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Avalanche provides a scalable and transparent foundation for AI applications, which may bolster institutional AI adoption.
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Avalanche Network is debuting the first institutional-grade blockchain focused on artificial intelligence.
The AI-focused testnet, developed by decentralized AI infrastructure provider Kite AI, aims to enhance scalability and data processing while providing centralized coordination for AI workflows, including data providers, model builders and autonomous agents, according to a Feb. 6 announcement shared with Cointelegraph.
The testnet aims to introduce the next generation of AI-driven infrastructure for Web3 builders, according to Chi Zhang, co-founder and CEO of Kite AI.
More transparency for AI algorithms could bolster institutional participation, Zhang told Cointelegraph.
“Institutional participants are often AI application users who are looking for a rich AI marketplace of AI agents and models to automate tasks, enhance efficiency and improve internal operations,” he added.
Zhang said compliant data attribution and lineage are key for institutions that manage large volumes of internal data to build advanced AI models and agents.
The new testnet comes during a period of increased investor interest in AI, a day after 0G Foundation launched an $88.88 million ecosystem fund to accelerate projects creating AI-powered decentralized finance (DeFi) applications and autonomous agents, also known as DeFAI agents.
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Advancing AI development on the Avalanche blockchain
Avalanche’s Ethereum Virtual Machine (EVM) compatibility and scalable smart contract infrastructure make it a robust foundation for AI applications.
Kite AI chose Avalanche due to its multichain architecture and “tailored execution environments” for its AI testnet, according to Zhang, who explained:
“Avalanche’s ecosystem spans institutions, payments, DeFi and gaming, which aligns well with AI-driven data economies and autonomous agent networks across these sectors while it also provides permissioned and permissionless subnet customization, letting AI-focused applications balance security, scalability and decentralization.”
Avalanche subnets also enable the integration of customized gas tokens, compliance frameworks and execution layers for AI processing, which “ensures that institutions can run AI models efficiently while maintaining regulatory compliance.”
Zhang added that the Avalanche900 upgrade was a significant scalability upgrade for the network, thanks to its permissioned subnets and EVM enhancements.
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Industry watchers expect autonomous AI agents to emerge as a leading crypto investment narrative for 2025, following recent developments.
The growing interest in AI agents was catalyzed by Luna, which executed an autonomous blockchain transaction without human input in early January, Cointelegraph reported on Jan. 2.
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This article first appeared at Cointelegraph.com News
