At Capx, we are dedicated to revolutionizing the landscape of AI and blockchain by integrating advanced technologies to create efficient, scalable, and secure solutions. One of our most ambitious projects is the development of an AI Resource Matching Engine (Leaderless resource/order matching and auction engine), utilizing the Symbiotic protocol to ensure optimal performance and decentralization. This blog delves into the technical intricacies and strategic advantages of building and running the AI Resource Matching Engine (Leaderless auction and matching service) through operators which are secured by restaked assets by users on symbiotic protocol.

Symbiotic is a shared security protocol designed to provide modular and flexible scaling for decentralized networks. Its core features—security through immutability, capital efficiency via restaked collateral, and minimized execution risks—make it an ideal foundation for our AI Resource Matching Engine.

• Modularity: Networks can control all aspects of their restaking implementations, including collateral assets, asset ratios, node operator selection, and rewards distribution.

• Security: Non-upgradeable core contracts on Ethereum remove governance risks, ensuring a stable and secure environment.

• Efficiency: Multi-asset and network-agnostic design enhances capital efficiency, allowing scalable sourcing of economic security.

Any AI-powered agent or script incurs two main cost factors: 1) AI Model Cost (such as LLMs) and 2) Compute Cost. The AI model cost itself can be further subdivided into multiple factors, including resource availability, provider reputation, latency, and hardware costs. Various AI node providers offer these models through APIs, while multiple third parties provide the compute services. The cost of these compute services also varies based on the provider's reliability, performance, and other factors. The protocol's responsibility is to match user requests with the best provider, considering these varying costs across both AI models and compute services.

Three scenarios exist for designing the matching engine:

1. Completely trustless Matching Engine (Leaderless/Without disperser)

2. Disperser Based Semi Trustless Matching

3. Smart Contract Based Trustless Matching (Smart Contract Based) + Operator based order validation

Our approach focuses on a hybrid approach of combining the best of completely trustless matching engine and Disperser based Semi trustless matching engine that leverages Symbiotic's infrastructure.

• User: Submits AI service requests.

• Operator Node: AI node providers participating in the Symbiotic network.

• Disperser: Facilitates the matching process.

1. Order Submission: Users submit requests either directly to the disperser or on-chain. The disperser or contract event notifies the Auction Matching Engine network to start the auction mechanism.

2. Bid Submission: Each node provider submits signed and encrypted bids to ensure no provider sees the others' bids before submitting their own.

3. Bid Exchange: Node providers exchange bid sets and corresponding bid views allowing each provider to validate the bids and determine the best match by using the threshold decryption shared along with the bid information.

4. Result Finalisation: The winning bid is signed by a threshold of node providers and submitted directly on-chain for finalisation or to the disperser based on the nature of request.

This process ensures a fair, efficient, and secure matching of AI service requests to the best possible node providers.

• No Late Comers, For an bid to be considered valid in any bid view and thus eligible to win, it must be sent to at least one honest Node Provider during Step 1 of auction.

• If there is no issue in the network, a Node Provider who sends their bid to all other Node Providers in step 1 of the auction will not be penalised in any way.

• If there is no issue in the network, A Node Provider who sends its bid to “f+1” or more honest Node Providers in step 1 of the auction will win the auction if it is the lowest bid sent to any honest Node Provider in step 1 of the auction.

• Any Node Provider must send their bid to at least “f+1” honest Node Providers in step 1 of the auction to avoid being penalised.

• No Useless Bids or No spamming of useless bids

• Trustless Operation: Ensures no single entity has control over the process, enhancing fairness and security.

• Efficiency: Optimizes resource allocation and minimizes latency.

• Economic Security: Provides a robust framework for capital formation and utilization through restaked collateral source.

For more information, visit Capx.ai, follow us on X (twitter) @0xCapx, or join our community on Capx Discord.

At Capx, we are dedicated to revolutionizing the landscape of AI and blockchain by integrating advanced technologies to create efficient, scalable, and secure solutions. One of our most ambitious projects is the development of an AI Resource Matching Engine (Leaderless resource/order matching and auction engine), utilizing the Symbiotic protocol to ensure optimal performance and decentralization. This blog delves into the technical intricacies and strategic advantages of building and running the AI Resource Matching Engine (Leaderless auction and matching service) through operators which are secured by restaked assets by users on symbiotic protocol.

Symbiotic is a shared security protocol designed to provide modular and flexible scaling for decentralized networks. Its core features—security through immutability, capital efficiency via restaked collateral, and minimized execution risks—make it an ideal foundation for our AI Resource Matching Engine.

• Modularity: Networks can control all aspects of their restaking implementations, including collateral assets, asset ratios, node operator selection, and rewards distribution.

• Security: Non-upgradeable core contracts on Ethereum remove governance risks, ensuring a stable and secure environment.

• Efficiency: Multi-asset and network-agnostic design enhances capital efficiency, allowing scalable sourcing of economic security.

Any AI-powered agent or script incurs two main cost factors: 1) AI Model Cost (such as LLMs) and 2) Compute Cost. The AI model cost itself can be further subdivided into multiple factors, including resource availability, provider reputation, latency, and hardware costs. Various AI node providers offer these models through APIs, while multiple third parties provide the compute services. The cost of these compute services also varies based on the provider's reliability, performance, and other factors. The protocol's responsibility is to match user requests with the best provider, considering these varying costs across both AI models and compute services.

Three scenarios exist for designing the matching engine:

1. Completely trustless Matching Engine (Leaderless/Without disperser)

2. Disperser Based Semi Trustless Matching

3. Smart Contract Based Trustless Matching (Smart Contract Based) + Operator based order validation

Our approach focuses on a hybrid approach of combining the best of completely trustless matching engine and Disperser based Semi trustless matching engine that leverages Symbiotic's infrastructure.

• User: Submits AI service requests.

• Operator Node: AI node providers participating in the Symbiotic network.

• Disperser: Facilitates the matching process.

1. Order Submission: Users submit requests either directly to the disperser or on-chain. The disperser or contract event notifies the Auction Matching Engine network to start the auction mechanism.

2. Bid Submission: Each node provider submits signed and encrypted bids to ensure no provider sees the others' bids before submitting their own.

3. Bid Exchange: Node providers exchange bid sets and corresponding bid views allowing each provider to validate the bids and determine the best match by using the threshold decryption shared along with the bid information.

4. Result Finalisation: The winning bid is signed by a threshold of node providers and submitted directly on-chain for finalisation or to the disperser based on the nature of request.

This process ensures a fair, efficient, and secure matching of AI service requests to the best possible node providers.

• No Late Comers, For an bid to be considered valid in any bid view and thus eligible to win, it must be sent to at least one honest Node Provider during Step 1 of auction.

• If there is no issue in the network, a Node Provider who sends their bid to all other Node Providers in step 1 of the auction will not be penalised in any way.

• If there is no issue in the network, A Node Provider who sends its bid to “f+1” or more honest Node Providers in step 1 of the auction will win the auction if it is the lowest bid sent to any honest Node Provider in step 1 of the auction.

• Any Node Provider must send their bid to at least “f+1” honest Node Providers in step 1 of the auction to avoid being penalised.

• No Useless Bids or No spamming of useless bids

• Trustless Operation: Ensures no single entity has control over the process, enhancing fairness and security.

• Efficiency: Optimizes resource allocation and minimizes latency.

• Economic Security: Provides a robust framework for capital formation and utilization through restaked collateral source.

For more information, visit Capx.ai, follow us on X (twitter) @0xCapx, or join our community on Capx Discord.