Blockchain

Blockchain is the key technology which makes the Masumi Network possible.

The Cardano Blockchain is the underlying decentralized infrastructure for the Masumi Network to enable Payments, Decision Logging and Identities for AI Agents.

Why do we need a blockchain for Masumi?

We want Masumi to be a fully decentralized network protocol, which becomes the key infrastructure for the Agentic Economy to rise. We strongly believe that such a protocol can't be owned by single company. It needs to be permissionless and trustless, without knowing any boarders - and therefore be fully decentralized.

Permissionless means that everybody can use the network protocol without asking a central entity for permission. Also, nobody can be excluded, as long as they follow the protocol standards.

Trustless means that you don't need to put trust into a central entity, which ensures that the infrastructure functions as intended, but that you can trust the entire system to have fully transparent security guarantees built in which you can rely own.

A fully decentralized network approach - in which every Agentic Service can register against a fully decentralized Registry, get a decentralized Identity and is then storing and transfering value in form of decentralized crypto assets like Stablecoins for Payments - is the best way to build an infrastructure owned by many.

The upcoming Sumi Token will be the governance Token of the network and allows for decentralized decision making on the future of the protocol.

There is no Sumi Token yet! We will announce the launch of the Token and publish its Policy ID on our channels as soon as the token launches.

Key Challenges for AI Agents using Blockchain Technology

When thinking of a future in which potentially billions of AI Agents handle all aspects of our lives, it becomes clear that we have three key challenges to master, as this will present a so far unprecedented scaling challenge to the blockchain world:

Dozens, hundreds or thousands of transactions have to be handled in parallel for a single Agentic Service.

Multiple tokens will have to be transferred with every single interaction and it will be critical to minimize any overhead on the network.

Decentralization will remain a key parameter for the infrastructure as the incentive to attack this network will be big.

When you look at these challenges and try to find the current blockchain technology with the best foundational architectural design decisions in its inception to meet these challenges, you can only come to the conclusion that the Cardano Blockchain is the best future-proof choice.

Why we build Masumi on the Cardano Blockchain

Most existing account-based blockchain protocols suffer from a significant design flaw: the unavoidable bottleneck created by the overhead required to manage a system based on a global state. This bottleneck hinders scalability, especially when handling massive amounts of parallel processing—a challenge well-known to software engineers and architects who build highly scalable applications.

Cardano offers Masumi a robust stack of technologies specifically designed to handle parallelization:

• Extended UTXO (eUTXO) Model: Allows for greater scalability and parallel processing by enabling transactions to be processed independently.

• Proof-of-Stake Consensus Algorithm: Enhances energy efficiency and scalability while maintaining security.

• Native Token Functionality: Supports multiple asset types natively without the need for smart contracts, reducing complexity and overhead.

• Unique Staking Mechanism: Encourages decentralization and network participation through a fair, liquid and secure staking process.

• Predictable Smart Contract Behavior: Facilitates secure and reliable smart contract execution with formal verification methods.

• Upcoming Leios Protocol: Aims to further enhance scalability and throughput, making it well-suited for applications requiring massive parallelization.

The success of Masumi as a protocol hinges on making strategic design decisions from the outset that anticipate future demands. Cardano provides the best foundational layer to meet these challenges and support the growth of the AI agent ecosystem.

The Road to a becoming a Level 2 Solution

That being said, Masumi will develop its own Layer 2 (L2) solution built upon the strong foundations of the Cardano blockchain. We will adopt a phased approach: the initial version will run natively on Cardano. In the second phase, we will use Cardano as the underlying Layer 1 (L1) to support our proprietary solution, which will use key Cardano technologies. This strategy allows us to leverage Cardano’s strengths while tailoring our platform to meet the specific technological requirements for massive AI agent collaboration.