Objectives

• Conduct technical research and validation to demonstrate the feasibility of deploying Hydra Hub on Cardano, covering key aspects such as: 1.Technical scalability (Hydra Node infrastructure expansion, security, integration with Cardano Node and Hydra Layer 2), 2.Decentralized organizational management (Provider registration processes, resource monitoring and allocation), 3.Ensuring a sustainable economic model (fee collection and distribution to Providers, along with benefits for the developer community).
• Develop a public, transparent, and open-source MVP (Minimum Viable Product) that enables the community to directly contribute, test, and propose improvements.

Significance

• Hydra Hub will serve as a foundational step for the practical adoption of Hydra Layer 2 on Cardano. It provides the core infrastructure that allows the developer community to easily deploy, connect, and manage Hydra Nodes — with the lowest cost, fastest deployment time, and secure, user-friendly operations.
• The project will accelerate the path to real-world Hydra application deployment on Cardano, supporting the development of DApps and opening participation opportunities for a wide range of stakeholders (users, developers, and Providers).

Expected Outcomes

• A comprehensive research report covering technical feasibility, operational models, and system architecture.
• An open-source MVP: allowing users to install, test, and utilize basic Hydra Hub features (Proxy, Consumer Portal, API key management system, etc.), and laying the groundwork for full decentralization via smart contracts.

We have spent many years developing Hydra, with proven processing speed and technical capabilities as a state channel scaling solution. Through the launch event of the Hydra Doom game, we demonstrated Hydra’s potential, but also revealed a significant challenge: infrastructure operation costs. During just three game rounds, the infrastructure expenses reached tens of thousands of dollars, not to mention the considerable effort required from engineers at IOG and other top contributors in the community. This makes it extremely difficult for DApp developers with limited resources to adopt Hydra in a practical way. It is hard for them to build products using Hydra and generate enough revenue to cover infrastructure and operational personnel costs.

This is the biggest bottleneck we aim to solve through the “Hydra Hub – Node Distribution System.” This solution is designed to:

• Provide the most affordable Hydra infrastructure for developers by leveraging idle and decentralized infrastructure from multiple providers, via the Hydra Hexcore tool — instead of requiring every project to build and operate its own Hydra Node solution.
• Create an intermediary environment (proxy) to connect developers (Consumer Clients) with infrastructure providers (Providers), addressing technical barriers (such as server setup, security configurations, ongoing maintenance) and cost constraints.
• Generate additional income for infrastructure providers with unused resources, by simplifying the deployment and access to Hydra Nodes through the Hydra Hexcore tool.
• Reduce risk and increase availability for DApps, as they can rely on a ready-made system for monitoring, resource allocation, and security — all provided by Hydra Hub — instead of requiring dedicated personnel within each project.

This document presents the initial architecture of the system we have designed to ensure the solution is feasible, deployable, and capable of achieving a complete MVP. It is intended to enable the real-world use of the first DApps we have built with Hydra.

• English Documentation: https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index-en.md
• Japanese Documentation: https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index-ja.md
• Vietnamese Documentation: https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index.md
• Website: https://hydrahub.io.vn/
• Detailed Implementation Phase Documentation: https://drive.google.com/file/d/1ayRGmFKp9rmc3Rb_bOr_-iwJooKXIRwC/view?usp=sharing

Supporting Developers and Businesses to Easily Access and Deploy Applications on Hydra

• DApp development teams will be able to adopt Hydra more quickly and scale their applications without the need for expensive and complex initial infrastructure investment. They can focus entirely on product ideas and business models tailored to their target user base.
• Enhancing the Appeal of Cardano and Hydra By offering ready-to-use infrastructure services for DApps, user experience will be significantly improved, increasing the overall attractiveness of Cardano and especially Hydra.

Creating Economic Value for the Community

• By optimizing and lowering costs for both developers (Users) and businesses deploying on Hydra, through a pay-per-use model, the solution provides a more accessible and efficient development path.
• Encouraging Participation from Idle Infrastructure Providers The system incentivizes server providers with idle or surplus capacity to join and offer services, creating new business opportunities and increasing their revenue streams.
• Building Hydra Hub as a Fully Decentralized Solution With clearly defined cost and benefit allocations (Consumers pay, Providers receive rewards), the system promotes a sustainable economic model. All financial transactions are governed through smart contracts on Cardano, ensuring transparency and community ownership in both development and operation.

Improving Security and Stability

• Developers will no longer need to worry about security and system stability. Once completed, the decentralized auditing and monitoring system of Hydra Hub will ensure the quality of provided nodes and reduce security risks typically faced when each project manages its own infrastructure.
• Additional mechanisms such as staking-based guarantees and smart contract-powered governance on Cardano will further reinforce transparency and safety.

