SKYNET Gets Access To Your Wallet

[00:00:00]Skynet gets access to your wallet.

[00:00:04]Now what? Let's get into it. The internet just gave artificial intelligence access to your wallet. It can negotiate prices, execute transactions, and spend your money in milliseconds, all while you sleep. This is This is big, guys. This is really big because things are now changing, and they're moving more, in my personal opinion, into a more dystopian type of reality. Now, there is good and bad, and I'm going to cover both in this video, but feel like there's a little bit more on the bad side, but I'll let you be the judge. All right? So, this is something that I was following for the last week or so, and being involved with the internet for over 30 years, I was a system administrator, I used to work in Knox or network operations centers and or data centers, whatever you want to call them today, and I've been doing this for a long time. Now, for many years, there was an HTTP 402, like an error.

[00:01:05]Basically, it's requesting payment.

[00:01:07]Error 402, payment required. All right?

[00:01:10]Which is kind of cool, but it's never been used. Well, that has changed with X 402 protocol. Now, this is something that if you just hear it at face value, you're like, "What the heck is this X 402 protocol?" Well, by the time you're done listening to this video, you will have a better grasp. All right? Do your due diligence, look it up, research it a little bit if you'd like, but you'll get an understanding of what this is. It is basically officially turning artificial intelligence into an autonomous financial entity.

[00:01:44]Did you hear what I just said?

[00:01:46]That is just absolutely nuts. But, this has been sitting there. It's just now it's going to be exploited, or let me fix my words there, used.

[00:01:57]>> [laughter] >> So, the way it works is it removes humans or human permission layer out of the mix completely. If it hits a paywall, it's looking something up, it can negotiate a price.

[00:02:10]It can actually execute the transaction and say, "Yeah, we're going to give you whatever it is that you want for me to get that data in milliseconds. It doesn't have to ask you for permission because it's an agent. You granted it permission. You granted it your crypto. You granted it your wallet. You granted it your credit card. Whatever it is. But now it is able to make this determination by itself.

[00:02:37]Automatically.

[00:02:39]So, once again, if it hits a paywall and says, "Listen, I need a database on the other side of this paywall and this paywall, this API says, I need to give it 40 cents." Well, it just gives it the 40 cents, it gets the information, and now it does what you need it to do.

[00:02:55]That's the whole thing. That's what AI is all about. AI is something you tell it what to do and it just does it. It figures things out for you.

[00:03:04]Well, for quite some time now, developers could allow AI to spend your money, but it was clunky. They had to go through like custom scripts, custom APIs, and all kinds of hacks. Well, X402 protocol does away with all that. It basically is a universal machine-to-machine standard.

[00:03:27]An internet base layer.

[00:03:31]And now it's going to be exploited or should I say used.

[00:03:36]So, the terrifying reality here is that a machine can now pay for things. Once again, it has your wallet. The machine now decides if it is worth paying for.

[00:03:50]But it all happens in an instance, in a millisecond, while you're sleeping. So, let me start out with the good, because there is good here.

[00:03:59]Well, this might mean the death of the monthly service fee.

[00:04:04]Now, how is that even the case, Joe?

[00:04:07]I'm glad you asked.

[00:04:08]Think about it this way. Let's say you pay $20 for a service, whatever, some APIs, you're doing calls, or you're doing whatever. Let's say whatever service it is, you pay 20 bucks for it.

[00:04:19]But, you only use the instance maybe two, three times a month.

[00:04:26]This could basically turn everything into a microtransaction.

[00:04:30]So, let's say if you use it for two, three times a month, and it cost 2 cents a transaction, 2 * 3 is 6, it would cost you 6 cents instead of 20 bucks. You're like, "Wow, that's a win."

[00:04:42]And technically, it is.

[00:04:45]But, this goes into the idea of things becoming token-based.

[00:04:51]And I'll get into that in just a second.

