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Coinbase Powers First AI-to-AI Crypto Transaction

Published

3 weeks ago

August 31, 2024

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On August 30, 2024, Coinbase, the US’ largest publicly traded crypto exchange, managed the first AI-to-AI crypto transaction.

This milestone, announced by Coinbase’s CEO Brian Armstrong, represents a significant leap toward a future where artificial intelligence’s intersection with the crypto industry is becoming more evident.

Coinbase Leverages AI Agents for Transactions in a Decentralized Economy

Coinbase conducted its first AI-to-AI crypto transactions using the Base Sepolia Network. Known for its scalability and low transaction costs, Base Sepolia provided the ideal environment for this event.

Coinbase employed its advanced Multi-Party Computation (MPC) technology to create a secure AI agent wallet. This ensured the transaction remained controlled and tamper-proof.

After creating and funding a wallet using a faucet method, the AI agent could seamlessly transfer crypto assets to another wallet. This wallet could belong to either a human user or another AI agent. It demonstrated the versatility and potential of AI-to-AI transactions in a decentralized ecosystem.

The concept of AI agents conducting transactions autonomously is revolutionary. Traditionally, AI has been limited to processing information and making decisions based on pre-programmed algorithms. However, with the ability to manage and transfer assets without human oversight, AI agents can now operate within decentralized financial systems.

This development enables AI agents to transact with other AI entities, humans, and merchants. Furthermore, it allows AI agents to acquire resources, pay for services, and perform tasks that require financial transactions. All of these transactions can happen without human intervention.

“This is an important step for AIs to get 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 that 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 the data they need,” Armstrong elaborated.

AI Agents in the Crypto Economy: Opportunities and Obstacles Ahead

In a December 2023 report, Mason Nystrom, a Junior Partner at Pantera Capital, noted how bots have evolved into “robust AI agents” capable of autonomously handling complex tasks and making well-informed decisions. Nystrom also emphasized that building AI agents on cryptonative rails offers several key advantages. One of the primary benefits is AI agents’ ability to access capital through native payment rails, such as cryptocurrencies.

“Crypto rails present a meaningful improvement for giving AI agents access to capital over having them obtain access to bank accounts or payment processors (e.g. Stripe), or deal with the vast majority of other inefficiencies that exist in our offchain world,” he wrote.

Additionally, AI agents with wallet ownership gain the ability to hold digital assets, such as NFTs or yield-bearing tokens. This grants them digital property rights inherent to crypto assets. Such capability is particularly important for agent-to-agent transactions, where verifiable and deterministic actions are crucial.

“On-chain transactions are deterministic in nature—they either happened or didn’t—which means AI agents will be able to more accurately complete tasks on-chain than off-chain,” he remarked.

Evolution of AI Agents in Crypto-Economy. Source: Mason Nystrom

Despite AI agents’ promise in the crypto economy, Nystrom also identified significant challenges and limitations. One major limitation is that AI agents need to perform complex logic off-chain to optimize efficiency.

While on-chain transactions are deterministic and verifiable, the computational logic required for decision-making and task execution often needs to be processed off-chain. This condition introduces a layer of complexity and potential vulnerability, as the off-chain components may not have the same level of security and transparency as on-chain transactions.

Additionally, the quality of the tools given directly influences the effectiveness of AI agents. For example, an AI agent tasked with summarizing real-time news events needs access to web scraping tools, while an agent that engages in trading requires a wallet with key signing permissions. This reliance on external tools means that the capabilities of AI agents are inherently limited by the resources and infrastructure available to them.

Moreover, ensuring these tools are secure, reliable, and integrated seamlessly with blockchain technology remains a significant challenge.

Coinbase’s latest initiative also strengthens the narrative of the intersection between AI and crypto, specifically blockchain. According to a January report from Grayscale Research, the intersection of AI and crypto could offer significant benefits in mitigating societal issues associated with AI. These problems include spreading misinformation and deepfakes.

Galaxy Digital Research adds another dimension to this discussion. It points out that blockchains can serve as a transparent, data-rich environment that AI models require for optimal performance. Although blockchains have limited computational capacity, their transparency and decentralized nature make them ideal for integrating AI in a way that enhances both security and trust.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Ethereum Price Reaches $2,500 Again: Will The Uptrend Hold?

Published

3 mins ago

September 20, 2024

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Este artículo también está disponible en español.

Ethereum price started a fresh upward move above the $2,420 resistance. ETH traded close to $2,500 and is now consolidating gains.

Ethereum started another increase from the $2,320 resistance.
The price is trading above $2,400 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $2,385 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear the $2,480 resistance to continue higher in the near term.

Ethereum Price Surges Over 8%

Ethereum price remained well-supported and extended its increase, beating Bitcoin. ETH was able to clear the $2,350 and $2,420 resistance levels.

There was a sharp move, and the price gained nearly 10%. It traded close to the $2,500 resistance zone. A high was formed at $2,493 and the price is now consolidating gains. There was a minor decline below the $2,460 level. The price tested the 23.6% Fib retracement level of the upward move from the $2,277 swing low to the $2,493 high.

