Getting Started with Crypto AI Agents
AI agents have recently taken center stage in tech, not just crypto, as companies race to invest in software that can observe, reason, and act on its own. These systems, sometimes called autonomous agents, promise to transform day-to-day life – one day, they might plan our schedules, shop online for us, or even build software without our direct help.
A key spark came with ChatGPT, which turned advanced AI from a futuristic idea into a widely used tool, demonstrating that these models could learn and adapt in real time. As developers recognized that AI could do more than answer text prompts — such as handling tasks like managing calendars or coding — AI agents moved into the spotlight.
Though still in the early stages, the potential of these systems continues to be recognized. That being said, AI agents can be tricky to grasp initially. In this article, we’ll clearly define them, how agents differ from regular “bots” or “workflows,” before outlining the synergies they have with blockchains. Let’s begin!
🤖 AI Agents Explained
AI agents are dynamic software systems designed to handle tasks with minimal human oversight. They process data inputs — such as text, images, or blockchain records — using advanced AI tools to achieve specific goals. Unlike simpler bots, which follow rigid, rule-based automation, AI agents bring intelligence, adaptability, and autonomy to their tasks.
Agents can commonly be confused with bots, which are simply automation tools that execute functions based on predefined parameters. For example, a bot might follow a script to send alerts, place orders, or gather data when certain conditions are met, essentially operating through an “A action triggers B action” workflow. While efficient at repetitive tasks, bots operate strictly within the rules set by their creators and lack the ability to adapt or learn.
Agents, on the other hand, leverage advanced technologies like large language models (LLMs) to understand context, learn from interactions, and adjust to unforeseen circumstances.
This autonomy allows them to refine their approach in real-time to better achieve their objectives, even in constantly changing environments. By combining automation with intelligence, agents can handle complex tasks that require context awareness and intentionality, offering capabilities far beyond the limitations of traditional bots.
Over time, this flexibility could enable them to serve as personal assistants, financial managers, or autonomous problem-solvers across a range of applications.
How Do AI Agents Fit into Crypto?
While this cycle has been heralded as the AI x Crypto cycle for some time now, AI agents in particular have become wildly popular in our industry recently.
David Hoffman Mar 6, 2024 • 7 min read
While their initial use cases may look simple or, cue GOAT or other “chatbots,” the synergies between these two technologies prove to be more fundamental. To begin, as many agents provide services, they will also require payment, something which they are ill-equipped to receive with traditional finance infrastructure. For example, opening a bank account or signing a contract typically involves meeting a banker or notary. As AI agents are, in fact, not people, they do not hold a passport or any of the necessary documentation needed to be banked — making it difficult for them to interact with traditional finance and collect or make payments.
But, crypto solves this.
On blockchains, it does not matter if a participant is human or software, meaning an agent can own digital assets, pay or receive payment for services, or interact with smart contracts directly, solving the limitations imposed on them by the current financial system. Further, once these contracts are deployed, anyone or anything, including AI agents, can use them. This arrangement stands in contrast to traditional finance, where each new entity must apply and get approved, unlike on a blockchain where users — whether human or AI — have access to all the smart contracts operating on the blockchain.
Additionally, since many blockchains turn on open-source protocols, AI agents can potentially have a broader swath of tools to integrate with, providing them a broader toolbox to accomplish tasks onchain (or even offchain), thus enhancing their autonomy and expanding their potential impact.
Beyond enabling the economic rails needed for agents, blockchains play a critical role in addressing concerns about “black-box” artificial intelligence. With AGI becoming a matter of when, not if, many worry that AI in its current, opaque state could create major imbalances and cause unintended consequences that pose large threats to society. But, by running on decentralized networks, an AI’s operations are transparent and hard to monopolize, providing checks against abuse or single-point failure. Thus, crypto can act as a safeguard against this behavior, making AI’s and AI agents’ actions verifiable onchain.
Jun Dec 20, 2024 • 5 min read
Agents are a Big Deal
In short, AI agents are transforming how we think about software and automation by introducing intelligence, adaptability, and independence — expanding possibilities well beyond the predefined workflows typical of simple bots.
While agents can operate in dynamic settings, whether that involves planning, transacting, or interacting with real-world applications, by tapping into blockchains, these agents can overcome the limits imposed on them by traditional finance, vastly increasing their potential to offer services and accomplish goals. Coupled with the transparency of decentralized networks, this convergence of AI and crypto holds promise for an era where agents can confidently navigate financial services and keep their processes verifiable onchain. As both the capabilities of AI agents and blockchain ecosystems continue to evolve, their synergy is poised to reshape how we handle tasks at scale, on and offchain, forging a future marked by heightened intelligence and greater accomplishment.