BTC Agent

An assistant for Bitcoin interaction using Chain Abstraction in NEAR Protocol

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BTC Agent: An AI Agent for Interacting with Bitcoin using Chain Abstraction

Inspiration

The blockchain ecosystem continues to evolve toward a more interoperable future, but there are still challenges in communication between different networks. Bitcoin, as the most recognized cryptocurrency, lacks advanced smart contract capabilities without relying on third-party solutions or additional layers. With the arrival of Chain Abstraction from NEAR Protocol, the opportunity arises to create an AI agent that simplifies interaction with Bitcoin without compromising security or decentralization. Our goal is to provide an accessible, automated, and efficient solution to facilitate frictionless interaction with Bitcoin.

What it does

BTC Agent is an artificial intelligence agent that enables users to interact with Bitcoin intuitively and securely through NEAR Protocol's Chain Abstraction. Its three main functions are:

  1. Retrieve the current Bitcoin price: Accesses reliable data sources to obtain BTC's real-time value.
  2. Check the balance of a Bitcoin address: Allows users to verify the balance of any Bitcoin address without needing to run a full node.
  3. Perform Bitcoin transfers: Utilizes Chain Signatures within Chain Abstraction to sign Bitcoin transactions. Based on a derivation path and the user's NEAR address, a new Bitcoin address is generated to complete the transaction securely and in a decentralized manner.

How we built it

BTC Agent's architecture is based on integrating various technologies:

  • Using AI with Bitte Protocol We implemented the assistant using Bitte Protocol's AI infrastructure, which allowed us to equip it with advanced natural language processing capabilities.
  • NEAR Protocol's Chain Abstraction: As an interoperability layer that facilitates connection between Bitcoin and other networks without centralized intermediaries.
  • Chain Signatures: To generate and sign transactions without compromising users' private keys.
  • Bitcoin price and balance APIs: To provide accurate and real-time information.
  • Deterministic wallet infrastructure: To securely derive new Bitcoin addresses from the user's NEAR address.

Challenges we ran into

During the project development, we faced several challenges, including:

  • Permissionless interoperability: Ensuring that BTC Agent could operate without requiring trust in third parties.
  • Key management security: Implementing Chain Signatures without exposing users' private key security.
  • Data accuracy: Ensuring that price and balance information is always up-to-date and reliable.
  • Post-transaction information management: We had a problem mainly during the development of the agent, once we signed the near transaction to prepare the bitcoin transaction in the MPC we could not recover the information in the necessary format to be able to send it to the releyer and send this information to the Bitcoin network.

Accomplishments that we're proud of

  • Developing a secure system for deriving Bitcoin addresses without compromising privacy.
  • Creating an intuitive interface for non-technical users, simplifying access to the Bitcoin ecosystem.

What we learned

Developing BTC Agent allowed us to deepen our knowledge in:

  • Chain Abstraction and its potential to enhance blockchain interoperability.
  • Security in key management and transaction signing in decentralized environments.
  • Designing AI agents that interact with financial systems without centralization risks.

What's next for BTC Agent

BTC Agent is just the beginning. Our next steps include:

  • Expanding compatibility with more blockchain networks, enabling more advanced cross-chain transfers.
  • Enhancing AI capabilities, including support for more complex commands and asset management strategies.
  • Launching a beta version for the community, allowing users to test BTC Agent and provide feedback.

BTC Agent represents a new way to interact with Bitcoin in a simple, secure, and frictionless manner. We are excited about the impact this technology can have on cryptocurrency adoption and the development of more accessible solutions for everyone.

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