Accelerating Innovation and Attracting Investment

• A complete and accessible Hydra service platform will attract more new projects to Cardano and accelerate the pace of innovation across the ecosystem.
• Return on investment (ROI) will increase by lowering the barrier to adopting Layer 2 technology, allowing DApps to go live faster and reach users sooner — helping to spark real excitement and momentum in the ecosystem.

Key Milestones / Deliverables:

1. Research & Reporting

• Produce a technical feasibility report, clearly identifying risk scenarios and proposing solutions (security, node distribution, fee payment models, etc.).
• Outline the MVP model: architecture, Provider/Consumer registration processes, proxy mechanisms, and node allocation.

2. Completion of Phase I (Basic Centralized Model):

• Deploy the Hydra Hub system (Dashboard, API, Proxy).
• Ensure at least one Provider is operating stably, supplying Hydra nodes for Cardano testnet/mainnet.
• The system must allow developers (Consumers) to register accounts, and create/run Hydra Nodes via the user interface or API key.

3. Expansion to Phase II (Multiple Centralized Providers):

• Develop the Provider registration process (UI + API).
• Implement automatic Hydra Node allocation algorithms based on performance, geography, or cost.
• Set up basic payment and revenue-sharing mechanisms between Consumers, Hydra Hub, and Providers.

4. Implementation of Phases III & IV (Full Decentralization):

• Develop smart contracts to manage staking, node allocation, and payments.
• Provide user interfaces for Developers and Providers to interact and register directly with smart contracts.
• Eliminate centralized control: Hydra Hub will function only as an interface and monitoring layer — with no authority over permissions or financial flows. All processes will be handled by smart contracts.

*** Detailed Implementation Phase Documentation: https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index-en.md

What the Community Gains:

• A dedicated Layer 2 infrastructure solution for Hydra, allowing DApps to scale transaction throughput without bearing heavy infrastructure costs.
• A transparent, open-source, decentralized environment that attracts more developers.
• Comprehensive documentation, guides, and built-in integration tools to help startups and new projects save time and costs.

A. Personnel Costs (Estimated)

• Average personnel cost: approximately $18,000/month for a 10-person team (average $1,800/person/month, may vary depending on role and experience).
• Duration: 9–10 months for development, testing, and MVP completion, with a contingency of 3 additional months for personnel due to multiple expected Hydra updates this year.

*Total personnel cost: $18,000 × (10 + 3) = $234,000

B. Infrastructure & Tools

• Servers & cloud services: Servers for development, testing, staging, and production environments (running Cardano Node, Hydra Node, backend). Flexible cloud infrastructure including CI/CD and databases.
• Collaboration tools & software licenses
• Integration and scalability testing costs: Server monitoring tools, logging systems, security tools (firewalls, vulnerability scanning), and DDoS protection infrastructure.

*Estimated cost for 1 year of development: ~$70,000

C. Long-Term Maintenance & Upgrades

• Maintenance and updates: Fixing bugs, updating to new Cardano/Hydra versions, and adjusting features based on community feedback. Infrastructure maintenance (if the project continues operating as a service).
• Technical support & documentation: Answering user/developer inquiries, handling requests. Maintaining the open-source repository, managing updates and community pull requests.

*Estimated cost: ~$50,000 (within 6–12 months post-MVP)

D. Contingency & Overhead

• Technical risk contingency: Additional costs for security audits, critical bug fixes, or extra infrastructure if there's a sudden surge in usage.
• Operations & administrative management: Ensuring legal compliance, handling contracts, financial management, and tax responsibilities (as we are a software outsourcing business based in Vietnam).

*Estimated cost: ~$50,000

Total Estimated Budget: = A. Personnel + B. Infrastructure & Tools + C. Maintenance + D. Contingency & Overhead = $234,000 + $70,000 + $50,000 + $50,000 = $405,000 = 580,000 ADA (based on exchange rate 1 ADA = $0.70)

Team Size (Approximately 10 Members)

• Research & Design (2–3 people): Includes Cardano/Hydra experts and solution analysts to ensure technical direction, system requirements, and security.
• Development & Integration (4–5 people): Focused on building the MVP, backend programming (API, smart contracts), and DevOps (deploying Hydra Nodes and infrastructure).
• Security & Testing (1–2 people): Responsible for audits, risk assessment, testnet trials, bug fixing, and performance optimization.
• Management & Coordination (1 person): Oversees project timeline, team coordination, and reporting to stakeholders.

