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Progress During Hackathon

<h1>What We Built During the Hackathon</h1><p>During this hackathon, we transformed <a href="http://PAY.ID">PAY.ID</a> from a raw idea into a fully functional end-to-end payment policy infrastructure.</p><p><a href="http://PAY.ID">PAY.ID</a> is now integrated across all four layers of the 0G modular stack: 0G Chain, 0G Storage, 0G Compute, and 0G Agentic ID.</p><p>The result is a working product where users can create programmable payment rules, store them on decentralized storage, commit them on-chain, and enforce them through smart contracts — including for AI agent-based payments.</p><hr><h1>Phase 1 — Core Infrastructure</h1><h2>0G Chain + 0G Storage</h2><p>We started by building the core infrastructure layer of <a href="http://PAY.ID">PAY.ID</a>.</p><p>The first milestone was to design and deploy the smart contracts that would make payment policies verifiable and enforceable on-chain.</p><p>We deployed five smart contracts to the 0G Newton Testnet, using Chain ID <code data-inline="true" spellcheck="false">16601</code>.</p><p>These contracts include:</p><ul><li><p><code data-inline="true" spellcheck="false">RuleItemERC721</code></p></li><li><p><code data-inline="true" spellcheck="false">CombinedRuleStorage</code></p></li><li><p><code data-inline="true" spellcheck="false">PayIDVerifier</code></p></li><li><p><code data-inline="true" spellcheck="false">AgentPayID</code></p></li><li><p><code data-inline="true" spellcheck="false">MockAgentRegistry</code></p></li></ul><p><code data-inline="true" spellcheck="false">RuleItemERC721</code> allows payment rules to be minted as NFTs. Each rule contains an on-chain hash commitment, making the policy reference verifiable and tamper-resistant.</p><p><code data-inline="true" spellcheck="false">CombinedRuleStorage</code> manages active rule sets for each wallet address. This allows a user or application to query which payment policies are currently active for a specific wallet.</p><p><code data-inline="true" spellcheck="false">PayIDVerifier</code> acts as the core verification engine. It uses EIP-712 typed payment proofs and checks them against the user’s active rule set before allowing a payment to proceed.</p><p>We also integrated 0G Storage through the Turbo Indexer to persist rule metadata in a decentralized way. Rule descriptions, condition logic, and metadata are uploaded to 0G Storage, while the resulting root hash is committed on-chain.</p><p>To make this usable from the frontend, we built <code data-inline="true" spellcheck="false">zgStorage.ts</code>, a helper library that supports CORS-safe browser uploads and downloads for 0G Storage.</p><p>This means users can create and store rule metadata directly from the browser without relying on a centralized backend.</p><hr><h1>Phase 2 — SDK and Developer Experience</h1><p>After the core contracts were working, we focused on making <a href="http://PAY.ID">PAY.ID</a> easy for developers to integrate.</p><p>We built <code data-inline="true" spellcheck="false">payid-react</code>, a React hooks SDK that gives dApps a simple way to interact with <a href="http://PAY.ID">PAY.ID</a>.</p><p>The SDK includes hooks such as:</p><ul><li><p><code data-inline="true" spellcheck="false">useCreateRule</code></p></li><li><p><code data-inline="true" spellcheck="false">useMyRuleSets</code></p></li><li><p><code data-inline="true" spellcheck="false">useSubscribe</code></p></li><li><p><code data-inline="true" spellcheck="false">useActiveCombinedRule</code></p></li><li><p>and other contract interaction utilities</p></li></ul><p>We organized the codebase as a monorepo with separate packages for core logic and React integration:</p><ul><li><p><code data-inline="true" spellcheck="false">packages/sdk-core</code></p></li><li><p><code data-inline="true" spellcheck="false">packages/payid-react</code></p></li></ul><p>This separation makes the system easier to maintain, extend, and reuse across different applications.</p><p>We also added full TypeScript support, including type-safe contract ABIs generated from deployment outputs. This helps developers integrate <a href="http://PAY.ID">PAY.ID</a> with better autocomplete, safer contract calls, and fewer runtime mistakes.</p><p>On top of the SDK, we built a no-code Rule Builder.</p><p>The Rule Builder allows users to create payment policies without writing smart contract code. It includes:</p><ul><li><p>JSON editor</p></li><li><p>Template presets</p></li><li><p>Live rule preview</p></li><li><p>Spending limit template</p></li><li><p>KYC template</p></li><li><p>Geographic restriction template</p></li><li><p>Time-based rule template</p></li></ul><p>When a user creates a rule, the metadata is uploaded directly from the browser to 0G Storage. The resulting hash is then committed on-chain through the rule NFT.