What is Autonomous Economic Agent (AEA)?
Let's find out Autonomous Economic Agent (AEA) meaning, definition in crypto, what is Autonomous Economic Agent (AEA), and all other detailed facts.
AEAs are software entities created by Fetch.ai and the IOTA foundation. They can act on their own, without the need for external input, for the benefit of their owners. Fetch.ai is a blockchain-based artificial intelligence platform that uses AEAs to connect with other AI applications to process real-time data and take actions based on it.
AEAs connect to IOTA Streams, allowing economic agents to act autonomously by sharing and retrieving real-time data. Financial markets that require taking fast actions for higher profits are one of the main spheres where AEAs are used.
Note that autonomous economic agents aren’t smart contracts or APIs. However, they autonomously follow some rules without any external input. Besides, developers can create their own AEAs on the blockchain.
Though the term economic agent is usually used in different contexts. It typically refers to a person who engages in economic activity such as purchasing goods and services or selling financial assets. An economic agent, in a broader sense, is any person, group, or entity that makes decisions about the distribution of scarce resources.
In recent years, however, the term has been expanded to include non-human agents such as bots. Given its growing popularity in this context, it's worthwhile to dig deeper into the concept of an autonomous economic agent.
An autonomous agent, in its most basic sense, means that the agent is capable to self-govern. In other words, it can control its own actions. Besides, since an autonomous agent is not subject to external control or supervision, it must have its own objectives that it pursues using self-generated means.
These features can be quickly recognized by professional economists as the cornerstones of any economic theory that deals with rational behavior by economic actors. The notion that all economic players are rational actors who follow their own personal interests without any external guidance or influence from outside sources is a basic premise in neo-classical economics.