AI agents using smart contracts will revolutionize cryptography

The synergies between AI and crypto are very promising. In fact, the incoming Trump administration is combining the two sectors into an advisory office.

The president-elect calls him the “Crypto and AI Czar” of the White House. Trump’s appointee to the office, former PayPal COO David Sacks, has close ties to payments and crypto.

AI could transform digital assets

The AI ​​and cryptography brief posed the question, “Are AI agents the future of digital assets?” Virgin Islands-based crypto exchange for users outside the US says: Probably.

The memo defines AI agents as decentralized, self-governing, autonomous and intelligent software programs that can use the blockchain with some of the dexterity of a human.

Its owners can use AI agents for “tasks such as transaction execution and portfolio management to improve efficiency and scalability,” the industry paper says. Highlights a recent Stanford University press page announcing a research partnership with ai16z-linked Eliza Labs.

“Partnerships like Eliza Labs and Stanford University’s Future Digital Currency Initiative are advancing this intersection, while projects like AI16z highlight the potential of decentralized, self-governing AI agents to optimize blockchain networks,” says the document.

Further, the Bitfinex report says: “These AI agents are meant to perform tasks such as executing transactions, managing portfolios and optimizing investment strategies, with the potential to streamline operations while introducing new efficiencies “.

But it’s not all sunshine and rainbows. The report highlights significant risks and challenges that require “robust safeguards, ethical guidelines and security systems to prevent the misuse or exploitation of autonomous agents.”

What it could mean for altcoin prices

No fewer than 11 AI-focused, powered, or adjacent cryptocurrencies have already reached multi-billion dollar market caps. This is according to data from CoinMarketCap, which lists among these assets as:

Bittensor (TAO), Artificial Superintelligence Alliance (FET) and AIOZ Network (AIOZ).

Meanwhile, a meme coin, Goatseus Maximus (GOAT), exploded from nothing in October to over $1 per token and a total market cap of $1 billion in November. The rally was largely due to two AI agent chatbots that concocted a compelling origin story for the coin.

Automated, self-governing AI applications running on decentralized smart contract financial platforms like Ethereum and Solana could add similar value to these ecosystems. As a result, they could attract similar capital and liquidity to support their operations. This would introduce more long-term support for many altcoin prices.

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