A Toronto-based company that helps private firms raise money is among those entering the emerging field of combining blockchain and artificial intelligence technologies.

Kiran Garimella

KoreConX Corp., which operates a platform where privately held companies can manage their capital market activity and stakeholder communications, announced this month it has hired AI and blockchain expert Kiran Garimella to integrate the two technologies at the company.

Making Blockchain Smarter and AI More Secure

Although blockchain technology is a sophisticated way of keeping track of transactions, it has its limits. Essentially, it’s nothing more than semi-automated contracts, says Garimella, the chief scientist and chief technology officer at KoreConX.

When companies raise money, the process involves many steps and diverse stakeholders such as investors, lawyers and accountants. Keeping data secure in such an environment can be an issue with AI alone, Garimella says.

As beautiful as it is, its not going anywhere unless a human gets in there and does something intelligent with it,” says Garimella, who has more than 25 years of information technology, consulting and financial services experience.

That’s where AI comes in. Garimella plans to use the technology to make blockchain smarter, with the two technologies tag teaming on tasks such as automating the due diligence process for complicated financial technology contracts.

When companies raise money, the process involves many steps and diverse stakeholders such as investors, lawyers and accountants. Keeping data secure in such an environment can be an issue with AI alone, Garimella says.

Enter blockchain. The decentralized ledger technology introduces an element of trust to AI.

In addition to security, the KoreConX platform will use blockchain to help avoid duplication in the capital-raising process where many people are participating.

The company’s platform will use blockchain technology based on Hyperledger Fabric, a blockchain framework implementation hosted by the Linux Foundation that is intended as a foundation for developing blockchain applications, products or solutions.

KoreConX picked that technology with the data security and legal compliance needs of its private capital markets customers in mind, according to KoreConX CEO Oscar Jofre Jr.

Increasing Liquidity in Private Capital Markets

Blockchain can also help boost liquidity in private capital markets, he adds. Instead of raising traditional debt or equity, companies using the KoreConX platform will have the option of raising tokens, which can then be traded on an exchange.

KoreConX is planning to implement the AI and blockchain enhancements in stages over the coming months, aiming to have the additions completed in nine months or less, Jofre says.

Matt Whittaker
Matt Whittaker is a freelance journalist whose work has appeared in The Wall Street Journal, Barron’s, U.S. News & World Report and other publications. He has written about the global seafood industry, energy and mining companies, commodities, M&A and adventure sports.