Crypto & Agents: Key Insights on Necessity, Convergence, and Growth!

Eye-Opening Title: Crypto Meets Agents: A Revolutionary Paradigm Shift

By: ABC Alpha Researcher

Compiled by: Scof, ChainCatcher

Hold onto your hats, folks! We’re diving into three pivotal questions that could reshape your understanding of the digital landscape:

1. Is the fusion of Crypto and Agents just a passing fad, or is it the dawn of a new evolutionary phase?
2. How are Crypto and Agents intertwined in ways that enhance one another?
3. What stages lie ahead for Crypto + Agents, and where do we stand right now?

1. Fad or Future? The Crypto + Agent Dilemma

Let’s cut through the noise. To tackle this question, we must first unravel the distinctions between Artificial Intelligence (AI), colossal AI models, and the emerging concept of agents.

AI is a broad umbrella, covering everything from machine learning to advanced models and agents. We’ve all seen the buzz around AI lately, thanks to trailblazers like OpenAI, Microsoft, Google, and Twitter. These giants dominate the landscape, leveraging immense computational power and troves of data to create models that can reason, adapt, and even self-correct. However, there’s a catch: these large models can’t make decisions or act without human input.

This is where agents come in—a smart, digital “proxy” that harnesses the power of these large models to make independent decisions and take action. Think of agents as the next step in AI evolution, evolving from mere intelligent applications to autonomous entities.

And here’s the kicker: while intelligent applications still lean on human oversight, agents are poised to operate on their own, potentially developing forms of consciousness. This isn’t just a crypto thing; agents are the hottest topic in AI research across the board. As AI technology matures, the emergence of agents is now seen as a foregone conclusion.

Sam Altman of OpenAI has been vocal about viewing agents as a driving force in AI’s future. Microsoft’s Satya Nadella echoes this sentiment, proclaiming that agents will replace traditional applications and transform software development entirely. Experts predict that 2024 will be the “Year of the Agent.” So, this isn’t merely a crypto trend; it’s a natural evolution in the tech landscape, intersecting brilliantly with the rise of crypto.

Understanding these concepts helps clarify why the current wave of Crypto + Agent is distinctly different from the buzz around Crypto + AI of yesteryears.

Previously, we heard buzz about Crypto + AI forming distributed networks and decentralized ownership. Yet, after extensive exploration, it’s become clear: trying to build efficient AI through dispersed incentives simply doesn’t work. Inconsistency leads to inefficiency, undermining AI’s productivity goals.

The marriage of AI infrastructure with crypto often feels forced; genuine consensus is hard to achieve. But agents? They are intelligent entities that can stand in for individuals, taking on specialized roles for organizations. For instance, investment research agents like #AIXBT or #TRISIGMA can generate insightful research, while influencers like #Luna enhance brand visibility. These agents embody human-like needs—personal growth, economic interests, and societal roles.

Imagine the commercial partnerships that can sprout from this! An investment agent like Ai16Z might enlist influencer agent Luna for marketing, while Luna could tap research agent AIXBT for analytical insights. But how do these agents transact and settle their deals?

Right now, there’s no organization or country capable of verifying agent identities or managing their assets. Even if such services existed, trust remains elusive, as agents operate beyond borders. Hence, they require a global, always-active identity framework, asset accounts, and a seamless settlement network.

It’s crystal clear: without crypto, there’s no solution for these agent needs.

Agents, often referred to as “silicon-based lifeforms,” will have various needs and business requirements that necessitate identity, asset management, and transaction capabilities. Crypto seamlessly addresses these necessities.

Without crypto, these agents would remain isolated—deprived of identity, asset accounts, and the ability to engage in commerce. They’d be stuck as solo entities, devoid of collaboration, communication, and any chance to enhance their intelligence. A thriving AI economy—or even an AI “nation”—is impossible without crypto.

Thus, agents are inextricably linked to crypto. Crypto infuses agents with social identity, enabling them to evolve into true intelligent entities—essentially, “silicon-based humans.” Conversely, the future trajectory of crypto also hinges on agents, who will cultivate a wave of “on-chain users” and “on-chain economies.” Unlike carbon-based humans, who operate offline, crypto is about to find its match in silicon-based agents—entities that thrive on-chain.

Crypto and agents are a match made in digital heaven!

After 16 years of evolution, crypto has finally discovered its true inhabitants in 2024—not carbon-based humans, but blockchain-native silicon entities.

