Architecture
This document provides a technical overview of Locale Network's architecture, including the relationship between layers and data flow through the system.
System Architecture
System Architecture
Users & Applications
Wallet AppsLending InterfaceGovernance PortalIoT Devices
API Gateway
REST APIGraphQLWebSocketRPC
CITY-CHAIN (L3)
Smart Contracts
Lending PoolsCurrency RegistryGovernanceAttestation
Rollup Infrastructure
SequencerState MgmtFraud ProofsDA Layer
Off-Chain Compute
Cartesi VM • DSCR Calculations
Complex Business Logic
Complex Business Logic
Data Attestation
zkFetch (zkTLS) • EigenCloud (TEE)
Plaid Integration
Plaid Integration
Locale Network (L2)
SettlementBridge ContractsCross-Chain Messaging
Ethereum (L1)
Final Settlement • Data Availability
Layer Breakdown
Application Layer
User-facing applications that interact with City Chain:
- Web Applications: Lending interface, governance portals, dashboards
- Mobile Apps: Wallets, merchant point-of-sale
- IoT Devices: Sensors, meters, trackers via L{CORE} SDK
City Chain (L3)
The core blockchain infrastructure for each geographic region:
- Smart Contracts: Business logic for lending, currency, governance
- Sequencer: Orders and batches transactions
- State Management: Maintains canonical chain state
- Data Availability: Ensures transaction data is accessible
Off-Chain Compute
Complex calculations that require more compute than on-chain execution allows:
- Cartesi VM: Linux environment for DSCR calculations, risk models
- Cartesi Validators: Verification of off-chain compute results
- Verifiable Outputs: Results are attested and posted on-chain
Data Attestation
Bridges real-world data to on-chain systems:
- zkFetch: Zero-knowledge proofs of HTTPS requests (e.g., Plaid API)
- EigenCloud: TEE execution for sensitive data processing
- L{CORE} SDK: Device registration and data streaming
Settlement Layers
Final security and settlement:
- Locale Network (L2): City Chains settle state roots to Locale Network
- Ethereum (L1): Ultimate source of truth and security
Data Flow Examples
Loan Application Flow
1. Borrower connects wallet and initiates loan request
2. zkFetch retrieves Plaid transaction history with zkTLS attestation
3. Transaction data is encrypted and sent to Cartesi VM
4. Cartesi computes DSCR using deterministic algorithms
5. Result is validated by Cartesi validators
6. Approved loan terms are posted to City Chain
7. Smart contract releases funds to borrower
IoT Attestation Flow
1. Device registered via L\{CORE\} SDK with unique identifier
2. Sensor data streams to L\{CORE\} ingestion pipeline
3. Data is transformed according to configured rules
4. Attestation is created with Merkle root of data batch
5. Attestation posted to City Chain with device signature
6. Consumers can verify data provenance on-chain
Security Model
Trust Assumptions
| Component | Trust Model |
|---|---|
| City Chain | Rollup security (fraud proofs) |
| Cartesi VM | Honest minority (one honest validator) |
| EigenCloud | TEE hardware integrity |
| zkFetch | zkTLS cryptographic proofs |
| Arbitrum | Ethereum security inheritance |
Defense in Depth
- Cryptographic: zkTLS, Merkle proofs, digital signatures
- Economic: Staked validators, slashing conditions
- Hardware: TEE isolation, remote attestation
- Social: Governance oversight, multisig controls
Network Topology
Network Topology
Ethereum L1
Locale Network (L2)
Kansas City
City Chain (L3)
St. Louis
City Chain (L3)
Denver
City Chain (L3)
Cross-Chain Messaging
Asset Bridges • Data Sharing
Next Steps
- Quick Start Guide — Get hands-on with the testnet
- City Chain Deep Dive — Understand L3 architecture
- Smart Contract Reference — Explore the contracts