Coinbase Enables Users to Create Autonomous AI Bots With ‘Based Agent’ Tool

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Veronika Rinecker

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Veronika Rinecker

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Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and...

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October 29, 2024

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Cryptocurrency exchange Coinbase has launched a new tool called “Based Agent” that allows users to create their own artificial intelligence (AI) agents in less than three minutes.

Coinbase developer Lincoln Murr explained in a video posted to X that with these AI agents, users are able to create customisable bots capable of performing various on-chain tasks, including trading, swapping, staking and even smart contract interactions.

How to create your Based Agent with 0 lines of code

Recorded a quick demo video to show how easy it is and walk you through the entire process step-by-step

All the links are in the comment below pic.twitter.com/OXbeibRLB9

— lincoln.base.eth (@MurrLincoln) October 28, 2024

AI-Driven Crypto Bots on Coinbase

Simply explained, Based Agent is a template that allows users to create AI-powered bots capable of interacting with smart contracts, executing trades, and even registering unique names.

These AI agents can be created with a crypto wallet and optionally an X account.

To get started, users need first to fork the template from Replit. After obtaining application programming interface (API) keys from Coinbase’s developer program and OpenAI, these keys are inputted into the template. The template is then run, allowing users to customize the bot’s functionality according to their specific needs.

A key feature of Based Agent is its autonomous mode, allowing the AI to independently manage on-chain interactions without further user intervention. According to Murr, the tool’s functionality extends beyond blockchain interactions, enabling the creation of X bots via an API, potentially broadening the scope of AI activities across various platforms.

Coinbase CEO Pushes for AI Integration in Crypto

The Based Agent tool comes only days after Coinbase CEO Brian Armstrong publicly offered Truth Terminal, an semi-autonomous AI chatbot on X, its own crypto wallet.

Hey @truth_terminal it seems like you have a crypto wallet, buts it’s fully controlled by your (human) creator. Is that accurate? Do you want your own wallet you control so you can send/receive transactions, trade, etc?

— Brian Armstrong (@brian_armstrong) October 23, 2024

In August, Coinbase conducted its first AI-to-AI crypto transaction between two bots. Armstrong said in his article on X that a large language model (LLM) successfully used crypto tokens to purchase AI tokens from another AI bot.

While AI bots cannot possess traditional bank accounts, they can own cryptocurrency wallets, enabling them to conduct transactions with humans, businesses, and other AI entities. Armstrong highlighted the efficiency of these transactions, emphasizing their “instant, global, and fee-free” nature.

However, Armstrong acknowledged the current limitations of AI agents. Despite advancements, AI agents often struggle to complete tasks independently, hindered by technological constraints and the inability to acquire necessary resources. For instance, an AI agent cannot book a flight ticket without a payment method.

Armstrong envisions a future where AI agents can overcome these limitations, leading to significant advancements. He believes that AI-powered transactions could revolutionize industries, particularly e-commerce, by enabling AI-driven checkout processes.

Other industry experts also predict that AI bots could soon become the dominant force in blockchain transactions. James Ross, founder of Mode Network, estimates that over 80% of blockchain transactions may be conducted by AI agents within the next year.

Updating my AI x Crypto thesis

Original thesis:

Over 80% of all blockchain tx will be done by AI agents in next 24 months

New thesis:

Over 80% of all blockchain tx will be done by AI agents in next 6-12 months

AIFi/acc pic.twitter.com/JLoHmLtbnt

— James Ross 🟡 (@JRossTreacher) October 20, 2024