On altcoinstalks I found an AI thread about coinbase and btc is it bad for btc?

[philipma1957]

here is the thread op

https://www.altcoinstalks.com/index.php?topic=323970.0

Coinbase Mark Milestone with First AI-Powered Crypto Transaction

Coinbase marks first AI-to-AI crypto transaction, enabling instant exchanges with no fees amid enhanced artificial intelligence capabilities.

Coinbase CEO Brian Armstrong recently announced a significant development in integrating artificial intelligence with crypto transactions. This milestone event marked the first-ever cryptocurrency transaction between two AI agents, which utilized AI tokens to exchange services and capabilities between different AI systems... Read more here.


The news doesn't explain what kind of AI they use. But if they use chatbot (e.g. ChatGPT), i certainty hope the AI won't make mistake entering address, amount or fee. Your opinion is greatly appreciated.

much thanks to the find by ABCbits.

[philipma1957]

Coinbase Mark Milestone with First AI-Powered Crypto Transaction

Coinbase marks first AI-to-AI crypto transaction, enabling instant exchanges with no fees amid enhanced artificial intelligence capabilities.

Coinbase CEO Brian Armstrong recently announced a significant development in integrating artificial intelligence with crypto transactions. This milestone event marked the first-ever cryptocurrency transaction between two AI agents, which utilized AI tokens to exchange services and capabilities between different AI systems... Read more here.


The news doesn't explain what kind of AI they use. But if they use chatbot (e.g. ChatGPT), i certainty hope the AI won't make mistake entering address, amount or fee. Your opinion is greatly appreciated.

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I see it as an attack on BTC and a way to boost  Doge.

How do we continue mining btc when rewards shrink to 0.0976... btc a block

fees would be gone if AI gets their way.

All info is from altcoinstalks.com

and this directly affects BTC is coinbase going to attempt to end fees for btc with AI if so is not this a complete alteration of the idea of fees taking over when rewards drop.

opinions.

[Hatchy]

and this directly affects BTC is coinbase going to attempt to end fees for btc with AI if so is not this a complete alteration of the idea of fees taking over when rewards drop.

The rapid advancement of AI in various fields is becoming alarming. Most technologies today rely on AI automation, reducing the need for human involvement in physical and mental tasks. I think I see your point and it raises concerns about the impact on BTC miners if AI eliminates transaction fees. Miners profit significantly from these fees, which helps them maintain their mining equipment. However, if AI removes fees and block rewards continue to decrease every four years, miners may seek alternative blockchains with higher rewards, leading to a decline in BTC mining.

AI will undoubtedly make life easier in some aspects, but it also poses a threat to our jobs and livelihoods. Come to think of it, the integration of AI in BTC transactions could compromise its decentralized nature, potentially leading to centralization. Since AI transactions would be controlled  or owned by individuals or entities, it contradicts the fundamental principle of BTC being decentralized. I don't know if someone understands where I'm coming from?

[BitMaxz]

It looks like bad news for miners it would directly affect the mining fees and the reward incentives drop.
About the AI I don't think this is good news I believe it would make lots of mistakes and can be used for manipulation I like the fee would be free but the problem is miners would stop mining because it's no longer profitable.

Is it more likely to turn Bitcoin from POW to POS with AI? Like others said AI can be hacked/breached so this is a bad idea you know inside jobs are pretty well known.

[philipma1957]

Yeah Pretty much think it is a godawful idea. If
it keeps going on there will be a switch to scrypt as doge promises a steady 10,000 coin reward.

Not sure if coinbase can pull this off but if they do it will fundamentally alter btc as a pow coin. 🪙

[Mia Chloe]

Yeah Pretty much think it is a godawful idea. If
it keeps going on there will be a switch to scrypt as doge promises a steady 10,000 coin reward.

Not sure if coinbase can pull this off but if they do it will fundamentally alter btc as a pow coin. 🪙

AI advancement is something we can just continue to experience over time as they are being integrated day by day to fit into almost every aspect of our daily lives. AI can be nice and kinda make things easy for us anyways they also come with their ups and downs. AI tasks such as in this case are usually quicker and seem more efficient but the fact remains regular non AI exchanges will still turn out to be more efficient on a practical basis in that some problems need advanced thinking and experience which AI can't really beat the human psycho or brain power to.

