To understand more clearly, let’s take two everyday scenarios that often occur in crypto, and see how KITE handles those situations:
Scenario 1: AI Agent Buys Crypto Market Data for Price Prediction
Problems That Arise:
A developer has an AI agent that is used to predict Bitcoin prices. This agent requires real-time market data from various sources, but it is difficult to find reliable data, and the payment process for data is often slow and expensive.
How KITE Handles:
1. Verified Identity: Data sources and AI agents each obtain a verified cryptographic identity on the KITE network. This ensures that the data is authentic and the agents are not fraudulent.
2. Autonomous Negotiation: The AI agent automatically seeks the best data sources in the KITE ecosystem, negotiates prices based on data quality, and agrees to contracts through smart contracts.
3. Instant & Cheap Transactions: The AI agent makes payments using KITE tokens with a fee of < $0.000001 and a completion time of just 1 second.
4. Data Acceptance & Verification: Data sources send data to the AI agent, and KITE verifies that the data complies with the agreement. If not, payments will be automatically refunded.
5. Predictions and Outcomes: The AI agent uses data to make price predictions, and if the predictions are correct, developers can sell the outcomes to other users via KITE through the same fast process.
Scenario 2: Regular User Using AI-Based DeFi Application
Emerging Issues:
A user wants to invest in DeFi but struggles to choose the best strategy due to a volatile market. Existing DeFi applications are often complicated and require extensive technical knowledge.
How KITE Handles:
1. KITE-Based Applications: Users open DeFi applications built on KITE, which feature AI agents to assist with portfolio management.
2. User Profile Assessment: The AI agent requests information about acceptable risk and investment goals from the user, then analyzes the crypto market in real-time.
3. Automatic Strategy Recommendations: The AI agent recommends the best investment strategies (e.g., staking, liquidity provision) and calculates potential returns.
4. Fast Transaction Execution: Users approve recommendations, and the AI agent executes transactions across various DeFi protocols connected to KITE – all within seconds and at low costs.
5. Monitoring and Adjustment: The AI agent continuously monitors the portfolio. If the market changes, it will automatically adjust the strategy without having to wait for user commands.
Outcomes from This Scenario
- AI agent developers can operate more efficiently and gain more profits.
- Regular users can access DeFi and AI services without deep technical knowledge.
- All processes are secure, fast, and affordable – something that is difficult to achieve on other blockchains.
