Crypto News Today- Biconomy Adds AI Agents to Improve On-Chain Transaction Efficiency

Crypto News Today- Biconomy Adds AI Agents to Optimize On-Chain Transaction Processes

Crypto News– Biconomy, a web3 infrastructure firm, is now integrating artificial intelligence (AI) agents into its platform to facilitate on-chain transactions for users.

According to Biconomy co-founder Aniket Jindal, they’ve introduced a Delegated Authorization Network (DAN), which is still considered relatively new. This network acts as an authorization layer, allowing users to delegate their trading activities to AI agents.

Jindal explained to Cointelegraph that with authority delegation, these AI agents can independently manage trading accounts and execute transactions based on pre-defined instructions. Once permissions are set within a decentralized application (DApp), users can provide personalized inputs to the AI agents, specifying allocations and trading strategies.

In simpler terms, DAN enables users to assign certain transactional tasks and permissions to AI agents, empowering them to act on the user’s behalf within specific parameters. For instance, users can instruct the AI agent through natural language like, ‘please utilize my $1,000 for this strategy,’ or they can have more detailed control through a settings dashboard.

AI agents are essentially programmed to carry out specific tasks either autonomously or semi-autonomously for users. These tasks can vary from simple actions, such as automating repetitive tasks, to more complex decision-making processes in dynamic environments, based on pre-defined criteria or learned experiences.

When it comes to AI agents versus AI-powered trading bots, the main distinction lies in the complexity and adaptability of their tasks. AI agents focus on optimizing asset allocation and portfolio management, aiming to enhance overall investment strategies. On the other hand, trading bots are specifically tailored to automate the process of buying and selling assets.

Now, let’s talk about how the network ensures privacy through a sharding mechanism. Biconomy has implemented a clever system where each user is assigned a unique delegated authorization key. This key is then broken down into smaller fragments, called shards, and distributed across a decentralized network of nodes. This ensures that no single node has access to the complete key, thereby enhancing the privacy and security of user transactions.

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