Tech • IA • Crypto
How Claude Code Works
TL;DR
AI coding agents operate through iterative “agentic loops” that gather context, execute tools, and verify results, enabling them to act autonomously rather than just generate text.
KEY POINTS
Agentic Loop Execution
Cloud-based coding agents function through a continuous loop: interpreting a prompt, gathering relevant context, taking action, and verifying results. This cycle repeats until the task is successfully completed. The system does not stop at generating an answer but actively works toward a verifiable outcome.
Context Gathering and Memory Limits
These systems rely on a defined context window that stores conversation history, file contents, and command outputs. When the limit is reached, the system compresses or summarizes information to retain essential details while freeing space. This allows extended workflows without exceeding memory constraints.
Tool-Driven Capabilities
Tools are central to agent functionality, enabling actions such as reading files, searching the web, or executing commands. Unlike traditional chat-based AI that only produces text, agents decide when to invoke tools to progress toward a solution. Semantic reasoning determines which tools to use and when.
Autonomous Action and Verification
After executing actions like editing code or running commands, the system evaluates whether the results meet the original objective. If the outcome falls short, it re-enters the loop and tries alternative approaches, improving reliability through iterative verification.
User Interaction and Control
Users can intervene during execution by adding context, redirecting the process, or interrupting tasks. This interactive layer ensures that the system remains aligned with user intent while maintaining a degree of autonomy.
Permission Modes and Safety
Permission settings regulate how much control the agent has. Default modes require approval before modifying files or executing commands, while more permissive modes allow automatic actions. Increased autonomy introduces higher risk, as errors may occur before user intervention.
Planning and Read-Only Modes
Specialized modes enable agents to analyze a codebase and formulate a plan before taking action. These modes rely on read-only tools, reducing risk while improving task clarity and execution strategy.
CONCLUSION
Agentic coding systems represent a shift from passive AI responses to active problem-solving tools, combining context management, tool use, and iterative verification to perform complex tasks with increasing autonomy.
Full transcript
We know that cloud code is different from usual child applications. But how does it work? Cloud code is best explained through the agentic loop. You enter a prompt into cloud code. Cloud code will then gather context required to complete your prompt. It does so by interacting with the model which will return text or a tool call that cloud code can execute. Then it takes action. For example, editing a file or running a command. Finally, it verifies those results and determines if they achieve what your prompt set out to do in the first place. If they do, then Claude finishes and waits for the next prompt. And if they don't, Claude goes back and runs the loop again until the results are complete and verifiable. Throughout this loop, you're able to add context, interrupt it, or steer the model to help guide it towards your end goal. Claude has a context window which determines how much of your conversation, file content, command outputs, and more it can store and look back on. Once you reach that limit, cloud code compacts your conversation, which automatically determines what it can take out of the context window and what it can summarize in order to bring the context window back down. Tools are the backbone of how agents work. Currently, most AI assistants are simply input text and output text. Nothing in between. Tools let Claude Code and other agents determine when to execute code to get closer to a task. This could be read file tool or search web tool for example. Cloud code uses semantic searching to determine when to call a tool and get the output of it. Cloud code also has permission modes. Default behavior is that it has to ask explicit permission before editing a file or running a shell command. You can use shift and tab to toggle between different modes. Auto accept edits files without asking but still ask for commands. Plan mode uses readonly tools to help compile a plan of action before starting. It's worth being cautious when skipping permissions. Giving Claude code free reign to run commands means a mistake could be harder to catch before it even happens. Claw code works by combining different agentic concepts. an agentic loop, a manage context window, tools, and configurable permissions into your terminal. It can read your codebase, take action, and verify its own work. And that makes it fundamentally different from a chat window.