We recently covered the introduction of [staking HBD to the VSC network](https://inleo.io/@taskmaster4450/hbd-staking-coming-to-hive-the-utility-grows-kt5).  This was a big step forward in the utility of the [Hive Backed Dollar](https://inleo.io/@leoglossary/leoglossary-hive-backed-dollar-hbd) (HBD) since a [derivative](https://inleo.io/@leoglossary/leoglossary-derivative) is created that can help to add value.


As I look into the future, I see where this can be integrated into [AI](https://inleo.io/@leoglossary/leoglossary-artificial-intelligence) and some of what will eventually be created using those tools.  


In this [article](https://inleo.io/@leoglossary/leoglossary-article), I will present a theory of how AI agents will unfold and how VSC, along with sHBD, can play a role.


<center>  https://img.inleo.io/DQmb7UdLLvVxtPfLRTrixR7gv3Sw4kJXpEZMZ4TYt2gXfvc/image.png 
Image generated by Ideogram </center>




# Crypto And AI


One of the reasons I did not [buy](https://inleo.io/@leoglossary/leoglossary-buy) into the [metaverse](https://inleo.io/@leoglossary/leoglossary-metaverse) hype a few [years](https://inleo.io/@leoglossary/leoglossary-year) ago was due to [infrastructure](https://inleo.io/@leoglossary/leoglossary-infrastructure-computer).  


The espousing of potential, at that [time](https://inleo.io/@leoglossary/leoglossary-time), ran into a major roadblock.  There is no way we are going to revert back from being a [mobile](https://inleo.io/@leoglossary/leoglossary-mobile) [world](https://inleo.io/@leoglossary/leoglossary-world).  The idea that people were going to be immersed in these experiences while tied to a personal [computer](https://inleo.io/@leoglossary/leoglossary-computer) did not make sense.  While some will do that, true adoption would come with mobile.


Where this presents a challenge is at the edge.  There simply is not enough processing available.  [Edge computing](https://inleo.io/@leoglossary/leoglossary-edge-computing) is still to young to fulfill the needs that were being pushed by proponents of this.  This is evidenced by the fact that Meta lost a small fortune pursuing this path.


Ultimately, we will get there.  Edge computing will improve.  This is presently being driven by AI.  Inference will be a major hurdle at some point, with the realization that we need a lot more compute out there to process all this stuff.


Here is where I believe [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency) and AI merge.


When using the processing that someone else owns, whether it is for prompt fulfillment or to power a fully immersive experience, [payment](https://inleo.io/@leoglossary/leoglossary-payment) is required.  Naturally, there are a host of other issues to [work](https://inleo.io/@leoglossary/leoglossary-work) out such as [security](https://inleo.io/@leoglossary/leoglossary-security) but, for now, we will focus only on the financial aspect of things.


Crypto will have to be the payment mechanism for these types of systems.  There really is no other way.  


In fact, there are limits to what crypto can be used.


## Miniscule payments


We have all heard of [micropayments](https://inleo.io/@leoglossary/leoglossary-micropayments).  


With AI, we could be dealing with miniscule payments.  Since processing is getting so powerful, the number of calculations that can be processed each second is exploding.


This means that less compute is required for a calculation.  Of course, there are many variables as many of the calculations are getting more complex.  The point we need to focus upon is the idea of borrowing the compute of someone else, for the briefest of moments.


Here is where the major challenge enters for most systems.


If taking a few milliseconds of compute, what is that worth?  Obviously, systems will be set up to determine this.  The challenge is that we see all centralized, traditional system instantly eliminated.


It is also a problem for many [blockchains](https://inleo.io/@leoglossary/blockchain).


To show an example, if we have a fee of .003 on the compute [transaction](https://inleo.io/@leoglossary/leoglossary-transaction), how are you going to settle that even on a network that have a 1 cent transaction fee?  Suddenly, that micropayment is now 1.003 cents instead of .003.  That is a major difference.


We see things get even more convoluted when we add in the idea of AI agents to the discussion.


## AI Agents


AI agents are predicted to be the evolution of autonomy.  These are the programs that will automate tasks.  At the moment the focus is upon single agents doing a single (or perhaps) a few different things.