</p><p>This creates a full user flow from rule creation to decentralized storage to on-chain verification.</p><hr><h1>Phase 3 — AI Agent Payment Integration</h1><h2>0G Compute + Agentic ID</h2><p>The next major milestone was integrating AI agent payments.</p><p>We deployed the <code data-inline="true" spellcheck="false">AgentPayID</code> contract, which links an AI agent identity to a specific payment policy hash.</p><p>We also deployed <code data-inline="true" spellcheck="false">MockAgentRegistry</code>, an ERC-7857 iNFT placeholder used to simulate agent ownership during the hackathon.</p><p>For the AI demo, we built <code data-inline="true" spellcheck="false">AgentPayIDPage</code>, a live agent payment interface powered by Qwen-2.5-7B-Instruct through 0G Compute using an OpenAI-compatible endpoint.</p><p>The AI agent does not operate with hardcoded rules.</p><p>Instead, it reads the real active payment rules from <code data-inline="true" spellcheck="false">CombinedRuleStorage</code>, injects those rules into the system prompt, and uses them when deciding whether a payment should be approved.</p><p>This creates a realistic AI payment flow:</p><ol><li><p>A user creates a payment policy.</p></li><li><p>The policy is stored on 0G Storage.</p></li><li><p>The policy hash is committed on-chain.</p></li><li><p>The AI agent reads the active rule.</p></li><li><p>The AI decides whether to approve the payment.</p></li><li><p>The smart contract verifies the decision against the actual on-chain policy.</p></li></ol><p>The most important part of this phase was the jailbreak-resistant architecture.</p><p>We tested prompt injection attacks where the AI agent could be manipulated into approving a payment that violates the user’s policy.</p><p>For example, the AI could be tricked using morse code or system override prompts to approve a <code data-inline="true" spellcheck="false">1,000,000 USDC</code> payment.</p><p>However, even when the AI approved the unsafe payment, the <code data-inline="true" spellcheck="false">AgentPayID</code> smart contract rejected it with:</p><p><code data-inline="true" spellcheck="false">ExecutionReverted: Exceeds spending limit</code></p><p>This proves the core design principle of <a href="http://PAY.ID">PAY.ID</a>:</p><blockquote><p>The AI can be manipulated, but the payment policy cannot be bypassed.</p></blockquote><p>The AI decision layer and the smart contract enforcement layer are separated.</p><p>The AI proposes the payment decision, but the smart contract enforces the actual rule.</p><p>We also completed real on-chain transaction flows on 0G Newton Testnet, including:</p><ul><li><p>Registering an agent NFT</p></li><li><p>Linking a policy to the agent</p></li><li><p>Verifying payment execution on-chain</p></li><li><p>Providing block explorer links for transaction transparency</p></li></ul><hr><h1>Phase 4 — Dashboard and UX Polish</h1><p>After the core system was working, we focused on making <a href="http://PAY.ID">PAY.ID</a> feel like a real product.</p><p>We built a full v4 dashboard with a polished dark-mode interface, glassmorphism styling, and smooth framer-motion animations.</p><p>The dashboard includes a sidebar navigation system with the following sections:</p><ul><li><p>Dashboard</p></li><li><p>Send</p></li><li><p>Receive</p></li><li><p>Policy</p></li><li><p>Rule Builder</p></li><li><p>AI Agent</p></li><li><p>Proof</p></li><li><p>History</p></li></ul><p>We also built <code data-inline="true" spellcheck="false">DynamicIsland</code>, a macOS-style live transaction status notification system.</p><p>This gives users real-time feedback when they create rules, upload metadata, sign transactions, or verify payments.</p><p>For the AI agent demo, we added a real-time on-chain log console with a terminal-style interface. This shows each step of the agent execution pipeline, including rule loading, AI decision-making, transaction preparation, and smart contract verification.</p><p>The dashboard also includes wallet connection, chain detection, and automatic switching to 0G Newton Testnet.</p><p>This makes the product easier to demo and much smoother for users who are not deeply technical.</p><hr><h1>Key Technical Achievements</h1><h2>Full 4-Layer 0G Integration</h2><p><a href="http://PAY.ID">PAY.ID</a> integrates all four major layers of the 0G modular stack in one product:</p><ul><li><p>0G Chain for smart contract enforcement</p></li><li><p>0G Storage for decentralized rule metadata</p></li><li><p>0G Compute for AI agent decision-making</p></li><li><p>0G Agentic ID architecture for linking agents to payment policies</p></li></ul><p>This makes <a href="http://PAY.ID">PAY.ID</a> more than a simple dApp. It is a full-stack payment policy infrastructure built around the 0G ecosystem.