Key Takeaways
- AI agents and blockchain technology have the potential to revolutionize the financial market in the years to come.
- There are various types of Web3 AI agents, including trading, DeFi, and social agents.
- AI agents are intelligent programs that feed on human data through LLM training models.
Have you ever wondered if you can automate all your processes and put them on autopilot for the month?
Imagine asking AI agents to book the best deals for a flight to Kenya for tourism or a vacation, and thousands of AI agents scour the internet for the best deals across different airlines traveling to Kenya within a specific timeframe.
Voilà, the AI agents find the best deals, carry out the transactions, and act as your assistant, taking away all the wait-lifting that comes with achieving your monthly or weekly targets.
That is where the world is rapidly tilting towards, with the emergence of Artificial Intelligence (AI) being widely accepted across the globe and utilized by many organizations to automate various processes. While this innovation has been welcomed, there have been significant controversies surrounding AI agents that may eventually replace human jobs.
However, the emergence of Google VEO3 has taken the world by storm, making it difficult to distinguish between videos created by humans and AI.
With just a few text prompts, you can generate videos with natural motion, high-tech lightning effects, and voiceovers that sound like humans.
The term’ AI agents’ is thrown around so easily these days, as many people are not familiar with what they are, how they work, and how we can harness their potential to automate tasks.
So, let’s slow down and break it down.
What People Think AI Agents Are
Many people think AI agents are browser extensions used for scraping emails on the Internet or fancy versions of chatbots that follow a fixed program or logic, such as answering a call or replying to emails.
Therefore, many have concluded that AI agents are rule followers based on scripts.
Far from this, AI agents are smarter and more advanced versions of Alexa, capable of making decisions based on their trained machine-level language and learning from human behaviour.
Does it mean AI agents can act like humans?
Yes, AI agents have been trained to search the web, write code, schedule meetings, and create artistic images or designs while working 24/7.
The rise of ChatGPT has produced a different world of AI agents and how they have simplified some processes for humans. Let us discuss how AI agents have been used with blockchain technologies to trade and automate trading processes.
What Are Web3 AI Agents and How Do They Work
Web3 AI agents are intelligent, autonomous programs designed to execute different tasks on the blockchain ecosystem.
Unlike Telegram bots, which work on pre-set rules, AI agents leverage human data feeds through Machine Learning (ML), large language models (LLMs), or Natural Language Processing (NLP) to analyze data and make decisions with little to no human intervention.
The cool part about all these executed tasks is that Web3 AI agents can interact with blockchain protocols, analyze DeFi yields, and carry out transactions while working nonstop 24/7.
These activities carried out by Web3 AI agents can be classified into different stages, highlighting how these technologies work.
How Do Web3 AI Agents Work?
Web3 AI agents work based on the following:
- Data gathering—The Web3 AI agent collects real-time data from different sources, such as blockchain explorers, DeFi protocols, social media platforms (X, Reddit, Discord), and market aggregators like CoinMarketCap or Coingecko, to understand its environment.
- Data Analysis—AI agents analyse data using AI models such as LLMs to predict patterns and trends, and investment opportunities for users.
- Execution—After carefully analysing these data, an AI agent interacts with different wallets, smart contracts, and protocols to execute transactions.
While AI agents have the potential to 10X your work rate, it is important to identify the type of AI agent you wish to use.
Let’s run through a few AI agents in the web3 world.
Types of Web3 AI Agents
- Trading and portfolio management – AI agents in the Web3 space can analyze trades, execute buying and selling for their users, and rebalance portfolios based on market conditions.
- DeFi Agents – Most agents in the Web3 space are designed to enable staking, farming, and spot high-yield returns on investment. These are the space’s main workhorses.
- Social Agents – Memes will eventually need automation. These AI agents scan social media feeds looking for trending narratives, thus helping users make investments in such a token.
The fusion of AI agents and blockchain technology is at the forefront of the next big wave of internet technologies and will continue to evolve following adoption. However, there are also underlying concerns for AI agents, such as exposing wallets and regulatory policies.
These technologies present groundbreaking potential to automate different industries, streamline operations, and create a paradigm shift for many institutions looking to adopt them.
