Biconomy Launches AI-Driven On-Chain Transactions with Delegated Authorization Network

  • June 11, 2024
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TLDR

Biconomy is introducing the Delegated Authorization Network (DAN), which allows the delegation of on-chain transactions to AI agents.
DAN serves as an authorization layer, enabling AI agents to autonomously manage trading accounts and execute transactions based on user-defined parameters.
The network uses a sharding mechanism to ensure the privacy of delegated authorization keys, fragmenting them across a decentralized network of nodes.
Biconomy leverages EigenLayer for Ethereum’s robust economic security to ensure the proper functioning of nodes in the DAN network.
The market for AI agents in the finance sector is expected to grow rapidly, with a forecast of reaching approximately $70.53 billion by 2030.

In a move that bridges the gap between Web3 and artificial intelligence (AI) adoption, Dubai-based Web3 infrastructure platform Biconomy has announced the launch of its Delegated Authorization Network (DAN).

This solution enables the secure delegation of on-chain operations to AI agents, allowing them to authorize and optimize transfers on behalf of users while maintaining self-custody.

The introduction of DAN addresses two critical challenges within the Web3 sector: the lack of true autonomy for AI agents and concerns surrounding the granting of full control over keys to artificial intelligence.

By providing programmable authorization through user-defined permissions and leveraging EigenLayer AVS for robust security, DAN ensures the safe delegation of on-chain tasks to AI agents.

Aniket Jindal, co-founder of Biconomy, emphasizes the significance of this development, stating that DAN represents a crucial step forward in the evolution of Web3.

The project aligns with the industry’s approach towards enhanced accessibility and decentralization, streamlining blockchain experiences and fostering widespread adoption.

DAN focuses on catalyzing a unique era of innovation, where AI agents can securely navigate the complexities of on-chain activities and unlock a myriad of opportunities for transformative AI-driven use cases within the crypto world.

The functioning of Biconomy DAN revolves around granting authorized projects access to users’ ‘Delegated Auth’ keys, which are securely stored on an EigenLayer Actively Validated Service.

This approach guarantees true independence without compromising security. Projects can integrate DAN into AI agents by utilizing the key storage and programming user-defined permissions for those keys using the DAN SDK.

The potential applications of DAN are vast and far-reaching. AI agents can autonomously manage trading accounts, executing transactions based on user-defined parameters.

For example, users can provide conversational instructions such as “please use my $1,000 for this strategy” or offer more granular control through a settings dashboard. This level of delegation empowers users to optimize their asset allocation and portfolio management without the need for constant manual intervention.

To further enhance the capabilities and development of DAN, Biconomy has partnered with Silence Labs.

This collaboration aims to accelerate the adoption and refinement of the Delegated Authorization Network, ensuring its seamless integration with existing Web3 infrastructure and AI technologies.

The benefits of using DAN are numerous, including improved on-chain experiences through AI-driven agents and the maintenance of control over transfers and assets.

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