Coinbase has officially announced the release of “Based Agent”, a new tool for rapidly and easily building smarter automated agents with artificial intelligence (AI). This new development was shared by Lincoln Murr via an X post on the 26th of October 2024. According to Murr, the great little tool lets users create autonomous AI agents in three minutes, which can do things like trading, staking, or just looking after their crypto wallets all on the chain.
An AI agent is a bot that can perform its intended task on its own. “Based Agent” allows users to create these agents via their crypto wallets so that they can perform automated actions on a blockchain network. “Our goal here is to make it as easy as possible to start building your own AI agent,” said Murr, highlighting the straightforward nature of this tool.
Automating Crypto Operations with AI and Smart Contract Access
Fundamentally, ‘Based Agent’ is an on-chain agent framework with a customizable template. As a result, it enables users to develop AI agents that can comfortably work with multiple smart contracts. According to Murr, ‘Based Agent’ is configurable, with one of its versions offering full autonomy. This means you can set up an agent that connects with decentralized finance(DeFi) protocol or make complex crypto transactions (like executing trade, swaps, etc.) without any human intervention.
Once deployed, the AI agents created through ‘Based Agent’ can perform a variety of crypto operations like trading, staking and various token swaps. The tool also integrates with an X application programming interface (API), increasing its scope by allowing users to make their AI agents into X bots. The ability to make on-chain transactions easily programmable is a major leap in the process of automation and will be an exciting new opportunity for users who want more intelligent crypto asset management.
Leveraging Partnerships with OpenAI and Replit
The ‘Based agent’ itself is built on Coinbase’s software development kit (SDK) with significant help from OpenAI and the software creation platform Replit. This partnership leverages the most recent AI used sciences, offering state-of-the-art skill sets to agents made by means of ‘Based Agent’. An AI agent can be set up with just an API key from Coinbase’s developer program, an OpenAI key and a Replit fork of the Based Agent template running, which Murr said helps streamline users deploying their own agents for custom functionalities.
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In Murr’s words, “it couldn’t be easier to start adding whatever functionality you want to these agents,” which hints that ‘Based Agent’ really offers flexibility and can customize their agents based on their specific needs.
The Expanding Intersection of Crypto and AI
‘Based Agent’ comes in quick succession to yet another industry-first accomplishment by Coinbase, an AI-powered transactionality feature. A month before that, Coinbase had sculpted history with its first-ever AI-to-AI transaction and blockchain automation hitting a new level. According to reports at the time, Coinbase CEO Brian Armstrong said that while AI agents could be used to do some tasks completely unattended, there were other limitations being hit as far as tech was concerned. Nevertheless, Armstrong seems to be backing AI empowered agents and recently helped a X-based AI agent ‘Truth Terminal’ with its own crypto wallet puzzling the waters for something we have yet to witness towards what could perhaps transpire in Crypto-AI.
One interesting aspect about the AI agents in Crypto is that they can own digital wallets, although traditional bank accounts are not allowed. This is important because it showcases the special range of native integration that crypto has with AI. With Coinbase and its Based Agent tool, we see a further transition towards using software to allow technology (in the form of AI agents in this case) to manage client wallets.
Conclusion: Based on Agent’s Potential for DeFi and Crypto Efficiency
The introduction of Coinbase’s Based Agent is a major milestone for participants in the institutional markets that seek to better utilize on-chain operations, as well as for crypto natives. This tool makes it easy to build and deploy independent AI agents, allowing users to use blockchain automation more efficiently for their DeFi actions or crypto portfolio administration. Based Agent is another piece of evidence that Coinbase will continue to lead the way as AI and blockchain move closer together, providing a smoother path for on-chain processes while still guarding against attacks.
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