Illia Polosukhin: Why AI Agents Are Still Useless (And What Fixes Them) | NEAR Founder on IronClaw

David Hoffman
David HoffmanMar 24, 2026

Why It Matters

By marrying AI with blockchain’s trust and payment primitives, developers can build secure, upgradeable agents that avoid data leakage and enable global, frictionless services—an essential step toward an AI‑driven operating system.

Key Takeaways

  • AI agents expose secrets when using centralized LLM services
  • Near’s blockchain solves key distribution and trust for AI agents
  • AI will become the operating system, replacing traditional OS layers
  • Blockchain provides root‑of‑trust for AI infrastructure upgrades
  • Crypto payments enable global, frictionless compensation for AI crowdsourcing

Summary

The interview with Illia Polosukhin, co‑author of the seminal "Attention Is All You Need" paper, explores why current AI agents remain impractical and how blockchain can remedy their shortcomings. Polosukhin explains that most generative AI deployments leak sensitive credentials to centralized providers, creating a massive security risk. Near’s IronClaw architecture eliminates this exposure by ensuring API keys never touch the LLM, leveraging a decentralized ledger for secure key management.

Polosukhin recounts his 2017 pivot from Google to Near AI, where he attempted to teach machines to code and used crypto to pay a globally distributed crowd for data labeling. He argues that blockchain’s smart‑contract‑driven marketplaces, identity registries, and immutable consensus mechanisms provide the essential back‑end services—trust, upgradability, and micropayment infrastructure—that AI agents need to function at scale. Without these, AI systems lack a reliable root of trust and cannot coordinate upgrades or enforce permissions.

Key examples include Near’s crowd‑sourcing platform, which operates with zero employees, and the analogy to TCP/IP’s slow protocol upgrades versus blockchain’s consensus‑driven upgrade path. Polosukhin envisions a future where AI replaces traditional operating systems, booting devices into a personalized AI layer that composes software on demand, while blockchain underpins identity, property rights, and financial settlement for autonomous agents.

The implications are profound: if AI becomes the primary interface for computing, the convergence of decentralized trust and AI will reshape software development, financial services, and digital governance. Enterprises must consider integrating blockchain‑based identity and payment layers now to stay compatible with the emerging AI‑first ecosystem.

Original Description

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NEAR founder and Transformer co-author Illia Polosukhin joins us to break down why today’s AI agents still fall short, what’s missing to make them actually useful, and how IronClaw could unlock secure, private, autonomous AI.
We also explore Illia’s bigger thesis: AI becomes the interface, blockchains become the backend, and both reshape how humans, agents, and digital markets interact.
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TIMESTAMPS
0:00 Intro
0:43 Illia’s AI Journey
8:19 AI x Blockchain Operating Systems
14:40 Will Humans & AIs Use the Same Systems?
18:20 Why Are AI Agents Still Useless?
28:54 AI Agent Privacy Concerns
35:30 IronClaw Privacy
39:21 AI Agent Limitations
47:00 Context Constraints
53:42 Will Small Teams Win?
57:16 Autonomous Agents & Businesses
1:01:00 Digital Life Forms?
1:02:42 e/acc Vs d/acc
1:09:44 Why isn’t AI Crypto-Pilled
1:14:31 Advice for Builders
1:18:30 Closing & Disclaimers
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RESOURCES
Illia
IronClaw
NEAR
Attention is All You Need
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Not financial or tax advice. See our investment disclosures here:

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