Lightning Labs Unveils Tools Enabling AI to Conduct Bitcoin Transactions and Holdings

Lightning Labs, a development firm focused on the Bitcoin Lightning Network, has introduced a new toolkit that enables artificial intelligence (AI) applications to transact and hold BTC using the network’s layer-2 solution.

On July 6, Lightning Labs unveiled the toolkit, which allows AI applications like OpenAI’s ChatGPT to interact with the Bitcoin network, facilitating the sending, receiving, and holding of the cryptocurrency.

The goal of this initiative is to make payments faster, cheaper, and more accessible for AI developers. By leveraging Lightning, developers can distance themselves from traditional payment systems and enable pay-per-use AI models.

Large Language Models (LLMs) are software applications that utilize extensive data sets to generate human-like responses and perform various tasks. Lightning Labs expressed enthusiasm for the latest wave of innovation brought about by LLM models.

The newly released tools are built on the “L402 protocol,” which serves as a native authentication mechanism for the Lightning Network. Additionally, they leverage “Langchain,” a library that simplifies operations with AI applications.

Lightning Labs highlighted the challenges faced by AI developers due to the lack of native web-based payment mechanisms for LLMs. Current payment methods, such as credit cards, are outdated and often come with additional costs that are passed on to users.

The team acknowledged that intelligent LLMs or AI agents face difficulties accessing fiat payment systems since they are not registered entities with any specific nation.

During a discussion on the “Stack Sats” podcast, Kody Low, a developer at Fedi, a community payments platform, emphasized the compatibility between AI and BTC for payments. He highlighted Bitcoin as the best solution for AI monetization problems.

Data from LN analytics platform 1ML indicates that the current Lightning Network capacity stands at approximately 5,432 BTC, equivalent to roughly $163.5 million. Bitcoin Visuals has reported a decline in the number of Lightning Network channels over the past year, from around 80,000 in July 2022 to approximately 70,000 at present.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you