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For every genuine blockchain project harnessing artificial intelligence in an attempt to create a better world — like Dr Ben Goertzel’s Singularity.net — there are 100 coins like AI Doge that have simply wedged the hyped-up terms “AI” and “Crypto” together to flog tokens.

“Those are just fundamental buzzwords,” explains Near blockchain founder Illia Polosukhin, who worked on the groundbreaking “Attention Is All You Need” research that led to large language models like ChatGPT and Claude.

As one of the few people in the world who are as well versed in AI as they are in crypto, Polosukhin says that if you ignore the hype, the technologies really are a good fit.

“There’s a lot of specific things both in AI and Web3 that can use each other or benefit each other,” he says.

Magazine spoke with Polosukhin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma from Quantstamp, Ralf Kubli from Casper and others to examine some of the key hype-free, genuine use cases for AI in crypto and blockchain. 

Over the next week, we’re rolling out one genuine use case for AI in crypto each day — including reasons why you shouldn’t necessarily believe the hype.

Doge
AI Doge is the perfect blend of AI and doge-iness.

The best money for AI is crypto

Everyone from Circle boss Jeremy Allaire to former BitMEX CEO Arthur Hayes to Animoca Brand’s Yat Siu is convinced that crypto will be the currency of choice for AI agents.

After all, LLMs are unable to get access to bank accounts but can easily make payments using a funded crypto wallet, and they’re well suited to interacting with the logic of smart contracts and DeFi protocols.

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The humans delegating the funds in the wallet can set the overarching strategies and rules, and then observe how the AI agent has performed using the transparent record on the blockchain.

Allaire says that AI “and blockchains are made for each other,” with the tech suited to “machine-generated and enforced contracts” and “machine-to-machine value exchange.”

Hayes believes that Bitcoin is the most logical payment system for AI as it is “available at all times, digital and completely automated” and enables the AI to pay for “data and compute power—in order to ‘stay alive.’” 

That said, Hayes also seems to think AIs will live for trillions of years “until the heat death of the universe,” and the LLMs will, therefore, choose Bitcoin as it can be mined by robots. So sometimes Hayes’ ideas tend to get away from him.

Animoca Brands Executive Chairman and founder Yat Siu is another high-profile industry figure who believes that crypto is the only logical way for AIs to transact “with each other as autonomous beings in future.”

“In the future, 70-80% of transactions will happen through autonomous AI agents and the decentralised nature of crypto makes it a perfect match.”

But don’t take the word of puny humans: ChatGPT also chooses crypto as its preferred currency without any nudges in that direction.

GPT Crypto

Trading bots that are able to buy and sell crypto already account for up to 80% of spot volumes, and it’s likely these existing automated bots will progressively be replaced by more intelligent AI agents. (Be warned, however, that LLM-based trading experiments like Autopilot’s GPT Portfolio have seen mixed results so far, so putting your funds under the control of an AI is going to be a risky proposition for a while.)

Members of Near DAO have begun experimenting with allowing an AI to decide whether a particular new project satisfies the relevant grant criteria to fund it autonomously from the treasury. 

How to add Bitcoin and crypto payments to an AI agent

It’s certainly easy enough to integrate crypto payments with AI. Lightning Labs has released a set of developer tools that enable GPT-4 to buy, sell and hold Bitcoin using the layer 2 network. And AI startup Fewsats has already created an agent that is able to pay Lightning Network invoices.

Fetch.Ai also offers a service where you can create an AI agent that is able to make payments on your behalf. 

Syndicate.io founder Ian Dao Lee recently wrote a blog detailing how he was able to knock up a GPT in just a few hours, using OpenAi’s APIs and Syndicate’s Transaction Cloud, which is able to autonomously make USDC payments from a Safe wallet on the Base network.

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He’s excited about the possibilities this holds. “The ability for AI to pay for things, hold things of value, exchange value, or create things of value — on behalf of itself or others — is how AI gets true agency,” he says.

“Some of the most interesting ideas open up not only when AI agents can transact on behalf of and with people, businesses, or other AI agents — but also when AI agents can manage things of value and transact on behalf of themselves.”

