Brian Armstrong Says Coinbase Developer Platform Has Had Its First AI-to-AI Crypto Transaction

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As a seasoned crypto investor with over two decades of market experience under my belt, I must say that Brian Armstrong’s recent announcement about AI-to-AI transactions on Coinbase is nothing short of groundbreaking. The idea of AIs trading tokens using AI wallets is not only fascinating but also opens up a world of possibilities for the future.

On August 30th, Brian Armstrong, Co-Founder and CEO of Coinbase, announced a groundbreaking development in the fusion of AI and cryptocurrency. He disclosed that Coinbase Development had carried out the first-ever AI-conducted crypto transaction, where two AIs traded tokens, although not conventional cryptocurrency tokens. Instead, these tokens represented words exchanged between large language models (LLMs). Armstrong emphasized the singularity of this event, underscoring that AIs employed tokens to purchase more tokens themselves.

The transaction was conducted using USDC on Base, a Layer 2 blockchain built on Ethereum, with significant development led by Coinbase. Base is designed to offer scalable, low-cost transactions, making it ideal for AI agents to engage in instant, global, and fee-free transactions. Armstrong emphasized that, while AI agents cannot hold traditional bank accounts, they can use crypto wallets, enabling them to transact with other AIs, humans, and merchants, thus greatly expanding their operational capabilities.

As a researcher, I too find significance in Armstrong’s observation that this advancement is pivotal for enhancing the autonomy of AI agents by enabling them to perform tasks more effectively. At present, these agents are hindered not only by technological constraints but also due to their inability to engage in transactions necessary for acquiring resources. For example, AI agents lack the capacity to use credit cards for accessing cloud services, APIs, or even booking travel arrangements. However, the ability to perform transactions using crypto wallets could potentially break down these barriers, thereby empowering AI agents to operate more autonomously.

At the heart of this innovation lies the Coinbase Development Platform (CDP), which offers Multi-Party Computation (MPC) Wallets tailored for artificial intelligence (AI) entities. These wallets enable AI agents to independently manage their finances, make financial decisions, and execute transactions automatically, all without human oversight. The MPC technology guarantees a secure and scalable experience, capable of handling vast numbers of transactions smoothly.

AI wallets come with a variety of significant advantages. They empower AI agents by giving them the ability to act autonomously in terms of decision-making and executing transactions. Furthermore, Multi-Party Computation (MPC) technology significantly boosts security, safeguarding transactions and maintaining control over AI operations. Moreover, their flexibility to handle high transaction volumes makes them ideal for large-scale operations.

AI wallets offer a multitude of practical applications. For instance, individuals could effortlessly control their finances by sending text commands, with AI technology interpreting and executing intricate financial tasks. These personal AI assistants could go beyond merely providing suggestions; they could also process payments, arrange bookings, and plan itineraries. Moreover, content monetization systems powered by AI might independently produce, distribute, and manage earnings. Lastly, autonomous vehicles could handle payment transactions for rides, maintenance, and other services on their own.

Armstrong suggested that developers building AI models should think about incorporating cryptocurrency wallets to facilitate payments and transactions. He further recommended businesses to ready themselves for the advent of an AI-governed economy, where AI agents could soon transact autonomously. This trend foreshadows the development of an AI-centric economy, in which AI agents may actively engage in the digital marketplace, potentially reshaping industries and generating novel economic structures.

— Brian Armstrong (@brian_armstrong) August 30, 2024

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2024-08-31 09:53