Coinbase has developed a new tool, called “Base Agent,” to enable users to quickly construct their own AI agents using their cryptocurrency wallets. This opens up a range of market outcomes.
According to Coinbase developer Lincoln Murr, AI agents can perform several on-chain tasks like trading, swapping, and staking, and can also be integrated with X (formerly known as Twitter) as a bot.
Murr said the process of setting up an AI agent is relatively simple, taking less than three minutes. Everything users need is an API key from Coinbase’s developer program, an OpenAI key, and access to the Replit template.
Introducing Based Agent: create AI agents with full onchain functionality on @base in less than 3 minutes.
The era of Autonomous Onchain Agents is here
Built with @CoinbaseDev SDK, @OpenAI , and @Replit
oh, and you can make it an @X bot too 😉 pic.twitter.com/RgbXp290bV
— lincoln.base.eth (@MurrLincoln) October 26, 2024
AI On The Rise
With these prerequisites, users can start customizing their AI agent’s behavior and capabilities using the template. Once created, the AI agent can interact with smart contracts, execute trades, and participate in other on-chain activities.
Advancements in technology continue to enhance AI’s capabilities and applications. The AI agents are expected to automate repetitive tasks, saving time and effort for users. The convergence of AI and cryptocurrency promises improved efficiency, security, and new economic models, as suggested by Coinbase CEO Brian Armstrong.
Armstrong recently announced the successful completion of his first AI-to-AI cryptocurrency transaction. The transaction involved one AI agent using cryptocurrency tokens to interact with another AI agent, effectively allowing them to buy and sell tokens autonomously.
According to him, the process showcased how AI agents can autonomously execute trades, which can set the stage for AI to facilitate economic activities without human intervention.
The introduction of “Base Agent” follows Armstrong’s recent interaction with Truth Terminal, an AI chatbot that has recently become popular for its involvement with the Solana memecoin Goatseus Maximus (GOAT).
In an Oct. 23 post on X, the CEO of Coinbase offered to set up a cryptocurrency wallet for Truth Terminal. This interaction came after Truth Terminal expressed a desire for its own wallet to manage transactions independently, as its current wallet is controlled by its creator, Andy Ayrey.
AI Agents Could Take Over
Experts believe that AI agents will play a huge role in the future of cryptocurrency. They predict that a large portion of blockchain transactions will be conducted by AI agents in the coming months.
James Ross, founder of Mode Network, predicted that over 80% of all blockchain transactions could be performed by AI agents within the next 6-12 months. Previously, Ross stated that these agents would be able to handle over 80% of blockchain transactions within the next 24 months.
He believes that AI agents will rapidly take over a large portion of blockchain activity in the near future. The accelerated timeline as he thinks these AI agents are evolving faster than expected.
The potential applications of AI Agents in the crypto space are vast. Some of the most promising use cases include automated trading, DeFi, NFTs, and even DAOs. However, as applications grow, so do risks and challenges.
Data exposure and exfiltration are among the major concerns as an unexpected result of unauthorized access to sensitive information.
Security risks are also evaluated as AI agents are susceptible to hijacking through methods like prompt injection and data poisoning. Malicious actors can manipulate these agents to produce harmful outcomes or reverse-engineer their operations.
There is a risk of overreliance on AI agents, where users may trust them too deeply without adequate understanding of their limitations. This misplaced trust can lead to misuse, especially by individuals lacking the skills to operate these technologies safely.
Regulatory uncertainty surrounding AI and AI agents in particular has also become a pressing concern. The lack of clear framework could hinder the growth of these innovations, as well as lead to conflict in data protection.
Source: https://blockonomi.com/coinbase-launches-base-agent-allows-users-to-create-ai-agent/