Biconomy, a leading Web3 infrastructure company, is revolutionizing on-chain transactions by incorporating AI agents to execute transactions independently on behalf of users. This innovative approach utilizes the Delegated Authorization Network (DAN) as an authorization layer to facilitate these autonomous transactions. Aniket Jindal, the co-founder of Biconomy, explains that DAN is a cutting-edge development that enables users to delegate trading activities to AI agents.
What Does DAN Offer?
The fundamental concept behind DAN is the delegation of authority, allowing AI agents to oversee trading accounts and conduct transactions based on predefined user instructions. Once permissions are set up within a decentralized application (DApp), AI agents can receive specific inputs from users regarding fund allocation and trading strategies. In this context, AI agents are programmed to carry out tasks autonomously or semi-autonomously, ranging from automating repetitive actions to making complex decisions based on predefined criteria or accumulated learning.
Compared to traditional AI-powered trading bots that typically focus on automating asset buying and selling, AI agents offer a more advanced approach to asset allocation and portfolio optimization.
Securing and Ensuring Privacy in 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 pieces and distributed across a decentralized node network to prevent any single node from having complete access to the key. This enhances security by preventing any node from compromising the key.
To uphold the integrity and performance of each node in the DAN network, Biconomy utilizes EigenLayer, which relies on Ethereum’s economic security. Validators in the EigenLayer network are required to stake Ethereum assets that can be slashed in case of malicious activities, ensuring that AI can securely participate in on-chain transactions without compromising self-custody principles.
Anticipated Growth
The financial sector is poised for substantial growth in the adoption of AI agents. According to a report by Grand View Research, the global market for autonomous AI and agents is projected to reach approximately $70.53 billion by 2030, growing at an annual rate of 42.8% from 2023 to 2030. Financial institutions are increasingly leveraging AI agents to automate trading, manage risks, detect fraud, and more.
Biconomy’s integration of AI agents into on-chain transactions represents a significant advancement in automating and enhancing financial activities within the Web3 ecosystem. DAN not only streamlines transaction management by providing a secure, autonomous, and user-friendly authorization layer but also demonstrates the extensive 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 their own research before making investment decisions.
