By Michael Scott
The ex-employees of Ripple Labs, now behind Skyfire, raised $8.5M, enabling AI-based functions, including payment settlement.
A recent statement illustrates that AI systems can execute multiple things. Artificial intelligence can conjure images and videos. Today, AI synthesizes terabytes of information, replicates human speech patterns, and emulates emotions.
Ex-Ripple Staff Unveil Skyfire Crypto Payment Network
While AI systems can execute simple tasks, the developers consider that AI has yet to pay for anything. A duo of former developers at Ripple Labs attempt to overcome these barriers by integrating blockchain payments with AI.
The fusion will fast-track a new chapter for the two technologies. The novel service, identified as Skyfire, involves an open-source payment system allowing autonomous AI agents to zip around the internet.
Skyfire will facilitate autonomous AI systems to purchase their desired goods to accomplish assigned missions. This involves completing data storage, grocery shopping, and creating creative assets. The developers revealed they will power the transactions using USD Coin (USDC) stablecoin.
The developers hail the support in realizing the $8.5 million seed. The round drew support from the USDC issuer Circle alongside Ripple and Gemini. Tim Draper, the Silicon Valley investor and Bitcoin advocate, is also involved.
The developers confirmed Skyfire is running on Polygon – the Ethereum scaling network. However, the developers are planning the rollout of more blockchains.
Skyfire chief executive Amir Sarhangi considers that the solution is needed for AI regardless of whether the company or other entity will deliver the product.
As Sarhangi states, AI agents are yet to realize their optimum potential. Attempts to pay for something often have the AI agents stuck in the mud.
The incidents require human intermediaries to bail them out using credit cards. The system desperately needs streamlining since the traditional banking system is unequipped.
Sarhangi illustrated that Visa cannot overcome the challenge since the rails lack support for AI requirements. Such involves the capability to execute microtransactions 24/7 at low fees and efficiently. The ability is evident in crypto and blockchain offers.
Sarhangi and fellow Skyfire co-founder Craig DeWitt are hardly the first to realize the potential that would arise from integrating AI and blockchain payments. Crypto executives led by Coinbase chief Brian Armstrong disclosed that the AI’s future relies on adopting on-chain payments.
Skyfire is among the several that are implementing the realized the concept. Its unveiling features a handful of clients, including AI infrastructure providers. Also supported are the auto parts manufacturers who seek to streamline micropayments within the service centers across India.
Skyfire is presently engaged in conversations with leading large language models (LLMs) regarding adopting USDC payments for its AI agents. Skyfire believes that LLMs refer users to third-party sites when purchasing assets and services in the tasks.
Creating AI Digital Economy
Skyfire is confident that autonomous payments will soon become attractive, given that innovation will have AI agents buzzing and spending in a single instance.
Sarhangi decries that the process is losing multiple users. The multi-site flow for the AI users’ interaction with services delivered by various developers is choking. Besides, the sites are subscription-based, requiring credit purchases rather than on-demand payments.
Skyfire plans to engage third-party aggregators in facilitating AI payments for entities that have yet to support USDC payments.
The aggregators will enable AI agents to instantly acquire air tickets even where such airlines have stuck with traditional payments. The developers said that providing the major pathway for the AI agents to transact autonomously would open floodgates of new digital economies.
Skyfire considers the initiative’s success in incentivizing USDC integration as a payment method. Sarhangi considers AI agents to emerge as a new set of customers.
The developers confirmed that Skyfire is free to use, though they could impose a 2-3% fee. It portrays long-term value in increasing faith in the AI agent economy and verifying entities accepting its payments.
Skyfire assures that it will establish customer-centric guardrails. Such involves controlling the amount AI agents can access within the wallets, setting spending limits, and selecting the lower-priced goods and services.