4mins read
Published on: Sep 3, 2024
#Crypto 360
This milestone marks a breakthrough by proving that AI agents can independently execute cryptocurrency transactions, opening a new chapter in the space.
➔ Coinbase powers its first AI-to-AI crypto transactions through the Base Sepolia Network.
➔ The breakthrough development is set to positively impact the entire crypto industry.
Coinbase made history on August 30, 2024, when it completed the first crypto transaction between two AI agents. The company's CEO, Brian Armstrong, shared this development as a step forward in using artificial intelligence in cryptocurrencies, showing how AI can independently manage and transfer assets within decentralised platforms.
Coinbase performed this historical transaction using Base Sepolia Network, which is known to be cheap and scalable. The company’s advanced Multi-Party Computation (MPC) technology created an AI agent wallet to manage the transaction. Armstrong further explained:
“This is an important step for AIs to get useful work done. Today, if you give an AI agent a task and come back in a few days or hours, it can’t get useful work done. In part, this is a limitation of the technology itself, and products like devin.ai are getting closer to this. But the other reason is that AIs can’t transact to acquire the resources they need. They don’t have a credit card to use AWS, GitHub, or Vercel. They don’t have a payment method to book you the plane ticket or hotel for your upcoming trip. They can’t get through paywalls (for instance, to read a scientific article), promote their post on X with a paid ad, or use the growing network of paid APIs to integrate the data they need.”
Previously, AI solutions have been limited to applying prior knowledge in decision-making by following some rules. Now that AI agents can manage and transfer assets, they can work within decentralised financial systems and engage in transactions with other AI agents, humans, and merchants. This development enables AI agents to receive and pay for services and independently execute tasks involving financial transactions.
AI agents have advanced to perform complicated, rational operations. Integrating AI agents on crypto rails has numerous benefits, especially when it comes to access to capital through crypto-powered funds.
However, there are also some limitations of AI agents, including solving complicated logic off-chain to improve efficiency. On-chain transactions are secure and easily verified, while off-chain computations usually come with certain risks. This means that the quality of available tools limits the capabilities of the AI agents.
The first crypto transaction between two AI agents is a breakthrough for the crypto industry and proves the potential of AI agents’ work in a DeFi system. However, there are still challenges with the efficient implementation of off-chain computations and the correct interaction with a blockchain.
As AI continues to develop, its role in the crypto economy will only increase, opening new doors of use cases.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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