During the early development of the Sony PlayStation, engineers struggled to fully realize the potential of the gaming console. Progress seemed elusive until a developer successfully rendered a simple black triangle on the screen. This breakthrough is referred to as the “black triangle moment,” as it indicated that the entire process from hardware to software to the display system was functioning correctly, becoming a symbol of overcoming fundamental technical challenges.

The cryptocurrency ecosystem has also been waiting for its own “black triangle moment.” Although the original intention of cryptocurrency was to make finance more inclusive and accessible, the industry remains highly fragmented and complex. Users not only have to deal with difficult-to-use interfaces but also manage multiple private keys and respond quickly in a market that fluctuates dramatically around the clock. Even experienced users face significant operational friction; for beginners, these barriers often become overwhelming.

In 2018, Magic Labs pioneered the “embedded wallet,” supporting wallet creation through email or social accounts. This innovation has driven the mainstream adoption of cryptocurrency. However, the complexity of DeFi, multi-chain fragmentation, and the lack of secure, intuitive automated experiences remain core challenges hindering large-scale adoption. The “App Abstraction” proposed by Magic Labs may be the breakthrough — in this model, smart agents quietly handle complex transactions in the background, driven by a verifiable, continuously operating, and secure automated system.

The limitations of current cryptocurrency automation tools

Existing crypto automation solutions generally make difficult trade-offs between convenience and security, which can be roughly divided into three categories of issues:

1. Fully Custodial Key Solution
   Like Telegram trading bots, although they processed billions of dollars in transaction volume in their first year, they essentially require users to give up full wallet permissions, which poses a significant risk of being hacked, phishing, and asset theft. For users looking to implement dollar-cost averaging, asset rebalancing, or yield strategies, they previously had to choose between “convenient but dangerous” and “safe but cumbersome.”
2. Fragmentation of cryptocurrency asset management
   Due to the lack of reliable automation tools, users need to execute each cross-chain and cross-protocol transaction operation personally. This requires continuous market monitoring, mastering technical details, and investing a significant amount of time, which exceeds the capabilities of most ordinary users. The result is inefficient capital utilization and missed market opportunities.
3. Insufficient programming flexibility
   Existing programmable tools such as time locks and multi-signature wallets, while providing security, lack the flexibility and intelligence to respond to dynamic markets. They operate rigidly and cannot adjust flexibly based on market changes or user goals, still requiring manual intervention.

These pain points indicate that the market urgently needs a solution that combines the security of self-custody with the convenience of smart automation, which is exactly the innovative goal of Magic Newton.

Magic Newton Innovative Model: Verifiable AI Agents Built for Crypto

Magic Labs is a company supported by PayPal Ventures, with partners including Polymarket, WalletConnect, and Naver. Its latest release, Magic Newton, aims to simplify the interaction experience for crypto users and achieve secure, autonomous financial automation. As the first verifiable crypto smart assistant, Newton enables users to automatically manage asset operations through “delegating to on-chain AI agents” while maintaining complete control over their accounts.

Sean Li, co-founder and CEO of Magic Labs, stated: “In the process of creating over 50 million wallets, we found that the prerequisite for lowering the user entry barrier is that users must be able to trust the system. What Newton does is establish a trust layer of application abstraction, where users only need to express their financial goals, and the AI agent will automatically execute within verifiable boundaries.”

Users can issue commands in natural language through a simple command center, such as “Stake my tokens to the highest yielding protocol” or “Invest ETH weekly,” and the Newton agent will handle the execution across protocols and chains.

How Magic Newton Achieves “Verifiable Automation” Through AI and Blockchain Technology

The core technology of Magic Newton is the Newton Protocol - a trusted execution infrastructure specifically built for financial automation scenarios, distinct from those solutions that forcibly apply general AI technology to cryptocurrency. The core concept of the Newton Protocol is a multi-layered security architecture of “prevention first, then verification,” creating a trustworthy environment for AI automation to operate in the financial sector.

1. Programmable Permissions System - “Permission Granting”

The system is similar to the OAuth authorization mechanism in the Web2 world, where Newton sets “permission grants (session key)” for agents, allowing them to perform operations within clearly defined user settings. For example:

1. Maximum expenditure limit per transaction
2. Daily/Hourly Trading Limit
3. Specific types of assets allowed for operation
4. Access permissions for the specified protocol
5. Tasks can be executed within a limited time frame.

