#KITE @KITE AI$KITE
"I spend a lot of time looking at the current state of AI, and I keep coming back to the same realization: we have these incredibly smart digital assistants, but they are financially paralyzed."
For example, my AI assistant can write codes, interpret graphs, and come up with marketing plans. However, if I tell it to ‘buy me this dataset’ or ‘pay for the API’, then it will remain empty. The reason is simple: I do not trust it with my private keys. I do not have my own independent robot that would mindlessly wander, going into my wallet, as it would hand my friend a latte.
This is exactly the problem that Kite is working on, and it seems that after reviewing their documentation, I believe they are creating the most useful implementation I have encountered. They are not only connecting to ‘AI + Crypto’, they are laying down actual tracks for ‘Agent Payments’.
I would like to provide you with my analysis of how I understand that Kite is different for me.
It's not just a ‘faster’ blockchain
"We have many fast blockchains. Kite is building layer 1, which specifically optimizes for machine communication."
When we use blockchain, we are slow. We look at the address, try to decode the gas costs, and hit send. Computers don't work that way. Computers need to make transactions with millisecond intervals all day long. Kite is built with this in mind.
However, the positive side is that they made it compatible with EVM. This is great because developers do not need to learn a new programming language. If they can work with Ethereum, they can work with Kite as well. This reduces friction for developers while providing an incredible speed boost for bots.
"Aha!" Moment: Three-layer identity
This was the key to understanding the ‘lightbulb’ moment I had regarding blockchains. The binary nature of identity in most blockchains: you either own the key or you don’t.
Kite indicates that to achieve functionality in AI, we need nuance. They divide identity into three levels:
User (Me): I am the boss. I am the ultimate owner.
Agent (Bot): This is the unit that acts on my behalf.
Session (Security Network): This is the genius part.
It's very useful to think about the session layer: imagine that you issue a temporary card for money to an employee. "I can allocate my agent to spend up to $50, but only within the next hour, only for this specific task."
But what if an agent goes rogue/breaks? The session ends. The damage is limited. This level of control is the only way I could ever feel safe handing my wallet to artificial intelligence. This is how you transform the fear of the unknown into an orderly business function.
Road laws
Another thing I like about Kite is that it emphasizes governance. We are not just allowing robots to rebel. Kite allows programmable rules on-chain.
This will allow us to code the laws of the network. We will define how agents will represent themselves and the norms they will adhere to. This adds transparency and oversight of great importance when businesses want to implement this technology.
Fuel: $KITE Token
I always analyze the utility of the token to see if it is economical. In the case of $KITE, the plan seems reasonable.
Phase 1: "It’s about initial funding. Incentivizing builders and users to come and test."
Phase 2: This is where things get serious. Staking for security, voting, and transaction fees.
"So, there’s feedback here. The more AI agents come online and start exchanging payments for data and other services with each other, the more demand grows for the token. This puts long-term holders in line with activity in the network."
Here is a sequence where the token represents the ‘gas’ needed for the process.
The bigger picture
We are heading towards an era where software will pay software. Imagine a world where your personal AI assistant negotiates with a data provider, pays for the data, and then delivers the result to you. All of this will happen on-chain, it will be completely transparent and secure.
Kite is building a trust foundation to make all of this possible. It goes beyond buzzwords and deals with the mundane but critically important infrastructures of identity and payments. For me, Kite is the era of the AI infrastructure revolution. It is not glamorous work, but it is the starting point we must reach if we ever hope to see fully autonomous digital agents.
