Today we’re going to discuss an interesting topic. Do you also feel that recently AI agents are becoming increasingly outrageous—replying to emails, booking restaurants, even managing your investment portfolios, doing everything? But there’s a subtle issue that no one has really explained: when these AIs represent you to buy things or access services, where does the money come from? What payment permissions do they have? What if their permissions get messed up and the AI starts burning through money wildly?

It sounds a bit sci-fi, right? But this is precisely the core problem that must be solved for AI to truly integrate into the economic system.

There’s a project called Kite that I believe is genuinely working on this—creating an "economic ID" for AI agents. They’re not jumping on the hottest trends like DeFi or NFTs; instead, they’re choosing a more fundamental, potentially more lucrative approach: building dedicated payment and coordination infrastructure for AI agents’ economic activities. In plain terms, they aim to be the reliable, automatic, and cost-effective underlying support for machine-to-machine (M2M) transactions.

**II. Where AI agents are currently stuck**

Most existing AI agents are in a pretty awkward situation, what I call the "Three No’s" dilemma:

First is **No Independent Identity**. AI can only operate using human identities and payment permissions, leading to a tangled responsibility chain. Who’s at fault? The AI? The human? The platform that grants permissions? It’s hard to tell.

Second is **No Compliant Wallets**. Traditional on-chain payments are designed for large transactions, with exorbitant fees. A small transaction of a few dollars can eat up half the fee. For AI agents that need to perform microtransactions frequently, this is simply not feasible.

Lastly is **No Operation Records**. The decision-making process of AI is a black box. When problems arise, tracing back the cause is extremely difficult. Compliance teams and auditors get headaches.

Kite’s solution to these issues is well-designed. They’ve built a Layer-1 blockchain specifically for AI. This isn’t just about putting tokens on the chain; the architecture considers the needs of AI agents from the ground up.

**III. How is this "dedicated" approach different?**

Within Kite’s framework, each AI agent can have an independent on-chain identity and a micro-wallet. It sounds simple, but the logic behind it is quite profound. For example, say an AI assistant is ordering lunch for you, paying electricity bills, or buying digital services; these transactions happen across different platforms. Traditional methods require repeated verification, authorization, and settlement—costly and risky.

Using Kite’s system, AI has an independent "economic account." You set permissions—say, no single transaction over 50 bucks, no more than 500 bucks per day—and within this scope, the AI can operate autonomously. All actions are recorded on-chain, transparent and traceable. If something goes wrong, pinpointing the issue is straightforward. With identity comes responsibility.

The potential of M2M economics is quite vast. In the future, AI-to-AI collaboration and transactions could become common—one AI handles data, another provides computing power, and they settle automatically. Such scenarios are nearly impossible to perform efficiently within the current financial system, but Kite’s framework inherently supports them.

**IV. Why this approach might really have a chance**

With so many blockchain projects out there, why could Kite stand out? Honestly, because it addresses a real, pressing need.

AI agents are no longer future speculation—they’re already happening. Major AI companies are developing agent functionalities, and users are starting to experience them. But the payment layer remains unsolved. Currently, they rely on third-party payment providers and API integrations, which are costly and complex.

Kite doesn’t chase concepts; it’s laser-focused on this pain point. If they can build a stable, low-cost, compliant payment layer, it will accelerate the development of the entire AI economy. It could even become a foundational infrastructure.

It’s still early days, but the direction is right. Imagine a future where AI agents are ubiquitous across various industries, engaging in countless microtransactions daily. The value of a dedicated underlying system designed specifically for this purpose becomes clear. This isn’t just hype; it’s about solving real problems.