Agents with Allowances | Itai Turbahn - Dynamic

yeah okay let's do it so hey everyone I'm eai uh from Dynamic we'll talk about that in the second just thank you for uh kind of uh coming in today really what we're going to chat about just so everyone knows is essentially everything around embedded wallets making embedded wallets invisible and then how we give agents or AI agents wallets so it's going to a couple of fun topics I'm sure everyone's excited we'll start uh very quickly uh quick overview of why we're stuck with me uh who has heard about Dynamic before okay great okay by the end of the conversation I guess everyone would have but uh very quickly I'm the co-founder uh we focus on everything embedded wallets and wallet offering and inherently what that means is a single SDK for everything wallet related so that can be a web 3 login that can be an embedded wallet type login so email login social login it can be a bunch of components and UI tools or it can be a fully headless very API very close to Bare Metal type uh tools right so we do all of that uh you'll see a couple more in a second but that's a little bit of context just so folks know who we are we've been around for about three years we raised about $21 million from a16z Founders fund first round Capital Etc uh and we have some cool folks on the team um very quickly the way to think about us and again I'll get to the actual mey stuff very very quickly but the way to think about us is we offer everything user management so that can be embedded wallets but that also means wallet linking that means capturing information from users so it's a kind of everything you need to know to manage your users on the site and we have historically focused on human-based kind of crypto in the background UI abstraction right we're moving to also focus on AI kind of agent-based abstraction but historically we focused on okay how do we make it really easy for humans to experience web 3 experiences right and you can see Dynamic today on a bunch of sites so if you go to magic Eden uh and you log in by the way with email starting this week as well uh or connect multiple wallets to the same account that's powered by us if you go to Arena on Avalanche and you log in with Twitter and you get a wallet that's powered by us if you go to sofon and experience a global wallet within their ecosystem that's powered by us you can see it on be chain you can see it on say uh on story protocol all those websites use Dynamic uh so we get to work with a bunch of really cool folks if you've used Legion for instance uh to to kind of get access to early deals that uses Dynamic and you've gotten in a dynamic wallet you have likely used Dynamic at one point we've had over 75 million sessions in the last year using Dynamic um it's live on evm and and God forbid non evm chains but let's ignore the non-m chains for this conversation given it's an evm conference so we'll start with uh less Dynamic Shilling and more to our actual point right so AI agents have pretty much uh kind of taking over the conversation right the idea would be that over time we become more lazy and we get AI agents to do some of the work for us right book a trip buy stock or do things we haven't thought about right and it's very easy uh that we give them wallets right it it makes sense that they don't just have access to information but they can actually take action and get wallets right uh but you'll have these AI agents perform a bunch of these task and they need some sort of way to act on them whether it's waiting on my behalf uh for Taylor Swift tickets who is a Taylor Swift fan by the way uh thank you I appreciate it uh you're going to get more references in this conversation than you should uh but it's it's natural that we give them those those wallets right um there are really two paths to giving AI agent wallets the first one is human in the middle meaning I want to perform a task I assign the task to an agent and at that point the agent gets some sort of delegated permissions from me to accomplish that task with the wallet they end that task and they give me back the resulting kind of purchase whatever and the second approach is just AI agents with no human in the loop in the sense that I wake up in the morning there's an agent running in the background it does continuous tasks for me and it just continues on a day-to-day basis and we'll cover both of those but but the challenge is is essentially for AI agents to work we got to give them these really fine grain permissions right you can't uh if if you go on chat GPT and it hallucinates the wrong answer that's that's fine right you can double check it you can confirm if it hallucinates buying something that it shouldn't or spending a million dollars that's that's really not okay right and so you need to give agents very fine grain permissions in order to actually execute on this type of stuff and so for that uh and this is where we take a step back to get AI agent wallets right we actually had to take a step back and think about how do you get key management right right what are the core things you have to do in order to build for this future world and that's that's uh where we have a first announcement of the day we had to rethink how we do um uh kind of our our uh Key Management infra and so today we're essentially announcing a new key management infrastructure uh for dynamic which is a threshold signature MPC based infrastructure now as I continue to explain this who has heard of MPC great who's heard of threshold signatures okay that's awesome okay great so uh let's let's actually dive into what that is so for those that don't know what so for those that don't know what NPC is NPC is multi-party computation meaning we collaborate together in order to get a resulting computation what threshold signature MPC is is kind of a a more advanced version of MPC where a private key in the case of Key Management never exists meaning I have a share a server has a share an agent potentially has a share and we collaborate it's distributed it's generated