Biconomy, a leading Web3 infrastructure company, is revolutionizing on-chain transactions by incorporating AI agents to execute transactions independently on behalf of users. This innovation utilizes the Delegated Authorization Network (DAN) as an authorization layer that facilitates these autonomous transactions. Aniket Jindal, co-founder of Biconomy, explains that DAN allows users to delegate trading tasks to AI agents, marking a significant advancement in the realm of decentralized finance.
What Does DAN Offer?
At the heart of DAN is the concept of delegating authority, enabling AI agents to oversee trading accounts and carry out transactions based on predefined user instructions. Through decentralized applications (DApps), users can grant permissions to AI agents to receive specific inputs regarding fund allocation and trading strategies. In this context, AI agents are programmed to perform a variety of tasks independently or semi-independently, ranging from automating routine actions to making complex decisions based on predefined criteria or learned behaviors.
Unlike traditional AI-powered trading bots that focus on asset buying and selling, AI agents provide more advanced asset management and portfolio optimization services.
Ensuring Secure and Private Transactions
Biconomy’s DAN ensures secure and private transactions through a sharding mechanism for key management. When a new authorization key is generated for a user, it is divided into multiple fragments and distributed across a decentralized node network to prevent any single node from having full access to the key, enhancing security. To maintain the integrity and performance of each node, Biconomy utilizes EigenLayer, a system based on Ethereum’s economic security that requires validators to stake Ethereum assets that can be forfeited in case of malicious behavior. This mechanism guarantees secure participation of AI in on-chain transactions without compromising self-custody principles.
Anticipated Growth
The financial sector is poised for substantial growth in the utilization of AI agents. According to a report by Grand View Research, the global market for autonomous AI and agents is forecasted to reach around $70.53 billion by 2030, with an annual growth rate of 42.8% from 2023 to 2030. Financial institutions are increasingly turning to AI agents to automate trading, manage risks, and detect fraud.
Biconomy’s integration of AI agents into on-chain transactions represents a significant leap in automating and enhancing financial activities in the Web3 ecosystem. DAN not only streamlines transaction management with a secure, autonomous, and user-friendly authorization layer but also showcases the broader potential of AI in revolutionizing financial operations.
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Disclaimer: The information provided in this article is not financial advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct thorough research before investing.
