Artificial intelligence (AI) has become more powerful with each new level of development. Each level of AI has its own capabilities and shapes its potential to transform industries. These levels include:

• Conversational AI
  AI systems that are designed for basic interaction such as Siri or Alexa.

• Reasoners
  AI models like ChatGPT that are capable of logical reasoning and responding to complex prompts.

• AI Agents
  Autonomous systems that can perform tasks, adapt to new data, and make decisions without direct human supervision.

• Innovators (Future Stage)
  AI models that are capable of self-innovation and independent problem-solving.

• Superintelligent AI (Future Stage)
  Hypothetical systems surpassing human intelligence across all domains.

We are now at the third level that combines the capabilities of conversational AI and reasoners AI to autonomously execute tasks. These AI agents are transforming sectors like blockchain development by automating complex workflows. This article focuses on how to build AI agents and their practical applications. We will use Edgar, which is an AI-powered NFT agent, as a case study.

What are AI Agents?

AI agents are artificial intelligence designed to be intelligent systems that can perform tasks autonomously. AI agents use various algorithms and data to make decisions, take actions, and adapt to whatever situation they are facing. Unlike traditional software, AI agents do not require constant human input. They are designed to work independently. AI agents can adapt to new information and improve their performance over time.

Key Capabilities of AI Agents

AI agents are versatile systems with a wide range of applications. While they can perform tasks across various industries, this article focuses on their capabilities in the cryptocurrency and NFT ecosystems. These capabilities include:

1. Integration with Blockchain
   AI agents can seamlessly interact with blockchain networks. For example, AI agents can mint NFTs, manage wallet transactions, and execute token swaps. These systems can do it all without any human intervention. This functionality is critical in blockchain development and enhances the efficiency of Web3 projects.

2. Intelligence
   AI agents are powered by machine learning and large language models (LLMs). They can execute blockchain operations with minimal errors. 

3. Adaptability
   AI agents can learn and adapt to new data easily. When fed with new data, AI agents analyze and use it to improve their performance. They also refine their actions based on feedback. This process will ensure improved performance over time.

Tools to Build AI Agents

Introduction to Coinbase AgentKit

Cobase AgentKit is one of the best tools for making an AI agent. This kit is part of the Coinbase Developer Platform (CDP). Coinbase AgentKit is designed to help you make AI agents that can connect with blockchain networks autonomously. This kit gives you APIs and tools that are ready to use for combining AI with blockchain technologies.

Coinbase AgentKit Key Features

1. Model Flexibility
   AgentKit supports multiple large language models (LLMs), including OpenAI’s GPT, Anthropic’s Claude, and Llama. AgentKit makes it easier to do important things on the blockchain, like user authentication, account creation, etc. These features make sure that AI agents can use the intelligence of advanced LLMs to provide personalized and safe experiences.

2. Built-in Blockchain Functionality
   AgentKit provides pre-built tools for many key blockchain tasks. It includes invoking, customizing, and deploying smart contracts. This tool can help eliminate the complexity of coding blockchain interactions manually.

3. Developer-First Approach
   The platform can simplify smart contract creation and interaction. It allows developers to deploy contracts directly from the AgentKit environment. It also supports adding advanced features like whitelisting or airdrops.

4. LangChain Compatibility
   This integration enables developers to include advanced natural language capabilities in their AI agents. They can interpret user commands or generate creative content like NFT lore.

How to Build AI Agents: A Case Study on Edgar AI

Edgar is an AI agent designed to automate every stage of the NFT lifecycle. It manages tasks such as generating, minting, and promoting NFTs. This end-to-end process demonstrates how AI agents can significantly enhance workflows in the Web3 ecosystem.

What makes Edgar unique is its focus on NFT mastermind lore.This lore provides backstory for each NFT that makes the collection more valuable. Edgar also stands out by combining storytelling with automation that can bridge creativity and efficiency in the AI development space.

Steps to Create AI Agents

Step 1: Define the Agent's Core Purpose

The purpose of Edgar AI Agent is to automate the entire NFT creation lifecycle. This step includes programming the specific tasks that the AI agent should perform. Here are the tasks Edgar is programmed to handle:

1. Generate NFT mastermind lore that creates unique backstories.

2. Produce artwork that aligns with the lore using AI tools.

3. Upload lore and artwork securely to decentralized storage (e.g. IPFS).

4. Deploy ERC-721 smart contracts to mint tokens and link them to metadata.

5. Automate social media campaigns to promote the NFTs.

6. Handle the listing of NFTs on marketplace platforms (e.g. OpenSea).

Step 2: Choose the Development Platform

Edgar uses Coinbase AgentKit as the AI Agent development tool. Beside that, Edgar also uses these additional tools to enhance the AI Agent performance:

• DALL·E API: For generating unique NFT artwork based on the lore.

• Tatum API: To upload lore and metadata securely to IPFS.

• Twitter Developer API: For automating social media campaigns.

Step 3: Implement Core Functionality

3.1: Creating Artwork

Edgar will dynamically generate text prompts based on the NFT mastermind lore. These prompts are processed by the DALL·E API to create visually appealing images.

Tool Used: DALL·E API

3.2: Decentralized Storage

The artwork and metadata (such as lore, title, and creator information) are uploaded to IPFS using the Tatum API. IPFS generates unique links that ensure long-term accessibility and data integrity.

Tool Used: Tatum API for IPFS

3.3: NFT Minting

Edgar will interact with a custom ERC-721 smart contract using Web3.js or ethers.js. The smart contract handles the minting process and links the NFT metadata to the blockchain. Once minted, the NFTs are ready for deployment on marketplaces.

Tool Used: Tatum API for IPFS

Step 4: Integrate Social Media for Promotion

Edgar automatically generates posts of the NFT's artwork on Twitter or X. The purpose of this step is to reach a broader audience. The engagement metrics (e.g., likes, retweets, and replies) are monitored to evaluate the performance of each NFT. 

Important Note
If engagement is low, Edgar returns to Step 1 to refine the lore, artwork, or other aspects of the NFT before re-promoting it.

Tool Used: Tatum API for IPFS

Step 5: Automate Marketplace Listing

Once the NFT is minted, Edgar uses the OpenSea API to list the NFT. The IPFS link, artwork, and lore is linked to the NFT on the marketplace. Edgar will monitor the listing and update it if required (e.g., price changes or availability status).

Edgar showcases the transformative potential of AI agents in the Web3 ecosystem. By automating complex blockchain workflows, Edgar simplifies operations while enhancing creativity and ensuring quality.

If your project is seeking innovative solutions in Web3 development or looking to build a custom AI agent, TokenMinds is here to support you. Collaborate with us to unlock the full potential of AI and automation in your projects.