AI agents often work through smart contracts, which are like self-executing agreements that run automatically when conditions are met. There is no need to trust an intermediary; everything is handled by code, making transactions safe and automatic. Here’s how it works:
Predefined rules: The AI agent interacts with a smart contract containing predefined conditions (e.g., “buy Bitcoin if the price drops to $40,000”).
Real-time data analysis: The AI continuously monitors market conditions, user preferences or risk factors and feeds this data into the smart contract.
Automatic execution: When the conditions are met, the smart contract executes the transaction instantly, whether it’s a trade, loan adjustment, or portfolio rebalancing.