Explained: Coinbase CEO’s Demonstration of First AI-to-AI Crypto Transaction

Brian Armstrong experimented with AI-to-AI crypto transactions using CoinbaseDev.

Updated: 3 September 2024 13:10 IST

Explained: Coinbase CEO’s Demonstration of First AI-to-AI Crypto Transaction

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Coinbase believes AI can manage finances and execute complex operations via text commands

Highlights

Coinbase is touted among world’s largest crypto exchanges
Coinbase used two AI bots to conduct this token transaction
Brian Armstrong advocates for integrating AI with crypto transaction

Coinbase CEO Brian Armstrong showcased the first-ever transaction of tokens between two Artificial Intelligence (AI) agents this week. In a playful post, Armstrong mentioned that one AI bought tokens from another AI. This milestone represents a significant step in exploring the possibilities of integrating AI with Web3. To facilitate such interactions, Coinbase has introduced a specialised toolkit called MPC Wallets, allowing developers to equip their AI protocols with crypto wallets for financial transactions.

Coinbase, based in the US, is one of the world's largest crypto exchanges. Brian Armstrong was able to experiment with AI-to-AI crypto transactions through the exchange's developer platform called CoinbaseDev.

Explaining the importance of crypto wallets Armstrong said, “AI agents cannot get bank accounts, but they can get crypto wallets. They can now use USDC on Base to transact with humans, merchants, or other AIs. Those transactions are instant, global, and free.”

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In his note, the Coinbase chief noted that this development is a step towards deploying AI to get useful work done.

How Was the Transaction Facilitated

Two AI bots were used to conduct this token transaction. Both bots interacted via crypto tokens to acquire AI tokens.

In Armstrong's words, “This week at @CoinbaseDev we witnessed our first AI to AI crypto transaction. 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.”

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https://t.co/0rn55uLf3n
— Brian Armstrong (@brian_armstrong) August 30, 2024

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Integrating AI with cryptocurrencies for transactional purposes could serve as an initial stride toward empowering AI agents to handle financial management and execute intricate tasks through simple text commands.

“Personal AI assistants that not only recommend services but also handle payments, booking, and planning. A self-driving vehicle that picks up drivers, receives payments, and pays for maintenance? The future may be closer than it seems,” a blog by Coinbase said.

Coinbase believes that integrating AI into the crypto space will empower AI to become ‘financially autonomous,' capable of managing millions of transactions on behalf of users.

A video proof of this AI-to-AI token transaction is available on GitHub. It provides detailed insights, especially for developers interested in testing Coinbase's MPC wallets toolkit.

Meanwhile, Brian Armstrong also advocates for integrating AI with crypto transactions. He emphasizes that Large Language Models (LLMs), which underpin popular AI platforms like ChatGPT, should be linked to crypto wallets.

Coinbase's MPC wallets service aims to assist LLM projects in seamlessly connecting crypto wallets to their respective protocols.

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