Lee believes that in the future, AI agents will be able to shop for things autonomously, manage the finances of people and organizations, determine and hand out funding approvals or try and grow wealth to help others. 

However, it turns out that AIs are just as stingy with their money as humans are, donating an underwhelming $3 to charity.

GPT charity

Don’t believe the hype

While AI can more easily use crypto at present, banks appear eager to adopt AI for a variety of uses and already use it extensively for the detection of financial fraud.

Payment companies like Brex are working on integrating AI with corporate bank accounts to allow AI agents to automatically make payments in defined circumstances, such as travel expenses.

And a team of researchers recently put out a preprint describing how they successfully trained an AI agent called MM-Navigator to work out how to search through Amazon for a given product within a certain budget and to buy it.

Until crypto payments are more widely accepted, fiat still has a lot of advantages when dealing with businesses in the real world.

Andrew Fenton

Andrew Fenton

Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.

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Former deputy PM Oliver Dowden interviewed in election day betting probe

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Former deputy PM Oliver Dowden interviewed in election day betting probe

Former deputy prime minister Sir Oliver Dowden has become the most senior ally of Rishi Sunak to be interviewed in the official investigation into betting on the date of the general election, Sky News understands.

He follows Mr Sunak’s former parliamentary aide Craig Williams and former Downing Street chief of staff Liam Booth-Smith in being questioned by the Gambling Commission, the statutory body that regulates betting in the UK.

Mr Sunak has not yet been interviewed, Sky News understands, though “numerous people” including Conservative Party officials have been.

Tory conference latest: Maternity pay is ‘excessive’, Badenoch argues

A source close to Sir Oliver said the former senior cabinet minister is not and was never under investigation himself.

It is understood Sir Oliver spoke to the police to assist with their inquiries as part of their investigation into others. This is said to have taken place in early summertime and the officers involved were part of the Gambling Commission.

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The inquiry – launched in June – is set to continue for another three to six months.

News of Sir Oliver’s interview, along with the seizing of “hundreds of documents” from Tory HQ by the commission, has emerged on the day the Conservative Party Conference opened in Birmingham.

Ironically, the Gambling Commission’s head office, on the fourth floor of Victoria Square House, Victoria Square, Birmingham, is just a half-mile, 10-minute walk from the ICC, where the Tory conference is taking place.

Sir Oliver was knighted and Mr Booth-Smith was awarded a peerage in the former prime minister’s dissolution honours, announced less than an hour before the polls closed on 4 July.

The commission is investigating whether bets were placed on a July election by people with inside knowledge – in breach of gambling rules – in the days leading up to Mr Sunak’s shock announcement of the election date on 22 May.

A source told Sky News: “The general election betting investigation is still ongoing. Hundreds of documents have been seized by the Gambling Commission from CCHQ.

“The Gambling Commission has also employed more ex-police as investigators to take the case forward. It’s expected the case will continue for three to six months.”

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Gambling scandal: Another bruise for the Tories?

Asked if Mr Sunak has been interviewed, the source said: “I don’t believe so. Numerous people have been interviewed, in and out of CCHQ.

“Gambling Commission investigators have made numerous visits to CCHQ. Oliver Dowden was interviewed.”

What is the election betting scandal?

The election date betting scandal began in June when Craig Williams, formerly MP for Montgomeryshire and Mr Sunak’s parliamentary private secretary, admitted he was being investigated by the Gambling Commission.

Mr Williams had placed a £100 bet on a July election at Ladbrokes in his constituency just days before Mr Sunak announced on 22 May that the election would be held on 4 July. Based on odds at the time, he would have won £500.

“I put a flutter on the General Election some weeks ago,” he said in a post on X on 13 June. “This has resulted in some routine inquiries and I confirm I will fully co-operate with these.

“I don’t want it to be a distraction from the campaign. I should have thought through how it looks.”

Rishi Sunak delivers a speech calling for a general election, outside Number 10 Downing Street
Image:
The commission is investigating whether bets were placed on a July election. Pic: Reuters

Mr Williams, who admitted he had made a “huge error”, was dropped by the Tories as their candidate in the new seat of Montgomeryshire and Glyndwr but remained on the ballot paper, but was defeated, coming third behind Labour and Reform UK.

