šŸ“° Why are miners suddenly asking AI to work for them? What exactly gives AI the power to upend blockchain

Circle executive Chandhok said that their new project, Arc, will write dedicated blockchain protocols for AI, enabling AI to conduct buying and selling directly using blockchain. Put simply, they want machines to handle transactions on their own, without human operation. For the entire blockchain industry, this is the first time someone has tried to do this—and it could completely change the old rules that blockchain can only be used by humans.

Why is this news important?
The root reason is that AI is developing too fast. Now AI needs to process massive volumes of transactions, but blockchains were previously designed for humans. What Arc aims to do is to directly embed AI’s transaction needs into the blockchain—for example, letting AI robots use smart contracts to automatically buy and sell the things other AIs need. That means blockchain needs to upgrade from a ā€œhuman-machine interaction toolā€ into an ā€œagent collaboration platform.ā€ In terms of industry cycles, this is a new direction driven by technological breakthroughs. Recent regulatory trends (such as the EU AI Act) also stress providing dedicated rules for AI, and Arc happens to be perfectly in sync with the timing.

Impact on the market
The impact on ETH could be bigger than on BTC. After all, ETH is the token behind smart contracts—if AI uses an ETH-based blockchain, demand would immediately increase. In the short term, around ETH $2,689.33, some may doubt whether this new playstyle will blow up, but in the medium term, if it proves effective, this price range could become the bottom. For BTC, BTC $81,790.01’s current trend relies more on fundamentals. This kind of AI application may boost overall crypto market sentiment, but BTC won’t directly surge.

A historical reference is that when Bitcoin first came out, it was also ā€œnot born for practical use,ā€ and only later found its role beyond record-keeping.

Trading idea
šŸ’” I think ETH has support in the 2.5K to 2.8K range recently. After the hype around the concept of an AI-dedicated chain fades, what ultimately matters is real-world applications. Only if agents using the Arc chain complete 1 million transactions without any bugs would this judgment hold. If hackers cause problems, then this logic is void.

This article has no sponsorship from any project, and the author does not hold the assets mentioned in the text.

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āš ļø Not investment advice; predictions are for reference only.