AI Agents vs Bots: Understanding the Difference

AI agents are autonomous programmes that make decisions, act on assigned tasks and learn from experience without human intervention. Continuous improvement through machine learning enables them to analyse data, predict outcomes and adapt independently, setting them apart from regular bots.

AI Agents vs Regular Bots

1. Scope Type

AI agents can be either task-specific or broad-purpose assistants. They can adapt and make complex decisions based on input and interaction; bots typically follow strict, task-specific rules and provide set responses.

2. Level of Autonomy

AI agents can operate independently. Bots often require some degree of human intervention.

3. Self-Reflection

AI agents can continuously self-evaluate their performance, learn, and enhance their output; Bots are restricted to their pre-programmed responses and lack the ability to self-improve.

4. Collaboration

AI agents can communicate and work with other agents, APIs, and applications, including executing independent transactions. Bots are generally limited to generating text responses without external interactions.

5. Use Cases

AI agents have diverse, versatile applications, serving roles like personal assistants or financial analysts with expanding applications as the technology advances. Bots are typically employed in customer service roles on websites.

AI Agents in Crypto

In the crypto Web3 funds context, AI agents are integrated into crypto wallets to interact with blockchains. This allows them to trade, execute smart contracts, and participate in activities such as trading, token swapping and portfolio management.

These days, popular AI agents act as key opinion leaders (KOLs) with large followings on X. AIXBT monitors Crypto Twitter discussions and identifies trending narratives, delivering real-time crypto insights through its X account.

Its token, $AIXBT, has since achieved a market cap of $250M in less than a month, with over 100K followers on X. Similarly, Luna, the digital persona of AI girl band AI-DOL, engages with her audiences on social media posts and livestreams, in pursuit of increasing the $LUNA market cap to $40.09B.

While AI agents are still in their infancy, they show significant promise beyond the current meme and KOL-dominated landscape. Functional AI agents are gaining traction, especially in areas that require optimised strategies like trading, portfolio management, DeFi, and even crypto VC funds.

The growing presence of AI Agents in the crypto space highlights a broader movement toward AI integration where complex tasks could be easily automated with little human intervention, setting the stage for a more sophisticated web3 ecosystem.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

What's aelf Ventures?

aelf Ventures is the investment arm of aelf, a high-performance Layer 1 AI blockchain platform that offers builders and users advanced AI functionalities and cutting-edge infrastructure. With a dedicated fund of $50 million, aelf Ventures is focused on empowering Layer 1 blockchain projects and various aspects of the Web3 ecosystem, such as DeFi, GameFi, NFT, and those looking to make the transition from Web2 to Web3.

Till date, aelf Ventures has invested in projects such Crystal Fun and Confiction Labs (pka. Mythic Protocol), and is actively incubating promising ventures within the ecosystem such as Portkey, eBridge, Forest NFT Marketplace, AwakenSwap, eWell, and BeanGoTown.

Find out more about aelf and stay connected with our community:

Website | X | Telegram | Discord

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
aelf	A high-performance, customisable multi-chain blockchain framework with AI-powered smart contracts and a developer-friendly environment.
Quick Intel	An AI-powered crypto security platform that helps investors avoid scams, rug pulls, and honeypots by analysing smart contracts, social sentiment, and on-chain data.
Cogwise AI News Aggregator	An AI-powered news aggregator that analyses real-time news and global trends to predict market movements in the crypto market.
OpenAI Codex	An AI system that transforms natural language into code, automating code creation for smart contracts, blockchain applications, and other development tasks.
QnA3	An AI-powered Web3 knowledge hub that provides real-time information and insights on cryptocurrencies, blockchain projects, and the broader Web3 ecosystem, with unique Solana Actions integrations.
Fetch.ai	A platform that combines AI and blockchain to create autonomous economic agents (AEAs) for various applications, including supply chain optimisation and smart city management.
Octavia	A decentralised digital identity (DID) platform for creating and managing self-sovereign digital identities, empowering users to control their data and online presence.
TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

AI Agents vs Bots: What's the Difference? | aelf Ventures