2020 Crypto Valley Conference on Blockchain Technology (CVCBT)
Abstract
The user experience of interacting with distributed ledger technologies (DLT) is fraught with excessive complexity, high risk and unintuitive processes. Moreover, smart contracts deployed in these systems are restricted to being reactive. These limitations have negative implications on user adoption and prevent DLTs from being general purpose. We introduce a framework for the development of Autonomous Economic Agents (AEAs), software agents that act autonomously and pursue an economic goal, and demonstrate how AEAs complement existing decentralised ledgers as a second layer technology. In particular, the framework enables a simplified user experience through automation, supports modularisation and reuse of complex decision making and machine learning capabilities, and allows for proactive behaviour facilitating autonomy. We demonstrate these gains in the context of a specific use-case, a multi-agent trading system modelling a Walrasian Exchange Economy populated by a number of agents trading a basket of tokens.
🌾 Nyakupfuya (Plain Language Summary)
Imagine you have a big herd of cattle, and you want to manage them better using new technology. Sometimes, using these advanced computer systems, like the ones that keep track of transactions without a central boss (blockchain), is like trying to count your cattle using a complicated new tool that you don't fully understand. It's risky, and you might make mistakes. This paper talks about creating special computer helpers, like trained herd boys, called 'Autonomous Economic Agents' or AEAs. These helpers can be given a job, like selling some of your cattle or buying feed, and they will figure out the best way to do it on their own. They can learn from past experiences, just like a farmer learns the best time to plant. They can also work together, like a group of farmers sharing knowledge about the best seeds. The big advantage is that these AEA helpers make the complicated computer systems much simpler for you. Instead of you having to learn every difficult step, the AEA does the heavy lifting. It's like having a trusted advisor who knows how to use the new tool for you. These helpers can also be programmed with smart ways to make decisions, and you can use those same smart decision-making skills for different jobs, saving you time and effort. They don't just wait for instructions; they can look at the situation and act proactively, like a good herd boy seeing a storm coming and moving the cattle to shelter before you even notice. For example, the paper shows how these agents can act like traders in a market. They can buy and sell different 'tokens' (think of them like special coins or shares in a project) to try and make a profit. This is like sending your agent to the market to sell some of your maize for the best price and then use that money to buy fertilizer, all without you having to be there every minute. This makes the whole system more useful and easier for everyone to adopt, moving beyond just simple record-keeping to more complex, automated tasks that can benefit us all.
🧠 Key Concepts
Distributed Ledger Technology (DLT)
A way to record information that is shared and copied across many computers, so no single person can change it easily.
💡 It's like every person in the village having a copy of the chief's record book. If someone tries to change their own copy, everyone else can see it doesn't match and know it's wrong.
Smart Contracts
Computer instructions that automatically carry out the terms of an agreement when certain conditions are met.
💡 Like a vending machine: you put in the correct money (condition), and it automatically gives you the drink (action). No need for a shopkeeper to be present.
Autonomous Economic Agents (AEAs)
Computer programs that can make their own decisions and take actions to achieve a specific goal, often related to earning or managing resources.
💡 Imagine a trusted family member who manages your market stall for you. You give them a goal (sell maize, buy fertilizer), and they decide the best prices and times to do it, using their own judgment and knowledge.
Second Layer Technology
A system built on top of an existing technology to add new features or improve performance, without changing the original system.
💡 Like building a veranda or an extra room onto your existing house. The main house (DLT) is still there, but you've added new functionality.
Walrasian Exchange Economy
A theoretical market where many buyers and sellers trade different goods until prices settle where everyone is satisfied with what they have.
💡 It's like a big village market day where everyone brings their goods (maize, chickens, crafts). People trade until they feel they have a fair exchange for what they need, and the prices for everything become stable for that day.
💪 Practical Implications
- ✓ Farmers could use AEAs to manage their crop sales and purchases automatically, optimizing prices and timing.
- ✓ AEAs could help manage shared community resources or co-op funds, making decisions based on agreed-upon rules and market conditions.
- ✓ Businesses could automate complex supply chain logistics or financial transactions using AEAs, reducing manual work and potential errors.
- ✓ The 'village version' could be a community-managed digital assistant that helps farmers negotiate better prices at market or manage shared irrigation systems based on real-time weather data.