in a distributed way and we collaborate to sign without a private key ever being exposed so you can start doing really sophisticated key signing mechanisms without ever exposing a private key or without a private key ever existing now historically these have been really slow so you would use them on a fire blocks uh which works well when you're trying to move $10 million and you're fine waiting 10 seconds but they do not work very well on a thing that needs to happen really really quickly at scale on a consumer app and so they've been kind of in the background for a while but but over the last couple months and years we've started to see a lot of NPC progress to get it up to speed and that's that's where we get uh the dynamic TSS MPC so let's look at a very quick demo of what that looks like so this is more the bare metal version of this right so I can create a bunch of these different iterations of shares I can do a two out of two I can create an evm A salana W an svm wallet I can do a more sophisticated two out of of three I can do a three out of five so that's five shares three needed to sign I can start creating these really interesting iterations that are important in the next part of the talk around ADI agents I can do more sophisticated stuff so I can refresh shares in case one share gets compromised or I can reshare the entire thing so I can start with a two out of two uh share setting and I can move to a two out of three or three out of five right so that flexibility is really important for that next part of the talk which is how do we get AI agents to have shares of wallets and we had to rebuild the entire Key Management infrastructure to get that right uh if you want to see a detailed demo of this by the way this is kind of uh really quickly adding a new wallet you can add a three out of five you can do more sophisticated stuff around Import and Export all the type of stuff we kind of handle if you want to see a demo of that come find us after come to our booth um but we had to get that right right so very quickly architecture wise we built a hyper flexible solution right it's non-custodial it can do a bunch of these key shares it leverages trusted execution environments for the server side so with the dynamic side of this so signing happens in trusted execution environments and it can work client side for human and the loop type interactions or server side for servers to server machine to machine type interactions right um what that means is we can get agents key shares with very limited permissions and we'll see this architecture in a bit you can get um key shares with very limited permissions and hold the dynamic or the server share to a rule engine for when to counter sign or cosign right so you can start building these really sophisticated flows based on this architecture but before we dive into AI agents and I think that's the third time I said before we dive into AI agents we'll get there uh this lets us kind of change how we do human type interactions so log in with email login with Google Etc right so we have a few options so at the very basic level we offer a two of two setup meaning a human wakes up in the morning they go to arena. app or any one of those sites and they log in they get a key share on their end Dynamic has a server share on its end and dynamic also stores an encrypted version and a backup version of that keyshare so if I go to a second browser I have an automatic recovery in the background so for a user it's seamless it's the same as the experience of logging in with an email today and getting a wallet but you get all these kind of advanced things back but again as we said it can graduate to a more sophisticated flow automatically so I can create a second key recovery that I store on Google Drive or iCloud with one click or I can even do a more sophisticated type recovery where one share is stored on the developer site one Shar is stored on Dynamic and then three shares or two Shares are stored with the user so you can start building these really sophisticated Key Management type flows very very quickly and it's rolling out in the coming weeks so if anyone wants Early Access reach out to us uh but with that let's actually finally talk about AI engines so not sure if you heard AI agents are all the rage uh I really hope we get to a point where we wake up in the morning and we have a bunch of these agents working working for us uh there are lots of cool Frameworks out there to manage AI agents to manage web three AI agents I'm actually not going to talk about them I'm just going to focus on the key management part and how Key Management changes and how it should be structured for this so as we talked about there really two ways to do this human in the loop and no human in the loop the human in the loop one is the following uh by the way the point of this uh deck is really just to show memes and gifts so if you got nothing else away from this deck and you got some good memes hopefully that made your day better but uh very quickly the goal of a human in the loop type AI agent is to help with everyday task I want to book a flight I want to trade stocks um I I I want to start moving things from one place to another I want to uh kind of renew my passport all that type of activity is in human in the loop I wake up in the morning I have access to a wallet I delegate some sort of permissions the agent takes care of them and comes back with the results so let's walk through a flow so uh user goes to an AI travel agent website they Define some parameters on the trip so let's say my budget where I'm going Etc the AI agent gets a key share so the user issues that AI agent a second key share so we move from a two of two to a two of three at that point the AI agent can counter sign with a server to actually execute on things the server can limit uh what can be countersigned with a rule engine and then the agent books a trip and the human goes on vacation and thinks about how weird the world is becoming the way that works on the dynamic side is the following so a user