Frequently Asked Questions
General
What is Locale Network?
Locale Network is a Layer 2 blockchain built on Arbitrum Orbit that enables communities to launch their own Layer 3 "City Chains." It provides the infrastructure for local economies to operate on-chain with local currencies, decentralized lending, and community governance.
What problem does Locale Network solve?
Traditional financial systems often fail to serve local communities effectively. Locale Network addresses this by:
- Enabling local currencies that keep value circulating within communities
- Providing accessible lending without traditional credit score requirements
- Ensuring data sovereignty so communities control their own data
- Supporting local governance through customizable on-chain voting
How is Locale Network different from other blockchains?
| Aspect | Traditional L2s | Locale Network |
|---|---|---|
| Focus | General purpose | Community-specific |
| Architecture | Single chain | L2 + City Chain L3s |
| Governance | Protocol-wide | Per-community |
| Currency | Global tokens | Local stablecoins |
| Privacy | Pseudonymous | ZK-verified identity |
Is Locale Network live?
Locale Network is currently in development. The Kansas City Pilot Program is active on Arbitrum Mainnet, testing Locale Lending and the L{CORE} SDK. Full network launch details will be announced.
Architecture
What is a City Chain?
A City Chain is a Layer 3 blockchain built on top of Locale Network, designed for a specific geographic community. Each City Chain can:
- Issue its own local currency (stablecoin)
- Customize governance parameters
- Control local data sharing policies
- Run community-specific applications
Why Layer 2 and Layer 3?
The layered architecture provides the best balance of security, scalability, and customization:
- Ethereum (L1): Maximum security and decentralization
- Locale Network (L2): Coordination layer, shared infrastructure, cross-city communication
- City Chains (L3): Local customization, community governance, low transaction costs
What blockchain is Locale Network built on?
Locale Network is an Arbitrum Orbit chain that settles to Ethereum mainnet. City Chains are also Orbit chains that settle to Locale Network.
How does cross-chain communication work?
City Chains communicate through Locale Network using Arbitrum's native messaging system. This enables:
- Asset transfers between cities
- Shared liquidity across lending pools
- Coordinated governance decisions
- Interoperable identity credentials
City Chains
How do I launch a City Chain?
City Chains are launched through partnerships with local governments, civic organizations, or community groups. Contact the Locale team to discuss launching a City Chain for your community.
What can City Chains customize?
City Chains have full control over:
- Governance: Voting mechanisms, proposal thresholds, execution delays
- Treasury: Fee collection, fund allocation, spending policies
- Currency: Local stablecoin parameters, backing assets
- Data: Privacy settings, sharing policies, access controls
- Applications: Which dApps are deployed and promoted
Who controls a City Chain?
Governance is determined by the community. Locale provides templated governance frameworks that can be customized, including:
- Token-based voting
- Quadratic voting
- Delegation systems
- Multi-stakeholder councils
Locale Lending
What is Locale Lending?
Locale Lending is a decentralized lending protocol that connects local investors with local borrowers through transparent, on-chain pools. It uses privacy-preserving verification to assess creditworthiness.
How is creditworthiness determined?
Instead of traditional credit scores, Locale Lending uses DSCR (Debt Service Coverage Ratio), which measures your income relative to debt obligations. Bank data is verified through privacy-preserving zkTLS proofs—your actual transactions are never exposed.
What are the interest rates?
Rates vary based on DSCR and pool parameters. Better DSCR (higher income relative to debt) results in lower rates. Typical ranges are 6-15% APR depending on risk profile.
Is my data safe?
Yes. Locale uses zero-knowledge proofs to verify financial data without exposing it. Your bank transactions, income details, and personal information are never stored or shared. Only the verification result (e.g., "DSCR > 1.25") is recorded on-chain.
L{CORE} SDK
What is L{CORE}?
L{CORE} (Locale CORE) is the decentralized IoT attestation infrastructure built on Reclaim Protocol. It enables devices to create verifiable claims about data without exposing the raw data itself.
What can L{CORE} verify?
L{CORE} can verify any data accessible via HTTPS, including:
- Bank account balances and transactions
- Utility usage and bills
- Government records
- IoT sensor readings
- Social media activity
- E-commerce transactions
How does privacy work with L{CORE}?
L{CORE} uses zkTLS technology to prove that data came from a specific source (like a bank API) without revealing the actual data. Only the verification result is shared.
Development
How do I build on Locale Network?
Start with our developer documentation:
What programming languages are supported?
- Smart Contracts: Solidity (EVM-compatible)
- L{CORE} SDK: TypeScript/JavaScript, Python
- Frontend: Any web framework (React, Vue, etc.)
Is there a testnet?
Yes. Development testnets are available for building and testing. See the Network Information page for RPC endpoints and faucets.
Are the contracts open source?
Core contracts will be open source upon mainnet launch. Audit reports will be published.
Security
How secure is Locale Network?
Locale Network inherits security from Ethereum through Arbitrum's optimistic rollup design. Additional security measures include:
- Multi-signature requirements for administrative actions
- Timelocks on contract upgrades
- Regular security audits
- Bug bounty program
What happens if there's a bug?
The protocol includes:
- Emergency pause functionality
- Timelock delays on upgrades
- Multi-sig governance for critical actions
- Insurance reserves in lending pools
Has the code been audited?
Security audits are in progress. Audit reports will be published before mainnet launch.
Getting Involved
How can I participate?
- Developers: Build applications on Locale Network
- Communities: Explore launching a City Chain
- Investors: Participate in Locale Lending pools
- Contributors: Join our open-source development
Where can I get help?
- Discord: discord.gg/locale
- Twitter: @localenetwork
- Telegram: t.me/localenetwork
- GitHub: github.com/locale-network
How do I report issues?
- Bugs: Open an issue on GitHub
- Security: Email security@locale.cash for responsible disclosure
- General: Ask in Discord or Telegram