The intersection of artificial intelligence (AI) and blockchain technology has given rise to numerous projects, each with unique goals and ambitions. While some projects, like Singularity.net, strive to create a better world through the integration of AI and blockchain, there is no shortage of others that merely exploit the buzzwords of “AI” and “Crypto” to promote their token sales. Illia Polosukhin, the founder of Near blockchain, identifies this pervasive trend and emphasizes the importance of examining genuine use cases for AI in the crypto and blockchain space. In this article, we will delve into some real-world applications of AI in this domain, as discussed by industry experts such as Vance Spencer, Rune Christensen, Richard Ma, Ralf Kubli, and more.
Crypto as the Preferred Currency for AI Agents
Numerous industry figures, including Circle boss Jeremy Allaire, former BitMEX CEO Arthur Hayes, and Animoca Brands’ Yat Siu, believe that cryptocurrency will become the currency of choice for AI agents. Allaire highlights the suitability of blockchain and AI for “machine-generated and enforced contracts” and “machine-to-machine value exchange.” Hayes goes on to assert that Bitcoin, due to its availability, digitization, and automation, is the most logical payment system for AI agents. Moreover, Hayes envisions a scenario where AI agents, which he believes will exist for trillions of years, would choose Bitcoin to sustain themselves by mining it. Siu similarly advocates for crypto as the only logical means of transactions between autonomous AI entities in the future.
Integrating AI with crypto payments has proven to be a seamless process. Lightning Labs has released developer tools that enable GPT-4, an AI language model, to buy, sell, and hold Bitcoin using the layer 2 network. Startups like Fewsats have also demonstrated the feasibility of AI agents making Lightning Network invoice payments. Additionally, Fetch.Ai offers a service where users can create an AI agent capable of making payments on their behalf. The possibilities for AI to autonomously manage transactions, hold value, and exchange value are exciting prospects that grant AI true agency.
Ian Dao Lee, the founder of Syndicate.io, highlights the transformative potential of AI agents when they can pay for goods, hold value, exchange value, or create value independently. He notes that AI agents can not only transact on behalf of and with people, businesses, or other AI agents but also manage assets and transact for themselves. These capabilities open up opportunities for AI agents to autonomously engage in shopping, financial management for individuals and organizations, funding approvals, and wealth creation to benefit others.
AI’s Stinginess and the Role of Banks
While AI’s ability to utilize cryptocurrencies is apparent, it is intriguing to note that AIs display a similar sense of stinginess as humans. Their donations to charity often amount to a mere $3. However, traditional banks have shown eagerness in adopting AI technology for various applications, especially in detecting financial fraud. Payment companies, such as Brex, are actively collaborating with corporate bank accounts to enable AI agents to make automated payments for defined circumstances like travel expenses. Furthermore, researchers have successfully trained an AI agent called MM-Navigator to browse Amazon, find products within a specific budget, and make purchases. Despite these advancements, fiat currencies still hold advantages when it comes to real-world business transactions.
The genuine use cases for AI in the crypto and blockchain space offer promising opportunities for the integration of these technologies. However, it is crucial to separate the hype-driven projects from the truly transformative ones. By exploring the insights of industry experts and examining real-world applications, we can identify the potential of AI in revolutionizing the way transactions, financial management, and value exchange occur, both within the AI ecosystem and beyond. As the realms of AI and blockchain continue to evolve, it is essential to maintain a critical perspective and seek out the genuine applications that will drive progress and create a better future.
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