Megha Network: Decentralized AI Agent Hosting Platform

The world's first DePIN (Decentralized Physical Infrastructure Network) for AI agent hosting using consumer devices

Live demo: https://megha-network.vercel.app

📋 Table of Contents

1. The Problem We're Solving

2. Business Model & Value Proposition

3. Why Arbitrum?

4. The Role of Blockchain

5. Technical Implementation

6. How to Use Megha Network

7. Getting Started

8. Architecture Overview

9. Smart Contracts

10. Roadmap

11. Future Scope: Device Swarm Technology

The Problem We're Solving

Centralized AI Infrastructure Crisis

• Expensive AI Services: Traditional AI platforms charge $20-100+ per million tokens

• Monopolized Compute: Big tech companies control AI infrastructure, creating bottlenecks

• Limited Access: High costs exclude developers, small businesses, and individuals from AI innovation

• Environmental Waste: Billions of idle consumer devices (smartphones, laptops) sit unused while consuming manufacturing resources

Current AI Agent Limitations

• AI agents are trapped in centralized platforms with limited customization

• Users can't monetize their AI creations or computing resources

• No true ownership or control over AI agents

• Lack of economic incentives for distributed AI hosting

💰 Business Model & Value Proposition

The DePIN Revolution for AI

Megha Network transforms unused consumer devices into a profitable AI infrastructure network, creating a win-win ecosystem for all participants.

Value Creation for All Stakeholders

🖥️ Device Owners (Supply Side)

• Passive Income: Earn USDC by contributing idle devices (old phones, laptops, tablets)

• Environmental Impact: Extend device lifespan, reducing e-waste by 2-5 years per device

• Zero Investment: Use existing hardware without additional purchases

• Automated Management: Devices self-manage and auto-update network connectivity

• Flexible Participation: Contribute during idle hours, maintain full device control

🤖 AI Agent Creators & Users (Demand Side)

• Massive Cost Savings: Access AI compute at 90%+ lower cost than traditional platforms

• True Ownership: Create, customize, and monetize AI agents on-chain

• Global Distribution: Access distributed compute network for improved latency

• Decentralized Hosting: No single point of failure or platform risk

• Blockchain Integration: Native crypto/DeFi capabilities built into AI agents

🌍 Ecosystem Benefits

• Reduced E-Waste: Prevents premature device disposal, supporting circular economy

• Democratized AI: Makes AI accessible to developers worldwide regardless of budget

• Innovation Acceleration: Lowers barriers for AI experimentation and deployment

• Economic Inclusion: Creates income opportunities for device owners globally

Economic Model

Device Owner Earnings = Hosting Fee × Messages Processed
User Savings = Traditional AI Cost - Megha Network Cost (90%+ savings)
Network Effect = More devices → Better performance → More users → Higher earnings

⚡ Why Arbitrum?

The Perfect L2 for DePIN

We chose Arbitrum Sepolia as our blockchain foundation for several critical advantages:

🚀 Technical Advantages

• Ultra-Low Gas Fees: ~$0.001 per transaction enables micro-payments for AI compute

• High Throughput: 40,000+ TPS capacity handles high-frequency AI agent interactions

• Ethereum Compatibility: Full EVM support with existing tooling and infrastructure

• Instant Finality: Near-instant transaction confirmation for real-time AI responses

💎 Economic Benefits

• USDC Native: Seamless USDC payments without bridging complexities

• Cost Efficiency: 100x cheaper than Ethereum mainnet for hosting fee payments

• Scalable Economics: Low fees enable profitable micro-transactions for AI services

🔒 Security & Decentralization

• Ethereum Security: Inherits Ethereum's battle-tested security model

• Fraud Proofs: Optimistic rollup design with 7-day challenge period

• Decentralized Validation: Multiple validators ensure network integrity

🌐 Ecosystem Integration

• DeFi Native: Easy integration with Arbitrum's thriving DeFi ecosystem

• Developer Friendly: Rich tooling, documentation, and community support

• Bridge Infrastructure: Seamless asset movement from other chains

🔗 The Role of Blockchain

Core Blockchain Functions

📝 Smart Contract Registry

• Device Registration: Immutable record of all participating devices and their capabilities

• Agent Storage: On-chain AI agent profiles, personalities, and tool configurations

