Protocol Architecture

Note: If you cannot view the image, here is a summary: The diagram illustrates a payment flow: a Payment Intent is processed by a set of Aggregator nodes (which coordinate and route the transaction), which then interact with a network of Provision nodes (liquidity providers or processors). These nodes ultimately deliver funds to end users/recipients.

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The Paycrest protocol is built on a modular, decentralized architecture that enables seamless stablecoin-to-fiat and fiat-to-stablecoin transactions. This section explains the core technical components and how they work together.

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Core Components

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Gateway Contract

The Gateway contract is the central entry point for all payment orders in the protocol.

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Key Functions

• Order Creation: Accepts payment orders from senders
• Order Validation: Validates order parameters and sender authorization
• Order Indexing: Emits events for aggregators to monitor
• Settlement Coordination: Manages onchain settlement processes

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Order Lifecycle

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Aggregator Nodes

Aggregator nodes are high-availability services that coordinate the entire order routing process.

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Core Functions

• Order Monitoring: Monitor Gateway contract for new orders
• Provider Management: Maintain provider registry and ratings
• Order Matching: Match orders with optimal providers
• Settlement Coordination: Coordinate multi-provider settlements
• Compliance Verification: Verify KYC and regulatory compliance

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Node Architecture

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Provision Nodes

Provision nodes handle the execution of payments to recipients.

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Components

• PSP Integration: Connect to local payment service providers
• Rate Management: Set and update competitive rates
• Order Processing: Execute assigned payment orders
• Settlement Reporting: Report successful settlements
• Compliance Monitoring: Monitor regulatory compliance

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Integration Types

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Deployment Options

Provision Nodes can be deployed in two ways: Self-Hosted Deployment

• Complete control over infrastructure
• Custom security configurations
• No dependency on third-party services
• Potential cost savings at scale
• Requires technical expertise for setup and maintenance

Managed Deployment via Blockops

• One-click deployment through Blockops
• Automated scaling and monitoring
• Dedicated support and expertise
• Built-in security best practices
• Pay-as-you-use pricing model
• Recommended for most providers

For detailed deployment instructions, see the Provision Node Deployment Guide.

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Network Architecture

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Multi-Chain Support

The protocol supports multiple blockchain networks for maximum flexibility.

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Supported Networks

• Base: Primary network for USDT/USDC transactions
• Polygon: Cost-effective transactions
• BNB Smart Chain: Binance ecosystem support
• Arbitrum One: High-performance L2 network
• Lisk: Alternative blockchain network
• Celo: Mobile-first blockchain
• Tron: USDT transactions

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Network Selection

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Decentralized Infrastructure

The protocol operates on a decentralized infrastructure for reliability and censorship resistance.

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Node Distribution

• Geographic Distribution: Nodes distributed globally
• Provider Diversity: Multiple providers per region
• Redundancy: Multiple aggregators for reliability
• Failover: Automatic failover between nodes

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Consensus Mechanism

• Order Assignment: Consensus on order provider assignment
• Rate Validation: Consensus on fair market rates
• Settlement Confirmation: Consensus on successful settlements
• Dispute Resolution: Consensus on dispute outcomes

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Security Architecture

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Smart Contract Security

The Gateway contract implements multiple security measures.

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Security Features

• Access Control: Role-based access control
• Rate Limiting: Prevent spam and abuse
• Emergency Pause: Ability to pause in emergencies
• Upgradeability: Controlled upgrade mechanism
• Audit Trail: Complete transaction audit trail

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Vulnerability Mitigation

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Network Security

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DDoS Protection

• Rate Limiting: API rate limiting per client
• Geographic Distribution: Global node distribution
• Load Balancing: Automatic load balancing
• Monitoring: Real-time attack detection

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Data Protection

• Encryption: End-to-end encryption
• Privacy: Zero-knowledge proofs where applicable
• Compliance: GDPR and local privacy law compliance
• Audit: Regular security audits

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Scalability Architecture

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Horizontal Scaling

The protocol is designed for horizontal scaling across multiple dimensions.

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Scaling Dimensions

• Geographic Scaling: Add nodes in new regions
• Provider Scaling: Add more providers per region
• Network Scaling: Support additional blockchain networks
• Volume Scaling: Handle increased transaction volume

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Performance Optimization

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Integration Architecture

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API Design

The protocol provides comprehensive APIs for all participant types.

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API Layers

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API Standards

• RESTful Design: Standard REST API conventions
• OpenAPI Specification: Complete API documentation
• Error Handling: Consistent error responses
• Versioning: API version management
• Deprecation: Graceful API deprecation

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Monitoring and Observability

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Metrics Collection

The protocol collects comprehensive metrics for monitoring and optimization.

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Key Metrics

• Transaction Volume: Orders per hour/day
• Success Rates: Order fulfillment success rates
• Latency: API response times and settlement times
• Error Rates: API error rates and types
• Provider Performance: Provider success rates and ratings

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Monitoring Tools

• Application Monitoring: APM tools for performance tracking
• Infrastructure Monitoring: Server and network monitoring
• Business Metrics: Custom business intelligence dashboards
• Alerting: Proactive alerting for issues

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Logging and Tracing

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Logging Strategy

• Structured Logging: JSON-formatted logs
• Log Levels: Appropriate log level usage
• Log Aggregation: Centralized log collection
• Log Retention: Configurable log retention policies

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Distributed Tracing

• Request Tracing: Track requests across services
• Performance Profiling: Identify performance bottlenecks
• Error Correlation: Correlate errors across services
• Dependency Mapping: Map service dependencies

Note: The Paycrest protocol architecture is designed for maximum reliability, scalability, and security while maintaining simplicity for developers and end users.