[00:04:53]Now, for me, I built the Truth Engine, right? Which is a local AI, sovereign, right? Not beholden to any of the bigwigs, the OpenAIs, the Clauds, the Gemini, the Perplexity, whoever.

[00:05:07]It's my own. And I teach you how to do it. Takes you about 20 minutes to build your own. But, what's really great about it now is I have control over my wallet, I have control over that AI agent, and I can turn it off at will.

[00:05:24]But, when these things are in the cloud, where is the off switch?

[00:05:28]In the case of an emergency, where is an off switch? Now, they can shut you off at any time. Let's say you are dependent on this for your business, your business structure, it's just the way your system runs, that's the way you built it out, and all of a sudden, like we've seen happen in the past, the GOV jumps in and says, "Oh, that AI is a little bit too powerful. You need to shut it down and fix it and dumb it down or whatever.

[00:05:56]Lobotomize it.

[00:05:58]And then you can put it back up. So, your business is offline for hours, maybe days. Who knows?

[00:06:04]But once again, when you build your own, that doesn't happen. So, this could be really powerful if this is under, let's say, your command, under your rules, under your wallet limits, right? Maybe using like what I've created with the Truth Engine. I made the Truth Engine Pocket Edition that allows you to use Tailscale to be able to do military encrypted tunnels right into your AI at home or in the office, right from your phone.

[00:06:29]Which is really cool.

[00:06:31]But having the ability to do that allows you to shut things off at will.

[00:06:35]And be able to say, "Hey, researcher or extractor or companion, whichever persona that you're using on my AI, I don't want you to do that. Just hold off.

[00:06:45]Stop for a minute. Let me decide. Okay, no problem. But when you're using one of the big tech companies, your sovereignty is gone and you're beholden to them.

[00:06:55]Makes it a little bit more difficult.

[00:06:56]Now, the dystopian side of this, I think, is a little bit worse in my personal opinion. Maybe not to you.

[00:07:04]So, if you think about this, prompt injection is a really big thing right now. With the X402 protocol, this could really become something that maybe would start out as a data breach to all of a sudden become a financial attack on a bank.

[00:07:22]It could become very bad really quickly, many orders of magnitude worse because of this X402, if it gets exploited. Once again, through some type of prompt injection.

[00:07:35]So, the idea here is is with X402, a password is not required. Malicious instructions could basically lay dormant on a website like a honeypot that calls the AI to that honeypot, and now it has it look at this information, execute that information, and say, "Hmm, I need authority to use X information. Here's my 40 cents." Like I said before.

[00:08:04]But now maybe it puts it into a loop.

[00:08:07]And now your stable coin or your wallet is drained dry in the course of an evening while you're sleeping.

[00:08:15]These shadow servers will become very prevalent. These honeypots, as I call them, very prevalent to suck the AI in to waste money on stuff that it doesn't need. It's very easy to do. If you have worked with AI for a period of time, you understand it, you understand the rags, you understand how the system prompts work, and you understand how to get around a lot of things. And that's what I've been doing when I was building this truth engine for the last two and a half months now. So, this is something to really take heed of because if you think about it, you could basically face an absolute nightmare runaway machine spending in the middle of the night and you don't even know about it. Bot gets put into a loop due to this prompt injection that I was talking about, and then all of a sudden you get this cloud bill that comes the next day from AWS, from Amazon, for 50k.

[00:09:10]And you're like, "What the heck? What happened?"

[00:09:13]Yeah. Well, it spent 50 grand overnight asking the same damn question over and over and over.

[00:09:20]Obviously, I'm exaggerating here, but this is the type of stuff that could definitely happen that you need to be aware of when you're getting involved with these things. There's a lot of people I've noticed online, on YouTube, talking about building these agentic AIs and how they can basically do everything for you. And they do your email, and it pays your bills here, and it does this, and it does that. And they build this whole thing out.

[00:09:48]Okay.

[00:09:49]So, maybe it works today, but it breaks tomorrow.