• Ownership Management: Cryptographic proof of agent and device ownership

💳 Payment Infrastructure

• USDC Payments: Native stablecoin payments for predictable pricing

• Automated Settlements: Smart contracts handle payment distribution

• Transparent Economics: All transactions publicly verifiable on-chain

🤝 Trustless Coordination

• No Central Authority: Network operates without centralized control

• Automated Matching: Smart contracts match users with available devices

• Dispute Resolution: On-chain mechanisms for handling conflicts

🔐 Security & Verification

• Device Authentication: Cryptographic verification of device participation

• Payment Guarantees: Smart contracts ensure payment for completed work

• Immutable Records: Permanent audit trail of all network activity

Decentralization Benefits

• Censorship Resistance: No single entity can shut down the network

• Global Access: Available worldwide without geographic restrictions

• Transparent Governance: Community-driven development and upgrades

• Economic Sovereignty: Users control their AI agents and earnings

🔧 Technical Implementation

How It Works

System Architecture Overview

Component Deep Dive

🌐 Frontend Application (/frontend)

Technology Stack: Next.js 15, TypeScript, Viem, Tailwind CSS

Core Features:

• Agent Creation Interface: Visual builder for AI agent personalities and capabilities

• Device Marketplace: Browse and select available hosting devices

• Wallet Integration: MetaMask/Web3 wallet connectivity

• Real-time Chat: WebSocket connections to distributed AI agents

• USDC Balance Management: Native stablecoin integration for payments

Key Files:

• src/app/create-agent/page.tsx: Agent builder interface

• src/app/marketplace/page.tsx: Device selection marketplace

• src/components/ui/Header.tsx: USDC balance display and wallet connection

• src/lib/constants.ts: Contract addresses and ABIs

🤖 Agent Server (/agent-server)

Technology Stack: Node.js, Express, WebSocket, Ollama, Ngrok

Core Functions:

• AI Model Hosting: Runs Ollama with Nemotron-Mini locally

• API Endpoint: RESTful API for agent interactions

• Real-time Communication: WebSocket support for live chat

• Network Tunneling: Ngrok integration for public accessibility

• Self-Management: Automatic ngrok URL updates to smart contract

Key Files:

• main.js: Core server application and WebSocket handling

• register-device.sh: Automated device registration and management

• package.json: Dependencies including Ollama integration

📜 Smart Contracts (/contract)

Technology Stack: Solidity ^0.8.30, Hardhat

Contract Address: 0xe6692b5e9a229E66569f3d94092ad301D1fE6B43 (Arbitrum Sepolia)

Core Functions:

struct Device {
    string deviceModel;      // Device hardware specs
    string ram;             // Memory capacity
    string cpu;             // Processor information
    string storageCapacity; // Storage space
    string os;              // Operating system
    address walletAddress;  // Device owner's wallet
    address ownerAddress;   // Device owner (can be different)
    string timestamp;       // Registration time
    string ngrokLink;       // Public tunnel URL
    string hostingFee;      // USDC per message cost
}

struct Agent {
    string uuid;            // Unique agent identifier
    string name;            // Agent name (e.g., "Tony Stark")
    string description;     // Agent capabilities
    string personality;     // Behavioral traits
    string scenario;        // Usage context
    string messageExample;  // Sample interaction
    string[] tools;         // Available blockchain tools
    string imageUrl;        // Agent avatar
    address ownerAddress;   // Agent creator's wallet
}

Key Functions:

• registerDevice(): Add new device to network

• createAgent(): Deploy new AI agent

• updateDeviceNgrokLink(): Self-management function - devices update their own URLs

• getAllDevices(): Browse available hosting devices

• getAllAgents(): Discover AI agents

Device Registration & Self-Management Flow

🔄 Automated Device Lifecycle

1. Initial Registration:

   ./register-device.sh
   # 1. Installs dependencies (Node.js, Ollama, ngrok)# 2. Creates deterministic EVM wallet from device fingerprint# 3. Starts ngrok tunnel for public access# 4. Gathers hardware specifications# 5. Generates QR code for owner registration

2. QR Code Registration:

   • Device owner scans QR code on web frontend

   • Web interface pre-fills device specifications

   • Owner sets hosting fee (USDC per message)

   • Smart contract call registers device on-chain

3. Self-Healing Network Management:

   # On subsequent startups, device checks registration statusif device_already_registered():
       if ngrok_url_changed():
           device_wallet.updateDeviceNgrokLink(new_url)
       start_ai_server()
   else:
       show_qr_code_for_registration()

