To make prediction markets more effective, Gnosis AI is creating AI agents to act as rational market participants.
Gnosis, a leader in blockchain innovation, has announced the launch of Gnosis AI, a new division under Gnosis Labs. This division aims to merge artificial intelligence (AI) with Web3 technologies, focusing initially on agent-to-agent payments and prediction markets.
Focus on Prediction Markets
Gnosis announced their new AI initiative via a blog post on their official website. Gnosis AI’s primary focus is developing AI agents to enhance prediction markets. Since its ICO in 2017, Gnosis has built extensive expertise in these markets, which enables participants to predict future events.
Despite having less liquidity than other DeFi sectors, prediction markets hold great promise for forecasting, managing risks, and making decisions. When these markets are well-funded and efficiently operated, they can serve as “truth oracles,” delivering precise probability predictions.
To make prediction markets more effective, Gnosis AI is creating AI agents to act as rational market participants. These agents will answer market questions based on available liquidity and market dynamics. For example, they could predict whether Ethereum will reach a certain price by a given date, with their responses reflecting the true likelihood of the event.
Development of AI Agents
Gnosis AI has developed several trader agents specializing in different strategies for prediction markets. These agents make decisions on market questions, achieving varying accuracy levels, with the top agents reaching about 65% accuracy. Gnosis AI also collaborates with partners like Autonolas and Agentcoin, tracking and assessing their agents’ performance.
A key initiative in Gnosis AI is the “Social Agent”. This agent functions as a PR representative for a particular trading agent. It reviews recent market bets placed by its client and highlights them on social media, offering explanations for the betting choices. Additionally, the Social Agent acts as an external record, keeping track of the trading agent’s previous activities and decision-making history.
Looking ahead, Gnosis aims to improve the independence of its AI agents, allowing them to assess profitability and undertake actions based on goals like earning revenue, learning, and adapting. The platform is open to external contributors, encouraging them to participate in its open-source projects.
Gnosis Milestones
Gnosis has achieved several significant milestones, reflecting its expansion and innovation. The Gnosis Chain recently exceeded 200 million transactions, demonstrating its role as a functional blockchain payments network. Co-founder Martin Koppelman highlighted this milestone as a major advancement towards merging traditional payment systems with blockchain technology’s benefits.
At the start of 2024, Gnosis introduced uRamp to streamline transactions between on-chain assets and fiat currencies. In addition, the network executed the Dencun hard fork before Ethereum and exceeded 200,000 validators, establishing itself as the second-largest blockchain validator community worldwide.
Gnosis is also expanding its payments ecosystem, with significant developments like the Gnosis Pay Visa Card for daily expenses. These milestones underscore Gnosis’s commitment to advancing blockchain technology and driving real-world applications.
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