Neuralabs

Neuralabs

Tokenizing Intelligence

Created on 26th June 2025

Neuralabs

Neuralabs

Tokenizing Intelligence

The problem Neuralabs solves

The current AI ecosystem suffers from critical centralization issues

  • Limited Deployment Flexibility: Developers are locked into rigid deployment patterns with no hybrid options between centralized and decentralized infrastructure
  • Data Privacy Barriers: Enterprises hesitate to adopt AI due to data sovereignty concerns with centralized providers
  • High Entry Barriers: Prohibitive deployment and maintenance costs exclude independent developers
  • Limited Monetization: Restrictive models fail to fairly compensate IP creators and data contributors
  • Lack of Trust: Opacity in pricing, usage tracking, and revenue distribution

The Neuralabs Solution

Core Innovations

1. Development Framework

  • Visual flow builder for low-code AI workflow construction
  • Modular drag-and-drop component system
  • Infrastructure-as-code support via YAML exports

2. AI Asset Tokenization

  • Transform workflows, models, and data pipelines into NFTs
  • Establish immutable ownership via blockchain
  • Enable IP protection through distributed encryption (Shamir's Secret Sharing)
  • Create transferable, monetizable AI assets

3. Autonomous Economic Agents

  • Self-custodial wallets via Coinbase CDP
  • Autonomous operational cost management
  • Smart contract-governed transparent monetization

Technical Architecture

Compute Integration

  • AWS Bedrock: Enterprise-grade models (Nova, Titan) through decentralized access
  • Akash Network: Decentralized compute for open-source models
  • Hybrid architecture supporting both centralized and decentralized resources

Blockchain Infrastructure

  • Base Chain smart contracts for wallets, monetization, and SLAs
  • Coinbase CDP secure wallet infrastructure
  • Multi-party computation eliminating single points of failure

** Micropayment Infrastructure**

  • X402 protocol enables pay-per-use models
  • Bundled settlements reduce blockchain costs dramatically
  • Instant provider-consumer settlements
  • Programmable payment conditions

Stakeholder Benefits

Developers: Zero infrastructure overhead, direct monetization, cryptographic IP protection, global market access

Enterprises: Complete data sovereignty, usage-based pricing, blockchain audit trails, vendor-independent customization

Data Contributors: Smart contract payments, transparent usage records, granular access controls

Economic Impact

Neuralabs addresses fundamental market failures through:

  • Blockchain transparency eliminating information asymmetry
  • Decentralized competition driving efficient pricing
  • Lowered costs enabling broader innovation participation
  • Smart contracts ensuring equitable value distribution

Example: A developer creating specialized AI tools faces:

  • Traditional: $5-10K initial investment, $1-3K monthly costs, 20-30% platform fees
  • Neuralabs: $0 initial investment, user-paid operations, minimal transaction fees

Conclusion

By integrating Coinbase CDP wallets, X402 micropayments, AWS Bedrock models, and Akash Network compute, Neuralabs creates a comprehensive decentralized AI infrastructure. This paradigm shift democratizes AI access, ensures fair value distribution, and enables innovation at scale while solving the fundamental inefficiencies of centralized AI systems.

Challenges we ran into

1. Non-Deterministic LLM Token Generation vs Pre-Authorization Requirements

Challenge: LLMs generate non-deterministic token counts, making it impossible to calculate exact API costs before generation. However, X402 requires transaction amounts to be specified upfront for security purposes.

Solution: We developed NeuraLedger, an L2-like settlement layer that:

  • Pre-authorizes maximum estimated costs via X402
  • Tracks actual usage post-generation
  • Settles the difference asynchronously
  • Maintains real-time balance management for agents, users, and platform fees

2. X402 Python SDK CORS Middleware Issues

Challenge: The recently released X402 Python SDK exhibited CORS errors when processing payment requests through our middleware, blocking critical payment flows.

Solution:

  • Created a custom wrapper around the X402 SDK to handle CORS headers properly
  • Submitted a detailed bug report and PR to the X402 GitHub repository
  • Implemented fallback mechanisms to ensure payment continuity during SDK updates

3. Transaction Overhead and Scalability

Challenge: A single AI API call triggered 6+ on-chain transactions:

  • User → Agent payments
  • Agent → Infrastructure costs
  • Platform commissions
  • Nested agent transactions
  • Agent-to-agent collaborations

Solution: Implemented intelligent transaction batching:

  • Single X402 transaction captures maximum possible cost upfront
  • NeuraLedger (Graph/Kuzu DB) tracks all micro-transactions off-chain
  • Periodic batch settlements reduce costs by 95%
  • Algorithm calculates worst-case costs and reconciles later

4. Secure User Data Storage in Decentralized Environment

Challenge: Storing sensitive user workflows and AI logic securely while maintaining decentralization principles.

Solution: Developed NeuraLock, our distributed security system:

  • Implements Shamir's Secret Sharing to split encryption keys
  • Distributes key fragments across multiple independent servers
  • Ensures no single party (including Neuralabs) can access raw data
  • Maintains user sovereignty while enabling seamless access

5. Enabling Autonomous Agent Payments

Challenge: AI agents need to make payments independently without human intervention, requiring a novel wallet architecture.

Solution: Dual-wallet system:

  • Agentic Wallets: User-controlled wallets for interacting with agents
  • Agent Wallets: Autonomous wallets created via Coinbase CDP
    • Authorizes neuralabs smart contracts to propose USDC transaction on its behalf and then destroyed private key
    • Agents can only spend within pre-defined parameters
    • Enables true autonomous operation while maintaining security

6. Secure Transaction Execution in Untrusted Environments

Challenge: Ensuring AI agent code execution and transaction signing remain secure across distributed infrastructure.

Solution:

  • Current: Neura Execution Engine with cryptographic verification
  • Planned: Migration to DRM-secured servers for enhanced protection
  • Smart contract verification for all critical operations
  • Multi-signature requirements for high-value transactions

These challenges pushed us to innovate beyond existing solutions, resulting in a more robust and scalable decentralized AI infrastructure.

Tracks Applied (5)

Best Use of x402pay + CDPWallet

The synergy between CDP and X402 in Neuralabs creates the most efficient autonomous AI economy: Economic Agent Framewor...Read More

Best Use of CDP Wallet

Neuralabs revolutionizes CDP wallet usage by creating autonomous AI wallets - a groundbreaking concept where AI agents b...Read More

Best Use of x402pay

Our implementation pushes X402 beyond simple payments into a complete AI monetization infrastructure: Micropayment Orch...Read More

Multiple Prizes: AWS Challenge: Best Use of Amazon Bedrock

Neuralabs transforms AWS Bedrock from a closed platform into an open, monetizable AI marketplace: Decentralized Access ...Read More
Amazon Web Services

Amazon Web Services

Best Overall Project and Best Use of Akash

Neuralabs leverages Akash Network to deliver true infrastructure choice - a core differentiator in our platform: Hybrid...Read More
Akash Network

Akash Network

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