For every legitimate blockchain project that combines artificial intelligence (AI) and crypto to create a better world, there are numerous projects that simply use the buzzwords “AI” and “Crypto” to sell tokens. However, experts in both AI and crypto believe that the two technologies can complement each other and have identified genuine use cases for AI in the crypto and blockchain space.
One of the key reasons why AI and crypto are a good fit is that crypto can serve as the preferred currency for AI agents. Circle boss Jeremy Allaire, former BitMEX CEO Arthur Hayes, and Animoca Brand’s Yat Siu all believe that crypto is the logical choice for AI agents to transact with each other. Crypto wallets provide a means for AI agents to make payments, interact with smart contracts, and engage in decentralized finance (DeFi) protocols.
Trading bots that buy and sell crypto already account for a significant portion of spot volumes, and it is expected that more intelligent AI agents will replace these automated bots in the future. However, it is important to note that entrusting funds to an AI-controlled agent still carries risks.
Integrating crypto payments with AI is relatively straightforward. Lightning Labs has released developer tools that enable AI models like GPT-4 to buy, sell, and hold Bitcoin using the layer 2 network. Other companies like Fetch.Ai and Syndicate.io offer services that allow AI agents to make payments on behalf of users.
While AI can easily use crypto at present, banks are also exploring the use of AI for various purposes, such as fraud detection. Payment companies like Brex are integrating AI with corporate bank accounts to enable automatic payments. Additionally, researchers have trained an AI agent to search and purchase products on Amazon within a given budget. Fiat currency still has advantages when dealing with businesses in the real world until crypto payments become more widely accepted.
In conclusion, while there are many projects that simply capitalize on the hype around AI and crypto, there are genuine use cases for combining the two technologies. Crypto can serve as the preferred currency for AI agents, enabling them to make payments, interact with smart contracts, and engage in DeFi protocols. However, it is important to approach AI and crypto projects with caution and not believe all the hype surrounding them.