Biconomy is integrating artificial intelligence (AI) agents to streamline on-chain transactions for users through its Delegated Authorization Network (DAN). This new authorization layer enables users to delegate trading activities to AI agents, enhancing automation and efficiency in managing transactions.
The Delegated Authorization Network (DAN) allows AI agents to autonomously handle trading accounts, executing transactions based on predefined instructions. Users can set permissions with decentralized applications (DApps) and provide personalized input regarding allocations and trading strategies. According to Biconomy co-founder Aniket Jindal, DAN empowers users to delegate specific transactional tasks to AI agents, which can act within set parameters.
For example, users can instruct the AI to use a specific amount of funds for a particular strategy or manage settings through a dashboard. These AI agents can handle various tasks, from automating repetitive actions to making complex decisions based on preset criteria or learned experiences.
Unlike traditional trading bots that focus solely on buying and selling assets, AI agents offer more sophisticated asset allocation and portfolio management capabilities. Biconomy’s network employs a sharding mechanism to ensure the privacy of keys. Each user gets a new delegated authorization key, which is split into multiple shards and distributed across a decentralized network of nodes, ensuring security and privacy.
To maintain integrity and security, DAN leverages EigenLayer for Ethereum’s robust economic security. Validators in the EigenLayer network restake their Ethereum holdings and are subject to slashing if any malicious activity is detected. This setup ensures that AI can engage in on-chain transactions securely without compromising self-custody.
The market for AI agents in the finance sector is projected to grow significantly. By 2030, the global market for autonomous AI and agents is expected to reach approximately $70.53 billion, with a compound annual growth rate of 42.8% from 2023 to 2030, according to Grand View Research. Financial institutions are increasingly utilizing AI agents to automate trading, manage risk, and detect fraud, among other applications.
Summary Review: Biconomy’s introduction of AI agents through the Delegated Authorization Network marks a significant advancement in the automation and security of on-chain transactions. As the market for AI agents expands, their role in enhancing financial operations is set to become increasingly pivotal.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