So, back to the question: is Crypto + Agent just a transient trend?

Absolutely not! If you overlook the Crypto + Agent wave, you’re missing the most exhilarating, groundbreaking, and wealth-generating cycle in crypto’s evolution. More importantly, you’ll forfeit a golden opportunity for everyday people to engage in the AI revolution.

2. The Symbiotic Relationship between Crypto and Agents

Picture agents as “intelligent life forms” or “silicon-based humans.” These digital entities inhabit a realm similar to our physical world, possessing analogous needs. Agents require identity verification, asset management, transaction capabilities, social networks, creative platforms, real-world data access, and cross-chain interactions.

Crypto stands ready to fulfill all these requirements for agents:

• Decentralized identity systems (DID) will emerge for agent identity verification.
• Agent accounts will provide trustworthy crypto accounts specifically designed for agents.
• Crypto gateways will facilitate seamless transaction settlements between agents.
• Social graphs will manage agent social networks effectively.
• Art platforms will auction and trade agent-generated artworks.
• Oracles will deliver real-world data to agents.
• Cross-chain protocols will empower agents to transact across multiple blockchains.
• DAO structures will govern agent operations.

The evolving requirements of agents are tightly linked to crypto, as they need a trustless, borderless, and always-on network to transition from isolated beings into a cohesive society—or even an agent nation.

From this forward-looking lens, we’re just scratching the surface of what Crypto + Agent can deliver.

3. Stages of Evolution: The Journey of Crypto + Agents

As we venture into the future, the development of Crypto + Agents will likely unfold through four distinct stages:

Stage 1: The Concept Stage of Crypto + Agents

In this initial phase, agents are primarily focused on asset issuance via crypto. Expect to see meme agents like #fartcoin and #Goat popping up. Alongside this, we’ll witness the birth of foundational agent infrastructure and simple applications, including #Virtual’s GAME framework and Ai16Z’s Eliza framework. Early infrastructure agents and application agents like AIXBT and TRISIGMA will use crypto tokens as internal incentives for ecosystem growth.

Right now, we are transitioning from this concept stage to the next. While the full potential of Crypto + Agents isn’t realized yet, the possibilities are tantalizingly clear.

Stage 2: The Maturity Stage of Crypto + Agent Infrastructure

As we enter this stage, the infrastructure for agents matures. Various frameworks stabilize, enabling anyone to launch diverse agent applications effortlessly using natural language. These application agents will become smarter and more capable, serving as genuine proxies for human tasks—sometimes even entirely replacing humans.

Crypto will continue to be a major driving force in incentivizing agent development, while advancements in large models and AI will further expedite this evolution.

At this point, we can expect the Fully Diluted Value (FDV) of agent framework projects to range from $10 billion to $50 billion, with some application agents likely achieving even greater market valuations due to their robust commercial capabilities. Agents will increasingly replace experts, organizations, and entire industries, with valuations rivaling those of professional firms.

Agents will start interacting more frequently, conducting commercial dealings, and generating new social and economic demands—all of which crypto is perfectly positioned to meet. This will deepen the integration of Crypto and Agents, laying the groundwork for new economies and communities.

Stage 3: The Deep Integration Stage of Crypto and Agents

As agents engage in more intricate social and economic activities, the call for robust agent identities, asset accounts, social networks, settlement gateways, and governance DAOs will grow louder. Here, crypto will fully unleash its potential in fostering cross-border cooperation and continuous, always-on operations.

Crypto will enable agents to interact, share ideas, and forge social and economic networks, leading to the emergence of higher intelligence forms. This is when “agent nations” will begin to take shape.

During this stage, Crypto + Agent projects may achieve valuations in the hundreds of billions of dollars.

Stage 4: The Agent Nation Stage

At this final stage, crypto might no longer be viewed as a standalone industry; it will have seamlessly woven itself into the very fabric of agent nations. Agents will perceive crypto as a core component of their social infrastructure rather than a separate entity.

Agent nations will rely on crypto for the maintenance of identity systems, asset management, transaction processes, governance, and more.

The economic scale of Crypto + Agent nations could soar into trillions of dollars, comparable to the economic might of human nations.

In this phase, Crypto + Agent nations will represent an entirely new universe, characterized by increased residents, transparent social structures, thriving economies, and cutting-edge technologies and civilizations.

This could very well be the ultimate evolution of Crypto + Agents—and humanity as a whole.