On July 6, Lightning Labs released new developer tools to enhance the intersection of artificial intelligence (AI) and Bitcoin. The layer two (L2) startup introduced a new specification known as L402 and tools that enable AI systems to conduct transactions over the Lightning Network.
The Fusion of AI and Bitcoin
Artificial intelligence (AI) and Bitcoin, both groundbreaking technologies in their respective fields, have the potential to transform numerous aspects of our world. One fascinating prospect is their intersection, where bitcoin (BTC) can serve as the payment system for AI, introducing fresh levels of efficiency, security, and autonomy to AI operations. Arthur Hayes, the former CEO of Bitmex, made a prediction four days ago that the dominant cryptocurrency will become the “food” for AI.
Shortly after the publication of Hayes’ article, Lightning Labs announced the release of new developer tools that integrate with LLMs (Large Language Models) such as Openai’s Chatgpt. In a tweet, Lightning Labs’ engineer Olaoluwa Osuntokun shared details about the tools. “In 2023, the bots pay you!” the developer exclaimed.
“Today we’re releasing a new L402 specification, alongside Langchainai powered tools that enable AI Agents to traverse L402 APIs (HTTP 402 pay-per call APIs over Lightning), and also directly hold+manage bitcoin via Openai function calls,” Osuntokun added.
The tools essentially merge AI technologies, APIs, and blockchain technology to facilitate transactions over the Lightning Network. Osuntokun further showcased the capabilities of the tool by sharing a video demonstration of it collaborating with Openai’s Chatgpt-4 to initiate a transaction. In addition, software engineers Osuntokun and Michael Levin authored a blog post explaining the motivation behind the creation of these new Lightning tools.
LLMs or AI Agents ‘Are Unable to Easily Gain Access to Fiat Systems’
According to the blog post, developers initially incur significant costs when acquiring training GPUs (graphics processing units), and they typically recover these expenses through the convenient but costly means of credit cards. Regrettably, this approach places an additional financial burden on the end user due to the added expenses related to chargebacks and fees associated with fraud. Moreover, the authors at Lightning underscore a fundamental flaw in this business model.
The lack of access to conventional credit card or banking systems creates significant barriers for billions of individuals worldwide who are unable to harness the power of these groundbreaking tools designed to enhance education, productivity, and creativity. “Finally, because of these cost scaling issues, the best models end up behind closed source APIs, which significantly harms the accessibility and inclusivity of the latest and greatest LLM models,” Osuntokun and Levin opine.
Considerable attention has been dedicated to AI systems in 2023, and the integration of BTC has given rise to fresh ideas and solutions. The developers emphasize that intelligent LLMs or AI agents “are unable to easily gain access to fiat systems of payment as they aren’t registered ‘entities’ with any nation.” The authors underscore the fact that these agents will still require payment for resources, whether from restricted APIs or paid data sources.
The most recent tools from Lightning Labs and discussions about the two subjects have led BTC supporters to believe that bitcoin has the potential to function as a worldwide, impartial reserve currency for AI systems. By embracing bitcoin, AI systems can ostensibly overcome a plethora of limitations, as bitcoin is universally recognized and not bound by any specific government or jurisdiction. In theory, the decentralized and worldwide reach of a prominent digital currency holds the promise of significantly enhancing the scalability and effectiveness of AI systems when operating across borders.
What are your thoughts on the intersection of AI and Bitcoin? Share your thoughts and opinions about this subject in the comments section below.