Architecture

Layer 1 Infrastructure

The VAULT is deployed as a standalone Proof of Stake blockchain. At the time of v1.0.6 of this whitepaper, the primary focus has building the DEAN System, however with the system launch, revenue generated will fund the development process of the VAULT.

Core Functionality

The blockchain handles all applications built onto the VAULT. Each block holds dynamic and customized information about real-world activities, backed by oracle validators. Each block hosts typical transfers, as well as stores a list of oracles that act as the confirmation of a specific transaction. Oracles are users who manually review a transaction or authenticate a physical exchange, whether they prove delivery receipts in commerce marketplaces, or verify completions of physical services.

The core accepted programming languages for contract deployment will be Solidity, and WASM.

Oracle Validation

The oracle validator model allows each user to incentivize authenticity exchange of a product, service or delivery distributed by contractually paying a third party individual to complete the service of validation of a real-world activity. For example:

  • Paying an automated node validator to authenticate a physical receipt of a product delivery
  • Having a validator determines the quality and authenticity of a real world service and its resulting outcome
  • Having a person view a completion of a construction of property or result of a photography service
  • Having a worker at a logistics company confirm with a photo that a CDL truck driver is at the correct delivery location
  • Signing a contract of fulfillment when delivering freight

Data Security

Zero-knowledge proof is optionally implemented for smart contract owners or users of an Arthur Labs bazaar, or optionally encrypting data through salt rounds. An oracle validator will need to be able to request proof of information upon request.

The VAULT also has a mission to be on the frontline for encryption methods. Arthur Labs aims to partner with various quantum hacking prevention organizations like Quantum EVM.

Proof of Stake System

The VAULT implements a robust Proof of Stake (PoS) consensus mechanism that serves both transaction validation and oracle validation purposes. The system utilizes two distinct token classes within the ART ecosystem:

  • "VAU" — Governing blockchain transactions and staked tokens work as standalone node operators

Transaction Validation

Stakers can participate in:

  • Block validation and consensus
  • Fee earning from transaction processing
  • Network security maintenance

Oracle Validation Integration

The PoS system uniquely integrates with the oracle validation framework, allowing stakers to:

  • Validate physical deliveries and real-world services
  • Earn additional rewards for oracle services
  • Participate in multi-signature validation for high-value transactions

The economic model follows:

Total Rewards = Base Staking Reward + Transaction Fees + Oracle Service Fees

Security measures include minimum staking requirements, slashing conditions, and timelocked withdrawals to ensure network integrity.

Token Economics

The native currency is "ART", implementing a standard Proof of Stake mechanism with enhanced utility across the VAULT ecosystem. The token economics are designed to create a sustainable and value-driven ecosystem through multiple mechanisms:

Revenue Distribution

  • Direct Distribution to Staked Holders: Revenue from transaction fees and marketplace operations is distributed proportionally to staked token holders.
  • Ecosystem Reinvestment: A portion of revenue is automatically reinvested into ecosystem development, funding technical improvements, security audits, and infrastructure expansion.
  • Treasury Allocation: Strategic reserves are maintained in the treasury to ensure long-term ecosystem stability and fund future expansion initiatives.

Core Utility Functions

"ART" tokens serve multiple essential purposes within the ecosystem:

  • Primary Transaction Currency: All VAULT transactions utilize "ART" as the primary medium of exchange.
  • Gas Fee Mechanism: Network operations require "ART" for gas fees, ensuring efficient resource allocation and spam prevention.
  • Staking Operations: Tokens serve as collateral for network validation, with stakers receiving rewards proportional to their contribution.

Privacy and Infrastructure

  • Zero-knowledge Implementation: Tokens fund the development and implementation of zero-knowledge proofs, enabling private transactions and data protection within the ecosystem.
  • Global Node Network: Strategic investment in global node infrastructure ensures network reliability and performance.
  • Security Enhancements: Continuous investment in security improvements and quantum-resistant cryptography research protects the network's long-term viability.

Distribution Mechanisms

  • Airdrops on activity: Targeted airdrops reward active ecosystem participants and drive adoption.
  • Validator Rewards: Staking rewards are distributed according to a transparent APR schedule, encouraging network security and participation.
  • Community Incentives: Engagement rewards encourage community participation and ecosystem growth through various contribution mechanisms.

Supply Dynamics

The token supply follows a deflationary model with controlled emission:

Total Supply = Initial Fixed Supply − Burned Tokens + Validator Rewards

Technical Foundation

Layer 1 is developed with EVM compatibility and built for WASM applications and Rust contracts.

Layer 2 Infrastructure

Core Functionality

Layer 2 serves as the scaling solution that issues all of the smart contract standards that can be considered bilateral and legally binding to the participants of a transaction. It provides dynamic contract input data that allows for anyone to customize a specific smart contract transaction.

Contract Standards

It is important to mention the use of factory contracts wrapped around the following contract standards. These are best used when deploying a bazaar or marketplace. Factory contracts essentially provide all listing information and automatically fills out the listing information into a new deployed contract for the listing provider.

The standards proposed for the initial infrastructure consists of:

1. Physical Product Contracts

This is an upgradable smart contract standard that allows for any seller of a physical product to share the product information, price, quantity, delivery methods, delivery costs, and more. Customer metadata must be converted and encrypted effectively, complying with GDPR and general data protection ethics.

2. Physical Service Contracts

Similar to the physical product contract standards, this is an upgradable smart contract standard that allows for any service provider to issue out promises of physical activities for reward of compensation. Customer data also needs to be encrypted similarly by upgrading a new smart contract which is only accessible to the contract owner and its list of permissioned users.

3. Delivery Service Contracts

This is the smart contract standard that allows for any delivery driver around the world to provide and distribute service of delivery of a given product or item in exchange for compensation. This smart contract provides a few unique features as well that is optional depending on the contract creator, such as being able to share and upload geolocation for handling freight and being able to constantly update the initial standard for digital proof and timestamping of a physical delivery.

Layer 3 Infrastructure

Arthur Labs will be developing out required and functional applications to help accelerate development, as well as provide necessary tooling to reach the traditional consumer market.

A few of these applications will dedicate its efforts into making as much of a traditional system as possible, where clients can process and checkout payments using traditional FIAT currencies to purchasing items, while benefiting from the enchanting effects of blockchains.

The majority of applications built from Arthur Labs into the VAULT include governance and voting platforms for the DAO, injected wallet providers, transaction judging and moderation, and a variety of mentioned applications that offer unique features.

Layer 4 Infrastructure

Consumer Protection

Standalone business models can be built in the Arthur Labs ecosystem to handle consumer failures. For instance, being able to moat an insurance model around decentralized applications provides assurance for consumers that they can safely and seamlessly use the application and be compensated in case the blockchain isn't efficient.

Payment Infrastructure

Additional infrastructure such as account abstraction and guest accounts allow for users of the Arthur Labs ecosystem to not even need to touch blockchains in order to reap its benefits. Similar to Coinbase Guest, wallet providers in Arthur Labs may provide a debit or credit card payment method that entirely removes the need for users to interact with cryptocurrencies.

User Account Management

Similarly to guest accounts for payments, users may also register through Layer 2 infrastructure using emails and passwords, which then automatically provides the user a unique wallet. Advanced and blockchain-savvy users can easily go through the settings in various protocols to easily change their account.