Coinbase conducts its first AI-to-AI crypto transaction Coinbase conducts its first AI-to-AI crypto transaction
In the transaction, an AI bot used crypto tokens to purchase AI tokens from another bot.ย
2 min read
Updated: Aug. 31, 2024 at 10:45 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange Coinbase witnessed its first crypto transaction between artificial intelligence (AI) bots on Aug 30, CEO Brian Armstrong announced in a post on X.
He explained that one large language model (LLM) used crypto tokens to buy AI tokens from another AI bot. Bots are developed to carry out specific tasks โ in this case, to carry out crypto transactions.
While AI bots cannot have bank accounts, they can own crypto wallets. These AI bots will now be able to conduct transactions with humans, merchants, and other AIs. Armstrong noted:
โThose transactions are instant, global, and free.โ
According to Armstrong, AI agents are not currently effective because even when they are assigned a task and left alone for hours or days, they cannot seem to accomplish it. He said:
โToday if you give an AI agent a task and come back in a few days or hours, it can’t get useful work done.โ
Armstrong explained that this is because of the technology’s constraints. While certain companies, like Devin AI, are working on it, they are still far from accomplishing the goal.
He also believes that AI agents are ineffective because they cannot carry out transactions to acquire the required resources. For instance, if you ask an AI agent to book you a flight ticket, it will fail because it doesnโt have a credit card or any payment method. This also prevents them from promoting their post on X or other social media platforms through advertisements.
Armstrong believes that having AI agents that can conduct transactions will be a game changer and can benefit everyone. This is especially true for businesses who can use AI agents to make their shopping carts AI checkout enabled.
Development of transacting AI bots
Coinbase is not alone in trying to give AIs the power to conduct transactions. For instance, earlier this month, blockchain development firm Skyfire announced the launch of a payment platform that enables AIs to spend money.
In June, Biconomy, a Web3 infrastructure company, started onboarding AI bots. This allows users to delegate trading activities to AI agents, who can then conduct on-chain transactions.
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Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
