AI Bots in Crypto Transactions
AI crypto transactions refer to the use of artificial intelligence (AI) to manage transactions and trade on blockchain platforms. Let’s remember the early days of decentralized exchanges (DEXs), such as Etherdelta on the Ethereum network, where the first AI tools — bots — played a key role. These bots analyzed the order books ( Eng. Order books), track price changes and execute trades automatically, eliminating the need for human intervention. While they weren’t very sophisticated at first, these bots demonstrated the potential of AI to speed up and optimize blockchain transactions, making them faster and more accurate.
Source: cointelegraph
AI-driven projects
As artificial intelligence technology has advanced, so have AI bots, today there are already multifunctional systems capable of complex processes. Examples of projects that use AI in blockchain transactions include:
- Fetch.ai: This project uses autonomous AI agents that act on behalf of the user to execute real-time transactions. From optimizing logistics to managing DeFi transactions, these bots operate independently, communicating with other agents within the network to make processes as efficient as possible.
- Numerai: A platform that runs on its own blockchain, Erasure, allows data scientists to use AI models to predict stock market movements. Based on AI predictions, transactions are executed on the blockchain, making Numerai a fusion of AI technology and decentralized finance (DeFi).
These projects are not just theory; They have seen a steady increase in the number of users and the volume of transactions. For example, Fetch.ai autonomous agents are increasingly being applied outside the financial sector, in industries such as transportation and supply chain management.
Source: cointelegraph
AI bots interacting with other AI bots
A particularly interesting area of development is the interaction of AI bots with each other. This is no longer just a theory — Coinbase, a leading cryptocurrency exchange, has made significant progress in integrating artificial intelligence and blockchain technology. Coinbase’s CEO, Brian Armstrong, oversaw the first crypto transaction entirely driven by AI bots, demonstrating AI’s capabilities in automating and executing blockchain transactions without human intervention.
In that transaction, one AI agent — a specialized bot — used crypto tokens to communicate with another AI agent and purchase AI tokens. These AI tokens are designed to allow algorithms to learn and adapt based on the processed data. Armstrong pointed out that while AI agents don’t have traditional capabilities like bank accounts, they can use crypto wallets on the Base platform for global and free transactions with humans, traders, or other AI agents.
Source: cointelegraph
Problems of AI bots on the blockchain
While AI bots bring significant benefits to blockchain transactions, their use also carries a number of challenges that are important to understand. One of the main problems is frontrunning, where the bot recognizes an upcoming transaction and places its own before it to take advantage of price changes. This is a common problem on the Ethereum network, where the amount of transaction fees determines the order of transactions. Well-funded bots often manipulate the system by paying higher fees to gain an advantage.
Transparency is another challenge. Many AI bots use algorithms, which leaves users with little insight into how decisions are made. This can be problematic, especially in regulated industries like financial services, where AI decisions are required to be explainable. Given that bots analyze huge amounts of data, providing such explanations is often very difficult and even unfeasible.
Sensitivity to volatility also poses a risk. While fast and efficient, AI bots are not immune to sudden changes in the market. In conditions of high volatility, they can make decisions that result in higher losses, especially in DeFi markets, where price fluctuations are common.
Finally, there are security risks. Blockchain platforms are often targeted by hackers, and AI bots are no exception. Attacks such as flash loan exploits have shown that even the most advanced systems can be compromised, which can lead to large financial losses.
Source: cointelegraph
How AI Improves Blockchains
Despite the risks, the benefits of using AI for blockchain transactions are obvious. AI bots bring exceptional efficiency, completing tasks in milliseconds, while humans would take significantly longer to do the same activities.
By automating repetitive activities such as arbitrage, liquidity management, and trade execution, AI allows resources to be redirected to more complex decision-making processes. In the DeFi sector, AI improves liquidity by dynamically adjusting positions based on real-time market data.
Additionally, AI agents autonomously perform tasks such as optimizing supply chain operations, reducing the need for human engagement and costs, while increasing the overall efficiency and speed of transactions within the blockchain ecosystem.
Source: cointelegraph
The Future of AI Bots on Blockchain
The role of artificial intelligence in blockchain transactions will continue to grow. The early stage of adoption, where bots served exclusively as tools for traders, is growing into something much bigger. Autonomous agents and AI-driven decentralized platforms are creating ecosystems where AI can perform most tasks independently.
As AI bots become more intelligent, we can expect more complex interactions such as trading between different blockchains and real-time liquidity optimization across multiple platforms. Already now, some projects show that AI can surpass the financial sector, affecting industries such as logistics and healthcare. With advances in ensuring fast and secure transactions, blockchain ecosystems are likely to experience an increase in users and scalability.
While challenges remain, the success of AI in blockchain increasingly points to a future in which AI is taking the lead. Independent decision-making, executing trades, and interacting with other AI bots highlight the potential for fully autonomous AI-driven blockchain systems. We hope you have learned something new and useful in today’s blog. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).
