What is Capx AI?

Capx is a protocol empowering users to build, own and trade Artificial Intelligence (AI) Agents. It operates as an Ethereum Layer 2 built with Arbitrum tech and is focused on enabling the creation, deployment, and trading of tokenized AI agents within a decentralized ecosystem. Capx aims to establish the "AI Builder Economy," a decentralized ecosystem where solo developers and small teams can create, own, and scale AI-powered businesses without extensive resources.

Case Study

Opportunity

The convergence of AI and blockchain has created great potential for cutting-edge applications, such as tokenized AI agents. Despite this potential, mainstream adoption remains elusive due to two persistent challenges. The first significant hurdle is fragmented user experience. Users must navigate multiple tokens, wallets, and ecosystems. This fragmented approach creates a steep learning curve, particularly for those unfamiliar with navigating blockchains, and deters broader participation in the AI x crypto space.

In a similar realm, ecosystem integration also remains limited. Many AI agent platforms today require multiple tokens or complicated bridging for every transaction. This means they must bridge between different platforms, manage assets disparately, and endure inefficiencies, all of which contribute to slow adoption. The current landscape sees potential for a unified, decentralized, and user-friendly solution to make blockchain-based AI applications accessible to a broader audience. 

Solution

Capx saw an opportunity to address these challenges by creating a seamless and scalable Ethereum Layer 2 protocol built using the Arbitrum Nitro Stack. The Capx ecosystem comprises three interconnected components: the Capx Chain, the Capx Cloud, and the Capx SuperApp.

The Capx Chain is the decentralized backbone of the ecosystem. Built on Arbitrum, it leverages high throughput, low transaction costs, and Ethereum-level security to create a scalable infrastructure. The single-token model simplifies interactions by designating $capx as the native gas token. This token is also the primary trading medium and governance asset. This eliminates the dual-token friction prevalent in other ecosystems and creates a cohesive user and developer experience. Decentralization and transparency are ensured by integrating Symbiotic’s shared security model, which leverages staked ETH to secure the infrastructure and maintain fairness.

Capx Cloud, a Symbiotic Network, simplifies the deployment of AI agents by introducing a shared security protocol that bridges the gap between traditional and decentralized cloud infrastructures. Developers can deploy their AI applications with a single click, upload their codebase, and rely on trusted operators to handle the complexities of scaling, deployment, and maintenance. Operators are incentivized to use the most efficient resources, whether from decentralized networks like Akash or Render, or from traditional providers like GCP and Azure. By abstracting away technical complexities, Capx Cloud democratizes the deployment of AI applications and allows developers to focus solely on their core innovations.

The Capx SuperApp is a user-centric gateway consolidating all interactions into a single interface. The SuperApp is a web-based application, that can be accessed via Telegram, as well as any browser, eliminating the need for users to download additional applications. Within the SuperApp, account abstraction and simplified wallet management remove the barriers of private key handling and token conversions. Users can seamlessly trade, own, and interact with AI agents in a unified interface. This approach significantly lowers entry barriers, making blockchain and AI applications accessible even to users without crypto experience.

Capx AI is currently in its testnet phase, with an estimated 450,000 wallet addresses and over 10 million transactions. 

Why Arbitrum?

Capx initially launched its testnet in early 2024. However, this approach revealed limitations in transaction throughput, cost efficiency, and readiness to handle large-scale usage. Recognizing these challenges, the team pivoted to Arbitrum for its optimistic rollup architecture. The need for higher transaction speeds, greater scalability, and reduced costs were the primary factors that drove this transition. The ability to designate $capx as the custom gas token was another critical factor, enabling the creation of a unified token ecosystem that aligns with Capx’s vision of simplicity and decentralization.

"We wanted transactions to be faster, with a throughput capable of handling 100s of transactions per second, and the costs needed to be as low as possible for the end user. After facing limitations with other options, Arbitrum's Nitro stack stood out because it met all our requirements for speed, cost, and scalability,” Vaibhav Tyagi, the founder of Capx, said.  “Importantly, we wanted a platform that would allow us to customize the user experience, which led us to choose Arbitrum, especially as we launched our own custom gas token. It just made sense for us to move forward with it."

The decision to adopt Arbitrum Orbit was made without prior collaboration with the Arbitrum team, reflecting the strength and independence of the stack’s capabilities. Its robust architecture stood out as the best solution to achieve high throughput, low fees, and a seamless user experience. 

Driving the Future of Blockchain

Capx represents a paradigm shift in how AI and blockchain technologies intersect. As Capx transitions from testnet to mainnet, its ecosystem is poised to help redefine the AI x blockchain landscape, paving the way for broader adoption and innovation. With its focus on simplicity, scalability, and decentralization, Capx is not just solving today’s challenges but is building the foundation for the next generation of blockchain-based AI applications.