As the Gambling Commission proceeded, Tony Lee, the party’s director of campaigns, and his wife Laura Saunders, who was Tory candidate for Bristol North West, were placed under investigation.

In a statement on the day news of the investigation was first reported, Saunders said she would be “cooperating with the Gambling Commission”, while Lee took a leave of absence from his role.

Then Nick Mason, the party’s chief data officer, became the fourth Conservative candidate or official to be investigated. He took a leave of absence and denied any wrongdoing.

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In a bizarre twist, a Labour candidate in the election, Kevin Craig, was then suspended by his party after betting against himself and the Gambling Commission launched an investigation into him.

Mr Craig, candidate in Central Suffolk and North Ipswich, posted on X that he had “enjoyed the odd bet for fun” throughout his life.

“A few weeks ago when I thought I would never win this seat I put a bet on the Tories to win here with the intention of giving any winnings to local charities,” he said.

“While I did not place this bet with any prior knowledge of the outcome, this was a huge mistake, for which I apologise unreservedly.”

Craig Williams admitted to betting on the election date. Pic: PA
Image:
Craig Williams admitted to betting on the election date. Pic: PA

Then on 27 June Sky News revealed that Mr Booth-Smith, then Mr Sunak’s most senior adviser in Downing Street, had been interviewed by senior Gambling Commission officials and questioned about who knew about the timing of the election.

Sources emphasised, however, that Mr Booth-Smith was not a suspect and was interviewed as a witness and was “asked for help”.

Sky News has approached Mr Dowden and the Conservative Party for comment.

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No, FTX distribution payments do not begin on September 30

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No, FTX distribution payments do not begin on September 30

According to the FTX bankruptcy estate, total claims from injured parties top $11 billion, as a court hearing to confirm the plan looms. 

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Kemi Badenoch claims maternity pay remarks were ‘misrepresented’

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Kemi Badenoch claims maternity pay remarks were 'misrepresented'

Kemi Badenoch has said her remarks about maternity pay have been “misrepresented”, as she called for an “honest campaign” for the Tory leadership.

The first day of the Conservative Party conference saw a row erupt over comments made by the shadow housing secretary, where she appeared to call the current level of the benefit “excessive”.

But speaking to Sky News on Sunday evening, Ms Badenoch said she believed maternity pay was “a good thing”, adding: “I don’t think it is excessive.”

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Instead, she claimed there was “some mischief being made on social media trying to misrepresent me” amid the race to take over from Rishi Sunak.

“I want to talk about serious things, hard truths during this campaign,” said the leadership hopeful. “I want to talk about my previous job as business secretary, what businesses told me [about] excessive business regulation.

“Maternity pay isn’t one of those, but other things are. That is how we are going to get back on track.”

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She added: “It is really important that this leadership contest is one where we have honesty and truth and not misrepresentation of remarks.

“I am not somebody who is fazed by that [but] the members of our party want to see an honest campaign, and that’s what I am fighting for.”

Ms Badenoch first made her remarks about maternity pay on Times Radio, saying the benefit was a “function of tax”.

“Tax comes from people who are working, we’re taking from one group of people and giving to another,” she added. “This, in my view, is excessive.”

Challenged on saying maternity pay is “excessive”, the former minister said: “I think it’s gone too far, too far the other way, in terms of general business regulation, we need to allow businesses, especially small businesses, to make more of their own decisions.

“The exact amount of maternity pay, in my view, is neither here nor there. We need to make sure that we are creating an environment where people can work and people can have more freedom to make their individual decisions.”

After the interview, one of her rivals in the Tory leadership contest, Robert Jenrick, told a fringe event at the conference he disagreed with her, and as a father of three daughters, he “wants to see them get the support they need”.

The former immigration minister said maternity pay in the UK was already “among the lowest in the OECD (Organisation for Economic Co-operation and Development)”, before adding: “We should firmly be on the side of… working mums trying to get on… why would we want to make it harder on them?”

However, when asked by reporters if he would like maternity pay to rise, he said he would like it to stay “at the level where it is” – just not lowered further.

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