It is unclear how this will exactly evolve.  


That said, one of the views I subscribe to is the idea of an "Internet of AI agents".  What this means is that each agent is akin to a personal computer.  On its own, the utilty is limited.  There will, however, come a time when billions of these agents are interconnected, just like we do with computers (nodes) today.


Let us use a simple example.


We have the need to book a [hotel](https://inleo.io/@leoglossary/leoglossary-hotel) room.  Our personal AI assistant handles this for us.


The assistant contacts the hotel booking agent.  This is one that is trained and specializes on book hotel rooms.  It is able to search the [Internet](https://inleo.io/@leoglossary/leoglossary-internet) for the deals, match needs, and navigate the [websites](https://inleo.io/@leoglossary/leoglossary-website).


Once the information is presented to the booking agent, it simply matches the requirements with the hotels (with availability) in the area.  A room is booked and the payment is made.


Naturally, the hotel wants to get paid.  There is another layer in here.  For doing the booking, the agent will be compensated also.


Since this is a transaction that could take under a second, the payment is going to be minimal.  As with the example above, we cannot have even a 1 cent charge since the total transaction my be less than half a penny.


As we can see, there limits the options a great deal.


## Resource Credits


This is an overlooked [feature](https://inleo.io/@leoglossary/leoglossary-feature) within the Hive [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem-digital).  It is, however, going to become an important part of what is developed going forward.


VSC is using the [Resource Credit](https://inleo.io/@leoglossary/leoglossary-resource-credits-rc) concept for its [network](https://inleo.io/@leoglossary/leoglossary-network).  This means HBD is the [currency](https://inleo.io/@leoglossary/leoglossary-currency) that provides access.  Having it staked provides the user the ability to transact without any direct fees.


How does this fit the scenario above?


If a payment of .005 is required, the fees associated with the transaction is "paid" via staked HBD.  Let us say the fee itself is .1 cent.  That means the associated resource credits are used to satisfy the transaction.


Like on Hive, this is something that recharges.  That means the [cost](https://inleo.io/@leoglossary/leoglossary-cost) is not an [expense](https://inleo.io/@leoglossary/leoglossary-expense) as much of an [investment](https://inleo.io/@leoglossary/leoglossary-investment).  Those with a lot of AI agent activity can simply get a hold of HBD to have the available recourse credits necessary.


For years I discussed how [social media](https://inleo.io/@leoglossary/leoglossary-social-media) [applications](https://inleo.io/@leoglossary/leoglossary-application) tied to blockchain were going to be hindered by [transaction fees](https://inleo.io/@leoglossary/leoglossary-transaction-fee).  This is only growing with the concept of AI agents.  If nothing else, the numbers will grow greatly as automated activities start to take over.


The resource [credit](https://inleo.io/@leoglossary/leoglossary-credit) system is an answer to the transaction fee dilemma.  Most blockchains were established based upon the idea of distributed ledger technology.  This related to [finance](https://inleo.io/@leoglossary/leoglossary-finance).  That is a realm where transaction fees are the norm.


When we extend past that, we see a different [story](https://inleo.io/@leoglossary/leoglossary-story).  Certainly, social [media](https://inleo.io/@leoglossary/leoglossary-media) operations have "transaction fees" since there is a cost to every upvote, [post](https://inleo.io/@leoglossary/leoglossary-post-hive), and [comment](https://inleo.io/@leoglossary/leoglossary-comment-hive).  Since these entities are centralized, they monetize in other ways.


Therein lies the basic dilemma.  Unless there is some method of payment, centralized entities will take control, implementing the design that worked for so long in the [digital](https://inleo.io/@leoglossary/leoglossary-digital) world.


With a RC system, there is a solution to some of these issues. 


Since VSC has [smart contract](https://inleo.io/@leoglossary/leoglossary-smart-contract) capability, I believe there will be the [opportunity](https://inleo.io/@leoglossary/leoglossary-opportunity) to build automated agents.  Naturally the entire industry requires advancement in this area since that still not ready for mass adoption.


That said, something like sHBD could factor into the equations as we move forward.  This is some of the potential of VSC.


---


<center> [What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive) </center>






Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/crypto-ai-and-the-potential-of-vsc-148)