Crypto is built for AI agents, not humans, according to Alchemy’s CEO

The financial system as we know it was never designed for machines. It was created with human limitations in mind – things like geography, sleep cycles, paperwork, and physical presence. However, as artificial intelligence (AI) agents become more prevalent in economic transactions, the traditional human-centric design is starting to show its limitations. Nikil Viswanathan, the CEO and co-founder of crypto firm Alchemy, believes that crypto was actually built for AI agents, not humans.

Viswanathan points out the inherent mismatch between the current financial system and the needs of AI agents. Banks have operating hours based on human schedules, payments are tied to specific countries where people live, and credit cards rely on physical identity and presence. AI agents, on the other hand, operate in a completely different manner. They don’t sleep, they don’t have a fixed location, and they don’t interact physically with banks or use credit cards. Their transactions are online, inherently global, and don’t adhere to traditional human constraints.

Alchemy, the company founded by Viswanathan, is a crypto infrastructure provider that offers tools and services for developers to build blockchain-based applications. Their APIs, node infrastructure, and data services power a wide range of applications, from financial services to non-fungible tokens (NFTs) and games, allowing companies to leverage blockchain technology without the complexity of managing it themselves.

The traditional financial system, with its inherent friction in cross-border transactions, intermediaries, and delays, is not suitable for AI agents. These agents require seamless, borderless transactions, programmability, and direct control over money through code. Crypto, with its global, always-on financial layer, provides the infrastructure needed for AI agents to transact effortlessly.

What may have made crypto challenging for humans – things like seed phrases, private keys, and interacting with code directly – is what makes it powerful for machines. AI agents operate in code, and crypto’s underlying architecture aligns well with their needs. This shift towards AI agents using crypto tools is akin to the transition from the postal system to the internet – a more efficient and powerful communication medium designed for computers.

Looking ahead, Viswanathan envisions a future where AI agents will operate on top of crypto infrastructure, automating complex tasks like managing wallets, executing transactions, and optimizing capital flows in real-time. This agent-run financial system would be more global, programmable, and autonomous, allowing individuals to have more control over their funds.

In this envisioned future, traditional finance and crypto serve as the foundation, with AI agents operating on top, and a human interface layer above that. Just as computers manage the internet while humans use it, AI agents would run the financial system, ushering in a new era of efficiency and autonomy.

The integration of AI agents into the financial system represents a significant shift towards a more seamless and efficient economic landscape. As technology continues to evolve, it’s clear that crypto is not just an alternative financial system but rather the native infrastructure for a new generation of economic actors.