Table of Contents
AI AGENTS: A DUMB DEFINITION
BRIEF HISTORY OF AI AGENTS
HOW AI AGENTS WORK: THE MECHANISM
AI AGENT USE CASES: THE ENDLESS POSSIBILITIES
HOW AI AGENTS COMPLEMENT BLOCKCHAIN SYSTEMS
AI AGENTS: THE VISION OF THE FUTURE
AI AGENTS: A DUMB DEFINITION
AI AGENTS are a hot topic on the blockchain and for good reason: in today's article, I will be telling you about AI agents, how they work and the different ways in which they transform blockchain systems.AI agents are programs that help to collect data, and use the data to perform specific tasks to meet predetermined goals. These agents carry out tasks by interacting with and learning from the immediate environment. AI agents use cutting-edge technologies like natural language processing (NLP), machine learning (ML), and neural networks. These technologies enable them to handle complex interactions, make context-aware decisions, and adapt their behavior over time. AI agents are used by individuals and businesses to automate tasks, but today we are focusing on their impact in the blockchain.
BRIEF HISTORY OF AI AGENTS
AI agents as a concept have been around for quite sometime now: In the 1950s to 1970s, researchers and scientists made groundbreaking progress in understanding human thinking and developing machines that could mimic human intelligence. Programs like Dendral(1965) which had the ability to identify unknown organic molecules and Eliza(1966), a chatbox which could simulate human responses were released in that era. In the 1970s to 1980s, expert systems were created. These systems used rule-based logic to emulate the decision-making abilities of human experts in specific domains. The 1990s came with a revolution: machine learning (ML) and neural networks. AI agents could now learn from data and experiences, improving their performance over time. From 2000 upwards, AI became somewhat more complicated because of the entry of big data and advanced machine learning. Since 2010, the integration of AI agents with the Internet of Things (IoT) and cloud computing has expanded their capabilities and applications to multiple industries including the blockchain.
HOW AI AGENTS WORK: THE MECHANISM
AI agents run on a mechanism that consists of algorithms and data inputs. They process data, interpret the data, decide on the next course of action and interprete the data. Here is the stepwise mechanism that keeps AI agents running.
Data collection: AI agents collect data from sensors or data intake mechanism. The data serves as a blueprint for subsequent actions
Processing and data analysis: Using machine learning and artificial intelligence algorithms, the AI agent examines and draws insights from the data.
Decision making: AI agents make decisions based on the already analysed data as well as predictive models and algorithms.
Action: Based on the analysed data and decisions already made, AI agents take definitive actions like automation of tasks, updating databases and collecting feedback from users.
AI AGENT USE CASES: THE ENDLESS POSSIBILITIES
AI agents have been successfully utilised in several fields, however their impact in the blockchain industry is second to none. Here are three main AI agent use cases with a focus on the blockchain.Investment: AI agents can be used to provide easy accessible opportunities for individuals with little to no knowledge about the blockchain to invest in cryptocurrency tokens. These agents can also be automated to help users track their investment portfolios and manage assets.Smart contract development: AI agents could be utilized to set up working smart contracts. In addition, smart contract applications could be further augmented with AI-powered APIs, which provide analytics of real-world sensors, sentiment analysis, or generative models, for the creation of innovative Web 3 decentralized applications(dAPPs)Trading: AI agents can help users seize market opportunities by trading round the clock and executing business transactions on behalf of users. These agents may be connected to exchanges using APIs and they make trades based off predefined market parameters. They may also be designed to take advantage of price differences on different decentralized exchange platforms(DEXs) for profitable trades.
HOW AI AGENTS COMPLEMENT BLOCKCHAIN SYSTEMS
AI agents are phenomenal: when incorporated into blockchain systems, there is no limit to the potential that AI agents provide. AI agents provide assistance for humans to carry out tasks and the blockchain provides a secure and transparent distributed ledger. AI agents when properly integrated on the blockchain can unleash a new wave of innovation in the world of Web 3. The combined market size of AI and Blockchain technologies is set to exceed a whopping $703 million in 2025: this shows a CAGR of 25.3% in the last five years. This is due to the many solutions that AI agents provide on the blockchain. A good example is transaction efficiency: AI agents can help identify redundant tasks carried out by nodes on the chain, and take action. This significantly reduces the cost and time duration for transactions. AI agents assist in the data mining process: AI agents on the blockchain streamline data operations and utilize unique search algorithms, reducing the time and energy spent on the data mining process. In addition, AI agents help improve security on the blockchain. AI agents help blockchain platforms become more secure by utilizing natural language processing, image recognition and real time data. AI agents on the blockchain enable data miners to convert large scale systems into micro-economic environments, securely optimizing data structures with the aid of the machine learning setup.
AI AGENTS: THE VISION OF THE FUTURE
AI agents have the potential to become the biggest new thing in the world of Web 3. Dr Andrew NG, founder of Deep Learning AI once said: “AI agent workflows will drive massive AI progress this year—perhaps even more than the next generation of foundation models. This is an important trend, and I urge everyone who works in AI to pay attention to it.” In the near future, it is likely that there will be many new innovative projects launched from AI agents on the blockchain.