Biconomy, a prominent 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 framework that enables these autonomous transactions. Aniket Jindal, co-founder of Biconomy, highlights that DAN is a groundbreaking concept that empowers users to delegate trading activities to AI agents.
What Does DAN Offer?
DAN fundamentally revolves around delegating authority, allowing AI agents to oversee trading accounts and conduct transactions based on pre-set user instructions. Once authorizations are established within a decentralized application (DApp), AI agents can receive specific guidelines from users regarding fund distribution and trading strategies. This approach surpasses traditional AI-powered trading bots by providing advanced asset management and portfolio optimization capabilities.
Secured and Private Transactions
Biconomy’s DAN ensures secure and private transactions by employing a sharding mechanism for key management. When a new authorization key is generated for a user, it is fragmented into multiple segments and dispersed across a decentralized node network. This prevents any single node from obtaining full control of the key, enhancing overall security. To uphold the integrity and efficiency of each node in the DAN network, Biconomy utilizes EigenLayer, which is underpinned by Ethereum’s economic security. Validators within the EigenLayer network must stake Ethereum assets that can be forfeited if they engage in malicious behavior, guaranteeing secure AI participation in on-chain transactions without compromising self-custody principles.
Anticipated Growth
The financial industry 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 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 embracing AI agents to automate trading, manage risks, and identify fraudulent activities. Biconomy’s incorporation of AI agents into on-chain transactions marks a significant advancement in automating and enhancing financial operations within the Web3 ecosystem. DAN not only enhances transaction management by offering a secure, autonomous, and user-friendly authorization layer but also showcases the vast potential of AI in revolutionizing financial processes.
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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.