Biconomy Integrates AI Agents for Autonomous On-Chain Transactions
Summary:
Web3 infrastructure firm Biconomy is integrating artificial intelligence (AI) agents to handle on-chain transactions. The Delegated Authorization Network (DAN) acts as an authorization layer allowing AI agents to manage trading accounts autonomously, executing transactions per prior instructions. Using a process called sharding, authorization keys are fragmented and distributed across a decentralized network to ensure privacy. The rapidly growing market of AI agents is transforming the finance sector by automating trading, managing risks, and detecting fraud.
Biconomy, a company focused on Web3 infrastructure, is introducing artificial intelligence (AI) agents capable of performing on-chain transactions on behalf of users. Aniket Jindal, Biconomy co-founder, has shed light on Delegated Authorization Network (DAN), an emerging authorization layer allowing AI agents to handle trading tasks. With predefined permissions in a decentralized application (DApp), AI agents can independently manage trading accounts, adhering to prior directives. The DApp can take user-specific inputs about allocations and their desired trading techniques.
In essence, the DAN gives users the power to allocate transaction responsibilities and permissions to AI agents. The agents can then function within the limits defined by the users. As Jindal expounds, a user may instruct the AI agent conversationally like "Use my $1,000 for this strategy" or could offer more detailed controls through a customized dashboard.
These AI agents come programmed to autonomously or semi-autonomously carry out specific tasks on behalf of the users. These tasks can be simple and repetitive or intricate involving decision-making in fluctuating environments based on set parameters or past experiences. On one hand, AI agents are useful for refining asset allocation and portfolio management, whereas on other AI-powered trading bots are devised especially to automate the process of buying and selling assets.
To safeguard keys privacy, the network employs a sharding mechanism. As per Biconomy, for each user, a fresh delegated authorization key is created by the system. This key is then divided into multiple shards and is disseminated across a decentralized node network, ensuring no single node can access the complete key.
With the aim of maintaining each node's performance in the DAN network, DAN capitalizes on EigenLayer's reliable economic safety for Ethereum, as stated by Jindal. Validators in the EigenLayer network stake their Ethereum holdings, risking penalties if any malicious activity is identified.
The trend of utilizing AI agents, in particular for financial transactions, is on an upward trajectory. A study from Grand View Research predicts that the worldwide market for autonomous AI and autonomous agents will reach around $70.53 billion with a CAGR of 42.8% from 2023 to 2030. Financial institutions are increasingly making use of AI agents to automate trading, manage risks, and detect fraud among other applications.
Published At
6/11/2024 1:00:00 PM
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