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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
Data Attestation
zkFetch (zkTLS) • EigenCloud (TEE)
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​

ComponentTrust Model
City ChainRollup security (fraud proofs)
Cartesi VMHonest minority (one honest validator)
EigenCloudTEE hardware integrity
zkFetchzkTLS cryptographic proofs
ArbitrumEthereum security inheritance

Defense in Depth​

  1. Cryptographic: zkTLS, Merkle proofs, digital signatures
  2. Economic: Staked validators, slashing conditions
  3. Hardware: TEE isolation, remote attestation
  4. 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​