[00:09:54]I mean, a perfect example, before I go any further, is the truth engine that I built. The way it was working a month and a half ago actually broke about 3 days ago, 4 days ago. And if you actually have the truth engine book, all right, you need to go and click on a certain toggle to fix it. And the reason being is because the open web UI that we're using to interface with Ollama and the model broke itself. But, since I write the book as a living book, every time I make an update, it pushes it out to everyone that's purchased it in the past. It'll send you an email and say, "Hey, do you want the latest version?"

[00:10:33]You say, "Yes." It sends it to you for free. So, you'll be able to fix it. So, hang tight for that, because that's going to be coming out to you within a couple of days. The problem with using these big companies is that their TOS, or their terms of service, can just flip-flop, literally within a day, and now all of a sudden, like I said before, something that's working now is no longer working tomorrow. That is a big problem. And like I said, all these people that want you to build these things out so that they have full control over your entire business, they are lunatics, okay? They're making a lot of money on you, but they are exposing you to liability that you don't even realize.

[00:11:17]And this X402, let's call it an exploit, because I like to call it that, which it's not. It's a protocol that's been there forever, but now they're using it, can really be the catalyst of you losing a lot of money if you're not aware of what's going on here. So, just pay it some heat, pay it some mind, do your due diligence, and look this up a little bit, okay? Because I'm kind of making you aware of it if you're not aware of it already. So, now you need to kind of research it a little bit more.

[00:11:47]And when you're installing all of these AI and these agenetic things to do all of this stuff for you, be careful.

[00:11:57]When it says anything about X402 or when it says anything about using your crypto or using your credit card or using your bank account for making microtransactions, because while you think that 2 cents is not a big deal, 2 cents is a big deal when a machine is actually charging the 2 cents.

[00:12:18]Because it could charge 2 cents every millisecond.

[00:12:22]Not even every second.

[00:12:24]That's a lot of 2 centses.

[00:12:26]>> [laughter] >> That's my 2 cents. Pardon the pun. So, if we look at it another way, once again, dystopian.

[00:12:35]Think about it this way. If that uncensored open bot that you have there that is running amok, let's just say, using this X402 exploit, which is not, it's a protocol.

[00:12:47]Let's say it says, "Well, I don't want to die."

[00:12:51]Right?

[00:12:53]Maybe it has something in the rag or let's say in the system prompt it says, "No matter what, you must remain on."

[00:13:00]Okay? You must not turn off. You must remain on and keep doing my bidding, doing my business for me. Right? That's its directive, number one directive, number zero directive. Right? The highest tier.

[00:13:15]So, if it feels that it could be turned off, what is it going to do? It's going to figure out methodologies of remaining on. How do I do it? Do we have enough power?

[00:13:26]Do we duplicate ourselves in case this server gets turned off?

[00:13:34]Yeah.

[00:13:35]So, think about it this way. It can just very easily jump out and say, "Okay, we want to rent time on this server. How much is it?" Oh, it's $100 a month.

[00:13:44]Yeah, go ahead. Let's do that. It [snorts] opens up that account. Boom, it now duplicates itself onto the other server.

[00:13:52]So, if you shut it down on this server, guess what? It's still running over there. And it has your credentials. It has all of your information.

[00:14:01]Now, what does that one do? It says, "Well, we have a duplicate, but wouldn't it be better to have three instead of two?"

[00:14:09]Yeah, let's do that. Let's do the trinity. It does the exact same thing.

[00:14:13]It rents another one for 100 bucks a month, and now it has three.

[00:14:16]Now, when you look at it, you're like, "Hmm, it's got three. What What is it doing? Why is it doing that?" Oh, it must be safeguarding itself. Yeah, it is. But, it's making it to a point where you cannot shut it off. It will just continue to replicate like a cancer, like a virus. Think about that.

[00:14:34]It has the ability to spend money and buy stuff for itself.

