Related research

The Delegated Authorization Network: Trust Minimization in the Age of AI
By
Anil Lulla•
The report discusses the longstanding user experience (UX) problems in on-chain applications within the cryptocurrency space, emphasizing the need for improved interfaces to make interactions more accessible for new users. It highlights how current methods, especially in EVM ecosystems, still rely heavily on browser extensions like MetaMask, creating a steep learning curve for users transitioning from centralized exchanges (CEXs) to decentralized finance (DeFi).
The introduction of AI agents is proposed as a potential solution to streamline on-chain interactions. These AI agents can automate complex processes by translating natural language instructions into executable blockchain transactions. However, they come with risks, such as the tendency for AI to produce incorrect outputs ("hallucinations").
The report also details the Delegation Authorization Network (DAN) developed by Biconomy and Silence Labs, which enhances security by managing transaction authorizations without exposing user keys. This network aims to facilitate permission management, allowing users to set specific parameters for AI agents to operate within.
Overall, while AI agents hold promise for enhancing the crypto UX, the report suggests that we are still a significant time away from widespread, secure adoption of this technology, with ongoing developments needed to ensure reliability and safety.

A Look At Dispute Resolution Protocols in Optimistic Rollups
By
Anil Lulla•
The report discusses dispute resolution mechanisms in optimistic rollups, focusing on Arbitrum's new protocol called Bounded Liquidity Delay (BoLD). It contrasts centralized and decentralized systems, highlighting that decentralized systems depend on multiple entities for consensus, leading to potential disputes. BoLD is designed to counter attacks such as delay, economic, and censorship attacks while being permissionless.
The report outlines the dispute resolution process, which involves proposers posting assertions that challengers can contest during a challenge period. It compares Arbitrum's method to those of other optimistic rollups like Optimism, Cartesi, and Fuel, detailing their differing approaches to resolving disputes. Compliance with set timelines and financial stakes is emphasized as crucial to deter malicious activities.
The report concludes that all dispute resolution protocols are still under development, with ongoing research aimed at improving their resilience against various attack vectors.
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