Hybrid Architecture Proposal: On-Chain Ownership + Off-Chain Agents
Executive Summary
Recommended Architecture:
- On-Chain: Token ownership, staking, fee distribution, agent registry (metadata)
- Off-Chain Backend: Agent execution, GPU compute, KYC, developer tools, analytics
- Chain Option: Layer 2 (Optimism/Arbitrum/Base) or App-Specific Chain (OP Stack/Arbitrum Orbit)
Current vs. Proposed Architecture
Current (Fully On-Chain)
Frontend → RPC → Smart Contracts- ✅ Simple
- ✅ Decentralized
- ❌ Limited to on-chain data
- ❌ No agent execution
- ❌ No GPU compute
Proposed (Hybrid)
Frontend → On-Chain (Ownership/Registry) + Off-Chain Backend (Execution/Compute)Architecture Layers
Layer 1: On-Chain (Blockchain)
What Stays On-Chain:
- ✅ Agent Registry (metadata, ownership)
- ✅ Token ownership & transfers
- ✅ Staking positions
- ✅ Fee distribution
- ✅ Agent tokenization (ERC-20 per agent)
- ✅ Liquidity pools
- ✅ Vesting schedules
Smart Contracts:
AgentRegistry.sol- Agent metadata & ownershipAgentToken.sol- ERC-20 per agent (fractional ownership)CR8Token.sol- Platform tokenCR8Staking.sol- Staking contractFeeDistributor.sol- Fee distribution
Layer 2: Off-Chain Backend
What Goes Off-Chain:
- ✅ Agent execution engine
- ✅ GPU compute orchestration
- ✅ API integrations (OpenAI, etc.)
- ✅ KYC/Identity verification
- ✅ Developer portal & tools
- ✅ Analytics & metrics
- ✅ Agent metadata storage (IPFS)
- ✅ Rate limiting & quotas
- ✅ Billing & usage tracking
Backend Services:
- Agent Execution Service
- GPU Compute Manager
- KYC Service
- Developer API
- Analytics Service
- Metadata Service (IPFS)
Layer 3: Frontend
DApp (packages/dapp)
- User-facing interface
- Wallet connections
- On-chain interactions
- Agent discovery
Website (packages/website)
- Landing page
- Documentation
- Marketing
Developer Portal (new)
- Agent registration
- API key management
- Usage analytics
- Billing dashboard
Chain Options Analysis
Option 1: Layer 2 (Recommended for MVP)
Use Existing L2:
- Optimism - Low fees, EVM compatible
- Arbitrum - High throughput, mature
- Base - Coinbase-backed, growing ecosystem
- Polygon - Low fees, good for NFTs
Pros:
- ✅ Fast to implement
- ✅ Lower gas costs
- ✅ EVM compatible (easy migration)
- ✅ Existing infrastructure
- ✅ No chain maintenance
Cons:
- ⚠️ Still pay gas fees
- ⚠️ Limited customization
Best For: MVP and early stages
Option 2: App-Specific Chain (Recommended for Scale)
Build Custom Chain:
- OP Stack (Optimism's framework)
- Arbitrum Orbit
- Polygon CDK
- Cosmos SDK (if multi-chain)
Pros:
- ✅ Custom gas token (could be CR8)
- ✅ Optimized for agent registry
- ✅ Lower fees (can subsidize)
- ✅ Custom features
- ✅ Full control
Cons:
- ⚠️ More complex
- ⚠️ Chain maintenance required
- ⚠️ Longer development time
- ⚠️ Need validators/sequencers
Best For: Long-term, high-volume platform
Option 3: Hybrid Approach (Recommended)
Phase 1: Use L2 (Optimism/Arbitrum)
- Deploy contracts on L2
- Build backend services
- Launch MVP
Phase 2: Migrate to App Chain
- Build custom chain when needed
- Migrate contracts
- Optimize for agent registry
Backend Architecture
Core Services
1. Agent Execution Service
Purpose: Execute agent tasks
Tech: Node.js/Python, Docker containers
Features:
- Agent task queue
- GPU allocation
- Result caching
- Error handling2. GPU Compute Manager
Purpose: Manage GPU resources
Tech: Kubernetes, GPU nodes
Features:
- GPU allocation
- Load balancing
- Partner integration
- Cost tracking3. KYC/Identity Service
Purpose: User verification
Tech: Node.js, Third-party APIs
Features:
- KYC verification
- Identity management
- Compliance tracking
- Privacy protection4. Developer API
Purpose: Allow devs to register/manage agents
Tech: REST/GraphQL API
Features:
- Agent registration
- API key management
- Usage quotas
- Billing integration5. Analytics Service
Purpose: Track metrics
Tech: Time-series DB, Analytics tools
Features:
- Agent performance
- Usage metrics
- Revenue tracking
- User analyticsData Flow Example: Agent Execution
1. User requests agent execution (Frontend)
↓
2. Frontend calls Backend API
