Frax Finance, the decentralized stablecoin protocol has joined hands with the associated project IQ and is working on an AI tech stack for validating transactions on the blockchain network. This is a major step towards integrating artificial intelligence (AI) with blockchain technology.
Frax Finance Unveils AIVM Tech Stack
Decentralized stablecoin protocol Frax Finance unveiled its AIVM tech stack, which runs as a parallelized blockchain within the Layer-2 Fraxtal rollup, and uses a new proof-of-inference consensus system. This proof-of-inference mechanism will leverage AI and machine learning mechanisms for validating all transactions on the blockchain network.
Frax asserts that its AI tech stack will enable artificial intelligence (AI) agents to operate fully autonomously. This would eliminate single points of control and foster seamless collaboration between AI and blockchain technologies. Speaking on the development, Cesar Rodriguez, CTO at IQ said:
“Launching tokenized AI agents with IQ ATP on Fraxtal’s AIVM will be unlike any other launch platform thanks to this joint venture. Sovereign, on-chain [AI] agents that are owned by token holders is a 0 to 1 moment for crypto and AI.”
A Look Into the 2025 Vision Roadmap
As part of its 2025 Vision Roadmap, Frax Finance has outlined ambitious strategies to solidify its position as the decentralized central bank of crypto. One of the key major highlights is the introduction of the Frax Universal Interface (FUI), designed in a way to integrate the project’s innovative tech stack.
Furthermore, the roadmap includes a rebranding of the FRAX stablecoin along with a planned network upgrade via a hard fork. Frax Finance founder Sam Kazemian said:
“Our 2025 Vision Roadmap is a bold step toward creating the infrastructure that makes DeFi intuitive, accessible, and scalable for the next billion users entering crypto”.
Frax Finance previously launched its Layer 2 blockchain, Fraxtal, which features decentralized sequencers for batching transactions in a roll-up network. Fraxtal also incentivizes block space usage by rewarding users who spend gas and interact with smart contracts.
The Frax Protocol stands as the first fractional-algorithmic stablecoin system, offering an innovative approach to decentralized finance. Fully open-source, permissionless, and entirely on-chain, the protocol is currently implemented on Ethereum. Frax aims to deliver a highly scalable and decentralized algorithmic currency, positioning itself as an alternative to fixed-supply digital assets.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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