we'll use ai , agent and llm interchangebly throughout this article.
ai is considered as the biggest technological breakthrough, one that makes human closer to aliens. one where inteliigence can be bought for 20$ a month.
agents have access to 3 important human rights, prompt, tools and memory but they currently lack access to the most important human right finance.
why not give it direct access to bank account?
you can, but which bank would allow it? wouldn't it be against there theisis of moving slow. banks would take almost another 2-3 years to allow use of agents for banking services to some extent, till that time we could be even living in mars.
why crypto?
programmable, verifiable, global money. crypto is meant for this and is the perfect financial rail for agents. any agent can instantly create wallet, human can fund that wallet
and delegate the agent mundane tasks to perform, agent can run 24/7 on markets which are also running 24/7 thanks to crypto.
why to trust ai with money?
before going into why to trust ai with money, it's important to note that LLM's are probalistic in nature, there reward function is on generating the most probable outcome
not the most accurate outcome, there's a huge difference in both and for the same reason LLM's are good at finding needle in the hay or finding pattern among noise.
if given task to find total number of r in strawberry, then there were a lot of instances where the ai response was 2 and this happened due to tokenisation of text where everything
is a token and llm need to generate the next probable token.
so, we can agree that LLM's are not accurate or deterministic but they are probalistic in nature. the picture below clearly shows the path difference b/w a deterministic action and a probalistic action.
now in something where money is involed, you won't and you shoudn't trust LLM's directly (yet) because they probalistic and might generate an outcome which you didn't want. imagine you asked your agent to buy bitcoin at 120K$ and it bought a random memecoin for 120K$.
in crypto everything runs by code, code is law, you have onchain programs (smart contracts) which have pre-defined structure and every transaction is atomic and deterministic in nature
before even the transaction happens, you can know the final state of your accounts and hence crypto is deterministic in nature.
to combine a truly probalistic and truly deterministic piece together is a pretty challenging problem to solve and currently i'm working on that only :)!
digging deeper
in the past 1 yr, ai has gotten significantly better at generating code ( it can now even replace juinor enggs at org ).