The best money for AI is crypto – Cointelegraph Magazine.

For every real blockchain project that uses artificial intelligence to create a better world – like Dr. Ben Goerzel's Singularity.net – 100 coins like AI Doge combine the words “AI” and “Crypto” with dash symbols.

“These are the basic terms,” ​​says blockchain co-founder Ilya Polosukin, who worked on the “all you need is attention” research that led to big language models like ChatGPT and Cloud.

As one of the few people in the world to master AI in crypto, as Polosukin says, if you ignore the hype, the technologies are a perfect fit.

“There are a lot of unique things in AI and Web3 that can use or benefit from each other,” he says.

The magazine spoke with Polosukin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma from Quantstamp, Ralf Kubli from Casper and others to explore the key to hysteria-free, real-world use cases of AI in crypto and blockchain.

Next week we will present a real use case for AI in everyday crypto.

The best currency for AI is crypto.

Everyone from Crib boss Jeremy Allaire to ex-Bitmax CEO Arthur Hayes to Animoka brand Yat Siu is convinced that crypto will become the currency for AI agents.

After all, LLMs don't have access to bank accounts, but they can easily make payments using a funded crypto wallet, and are well-suited to interacting with the logic of smart contracts and DeFi protocols.

The people who represent the funds in the wallet can come up with general strategies and rules, and then see how the AI ​​agent performed using the transparent record on the blockchain.

Allair says AI “and blockchains are made for each other,” adding that the technology is ideal for “machine-generated and enforced contracts” and “machine-to-machine transactions.”

Totally agree. AI and Blockchains are made of each other. Data provenance, machine generated and executed contracts, and machine to machine value exchange. We're hearing about AI bots running on chain wallets and using USDC.

— Jeremy Allaire (@jerallaire) May 25, 2023

Hayes believes Bitcoin is the most logical payment system for AI because it is “available at any time, digital and fully automated” and allows AI to pay for “information and computing power to ‘stay alive.'”

That said, Hayes also thinks that AIs will live for trillions of years “until the death of the heat of the universe”, and LLMs, therefore, can be mined by robots, like Bitcoin. So sometimes Hayes' ideas tend to get away from him.

Yat Siu, executive chairman and founder of Animoka Brands, believes that crypto is the only logical way to trade “in the future as independent entities”.

“In the future, 70-80% of transactions will be done by autonomous AI agents and the decentralized nature of crypto makes it a perfect match.”

But don't take the naysayers' word for it: ChatGPT also chooses crypto as its preferred currency without any knocks in that direction.

Trading bots that can buy and sell crypto already occupy up to 80% of the space, and it is likely that these existing automated bots will gradually be replaced by smarter AI agents. (Be warned, however, that LLM-based trading experiments such as the Autopilot GPT Portfolio have seen mixed results so far, so putting your funds under AI control will be a risky proposition for some time.)

Members of The DAO have begun experimenting with allowing AI to determine whether a particular new project meets the appropriate grant criteria to be funded independently of the Treasury.

How to add Bitcoin and crypto payments to an AI agent

It is definitely easier to integrate crypto payments with AI. Lightning Labs has released developer tools that allow you to buy, sell, and hold bitcoins using the GPT-4 Layer 2 network. And AI startup Fewsats has already created an agent that can pay Lightning Network bills.

I don't want you to panic, but my @OpenAI agent paid the LN invoice 👀

First time #ChatGPT paid in #Bitcoin? pic.twitter.com/811JdtJ3iB

— fewsats (@fewsats) November 14, 2023

Fetch.Ai provides a service where you can create an AI agent that can make payments on your behalf.

Syndicate.io founder Ian Dao Li blogged about how he was able to knock out GPT in a few hours using OpenAi APIs and Syndicate's Transaction Cloud, which can automatically execute USDC payments from Safe Wallet Base. network.

He is excited about the possibilities this holds. “The ability of AI to pay for things, hold things of value, exchange value, or create things of value—by itself or on behalf of others—is how AI gains true agency,” he said.

Some of the most interesting ideas open up not only when AI agents can transact with people, businesses, or other AI agents, but also when AI agents manage things of value and transact on their own behalf.

Lee believes that in the future, AI agents will be able to autonomously buy things, manage the finances of people and organizations, decide and issue financial approvals, or generate effort and wealth to help others.

However, AIS, like people, are stingy with their money, so they avoid giving $3 to charity.

Don't believe the rumors

While AI can now be used more easily in crypto, banks seem eager to adopt AI for a variety of uses and are already using it extensively to detect financial fraud.

Payments companies like Brax are working on integrating AI with corporate bank accounts to enable AI agents to automatically make payments in certain situations, such as travel expenses.

And a team of researchers recently published a pre-publication detailing how they successfully trained an AI agent called MM-Navigator to search and shop through Amazon within a limited budget.

Until crypto payments become widely accepted, fiat still has many advantages when dealing with real-world businesses.

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Andrew Fenton

Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a film journalist for News Corp Australia, SA Wind and national entertainment writer for Melbourne Weekly.

Follow the author @andrewfenton