Subbit show Cardano Payment Channel wey fit bill API based on how person use am

Dominic Wallis present Subbit.xyz for di 77th Cardano Developers Office Hours with one clear problem: sometimes API request fit cheap pass di fee and time wey blockchain transaction need. Him system pair signed payment commitments with Cardano smart contract, so provider fit serve small small requests and collect di approved charges later. Di presentation show how di payment components dey communicate, while production service integration still be di next step for di project.

A Payment Channel wey dem build for Metered Services

Subbit.xyz dey designed for services wey fit measure wetin customer dey consume, like API calls, data transfers, or AI requests. Monthly subscriptions dey charge for period of access, while invoice dey come after person don use service. Wallis propose make each unit of service get closer connection with di exact amount wey customer authorize.

Customer dey open channel by depositing funds under di rules of one Cardano smart contract. When e request service, di customer dey sign one IOU wey talk di cumulative amount wey provider fit collect. Di provider go check di signature plus di funds wey back am before e go fulfill di request. Each IOU tie to im own channel, so signature wey dem intend for one account no fit reuse against another.

Di channel limit to two participants, and payment dey flow from customer go provider. Customer fit stop to authorize new charges, while provider hold claim for service wey e don already deliver. Na di channel dey govern payment; e no dey verify whether API response get correct quality or how provider take handle sensitive information.

How Claims and Channel Closure take work for Cardano

Provider fit submit di latest IOU to di smart contract and claim di authorized amount while di channel still open. Earlier claims dey accounted for, so di same amount no fit withdraw twice. If customer add funds, di relationship fit continue without opening new channel.

Wallis illustrate di setup with 10 ADA wey dem allocate for service and extra 2 ADA wey dem reserve for Cardano UTxO requirements. Customer fit close di channel when e wan comot. Provider go then get one period wey dem agree at opening to make final claim, after that customer fit recover di balance.

Providers wey dey serve many customers fit combine claims inside one transaction. Wallis show example wey account for 47 channels at cost of approximately 38 US cents. Na figure from him presentation, no be reported average for production traffic. E identify say di amount of transaction data na di immediate constraint for expanding such batches.

Di integration design place one issuer beside di customer application and one proxy in front of di provider existing service. Di issuer go attach IOU to request. Di proxy go verify am and forward accepted request to di service.

Even if their original application no implement blockchain logic, providers still need to operate these payment components and follow relevant channel activity for Cardano.

Di Remaining Test na Real Service Integration

Questions from participants show several boundaries of di model. Refunds go require separate payment because di channel dey move funds only one direction. If provider dey worry about asset price changes, e fit claim funds quickly or adjust prices for future requests. Wallis still demonstrate say channel fit use another asset and e mention USDM as example.

Claims wey dem settle for Cardano go reveal di amounts wey provider collect, even though individual service requests remain off-chain. Participants ask whether zero-knowledge proofs fit improve privacy or batching. Wallis argue say such design go add complexity and say transaction data size na di more immediate scaling issue for Subbit.xyz.

Another participant, David, press Wallis about demand: which provider go change im billing system to use di channel? Wallis discuss possible use for API infrastructure, AI billing, and metered data delivery. E describe earlier work with Orcfax and acknowledge Project Catalyst support, but e no present current production integrator or commercial usage figures.

For di closing demonstration, di issuer and server exchange payment data, but di underlying service no execute. Wallis invite providers to integrate Subbit.xyz. If dem do am, di next demonstration fit connect all three parts of di transaction: measured service response, di customer signed IOU, and di provider claim for Cardano.