POST /api/agents/{id}/execute
↓
3. Backend validates request
- Check KYC status
- Verify ownership/access
- Check quotas
↓
4. Backend queues task
- Allocate GPU resources
- Schedule execution
↓
5. Agent executes (GPU cluster)
- Run AI model
- Process request
- Generate result
↓
6. Backend records usage
- Update analytics
- Calculate fees
- Trigger on-chain distribution
↓
7. On-chain fee distribution
- Distribute to owners
- Distribute to stakers
↓
8. Return result to userRecommended Implementation Plan
Phase 1: Hybrid MVP (Months 1-3)
On-Chain:
- Deploy contracts to Optimism/Arbitrum
- Agent registry (metadata only)
- Token ownership
- Staking & fee distribution
Off-Chain Backend:
- Basic agent execution service
- Simple GPU integration
- Developer registration API
- Basic analytics
Frontend:
- Update DApp for hybrid model
- Developer portal (basic)
- Agent execution interface
Phase 2: Scale Backend (Months 4-6)
Backend Enhancements:
- Full GPU partner integration
- KYC service
- Advanced analytics
- Usage-based billing
- Rate limiting
On-Chain:
- Optimize contracts
- Add more features
- Improve gas efficiency
Phase 3: Custom Chain (Months 7-12)
If Needed:
- Build app-specific chain (OP Stack)
- Migrate contracts
- Custom optimizations
- CR8 as gas token
Technology Stack
On-Chain
- Smart Contracts: Solidity
- Chain: Optimism/Arbitrum (Phase 1), Custom (Phase 2)
- Framework: Hardhat
- Libraries: OpenZeppelin
Backend
- Runtime: Node.js or Python
- API: Express/FastAPI, GraphQL
- Database: PostgreSQL (relational), Redis (cache)
- Queue: Bull/BullMQ or Celery
- GPU: Kubernetes with GPU nodes
- Storage: IPFS (metadata), S3 (files)
Frontend
- Framework: Next.js (current)
- Blockchain: Wagmi, Viem
- State: React Query, Zustand
Data Separation Strategy
On-Chain Data
solidity
// AgentRegistry.sol
struct Agent {
uint256 id;
address creator;
string metadataHash; // IPFS hash
uint256 totalSupply; // Agent tokens
uint256 totalLiquidity;
bool isActive;
}Off-Chain Data
typescript
// Backend Database
interface Agent {
id: string;
onChainId: number; // Links to on-chain registry
name: string;
description: string;
apiKeys: Record<string, string>;
executionConfig: {
gpuRequired: boolean;
modelType: string;
maxConcurrent: number;
};
usage: {
totalExecutions: number;
totalFees: number;
lastExecuted: Date;
};
}Developer Experience
Agent Registration Flow
Developer registers (Backend API)
- Create account
- KYC verification
- Get API keys
Register agent on-chain (Smart Contract)
- Pay registration fee
- Get agent ID
- Mint initial tokens (optional)
Configure agent (Backend API)
- Set execution config
- Add API keys
- Set pricing
Agent is live
- Users can discover (on-chain)
- Users can invest (on-chain)
- Users can execute (backend)
Cost Structure
On-Chain Costs
- Agent registration: ~$1-5 (L2)
- Token transfers: ~$0.01-0.1 (L2)
- Fee distribution: ~$0.1-1 (L2)
Off-Chain Costs
- GPU compute: Variable (partner pricing)
- API calls: Variable (OpenAI, etc.)
- Storage: IPFS/S3 costs
- Backend hosting: Server costs
Security Considerations
On-Chain Security
- Smart contract audits
- Access controls
- Upgrade mechanisms
- Emergency pauses
Off-Chain Security
- API authentication
- Rate limiting
- Input validation
- Secure API key storage
- KYC compliance
Migration Path
From Current to Hybrid
- Keep existing contracts (on Sepolia/L2)
- Add backend services (new)
- Update frontend (connect to both)
- Gradual migration (move features off-chain as needed)
From L2 to Custom Chain
- Build custom chain (OP Stack)
- Deploy contracts (same code)
- Bridge tokens (if needed)
- Migrate users (gradual)
Recommendation
Start with: L2 + Backend (Hybrid)
Why:
- ✅ Fast to market
- ✅ Lower costs than mainnet
- ✅ Can migrate to custom chain later
- ✅ Best developer experience
- ✅ Scalable architecture
Implementation:
- Deploy contracts to Optimism/Arbitrum
- Build backend services
- Keep ownership on-chain
- Keep execution off-chain
- Migrate to custom chain when needed
This gives you the best of both worlds: decentralized ownership with scalable execution.