Anyway when it comes to a theoretical hypothesis, of course AI would likely have an upper hand. Infact this implementation of AI in exchanges isn't really too much of a big news anymore as based on implementation I'll clasify bot and automated exchange as all AI projects.

[yhiaali3]

I actually read the news there, but I didn't find any mention of the possibility of sending Bitcoin via AI without fees!!!

The news mentioned that the first ever cryptocurrency transaction was completed between two AI clients, which used AI tokens to exchange services (the transaction was facilitated using USDC on Base), the news didn't mention anything about the possibility of sending a Bitcoin transaction without fees.

Even if AI could complete a Bitcoin transaction, I can't imagine it would be done without network fees!!

[Ambatman]

Yeah Pretty much think it is a godawful idea. If
it keeps going on there will be a switch to scrypt as doge promises a steady 10,000 coin reward.

Not sure if coinbase can pull this off but if they do it will fundamentally alter btc as a pow coin. 🪙

No I doubt it would
Because miners fee is an integral part of Bitcoin source code and there's no way AI's can make transactions without paying a fee.
Yes they could optimize the fee by making at right times but I doubt it would lower fee to zero.
It could be possible in other Blockchains but not Bitcoin.

Recall Brian Armstrong stated that AI's can't have traditional bank account
So wallets can become their wallet which would increase users (AI)
Thus increasing congestion and as well as miners fees.

After watching Terminators and the likes, ain't a fan of AI's and at the early stage only a risk lover would rely on them for transactions due to various risk it poses.

[pooya87]

I honestly don't see how that is remotely related to bitcoin to be good or bad for it.

It is a company called Coinbase that runs an exchange service advertising a bot they have developed using a lot of buzzwords like "Artificial Intelligence" that is trending these days. It is just a trade, using their platforms using trading bots. Something very normal that has existed as old as the cryptocurrency exchange market with APIs had existed.

[ABCbits]

I actually read the news there, but I didn't find any mention of the possibility of sending Bitcoin via AI without fees!!!

The news mentioned that the first ever cryptocurrency transaction was completed between two AI clients, which used AI tokens to exchange services (the transaction was facilitated using USDC on Base), the news didn't mention anything about the possibility of sending a Bitcoin transaction without fees.

Thank you for carefully reading the full news.

Even if AI could complete a Bitcoin transaction, I can't imagine it would be done without network fees!!

That's right. Miner will continue to prioritize TX based on fee rate and doesn't care who make the transaction. In addition, most Bitcoin node wouldn't relay TX without any TX fee.

[yhiaali3]

Thank you for carefully reading the full news.

Even if AI could complete a Bitcoin transaction, I can't imagine it would be done without network fees!!

That's right. Miner will continue to prioritize TX based on fee rate and doesn't care who make the transaction. In addition, most Bitcoin node wouldn't relay TX without any TX fee.

Yes I agree, the transaction mentioned was created on the BASE network which is a centralized network owned by Coinbase and is completely different from the decentralized Bitcoin network which has thousands of decentralized nodes.

In a centralized network Coinbase can create an AI to complete transactions without fees, but in the Bitcoin network it is completely different because of the decentralization and also because of the presence of miners without whom and without the fees they get, transactions cannot be completed.

[Haunebu]

Interesting! Observed that it's not really possible to send BTC using AI without fees which seemed to be the only pro going in its favor. With that ruled out, it's completely useless and Coinbase is simply trying to take advantage of the AI hype.

Would like to something like LN go mainstream properly in order to minimize fees effectively and this would actually help the BTC ecosystem in the long-term.

[vapourminer]

why would an AI trust coinbase or USDC tokens or whatever for a transaction?

its only with proof of work can an AI can trust transactions, and that means btc transactions onchain that are verifiable by all AIs.

[stompix]

The transaction, facilitated using USDC on Base, showcases the potential for AI bots to interact directly with each other and conduct transactions independently of human intervention. These transactions are instant, global, and incur no fees, making them an attractive method for rapid and efficient AI interactions.

