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- 1 AI developers struggle with traditional payment methods and Bitcoin is assumed to solve the issue.
- 2 Integrated with the emerging cutting edge technology, the Bitcoin cryptocurrency has an untapped market worth billions of dollars.
Artificial intelligence (AI) technology development has picked up pace in the past several years. Its trajectory went more straight up in the recent months, given how the ChatGPT-like large language models AI chatbot from OpenAI took the market by storm. Payment systems, however, hinder the operations given the developers’ struggle with the traditional methods. And, what better solution for traditional finance other than Bitcoin (BTC)?
Recently Lightning Labs, the developer firm behind Bitcoin Lightning Network, launched a set of tools for providing infrastructure to AI developers for BTC payments. With the help of these tools, the developers will be able to send and receive payments in the cryptocurrency over the layer-2 solution of the blockchain.
According to the announcement, the toolkit from Lightning Labs will allow ChatGPT-like AI applications to interact with the Bitcoin blockchain network. The applications will then be able to send, receive, and hold Bitcoin (BTC).
Announcing a new set of tools to build Lightning⚡and #bitcoin-powered AI products for a global audience.
— Lightning Labs⚡️🍠 (@lightning) July 6, 2023
Using L402, a standard for API authentication with LN payments, and @langchainAI, a simplified AI app framework, we are opening up #AI4All! 🤖🌎https://t.co/EQseanCurv
As mentioned above, the traditional financial system does not provide frictionless payment services for AI developers. Thus, the developers had to move towards restricted payment methods.
On the other hand, the payment toolkit over Bitcoin network L2 solution is going to resolve the issue by providing payments relatively easy, fast, and cheap. In addition, the pay-per-use AI models will be helping users on the Lightning network. Using the payment method will reduce the overhead cost of using credit card like methods where the charges are bearable by users.
Lighting Labs stated the mechanism for the BTC payment solution tools for AI developers will be based on the L402 protocol. The protocol is Bitcoin L2 solution network’s own authentication mechanism.
In addition, it also holds the support of Langchain like features which is a library solution used for simplification of AI applications operations.
Untapped Opportunity with AI for Bitcoin
The artificial intelligence market size hit $136.55 Billion in valuation globally in 2022. By the end of this decade, the AI market valuation is expected to grow at a 37.3% compound annual growth rate (CAGR), according to Grand View Research.
Continued development in the arena signifies the need for a payment method for AI developers for smooth functioning. The rapidly growing economy of the sector cannot be possible without a working and proven payment system, and Bitcoin is likely to provide a better solution than traditional methods.
“A new fast growing class of “organisms” (i.e. intelligent LLM or AI Agents) are unable to easily gain access to fiat systems of payment as they aren’t registered “entities” with any nation. However, these agents will certainly need to pay for resources whether from gated APIs or paid sources of data,” Lightning Labs noted in the blog.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
