The post Digital asset micropayments unlock AI autonomy: Bernstein appeared on BitcoinEthereumNews.com.

Global research and brokerage firm Bernstein has joined the growing list of experts identifying blockchain and digital assets as the key to unlocking artificial intelligence (AI) utility. Bernstein researchers noted that the legacy financial system limits AI as it relies on centralized systems and restricted networks like SWIFT and payment processors like Mastercard (NASDAQ: MA) and Visa (NASDAQ: V). These already struggle to move value efficiently globally today and are not designed for the volume of microtransactions that AI agents could push. The researchers, led by Gautam Chhugani, believe that only digital assets can handle this scale of transactions. Bernstein: Crypto micropayments essential for AI financial economy As AI continues to reshape the global economy, analysts at Bernstein suggest that cryptocurrency micropayments will be key to avoiding financial bottlenecks in the AI industry, The Block has reported. Current… — CoinNess Global (@CoinnessGL) September 6, 2024 AI agents, just like IoT devices, are designed to make thousands of extremely small transactions daily between themselves, such as payments for the exchange of data. These transactions are unfeasible in today’s banking systems, as they are both slow and costly. Chhugani believes digital assets are best equipped to handle AI transactions as they are instant, cheap, and secure. Additionally, digital asset addresses are easy to generate and assign to AI agents. In the legacy system, opening an account requires identification, which these agents lack. “How would AI agents obtain bank accounts and credit cards without identity?” the researchers pose. However, this doesn’t translate to a lack of KYC or AML measures in digital asset transactions. The addresses are linked to verified humans through zero-knowledge proof technology, which protects the privacy of the involved parties. The Bernstein report acknowledged that most digital asset networks are not ready for the era of microtransactions as they still can’t…

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Filed under: News - @ September 13, 2024 11:29 am