Even if the agent is attacked, it cannot exceed its authority to execute tasks, thereby ensuring the safety of user funds without requiring users to expose their private keys.

2. Verifiability Layer - On-chain proof similar to a “flight black box”.

Newton’s greatest breakthrough lies in its Verifiability Layer:
Each agency action is completed in a Trusted Execution Environment (TEE) and generates cryptographic proof that the agency has indeed executed according to user instructions, without tampering or overstepping authority. These proofs will be synchronized on-chain, becoming publicly verifiable and immutable execution records.

Its function is similar to Chainlink, bridging real-world data to the blockchain, but here it is bridging “proxy actions” to the blockchain through cryptographic proofs, thereby creating a “black box with notarized records.”

3. Agency Credit System

Newton Protocol will also introduce a reputation system to record the historical performance of agents and promote honest behavior through economic incentive mechanisms, including:

1. Long-term execution records and success rate scoring
2. Build positive credibility to attract more task delegations.
3. Establish a penalty mechanism for violations (such as staking reduction)

The system builds an agent market ecosystem centered on trust, making reliable agents easier for users to choose and trust.

Make complex security systems “seamless”: user-friendly interface

Despite the complex technology behind it, Magic Newton is committed to hiding this entire security system in the background where users cannot see it. At the user level, interaction is as simple as using an intuitive interface:

1. Set proxy and strategy through dialogue.
2. View the agent execution status in real-time
3. Received notification of task completion
4. Can adjust or revoke the strategy at any time.

The entire experience does not require a technical background, allowing ordinary users to easily enjoy DeFi automation.

Looking to the Future: The Evolution of Magic Newton and Autonomous Finance

Magic Newton has launched on the Base network, and its genesis version showcases the full operational capability of full-stack verifiable automation technology. Magic Labs has also announced the upcoming development roadmap, including:

1. Utilize zero-knowledge proofs (ZK) to support more expressive permission settings, such as dynamically adjusting proxy permissions based on real-time off-chain data.
2. Create an open代理生态市场 that allows developers to build, publish, and profit from their own automated strategy tools, such as cross-chain exchanges, yield optimization, etc.

This will unleash the creativity of the community, building a rich and diverse market for financial automation services while ensuring security.

With the continuous integration and development of artificial intelligence and blockchain technology, Magic Newton showcases the prototype of the future of financial services: an intelligent, secure, and user-centered autonomous system. It innovatively addresses several key pain points in the user experience of current crypto users and is expected to genuinely bring the benefits of DeFi to more ordinary users.

By establishing trust boundaries and automating a triangular structure controlled by users, Magic Newton is making the complex world of cryptocurrency simpler, safer, and more accessible.

Disclaimer
This article is solely for sharing case studies of the companies we have invested in, aiming to provide an in-depth study and understanding of the company’s business model, technical foundation, and other aspects. While we believe the information provided is reliable, we make no claims regarding its lasting accuracy or suitability for specific circumstances. Therefore, you should not rely solely on the content of this article when making investment decisions.

Any predictions, estimates, targets, prospects, and/or opinions expressed in this article are subject to change at any time and may differ or contradict those expressed by other sources or individuals. The content of this article is for informational purposes only and should not be regarded as the basis for investment decisions, nor should it be assumed to be complete. You should not consider the content of this article as any form of legal, business, or tax advice, and please consult a professional advisor on relevant matters. This article does not constitute investment advice or an offer to provide investment consulting services. We cannot guarantee that any investment targets mentioned, quoted, or described in the article will be profitable, or that other future investments will necessarily have similar characteristics and results.

The specific list of investments made in funds managed by Synergis Capital can be viewed here. Please note that this list does not include investment projects that have not been disclosed. This document does not constitute investment advice or an offer to sell, nor does it constitute a solicitation to purchase any interests in any investment vehicles managed by Synergis Capital. Any investment offers or solicitations regarding Synergis Capital investment vehicles are made solely based on the provision of a private placement memorandum or related legal documents, and decisions should only rely on the information contained in those official documents.

Statement:

1. This article is reprinted from [BLOCKBEATS] The copyright belongs to the original author [Synergis Capital] If there are any objections to the reprint, please contact Gate Learn TeamThe team will process it as quickly as possible according to the relevant procedures.
2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. The other language versions of the article are translated by the Gate Learn team, unless otherwise mentioned.GateUnder such circumstances, it is prohibited to copy, disseminate, or plagiarize translated articles.