Phase III: Decentralizing Hydra Node Allocation

• Objective: Decentralize the Hydra Node allocation process with Providers, utilizing Plutus smart contracts on Cardano to manage critical operations, ensuring transparency and security in line with Cardano’s principles.

• Tasks:

  • Transition the Hydra Node allocation algorithm from off-chain to smart contracts.

  • Migrate payment processes (fee collection, reward distribution) to smart contracts.

Figure 01: Architecture diagram for the decentralized Hydra Node allocation process in Hydra HUB.