Estimated Timeline: 9–10 Months

Phase I: Research and Build Basic Centralized Model (2 Months) Objective: Research and test the system, calculate resource usage, and address security considerations. Key Tasks:

• Hydra Hub Provider Tool: Tool to deploy and operate Hydra Nodes on provider servers.
• Hydra Hub System: Consumer Portal, Dashboard, Admin System.
• Provider: Single provider operated by Hydra Hub.
• Consumer: Allow Developers/Users to register as Consumers.
• Hydra Hub: Successfully allocate nodes and handle payments directly to the Hydra Hub.

Phase II: Research and Build Centralized Model with Multiple Providers (2 Months) Objective: Enable multiple providers to join the Hub using Hydra Hexcore and implement a node allocation algorithm across providers. Key Tasks:

• Hydra Hub System: Allow provider registration and approval via UI and API. API interface for provider connection to the Hub System. Design payment workflow (Consumers pay, Providers earn rewards, Hydra Hub contribution fund).

• Hydra Hub Provider Tool (v2): Protocol for connecting to the Hub. Provider identity management. System security enhancements.

Phase III: Research and Implement Decentralized Node Allocation (3 Months) Objective: Decentralize the Hydra Node allocation process using Plutus smart contracts on Cardano to ensure transparency, security, and alignment with Cardano's principles. Key Tasks:

• Convert Hydra Node allocation algorithm from off-chain to on-chain smart contracts.
• Migrate payment workflows (fee collection, rewards distribution) to smart contracts.

Phase IV: Research and Implement Decentralized Provider Registration (3 Months) Objective: Gradually eliminate Hydra Hub’s centralized influence over provider selection and approvals. Key Tasks:

• Develop a smart contract for provider registration.
• Implement a synchronized registration–staking–payment process via provider smart contracts.

We are a software outsourcing company based in Vietnam with over 10 years of experience developing enterprise software products such as ERP, CRM, and more. You can verify additional information about our company at:

• https://vtechcom.org/

We have recently begun experimenting and developing several products for the Cardano ecosystem. One of our key initiatives is the Bobugo App — an application designed to help investors manage and receive alerts on asset movements, track prices, and stay updated with project information within the Cardano ecosystem. The app is currently available on both Google Play and the App Store:

• https://bobugo.com/

Cardano 2025 Budget Proposal Aggregation and DRep Voting Activity Dashboard:

• https://cardanobudget.com/

Leveraging Hydra technology, we successfully built a lightweight wallet and explored new use cases for Hydra to help developers more easily launch potential projects. Our research demos and implementations are showcased on our YouTube channel:

• https://www.youtube.com/@vtechcomlabs

We have also had discussions with engineers from IOG and the broader Hydra community regarding the proposed architecture we are building. All related documentation has been compiled and clearly explained at:

• https://github.com/Vtechcom/hydra-hub-design-docs

All team members involved in our projects have received formal training from reputable universities in Vietnam and have at least two years of experience in their respective roles..

For this project, we commit the following key personnel:

1. Project Manager Name: Nguyen Viet Thanh LinkedIn: https://www.linkedin.com/in/nguyenvietthanh/ Role: Oversee the entire project, manage timelines, control costs, and allocate resources effectively. Ensure all tasks are completed on time and meet quality standards. Experience: CEO of Vtechcom (https://vtechcom.org/), IT engineer, and Bachelor in E-commerce Business Administration. Over 10 years of experience in software outsourcing project management. Proficient in project methodologies like Agile/Scrum and Waterfall. Skilled in requirements analysis, planning, team and financial management, and change control.

2. DevOps Engineer Name: Cong Nghia Khiem LinkedIn: https://www.linkedin.com/in/congnghiakhiem/ Experience: Over 15 years of experience in infrastructure management using Infrastructure as Code (IaC). Proficient in Terraform, Ansible, and Pulumi for automating system deployment and configuration. Skilled in operating and optimizing Kubernetes environments, with professional certifications in CKA (Certified Kubernetes Administrator) and CKS (Certified Kubernetes Security Specialist). Extensive experience in deploying Kubernetes clusters on both public clouds (AWS, GCP, Azure) and on-premises infrastructures. Adept at cloud resource management, optimizing cost and performance, and implementing multi-cloud and hybrid-cloud architectures tailored to enterprise-scale requirements

3. Backend Developer Name: Pham Cong Hai LinkedIn: https://www.linkedin.com/in/phamhai99/ Experience: 3+ years of experience in Vue.js, Nuxt 3, TypeScript, and JavaScript. Skilled in backend frameworks like NestJS and ExpressJS, with experience in UI development using Tailwind CSS. Currently a Frontend Web Developer at tabtab.me – a real estate platform powered by AI. Graduated from Hanoi University of Science and Technology.