gets an user share right I logged in with an email I logged in with Google I got a share and I can issue this temporary share to the agent and Define some permissions in the rule engine as to what this agent can do right and at one point I can destroy that extra share I can reshare right I can redo the sharing get a new share so the old thing the agent has is no longer relevant and continue on my day so I can start doing that uh a bunch of times right now there's a second uh type um activity which is no human in the loop right we're used to uis we're used to logging in but agents do not need to do that right there's no real reason why an agent has to actually have a UI or why they need a UI component at all and for that we need lower level server side SDK so a node SDK in the future a python SDK in order to let agents interact uh with wallets directly and the flow there is slightly different right so an agent wakes up in the morning obviously agents need to drink coffee too uh they monitor a market they find some sort of opportunity they ask the server for a share they generate the share locally essentially they generate a server share they get some sort of permissions allocation of funds they execute on the tasks human get on ongoing reports and again human doesn't need to do anything right so the idea here is actually taking a step further from an assistant to a fully autonomous type experience right and you can do that with more sophisticated server to server and machine to machine type interactions and that's why by the way we're launching this node SDK and again in the future things like a python SDK Etc that let agents live in their machino machine environment without needing to deal with UI and in that scenario there's really no human right so an agent independently generates a key share again MPC there's no moving of shares but rather a key share is generated here a key share is generated here and there's some rule engine that actually is this like an oh wow this is an actual screen um there's some sort of rule engine that controls uh what can be signed and what can't be signed right so you can do this in a really nice flexible way and again there's a relay that communicates just so everyone's clear on TSS MPC there's a relay that communicates information but it actually doesn't move any key material right the key material stays here as one share and the second share that stays here right so you have that ongoing Security in a really nice way without any kind of interaction in the middle so over time we'll probably have this combination of both type of agents and in both cases I really hope that just means less work for us right I really hope we just wake up every morning reflect on how weird the world is becoming and do less work as a result of this I I will make one Shameless plug give given that uh we're in a kind of a eth conference there's an who's heard of 7702 okay so who's heard of account abstraction perfect okay so for those that don't know and again two takeaways from today should be meme coins first 7702 second trusted execution environment uh in uh TSS MPC third but on the second one uh there's a change coming in the upd uh upcoming ethereum update which lets you bind an EA uh address to a Smart contract so essentially you can log in over the next couple months with your metam mask and do gasless transactions or bat transactions right that works the same for embedded wallets meaning I have spun up an embedded wallet for an agent and that agent should be able to benefit from trustless or gasless type execution or bat execution just like a human would so that is a change that's coming up the reason I say count abstraction it's based on the same how am I doing oh three minutes PR perfect uh it's based on the same account abstraction type contracts but sits not in front or on top of um kind of a an EA but rather next to it is a rule engine so that's coming up that's going to be really exciting so with that let's summarize so we talked about a bunch of things right we talked about why AI agents are cool we talked about our new TSS MPC off in right and all the cool things you can do with very flexible low-level Key Management that we now offer uh we talked about the two paths for AI agents right human in Loop and no human in Loop and we talked about how we can do less things right but we're and I'll end with this which is we're in the business of giving tools to developers if you were to tell me hey here's the types of experiences that we be will be built on top of dynamic two years ago I would have told you you're crazy right we've had Lamborghini build on top of dynamic and we have Doodles build and McDonald's build on top of dynamic and we had anywhere in between those right and those are things we couldn't have predicted and the types of experiences we couldn't have predicted and so really what we're trying to aim for at Dynamic is to give Tools in very low level and very close to the metal tools as well as very abstracted UI components for folks to build stuff we haven't thought about and so while I really hope that you know the next time there's a Taylor Swift concert I actually instead of standing in line on Ticket Master I get an agent to do that that's a great use case I really hope that the next set of use cases that are built with AI agents actually we did not think about right and are completely abstracted away and that's why I ask uh that if you have cool ideas for ways to experiment with AI Agents come talk to us we want to hear about them we want to start building a subset of tools that help you create these experiences that couldn't exist today and look like nothing like what's out there today and with that thank you uh if you want to reach out to me if you have questions that's my telegram that's my email uh we have a booth tomorrow again Shameless plug uh if you want Early Access come talk to us if you want to play around with dynamic in general come talk to us uh if you want swag come talk to us uh and besides that very much appreciated thank thanks everyone