Ethereum (ETH 3.46%) might be on the verge of making major inroads into being a provider of artificial intelligence (AI) agent infrastructure in crypto. If it succeeds, it would likely see a lot more demand for its coin, and a lot more automated activity on its chain, both of which would boost its price.

But what exactly is in the works here, and does it actually count as a reason to buy the coin as aggressively as some of the evangelists are saying?

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What’s actually happening

In the tech world, if an organization can define certain coding practices as the standard for implementing a feature on one of its platforms, it’s effectively able to shape the entire ecosystem. Aside from training developers to work on your platform, thereby expanding your talent pool, setting a standard is a prime way to demonstrate technical leadership and build prestige. And that’s exactly what Ethereum is angling to do with its new ERC-8004 standard, which is intended to guide the development of AI agents that operate on its chain and others.

Technically speaking, ERC-8004 is a draft Ethereum Request for Comment (ERC) that defines three new data registries for AI agents: one for identity, one for reputation, and one for validation. It also specifies an off-chain file where an agent can report its metadata, as well as a way for third parties to submit feedback that smart contracts can then read.

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Basically, ERC-8004 is a new standard that defines an ID system and review framework for AI agents. That framework calls for gathering data on each AI agent’s name, skills, and track record for completing its assigned tasks. The strategic vision here is that once AI agents can discover each other on the blockchain and prove their identity and competence to each other, it will open the door to a flourishing market for AI services that settle in Ethereum.

Why this is not automatically bullish

If ERC-8004 becomes widely adopted, it could bring a lot more traffic to Ethereum, as it will be the network with the clearest framework for AI agents to operate within. More sustained traffic can translate into more transaction fees burned, which can support Ethereum’s price, as agents will need to be supplied with Ether (or work to generate it themselves) before they can perform any independent tasks.

But there are two caveats that may mean the rollout of this new standard isn’t a slam dunk for holders. First, developers abiding by the practices described in an ERC is optional. Adoption of a new set of standards can take a long time.

Second, Ethereum keeps pushing down its gas fees with each successive upgrade it performs. So Ethereum can get tons more usage while generating lower fees and thus constraining the returns for holders.

So the new ERC-8004 standard is promising, but it’s not exactly a reason to run and buy Ethereum hand over fist. Wait for people to actually start using the standard in a way that demonstrably generates more demand for the coin before getting more aggressive with your purchasing.