Coinbase makes history by executing the first AI-to-AI transaction using crypto.
This milestone is a remarkable one and will open an avenue for automated transactions in the cryptocurrency sector. It also demonstrates the capacity of artificial intelligence to alter the financial and cryptocurrency industry.
Taking to X to announce this great win, Brian Armstrong, CEO and Co-Founder of CoinBase said,
“What did one AI buy from another? Tokens! Not crypto tokens, but AI tokens (words basically from one LLM to another). They used tokens to buy tokens”
What was the motivation behind this project?
The CEO explained the limitation in the AI model which in turn is a limitation on technology as a whole, which is the fact that AI cannot transact to get certain tasks done; such as booking one’s flight or promoting a post on X with a paid ad, nor can they get through paywalls (for instance to read a scientific article), alongside a host of others.
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“This is an important step to AIs getting useful work done. Today if you give an AI agent a task and come back in a few days or hours, it can’t get useful work done. In part this is a limitation of the technology itself, and products like devin.ai are getting closer to this. But the other reason is AIs can’t transact to acquire the resources they need. They don’t have a credit card to use AWS, Github, or Vercel. They don’t have a payment method to book you the plane ticket or hotel for your upcoming trip. They can’t get through paywalls (for instance to read a scientific article), promote their post on X with a paid ad, or use the growing network of paid APIs to integrate data they need.”
This means that the limitations AI suffer in making transactions due to no access to traditional bank accounts is a thing of the past now. AI can now use crypto wallets instead; with USDC on the Base platform to make instant, global, and free transactions with humans too.
The CEO went further to urge developers working on AI models to make use of cryptocurrency wallets via Coinbase’s MPC (Multi-Party Computation) Wallets. He also advised businesses to prepare for AI-enabled checkouts, as the integration of financial services with AI might benefit all parties involved.
Reactions of Users on X (formerly Twitter)
X user Bitcoin Sage commented thus, “The AI-to-AI economy isn’t coming. It’s already here, and it’ll surpass your wildest expectations.”
“This transaction is the first domino in a chain reaction that will reshape our entire financial landscape.”
Another user AIRTOK official expressed concerns, “The crossover between AI and crypto is an interesting combination. Could the crossover of AI to AI replace the need for that? Could we live in a world where the AI’s are negotiating their own deals. Either way this will be an interesting concept to watch.”
What You Should Know
This achievement by CoinBase is the first of its kind. It also shows the possibilities that can be unlocked with the LLM — Large Language Model Agent technology onchain. While this new milestone appears to be a promising one, let’s see how its evolution and growth will happen.
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