Crypto x AI: Can Smart Contracts Get Smarter?

Crypto AI - sounds like just another buzzword. While it's true that there are numerous superficial projects riding the hype of crypto and AI, something revolutionary is happening at the intersection of these two technologies.

We have our eyes on a particular project that is redefining what is possible on the blockchain. This project is creating a platform for "smart contracts 2.0" and opening up novel use cases powered by AI.

But first, let's clarify the difference between smart contracts and autonomous services (Agents). Smart contracts are digital code that defines the rules of a blockchain transaction. They eliminate the need for intermediaries like banks, ensuring that transactions are executed as intended.

On the other hand, autonomous services are more complex pieces of code. They are a group of independent computer programs that interact with each other, acting on an owner's behalf to generate economic value. Unlike smart contracts, autonomous services can run continuously without human intervention, utilizing predefined logic and real-time data.

Now, imagine having a personal assistant in the form of an autonomous service. This assistant can handle various tasks for you 24/7, such as paying rent, managing investments, participating in governance decisions, and interacting with external systems or services.

Just as we have decentralized platforms for smart contracts like Ethereum, Solana, and Avalanche, we need decentralized platforms for autonomous agents. This is where Olas comes into play.

Olas is a platform that enables the creation of autonomous services or applications (AI agents). Developers from around the world can develop an AI agent and be rewarded for its usefulness. Service owners who use these AI agents can donate a portion of the profits generated to the developers or Autonolas' treasury. Additionally, independent users, known as "bonders," can pair their capital with the code and earn rewards.

To foster a vibrant ecosystem of composable AI agents and services, Olas provides an open-source software stack for developers to build autonomous services. They also have an on-chain protocol that coordinates and incentivizes the operation of these services through the OLAS token.

The potential use cases for AI agents are as diverse as the imagination of developers and end-users. They can improve the operations of DAOs (decentralized autonomous organizations) by automating treasury management, liquidity management, voting processes, and more.

While Olas is experiencing steady growth, building a network effect is crucial for its future success. Notable projects built on Olas, such as Valory and Centaurs, are already making waves.

However, let's take a closer look at Olas' tokenomics. Currently, less than 10% of tokens are in circulation, which is a cause for concern. The token allocation favors developers, with incentives in the form of NFTs and ETH donations. However, there is room for improvement when it comes to the token's direct value accrual for investors.

In terms of technical analysis, it's difficult to chart the token due to its fresh and light volume. Liquidity is essential for a new token, and market-making it on exchanges is crucial to avoid potential draining.

Despite these challenges, the potential of AI agents in the crypto economy is significant. Olas has the potential to create a thriving ecosystem of AI agents if it can address its tokenomics and continue incentivizing development. As such, we will be closely monitoring Olas for any noteworthy updates.

In conclusion, while AI agents have the potential to become active users in the crypto space, Olas stands out as a promising project. With the right adjustments to its tokenomics and continued development incentives, it could pave the way for a new market sector within the blockchain space.

Disclaimer: Not financial or investment advice, just insights, no signals or financial advice