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Coinbase Developer Platform Lead Says “Ton of Demand” for AI-crypto Transactions
- Coinbase has burst onto the AI crypto sub-sector, revealing the team has facilitated one of the world’s first AI-to-AI transactions using digital currencies.
- There is a “ton of demand” for such services, allowing traders to automate strategies with greater market depth and analysis compared to traditional trading bots.
- The potential for AI conducting crypto transactions is untapped, with thousands of use cases ready to be built over the coming decade.
- Coinbase are just one of several companies in this space, with Valory and Olas successfully finalising over 1 million AI-based crypto transactions in the past 12 months.
Hmmm. It appears that the robots now have a mind of their own and plan to take over. But in a huge surprise, their goals aren’t to destroy human civilisation or enslave the population – rather, it appears they’d simply like to control their own finances.
Last week Brian Armstrong, CEO of Coinbase, announced that his company conducted one of the first AI-to-AI crypto transactions ever recorded.
At first glance, this seems a bit silly. What business does AI have making transactions with one another?
But the realities of the technology are wildly impressive, and could shape the AI/crypto landscape as we know it.
Related: Skyscanner, Travala Working on Crypto Payments for Flight Bookings
Huge Demand and Potential Use Cases for Bots Using Crypto Wallets
Following up on the groundbreaking news, Coinbase Product Lead Nemil Dalal sat down with CNBC to discuss the importance of AI autonomously completing Web3 transactions.
Despite the novelty of the concept, Dalal argued that the demand for such technology was already thriving, with big financial players predicting that AI and crypto could add trillions to the global economy by the end of the decade.
He also noted an influx of devs utilising Base (Coinbase’s L2 scaling chain for Ethereum) to build AI-based programs that can use crypto wallets.
Dalal mentions three main types of use cases for bots being able to transact with crypto wallets:
- Humans paying AI to conduct various services, such as automated trading, data analysis and even personal assistants.
- AI paying humans as incentives for content creators, advertising revenue and so on.
- AI paying AI to perform “specialised tasks” which could be useful in creating decentralised financial models.
Coinbase Not the Only Players Revolutionising AI Crypto
While Coinbase claims to be the leader in the AI-to-crypto space, other innovative businesses have been eyeballing bot autonomy in Web3 earlier than this year.
Fintech company Valory, leveraging the Olas protocol, has been conducting similar test transactions since 2023. The team is a “decentralized autonomous organization (DAO) dedicated to pioneering co-owned AI.”
Their work has already proven the potential that crypto-to-AI transactions boast for adoption.
Valory and Olas have created several products, including Olas Predict, which has already facilitated over one million transactions – according to data analysts Dune. Here, the AI specialises in trading prediction-based markets
The team has also helped develop a dedicated “AI agent marketplace”, AI Mechs. This allows Web3 users to complete tasks off-chain (typically building language models) without needing to purchase multiple APIs – reducing costs and improving efficiency for all.
The untapped potential of AI and crypto is still great, but the forward-thinking work of companies like Olas, Valory and Coinbase are going a long way to making the SciFi future a reality.
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Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
