluates a user’s exposure to those hazards using AI and ML. This feeds into the Bird Risk Rating, which calculates the probability of harm based on the user’s exposure to hazards. The Bird Engine, powered by AI and ML, continuously learns and improves its risk detection capabilities based on these data inputs and results.
Nest App and API: Ensuring Safe Transactions
Nest App is a game-changer in the web3 world, providing users with real-time access to risk analytics and security information through the Bird (Analytic) Engine. It generates a risk rating for wallets and accounts that users connect with or transfer funds to, helping them make informed decisions and stay safe.
On the other hand, the Nest API offers a bridge for businesses to access the world of risk analytics and security. It allows partnering platforms, protocols, and on-chain businesses to access a full scope of on- and off-chain indicators, risk analytics, and data, customizable to their specific needs. Bird’s Nest API also provides protocols the flexibility to fine-tune up to 43 on-and-off-chain indicators to suit their particular requirements
Market Opportunity and Bird’s Position
The global cryptocurrency exchange platform market size was valued at USD 30.18 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 27.8% from 2022 to 2030.
As more individuals and businesses adopt cryptocurrencies, the need for safe, secure, and fraud-free transacting will only continue to increase. With its advanced technology and cutting-edge fraud detection
Market Opportunity and Bird.Money’s Position
Bird has positioned itself to meet this increasing demand for secure and trusted transactions in the crypto market. It is ahead of the curve with its innovative, AI-powered solutions that cater to both individual users and businesses. This foresight and innovation, coupled with a deep understanding of the unique risks inherent in the crypto sphere, position Bird.Money as a frontrunner in the evolving landscape of digital finance.
The promise of cryptocurrencies and decentralized finance cannot be fully realized without robust security mechanisms. Self-custody, while empowering, exposes users to numerous risks. Bird’s innovative solution, Nest, offers a powerful tool that integrates AI and machine learning to predict, detect, and help prevent fraudulent transactions, thereby mitigating the risks associated with self-custody.
The Nest App and API offer real-time risk analytics and security data to both individual users and businesses, helping them make informed decisions about their cryptocurrency transactions. By incorporating on-chain and off-chain indicators, Bird provides a comprehensive view of the risk landscape, ensuring safer and more secure transactions.
In the rapidly expanding crypto market, Bird’s cutting-edge technology and commitment to user security make it a key player in the growing web3 risk mitigation and cybersecurity sector. Its AI-powered risk matrix and rating systems offer a level of insight and control previously unseen in the digital finance sphere, making it a valuable tool for anyone involved in cryptocurrency transactions.
While the road ahead for crypto is still laden with challenges, solutions like Nest provide a beacon of hope. By continuously learning and adapting to the unique risks of the crypto world, Bird is helping to pave the way for a safer and more secure decentralized financial future.
References
- Chainalysis Crime Report 2023. Retrieved from www.chainalysis.com
- Cryptocurrency Market Size, Share & Trends Analysis Report 2021–2028. Retrieved from www.grandviewresearch.com
- Bird.Money Official Website. Retrieved from www.bird.money
Note: Please remember that while this article provides an overview of Bird and its solutions, it does not constitute financial advice. Always do your own research and consult with a professional advisor before making investment decisions.