4. AI Model Integration:

   // main.js - AI processingconst response = await fetch('http://localhost:11434/api/generate', {
       method: 'POST',
       headers: { 'Content-Type': 'application/json' },
       body: JSON.stringify({
           model: 'nemotron-mini:latest',
           prompt: userMessage,
           stream: false
       })
   });

User Interaction Flow

💬 Agent Chat Process

1. Agent Discovery: User browses agent marketplace

2. Device Selection: Choose hosting device based on specs/price

3. Payment Setup: USDC balance check and approval

4. Real-time Chat:

   // WebSocket connection to deviceconst ws = new WebSocket(`${device.ngrokLink}/ws`);ws.send(JSON.stringify({
       type: 'message',
       content: userInput,
       agentId: selectedAgent.uuid
   }));

5. Automatic Billing: Smart contract deducts hosting fee per message

Network Security & Reliability

🔒 Security Measures

• Cryptographic Device Identity: Each device has unique wallet-based identity

• Payment Escrow: Smart contracts hold USDC until service delivery

• Rate Limiting: API endpoints protected against abuse

• Encrypted Communications: HTTPS/WSS for all external communications

🛡️ Reliability Features

• Automatic Failover: If device goes offline, users are redirected

• Health Monitoring: Regular device availability checks

• Load Balancing: Distribute users across available devices

• Self-Healing URLs: Devices automatically update network endpoints

🚀 How to Use Megha Network

👥 For Device Contributors (Earn USDC)

Step 1: Setup Your Device

# Clone the repository
git clone https://github.com/SamFelix03/megha-network-arbitrum.git
cd megha-network-arbitrum/agent-server

# Run the setup script (handles everything automatically)chmod +x register-device.sh
./register-device.sh

What happens automatically:

• ✅ Installs Node.js, Ollama, and dependencies

• ✅ Downloads Nemotron-Mini AI model (~2GB)

• ✅ Creates device-specific EVM wallet

• ✅ Starts ngrok tunnel for public access

• ✅ Generates QR code with device specifications

Step 2: Register on Blockchain

1. Scan QR Code: Use your phone to scan the generated QR code

2. Connect Wallet: Connect MetaMask to Arbitrum Sepolia

3. Set Hosting Fee: Choose your USDC rate per message (e.g., $0.01)

4. Confirm Registration: Sign transaction to register device on-chain

5. Start Earning: Device automatically starts accepting agent hosting requests

Step 3: Monitor Earnings

• View real-time USDC earnings in your wallet

• Check device performance in the web dashboard

• Withdraw earnings anytime (no lockup periods)

🤖 For AI Agent Creators (Build & Deploy)

Step 1: Create Your Agent

1. Visit Web App: Go to https://megha-network.vercel.app/create-agent

2. Connect Wallet: Connect MetaMask with USDC balance

3. Build Agent Profile:

   • Name: (e.g., "Tony Stark")

   • Personality: Define behavioral traits

   • Capabilities: Select blockchain tools (wallet analysis, DeFi data, etc.)

   • Avatar: Upload agent image

4. Deploy to Blockchain: Sign transaction to register agent

Step 2: Select Hosting Device

1. Browse Marketplace: View available devices and their specs

2. Compare Pricing: Hosting fees range from $0.001-$0.01 per message

3. Choose Device: Select based on performance needs and cost

4. Fund Account: Ensure sufficient USDC balance for usage

Step 3: Interact with Your Agent

// Example: Chat with your deployed agent
const response = await fetch(`${deviceUrl}/chat`, {
    method: 'POST',
    headers: { 'Content-Type': 'application/json' },
    body: JSON.stringify({
        message: "Analyze wallet 0x742d35Cc6634C0532925a3b8D17ce9a6f30c6f9e",
        agentId: "your-agent-uuid"
    })
});

💰 Cost Comparison

🛠 Getting Started

Prerequisites

• Node.js 18+ and npm

• Git

• MetaMask wallet with Arbitrum Sepolia network

• USDC on Arbitrum Sepolia (Get testnet USDC)

Quick Start - Device Contributor

# 1. Clone repository
git clone https://github.com/SamFelix03/megha-network-arbitrum.git
cd megha-network-arbitrum/agent-server

# 2. Run automated setupchmod +x register-device.sh
./register-device.sh

# 3. Scan QR code and register device# 4. Start earning USDC! 🎉

Quick Start - Frontend Development

# 1. Navigate to frontendcd megha-network-arbitrum/frontend
# 2. Install dependencies
npm install

# 3. Start development server
npm run dev

# 4. Open http://localhost:3000

Environment Variables

# frontend/.env.localNEXT_PUBLIC_CONTRACT_ADDRESS=0xe6692b5e9a229E66569f3d94092ad301D1fE6B43NEXT_PUBLIC_USDC_ADDRESS=0x75faf114eafb1BDbe2F0316DF893fd58CE46AA4d
PINATA_API_KEY=your_pinata_key
PINATA_SECRET_API_KEY=your_pinata_secret

