Lightning Labs’ New AI Toolkit Can Hold, Process Transactions in Bitcoin

The year of 2023 will probably be remembered as the year when Artificial Intelligence (AI) revamped all other technologies. Lightning Labs, that developed the Lightning Network for instant payments on Bitcoin, has now created AI tools to facilitate crypto-related activities. Basically, Lightning Labs has claimed that its new tools can channelise AI to hold cryptocurrencies as well as facilitate transactions in the digital asset. This would integrate AI mechanisms deep into the Bitcoin network — the pros and cons of which will emerge in the times to come.

Lightning Labs has announced the launch of a toolkit for developers called ‘AI4All’, that will incorporate ChatGPT’s generative AI text feature to interact with the Bitcoin network. This would facilitate sending, receiving, and holding the cryptocurrency, making financial transactions faster and more cost effective.

“We’re excited to announce the release of a new set of developer tools to enable the Lightning and AI developer communities to build global, inclusive, and cost-effective Large Language Model (LLM) tooling which incorporates Lightning and Bitcoin. The tools that leverage OpenAI GPT function calls to enable developers to create agents that can hold a Bitcoin balance (on-chain and Lightning), send/receive Bitcoin on Lightning,” an official note from the Lightning Labs said.

LLMs are supported by large and detailed data sets that helps them generate human-like responses to user prompts and carry on tasks.

Talking about the use cases of LLMs, the product head at Lightning Labs, Michael Levin, said, “Chat UIs are just the tip of the iceberg for LLM usage. 90 percent of use cases lie beyond this initial foray. The most useful products won’t be chat UIs, but SaaS/Enterprise/API products built on LLMs to uniquely solve user problems.”

To create this toolkit, Lightning Labs also brought together its own mechanisms to authenticate and simplify operations with AI

The company posted an official release announcement of this AI-Bitcoin toolkit on Twitter on July 6.

As per Levin, this toolkit will enable AI agents to develop beyond the simple prompt + response AI models.

“Instead, they’ll be able to accomplish tasks from broad prompts, which will require interaction between agents and markets to price decisions/actions,” Levin added in his tweet thread.

While we await the repercussions of involving AI with Bitcoin, AI seems to be catching up with the crypto sector.

In June, Mudrex, an India and US-based crypto investment firm, has decided to use the AI chatbot trend to educate people about cryptocurrencies. This chatbot is named the ‘SatoshiGPT’ as a tribute to the anonymous founder of Bitcoin, who is famous by his pseudonym — Satoshi Nakamoto

In fact, a new class of cryptocurrencies called AI crypto coins has also emerged in the market.

Like all usual cryptocurrencies, AI crypto tokens are also built on blockchain networks. Unlike other cryptocurrencies, however, these tokens are loaded with AI capabilities that promise better security, functionality, as well as the general performance.