0005 Demeter Fabric

Demeter Fabric

A Decentralized Compute Grid Leveraging Kubernetes and Cardano Hydra L2 State-Channels


In today's rapidly evolving technological landscape, the need for efficient and scalable computing resources has become increasingly important. As businesses and organizations adopt more complex workloads, there is a growing demand for innovative solutions that can handle diverse computing requirements while maintaining flexibility, cost efficiency, and security. To address these challenges, we present Demeter, a decentralized compute grid designed to host arbitrary compute workloads using Kubernetes clusters and leveraging the Cardano blockchain's Hydra L2 state-channels.

This document outlines the key components, benefits, and technical aspects of the Demeter grid, exploring its potential as a next-generation distributed computing platform. We discuss the use of Kubernetes clusters, decentralized management, the roles of Operators and Applications, the Hydra L2 state-channel technology, and the extended UTxO model for low-level interactions. We also explore alternative methods for fair workload distribution to enhance the overall efficiency and experience for all parties involved. By delving into these aspects, we aim to provide a comprehensive understanding of the Demeter grid and its potential to transform the distributed computing landscape.


The Demeter Grid is conceived as a response to the growing need for efficient, scalable, and flexible computing solutions. The rationale behind the development of such a system lies in addressing the limitations of traditional computing infrastructures and capitalizing on the potential of emerging technologies. Here, we provide arguments in favor of the Demeter grid:

  1. Scalability: As the demand for computing resources continues to grow, traditional centralized systems face challenges in scaling up to accommodate these needs. Demeter's decentralized architecture, based on Kubernetes clusters, allows it to scale efficiently as new clusters can be added or removed dynamically, ensuring that resource availability aligns with demand.
  2. Cost Efficiency: Demeter's design promotes cost efficiency by matching Applications' resource requirements with Operators' available resources through a competitive bidding process. This ensures that Applications receive the best resources at competitive prices, while Operators are incentivized to optimize their offerings, leading to overall cost savings for all parties.
  3. Flexibility: Demeter's ability to host diverse workloads, ranging from traditional batch processing to machine learning applications, ensures that the grid can cater to a wide variety of computing needs. The use of Kubernetes clusters further enhances flexibility, as resources can be easily adjusted to accommodate changing requirements.
  4. Security and Transparency: By leveraging blockchain technology, specifically Cardano's Hydra L2 state-channels and Plutus smart contracts, Demeter ensures a secure and transparent environment for resource allocation and payment processes. This instills confidence in the system, as all parties have access to verifiable information and can trust the fairness of the allocation process.
  5. Resilience: Demeter's decentralized architecture provides increased fault tolerance and reduces the risk of service disruption. With multiple Operators managing individual clusters, the grid can continue functioning even if some clusters encounter issues, ensuring a reliable and robust platform for hosting compute workloads.
  6. Incentivizing Quality and Fairness: Alternative workload distribution methods, such as auction-based or reputation-based allocation, encourage Operators to improve their performance, reliability, and resource offerings. This creates a competitive environment that benefits Applications by providing them with high-quality resources and services.

By addressing these challenges and harnessing the potential of Kubernetes and Cardano blockchain technologies, Demeter aims to revolutionize the distributed computing landscape, providing a robust, scalable, and efficient solution for hosting diverse compute workloads.

Actors and Interactions

The Demeter grid is a decentralized compute platform designed to efficiently manage and allocate computing resources for a wide range of workloads. To understand its functionality, it's essential to explore the actors involved in the system and the interactions between them.


  1. Operators: Operators are responsible for managing the infrastructure of the Kubernetes clusters. They maintain the hardware, network, and other resources necessary for the proper functioning of the clusters. Their role is to offer computing resources to the grid and respond to bids submitted by Applications.
  2. Applications: Applications are parties that host compute workloads on the Demeter grid. They define their specific infrastructure requirements, such as resource requests and price range, and submit bids to secure the necessary resources from Operators.
  3. Trusted Entities (optional): In scenarios where clusters join or leave the grid dynamically, a group of trusted entities or nodes can be introduced to act as representatives for the clusters in the Hydra Head. These entities can be selected based on predefined criteria and ensure the source of trust between Operators and Applications.


  1. Bid Submission: Applications submit bids by sending an UTxO to a well-known script address (Plutus validator) of the Hydra L2 state-channel. The bid UTxO contains a datum representing the parameters of the bid, such as resource requests and price range.
  2. Operator Response: Operators monitor transactions on the L2 state-channel and, upon detecting a bid UTxO, compete with each other (or participate in alternative allocation methods, such as auction-based or reputation-based allocation) to send a transaction that consumes the bid UTxO, indicating their willingness to provide the requested resources at the specified price range.
  3. Resource Allocation: The system determines the winning Operator based on predefined criteria (e.g., lowest price, best resource match, highest reputation) and allocates the resources to the Application. Once the resources are allocated, the Application can deploy its workload on the assigned Kubernetes cluster.
  4. Payment and Trust: Using Cardano's Hydra L2 state-channels and smart contracts, secure and transparent transactions are facilitated between Operators and Applications for resource allocation and payment.

Through these interactions, the Demeter grid efficiently manages resource allocation and workload distribution among its actors. By leveraging the strengths of Kubernetes and Cardano blockchain technologies, Demeter provides a scalable, cost-efficient, and flexible solution for hosting various compute workloads in a secure and transparent.

Fair Workload Distribution

In the Demeter grid, efficient and fair workload distribution plays a crucial role in optimizing resource allocation and ensuring a positive experience for both Applications and Operators. Here, we delve deeper into the different alternatives for fair workload distribution:

  1. Auction-based Allocation:

An auction-based allocation system allows Operators to submit their offers within a predefined time window after an Application submits a bid. The allocation is determined based on predefined criteria at the end of the window, such as the lowest price, best resource match, or a combination of factors. This method has several advantages:

  • Organized competition: Operators can submit their offers in an organized manner without the need for a "race" to consume the bid UTxO.
  • Optimal resource allocation: Applications can receive the best available resources at competitive prices, as Operators are incentivized to optimize their offerings.
  • Transparent process: The auction-based allocation ensures that all parties have access to the same information, promoting transparency and fairness.
  1. Reputation-based Allocation:

A reputation-based allocation system assigns a reputation score to each Operator based on their historical performance, reliability, and other relevant factors. When an Application submits a bid, the system prioritizes Operators with higher reputation scores, giving them the first opportunity to respond to the bid. This approach offers several benefits:

  • Incentivizing quality: By prioritizing Operators with higher reputation scores, the system rewards those who consistently provide high-quality services and incentivizes all Operators to improve their performance.
  • Trustworthy Operators: Applications can benefit from being matched with more reliable and trustworthy Operators, increasing their confidence in the grid.
  • Balance between price and quality: Reputation-based allocation can strike a balance between cost efficiency and quality, as Operators with higher reputation scores are likely to provide better services at competitive prices.

Both auction-based and reputation-based allocation methods can contribute to a fairer and more efficient workload distribution in the Demeter grid. By implementing these alternatives, the system can ensure an equitable and organized process that benefits both Applications and Operators, while maintaining the overall scalability, cost efficiency, and flexibility of the grid.