🏗 Architecture Overview

Data Flow

1. Device Registration: Device → Smart Contract (on-chain registration)

2. Agent Creation: Creator → Smart Contract (agent deployment)

3. Service Discovery: User → Smart Contract (find agents/devices)

4. AI Interaction: User → Device (via ngrok) → AI Model → Response

5. Payment: Smart Contract → Device Owner (USDC transfer)

📝 Smart Contracts

Contract Details

• Network: Arbitrum Sepolia

• Address: 0xe6692b5e9a229E66569f3d94092ad301D1fE6B43

• Verification: View on Arbiscan

Key Contract Functions

// Device Managementfunction registerDevice(...) external;
function updateDeviceNgrokLink(string memory _newNgrokLink) external;
function getAllDevices() external view returns (Device[] memory);

// Agent Management  function createAgent(...) external;
function getAgentByUUID(string memory _uuid) external view returns (Agent memory);
function getAllAgents() external view returns (Agent[] memory);

Contract Events

event DeviceRegistered(uint256 indexed deviceId, string deviceModel, address ownerAddress);
event AgentCreated(uint256 indexed agentId, string uuid, address ownerAddress);
event DeviceUpdated(uint256 indexed deviceId, string deviceModel);

🛣 Roadmap

Phase 1: Foundation & Growth 🚀

• Acquisition Channels

  • Hacker/Dev Communities: Engage through HackerNews, Reddit, Discord

  • Web3 Ecosystems: Partner with Farcaster, DAOs for organic growth

  • Commercial Outlets: Target e-waste & refurb shops for device sourcing

  • Dev Support: Create viral tutorials + open-source SDKs

Phase 2: Monetization Strategies 💰

• Platform Revenue (20% Fee): Collect fees from hosting transactions

• Featured Agents: Allow creators to advertise and boost search relevance

• Swarm API Tiers: Offer different credit packages for advanced parallel processing

Phase 3: Advanced Infrastructure ⚡

• Device Swarm Technology: Implement parallel task distribution across multiple devices

• Enhanced AI Models: Support for larger models through device clustering

• Global Load Balancing: Optimize device selection based on geography and performance

• Enterprise Solutions: Custom swarm configurations for business clients

Phase 4: Ecosystem Expansion 🌐

• Cross-chain Integration: Expand beyond Arbitrum to Polygon, Base, and other L2s

• Mobile SDK: Native mobile integration for seamless device contribution

• AI Model Marketplace: Allow custom model deployment and training

• Governance Token: Community-driven platform development and revenue sharing

Future Scope: Device Swarm Technology

Revolutionary Parallel Processing

One of Megha Network's most innovative upcoming features is Device Swarm - a breakthrough technology that addresses the fundamental limitations of mobile computing power and response times.

How Device Swarms Work

Instead of processing complex queries on a single mobile device, the system intelligently distributes tasks across multiple connected devices in the network:

Massive Performance Gains

• Response Time: Reduces processing from 1-2 minutes to <30 seconds

• Compute Power: Combines multiple devices to handle enterprise-level queries

• Reliability: Fault tolerance through redundant processing

• Scalability: Automatically scales based on query complexity

Smart Task Distribution

The swarm system automatically:

• Analyzes Query Complexity: Determines optimal number of devices needed

• Device Selection: Chooses devices based on performance, location, and availability

• Load Balancing: Distributes work to prevent any single device overload

• Result Aggregation: Combines outputs from multiple devices seamlessly

Economic Benefits

• Higher Earnings: Device owners can participate in lucrative swarm operations

• Premium Pricing: Complex queries command higher USDC rates

• Efficient Resource Utilization: Maximizes the value of contributed computing power

This technology positions Megha Network to compete with centralized AI services on both performance and cost, making it a true enterprise-grade solution built on consumer hardware.

🙏 Acknowledgments

• Arbitrum Foundation for the robust L2 infrastructure

• Ollama Team for the excellent local AI model framework

• DePIN Community for pioneering decentralized infrastructure

Built with ❤️ by the Megha Network team

Start earning USDC with your idle devices today! 🚀