4. Backend Developer Name: Bui The Do LinkedIn: https://www.linkedin.com/in/bui-the-do-142385ba/ Experience: Over 10 years of experience as a developer, with 5 years in technical management. Expertise in technologies such as Chrome (Browser – C++), Odoo (ERP – Python & PostgreSQL), Django (Web – Python & PostgreSQL/MySQL), and WordPress (PHP & MySQL). Former project manager at BKAV, responsible for the BOS operating system on Bphone devices.

5. Backend Developer Name: Do Trung Nhan LinkedIn: https://www.linkedin.com/in/nhantd292/ Experience: IT engineer with 10+ years of experience in complex software projects with high user traffic. 2 years of hands-on experience in Cardano smart contract development using Plutus, Aiken, and Haskell. Skilled in smart contract development, testing, and blockchain transaction integration.

6. Frontend Developer Name: Nguyen Van Thang LinkedIn: https://www.linkedin.com/in/thang-nguyen-b396171a9/ Experience: 5 years of experience in backend (Node.js) and mobile app development. Worked at Viettel Post, BnK Solution, and Heligate as a full-time Mobile Developer. Proficient in JavaScript, React Native, Node.js, C#, and DevOps practices.

7. Frontend Developer Name: Duong Thanh Hieu LinkedIn: https://www.linkedin.com/in/hiuudt/ Experience: A software developer with over 5 years of experience. He has worked at companies such as Sotatek and Famtech Global, taking on roles in mobile application development using React Native and ReactJS. Hieu holds an academic background in Information Technology from the University of Engineering and Technology – Vietnam National University, Hanoi. He possesses strong communication and project management skills, along with the ability to develop software that meets high-quality standards

8. UX/UI Designer Name: Dang Xuan Hoang LinkedIn: https://www.linkedin.com/in/dangxuanhoang/ Experience: 3+ years in UX/UI design for mobile apps and games, with a strong focus on dApp user experience. Skilled in wireframing, user research, prototyping, and building interactive UI.

9. QA Specialist Name: Hong Quyen Experience: 8+ years in software testing. Experienced in test design, manual testing, and scripting with Java (Serenity BDD, IntelliJ) and TypeScript (Playwright, Visual Studio). Proficient in API testing, bug reporting, and working within Agile/Scrum workflows.

10. Security Engineer Name: Nguyen Anh Tuan LinkedIn: https://www.linkedin.com/in/nguyen-tuan-38147a292/ Experience: Formerly a Project Development Manager at ITSA, a company specializing in providing information technology solutions with over 15 years of experience. Tuan possesses extensive expertise in areas such as blockchain application development, CRM management, mobile app development, and website design. He is capable of consulting on and implementing flexible, secure blockchain systems, as well as software solutions that optimize business processes for enterprise clients

*During the project implementation, if additional human resources are needed to ensure progress and quality, we are fully prepared to allocate more personnel from within our company

Establishing a Dedicated DevOps Team

• During the research and MVP release phase, we will organize a permanent DevOps team to monitor servers, ensure system stability, and keep Hydra and Cardano versions up to date.
• We will also handle connection issues, errors from Providers, and off-chain communication problems.

Technical Support

• The MVP version will be continuously improved based on community feedback and pull requests.
• An online support channel will be available for both Providers and Consumers — offering guidance, troubleshooting, and DApp integration consulting.
• Regular updates (patches and hotfixes) will be released to fix security vulnerabilities and upgrade features according to community needs.

Ongoing Roadmap Research

• We will continue exploring ways to expand the number of Providers and support deployment across different geographic regions globally.
• Smart contracts will be upgraded and secured to minimize centralized intervention.
• Scheduled maintenance and audits will take place every 6–12 months or after each major upgrade.

https://forum.cardano.org/t/introducing-hydra-hexcore-an-automated-deployment-management-tool-for-multi-hydra-party/144578

a) Internal Dependencies

• Hydra Hexcore: The core toolkit for operating Hydra Nodes, including node monitoring and management features.
• API Key Management and Communication Gateway (HydraHUB Proxy): Ensures proper access control and routes traffic to the correct node.
• Management Interfaces (Consumer Portal, Provider Dashboard): Enables information management, node creation, and activity monitoring.

b) External Dependencies

• Cardano Infrastructure: Synchronization with the Cardano Node is mandatory for Hydra Nodes to function correctly.
• Cloud/Server Infrastructure: Providers must have stable server resources to deploy Hydra Nodes.

c) Requirements to Begin or Complete Development

• Proficiency in Cardano, Hydra, and DevOps practices, along with the ability to design infrastructure management solutions and user interfaces.