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EIN: Decentralized Inference Network with X402

Core Concept

Infernet = Infrastructure + Inference + Network

A peer-to-peer network where anyone can:

  1. Provide inference capacity (run AI models)
  2. Consume inferences paying per request with X402
  3. Compete on price, quality, and speed

Problem It Solves

Current State:

  • Centralized AI APIs (OpenAI, Anthropic, etc.)
  • Fixed and high prices
  • Censorship and geographic restrictions
  • No real competition
  • GPU resources wasted globally

With Infernet:

  • Free inference marketplace
  • Dynamic pricing through competition
  • No censorship - truly decentralized AI
  • Monetize your idle GPU
  • Global access without restrictions

Architecture

1. Provider Nodes

class InferenceNode {
  constructor() {
    this.models = ['llama-3.3', 'mistral-7b', 'stable-diffusion'];
    this.pricing = {
      'llama-3.3': '0.0001 USDC/token',
      'mistral-7b': '0.00008 USDC/token',
      'stable-diffusion': '0.01 USDC/image'
    };
  }
 
  // X402 endpoint for inference
  async handleInference(request) {
    // Verify X402 payment
    // Execute inference
    // Return result
  }
}

2. On-Chain Registry

  • Smart contract on Base for node registration
  • Metadata: available models, prices, average latency
  • Reputation based on fulfillment

3. Client SDK

const infernet = new InfernetClient({
  network: 'base',
  paymentWallet: walletClient // Wallet API v2
});
 
// Find best price for Llama 3.3
const nodes = await infernet.findNodes({
  model: 'llama-3.3',
  maxPrice: '0.0002',
  minReputation: 0.9
});
 
// Execute inference with automatic payment
const response = await infernet.inference({
  node: nodes[0],
  prompt: "Explain Web3 in simple terms",
  maxTokens: 100
});

X402 Economics

Payment Flow:

  1. Client searches for available nodes
  2. Selects by price/speed/reputation
  3. Sends request with X402
  4. Node verifies instant payment
  5. Executes inference
  6. Client receives result

Advantages:

  • No intermediaries: Direct node-client payment
  • Real micropayments: Pay only for what you use
  • Instant settlement: USDC on Base
  • No accounts needed: You only need a wallet

MVP Features

V1 - Hackathon (see task-tracking):

  • Node registry in smart contract
  • 3 demo nodes with different models
  • Client that finds best price
  • X402 payments for inference
  • Metrics dashboard

V2 - Post-Hackathon:

  • Proof of Inference (cryptographic verification)
  • Staking for nodes (collateral)
  • Automatic load balancing
  • Parallel multi-model support
  • Distributed caching

Tech Stack

Use Cases

1. App Developers

“Integrate AI without centralized APIs”

const ai = new InfernetClient();
const response = await ai.complete("Generate code for...");

2. GPU Providers

“Monetize your idle hardware”

  • Install Infernet node
  • Configure models and prices
  • Earn USDC for inference

3. Autonomous AI Agents

“Agents that buy intelligence”

  • Agents with their own wallets
  • Buy inference as needed
  • Optimize by cost/quality

Hackathon Demo

Setup:

  1. 3 Infernet Nodes with different prices
  2. Demo Client that compares prices
  3. AI Agent that uses the network autonomously
  4. Dashboard showing real-time activity

Demo Flow:

  1. “I want to generate an image of an astronaut cat”
  2. Client searches for nodes with Stable Diffusion
  3. Finds 3 options: 0.008, $0.012
  4. Selects the cheapest with good reputation
  5. Pays with X402 automatically
  6. Receives image in 5 seconds
  7. Total spent: $0.008 USDC

Why We’ll Win

  1. Uses both CDP technologies: Wallet API + X402 (detailed in cdp-submission)
  2. Solves a real problem: Democratizes AI access
  3. Clear business model: Marketplace with fees
  4. Technically impressive: P2P + payments + AI
  5. Great narrative: “Uber for GPUs”

Future Vision

“Imagine a world where:”

  • Any GPU can earn money
  • Any app can use AI without censorship
  • AI prices drop through competition
  • AI agents have their own economy

“That’s Infernet - the missing infrastructure for decentralized AI.”

See also: project, CLI PRS, project-architecture, submission

Related projects: Financial Contracts, Optimizer Finance

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