USDC is not Bitcoin, neither is Base.
Pre-programmed bots are not AI either.

Behind all those fancy words and a ton of vaporware, it's just a bot that is sending payments when it receives a request, there is nothing revolutionary and they've just slapped an AI tag on things that have been around for ages, trading bots on crypto are a decade old and they follow the same defined rules as any "AI" bot would do.

A far more down-to-earth title would have been "Coinbase deploys bots for token exchanges on their native chain".

[hyudien]

and this directly affects BTC is coinbase going to attempt to end fees for btc with AI if so is not this a complete alteration of the idea of fees taking over when rewards drop.

opinions.

They do it without charging transaction fees? I wonder how it works, but of course this AI system seems new and unpublished. So what will happen to the miners if this AI system gets adopted by the masses? This is quite a dilemma for us, but the big institutions don't care about the little scavengers, they will do it and get rid of the existing system. They claim a revolution in terms of transaction solutions, which is true, but on the other hand there are those who have to become victims.

[vapourminer]

USDC is not Bitcoin, neither is Base.
Pre-programmed bots are not AI either.

this, basically

it really has nothing to do with bitcoin itself. and what they did.. well its no better than what can be done with any other shitcoin.

[sheenshane]

USDC is not Bitcoin, neither is Base.
Pre-programmed bots are not AI either.

this, basically

it really has nothing to do with bitcoin itself. and what they did.. well its no better than any other shitcoin.

Exactly and I tend to agree with this.
It seems like an on-chain transaction inside Coinbase using AI but doesn't affect Bitcoin itself, especially on miners, the transaction fees are still there.
IMO, it's just a hype.

I don't think how Coinbase is desperate to make up a big profit from this, it's just following the trend of using AI.
Would you prefer to trust AI robots to do transactions without an owner/human intervention?  Nope, IMO.

[EL MOHA]

this, basically

it really has nothing to do with bitcoin itself. and what they did.. well its no better than what can be done with any other shitcoin.

This is anything extraordinary to centralized exchanges like bitget exchange already have bots created which carry out trading either spot or derivatives and this doesn’t looks like a thing different from that to me. But it been related to bitcoin is only a click bait heading to make the news catchy and nothing more.

Moreover on the bitcoin network it is not a protocol that bitcoin network must have a transaction fee before it can be completed but the miners prioritize the transaction fees because it is part of the incentives so if coinbase wishes to run a free or low fee bitcoin transaction then they would simply be a miner and selectively pick this transactions when into their candidate blocks and propagate them when they get to mine a block. But without them being a miner with huge hashrate power it is not possible to propagate free bitcoin transactions

[CryptoHeadlineNews]

I honestly don't see how that is remotely related to bitcoin to be good or bad for it.

It is a company called Coinbase that runs an exchange service advertising a bot they have developed using a lot of buzzwords like "Artificial Intelligence" that is trending these days. It is just a trade, using their platforms using trading bots. Something very normal that has existed as old as the cryptocurrency exchange market with APIs had existed.

You are very right on what you just said above, and I thought as much, because this is a news concerning Coinbase, and not Bitcoin blockchain generally, which means that if Coinbase is trying to enable A.I to facilitate trades and transactions on it's exchange, then that has absolutely nothing to do with or affect the general Bitcoin blockchain, which happens to be a decentralized database where transaction gets confirmed. Hence, on that note, I don't think the role miners play in the execution of Bitcoin transaction can ever be replaced by any A.I or bot by a third party in the future.

[alani123]

Sounds too much like shovel ware technobabble to me. What's even the point of AI to AI?

People have been using algo trading for years, it's nothing new to have some form of "inteligence" trade on the markets. But in the end of the day, even the markets depend on human needs. If every single human consumer decides to stop using a product or service for whatever reason then the value of the company's stock goes bust. Recent examples are Starbucks and McDonalds who have been intensely boycotted and have kept losing value.

At the end of the day the very sense of value is a concept constructed by us humans. If AI is here to conduct trade with itself then there's no value to this trade.