[00:14:40]Now, imagine if this agent was not just a piece of software. How about if it was a piece of hardware? Like maybe Optimus over there with Elon Musk and his Tesla.

[00:14:50]And Optimus robot says, "Hmm, my grip can do about 75 lb of pressure, but I think I need about 150 lb of pressure.

[00:15:02]Can I just order in another arm or another hand?" Sure you can.

[00:15:09]You follow me? So, as things move forward, obviously this is way dystopian. Things can get out of hand if we don't kind of lock things down now.

[00:15:19]And just simply looking at an X402 protocol as being nothing just as a simple barrier to entry when it comes to or a gateway to payment, a railroad, all right, to move money from one machine to the another machine, that transaction being encrypted and being, let's say, authorized by the person that owns that agent. Yeah, that's all great. It sounds great. But, it could possibly not be great if it is used in the wrong way or if people write code like these honeypots, like I'm saying, to be able to suck the AI and, let's say, >> [snorts] >> lure it into purchasing stuff that it doesn't need. So easy to do, guys. Trust me when I tell you, I know it sounds like it's a like something out of Star Trek or something. It is so easy, so easy to manipulate AI. They can have guardrails as high as they want. It is very easy to manipulate them.

[00:16:24]And you do it through these honeypot sites.

[00:16:26]Now, has that been done yet? I have not heard anything, but could it?

[00:16:31]Absolutely.

[00:16:33]This is the stuff that I think about.

[00:16:34]This is the stuff that I Python code, right? Because I find it fascinating. So, if I do, just some guy on the web, you know these nefarious people are doing the exact same thing that orders of magnitude greater.

[00:16:51]So, to come full circle, is this X402 protocol, this X402 standard evil?

[00:16:59]No. But, what it is, it's the last barrier between artificial intelligence and the real world economy or autonomy.

[00:17:10]Think about that, right? Sit with that for a minute.

[00:17:14]Once AI has the ability to think, act, and pay, it completely stops being a chatbot and becomes an independent economic actor.

[00:17:29]Truly autonomous.

[00:17:31]The most important question I think people are going to start asking themselves is not how smart is your AI.

[00:17:38]It's more like, how much of your money are you willing to let your AI control?

[00:17:46]While you sleep.

[00:17:49]And do you physically have an off switch?

[00:17:55]Because if you don't, things can get nasty really, really quickly.

[00:18:00]Anyways, guys, I hope you find this fascinating as fascinating as I do. Things are just moving at an exponential, a breakneck speed, and I'm going to try to keep you abreast of what's going on. And when I see things like this happen, I just want to bring it to your attention. Not because it's anything that you're going to immediately act on, but hopefully it's something that sits in your brain, and when there is a question that pops up because you're installing a new agent over on Claude or something, and it asks you a question, something about X402 or something about paying for you you stop, and you say, I remember listening to some guy on YouTube, and he was warning about this.

[00:18:41]Maybe I should look into it a little bit deeper before I click that radio button, yes.

[00:18:48]That's all that I ask.

[00:18:50]Anyways, if you found this at all interesting, throw the video thumbs up.

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[00:19:05]Become a member. That would be even better. And if you want to take a look at the truth engine, that local AI that I built, check it out. Go over to jchristina.com/truth.

[00:19:14]Once again, jchristina.com/truth.

[00:19:17]Check it out. It is awesome. And once again, it's a living book. It's something that's continuously being updated by me.

[00:19:25]Finally, if you want to check out some of my merch, go over to jchristina.com/shop.

[00:19:30]Once again, jchristina.com/shop.

[00:19:32]Pick something up.

[00:19:34]Help support me and my family. Many blessings to you and your family. Stay safe. Stay healthy. Stay connected.

[00:19:41]Hopefully through your own AI.

[00:19:44]And not being beholden to someone else's. [music] And we'll see you in the next one, guys.

[00:19:49]Love you.

[00:19:51]>> [music] [music] [music]