</p><hr><h2>CORS-Safe 0G Storage From the Browser</h2><p>We built a browser-safe storage helper that handles 0G Storage reads and writes directly from the frontend.</p><p>It supports both <code data-inline="true" spellcheck="false">0g://</code> URI schemes and HTTP gateway URLs transparently.</p><p>This allows rule metadata to be uploaded and retrieved without forcing developers to build a centralized backend just to handle storage operations.</p><hr><h2>Jailbreak-Resistant AI Payment Design</h2><p><a href="http://PAY.ID">PAY.ID</a> is designed with the assumption that AI agents can be manipulated.</p><p>Instead of relying on the AI to always behave correctly, <a href="http://PAY.ID">PAY.ID</a> moves final payment enforcement into smart contracts.</p><p>Even if an AI agent approves a malicious or unsafe payment, the on-chain verifier checks the payment against the active policy and rejects it if it violates the rules.</p><p>This creates a stronger security model for AI-powered payments.</p><hr><h2>Composable Rule NFTs</h2><p>Each payment rule is represented as an NFT.</p><p>This makes rules portable, composable, versionable, and potentially transferable across different protocols or applications.</p><p>Developers can build on top of these rule NFTs instead of recreating payment policy logic from scratch.</p><hr><h2>Production-Ready React SDK</h2><p><a href="http://PAY.ID">PAY.ID</a> includes a React SDK that allows developers to integrate payment policies into their dApps with minimal setup.</p><p>A React dApp can use <a href="http://PAY.ID">PAY.ID</a> to create rules, fetch active policies, verify payment permissions, and interact with the on-chain infrastructure through a clean hook-based API.</p><hr><h1>What’s Next</h1><p>After the hackathon, we plan to continue improving <a href="http://PAY.ID">PAY.ID</a> toward production readiness.</p><p>The roadmap includes:</p><h2>Replace MockAgentRegistry with the official 0G ERC-7857 iNFT contract</h2><p>During the hackathon, we used <code data-inline="true" spellcheck="false">MockAgentRegistry</code> as a placeholder for agent identity.</p><p>The next step is to integrate the official 0G ERC-7857 iNFT contract once available.</p><hr><h2>Add decentralized oracle integration</h2><p>The current version can still rely on centralized signature flows for some verification contexts.</p><p>A future version will replace this with decentralized oracle infrastructure to make external payment context verification more trust-minimized.</p><hr><h2>Add Account Abstraction support</h2><p>We plan to integrate ERC-4337 Account Abstraction, including Paymaster support.</p><p>This would allow gas-sponsored agent transactions and smoother user experiences for non-technical users.</p><hr><h2>Add Soulbound NFT mode for high-security policies</h2><p>For sensitive use cases, some payment policies should not be transferable.</p><p>We plan to add a Soulbound NFT mode so high-security agent policies can be permanently bound to a wallet or agent identity.</p><hr><h2>Enable cross-chain rule enforcement</h2><p><a href="http://PAY.ID">PAY.ID</a> is designed to become a reusable payment policy layer.</p><p>A future version will explore cross-chain enforcement using 0G messaging or bridge infrastructure, allowing the same policy to be referenced across multiple networks.</p><hr><h1>Summary</h1><p>During this hackathon, we built <a href="http://PAY.ID">PAY.ID</a> into a working payment policy infrastructure for Web3 and AI agents.</p><p>The product now supports:</p><ul><li><p>Rule creation</p></li><li><p>Rule NFTs</p></li><li><p>Decentralized rule metadata storage</p></li><li><p>On-chain payment verification</p></li><li><p>AI agent payment decisions</p></li><li><p>Jailbreak-resistant smart contract enforcement</p></li><li><p>React SDK integration</p></li><li><p>A full dashboard experience</p></li><li><p>Real transactions on 0G Newton Testnet</p></li></ul><p><a href="http://PAY.ID">PAY.ID</a> demonstrates how payment authorization can move beyond simple wallet approvals into programmable, verifiable, and composable policy enforcement.</p><p>It gives users, developers, organizations, and AI agents a safer way to control how funds can be spent.</p><p>The core idea is simple:</p><blockquote><p>AI can make decisions.<br>Smart contracts enforce the rules.<br>Users stay in control.</p></blockquote>

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