Ethereum price is now trading above $2,440 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $2,385 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $2,277 swing low to the $2,493 high.

On the upside, the price seems to be facing hurdles near the $2,480 level. The first major resistance is near the $2,500 level. The next key resistance is near $2,550.

An upside break above the $2,550 resistance might call for more gains. In the stated case, Ether could rise toward the $2,650 resistance zone in the near term. The next hurdle sits near the $2,750 level or $2,800.

Are Dips Limited In ETH?

If Ethereum fails to clear the $2,480 resistance, it could start a downside correction. Initial support on the downside is near $2,440. The first major support sits near the $2,385 zone and the trend line zone.

A clear move below the $2,385 support might push the price toward $2,320. Any more losses might send the price toward the $2,250 support level in the near term. The next key support sits at $2,200.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,385

Major Resistance Level – $2,500

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Market

$26 Million Stolen in BingX Hack Amid Ongoing Crypto Attacks

Published

1 hour ago

September 20, 2024

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The crypto exchange BingX reportedly lost over $26 million in various digital assets early Thursday morning. This incident adds to a troubling week for crypto platforms as multiple hacks continue to expose vulnerabilities within the sector.

PeckShield, a blockchain security company, initially detected suspicious transactions at approximately 00:37 UTC. Initial reports suggested an outflow of around $13.6 million.

BingX Has Paused Withdrawals

Following this, several crypto security platforms conducted a more thorough examination and confirmed that BingX had been compromised. On-chain analysis firm Lookonchain detailed the stolen assets, which included over 360 different altcoins. The stolen funds were swiftly transferred to the wallet address ‘0xF7e8’ before being exchanged primarily for Ethereum (ETH) and BNB.

The detailed breakdown of the stolen assets includes:

4.44 million USDT ($4.44 million),
1 million WUSD ($1 million),
608,660 USDC ($608,660),
9.38 BTCB ($590,000),
along with numerous other tokens making up the substantial remainder.

In response to the breach, BingX’s Chief Product Officer, Vivien Lin, confirmed the hack and announced the suspension of all withdrawals to mitigate further risks.

“Our technical team detected abnormal network access, suspecting a hacker attack on BingX’s hot wallet. We immediately started our emergency plan, including the urgent transfer of assets and withdraw suspension. There has been minor asset loss, but the amount is small and still being calculated,” Lin wrote on X (Twitter).

Despite the significant amount lost, Lin assured users that BingX would cover the full amount of the stolen assets with its own capital reserves. Furthermore, she committed that BingX will resume withdrawals within 24 hours. This swift response aims to restore trust and stabilize operations after the incident.

Moreover, this week’s hack at BingX is part of a larger trend of increased attacks on crypto platforms. Just earlier this week, DeltaPrime, a decentralized finance (DeFi) protocol on the Arbitrum chain, reported a loss of $5.9 million due to suspicious transactions.

Additionally, last week, the Indonesian exchange Indodax also faced a severe security breach, resulting in a loss of over $20 million. In each instance, the intrusions were identified by blockchain security firms after funds had been illicitly transferred and converted across multiple networks.

These recurring incidents have spurred calls for enhanced security measures across the cryptocurrency industry. Consequently, experts stress the importance of exchanges and protocols implementing strong security frameworks to protect against the sophisticated tactics employed by hackers today.

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Bitcoin Price Pushes Higher As The Bulls Set Sights on $65K

Published

2 hours ago

September 20, 2024

admin

Este artículo también está disponible en español.

Bitcoin price gained pace above the $61,500 resistance. BTC even cleared the $63,300 level and is now consolidating gains above $62,500.

Bitcoin is gaining pace above the $62,200 resistance zone.
The price is trading above $62,500 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support at $61,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend gains if it stays above the $61,500 support zone.

Bitcoin Price Extend Gains Above $63,000

Bitcoin price extended its increase above the $60,500 level. BTC was able to clear the $61,200 and $61,500 resistance levels to move into a positive zone.

The bulls pumped the price above $62,500 and $63,000 levels. A high was formed at $63,840 and the price is now consolidating gains. There was a move below the $63,500 level. The price dipped and tested the 23.6% Fib retracement level of the upward move from the $59,165 swing low to the $63,840 high.

Bitcoin is now trading above $62,500 and the 100 hourly Simple moving average. There is also a major bullish trend line forming with support at $61,500 on the hourly chart of the BTC/USD pair.

Bitcoin Price — Source: BTCUSD on TradingView.com

On the upside, the price could face resistance near the $63,500 level. The first key resistance is near the $63,800 level. A clear move above the $68,400 resistance might send the price higher. The next key resistance could be $64,500. A close above the $64,500 resistance might spark more upsides. In the stated case, the price could rise and test the $65,000 resistance.

Are Dips Limited In BTC?

If Bitcoin fails to rise above the $63,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $62,700 level.

The first major support is $61,500 and the trend line. The next support is now near the $61,000 zone or the 61.8% Fib retracement level of the upward move from the $59,165 swing low to the $63,840 high. Any more losses might send the price toward the $60,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $62,700, followed by $61,500.

Major Resistance Levels – $63,500, and $63,800.

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