The Real Endgame: Where AI meets Crypto

This one is an immature thought of mine but I think there is a future where AI and crypto perfectly complement each other.

Traditionally, transactions that occur online are very limited in their expressiveness. Most of the time buyers/sellers indicate price and quantity and not much else.

Many inputs that actually impact a buyer’s or seller’s “intent” can’t be directly expressed as part of the order. This complicated task is left up to end-users to handle manually. Ofc, this reduces overall discoverability and leads to missed opportunities. Trades that would otherwise be possible, don’t occur bc traders can’t discover each other.

Intents (also called expressive bidding, or preferences) can be anything.

  • “A buyer values two goods A and B at $10 for the package, but only $4 for each individually”

  • a logistics company quotes X dollars for a route only if they find a bidder for the return route at Y dollars

  • you are willing to pay more for the ski-resort trip if you are happy with the weather forecast

In theory, the more expressive intents get the more efficient a market can become. Thus far however this has been hard to implement in practice bc “finding feasible and near-optimal solutions at the speed and scale of capital markets is deep tech problem”

AI opens up the possibility for very efficient intent-based smart markets. AI-powered solvers can find optimal ways to match these arbitrarily complex intents and blockchain can be used for verification; ie. settlement.

Who’s building this?

Anoma and SUAVE are two projects that want to enable such markets in crypto. OneChronos builds it in tradfi for US equities.

I’ll be on the look for others.

***Quotes above are from OneChronos’s YC post

Leave your comment...

Hmm it’s quiet here. Be the first to comment on this post!