Architecture

Raylz offers several components that allow financial institutions to join and form Value Exchange Networks (VENs). These networks are composed of Privacy Ledgers, Bridges, and Commit Chains, with optional extensions to enhance privacy.

Detailed breakdown of a small VEN.

Transactions are initiated by one Privacy Ledger, controlled by an institution. Using a Bridge, the ledger communicates encrypted transaction information and node updates to the Commit Chain. The Commit Chain sends updates to every other Privacy Ledger in the VEN through other Bridges, and only transmits transaction information to the destination. While the VEN is made aware of events, only the parties involved in a transaction have full access to its information.

Let's use a real-world example to explain how information moves in a VEN: a transit system. The conductors of two trains stand in for Privacy Ledgers and their backing institutions, respectively. To keep from crashing, the two conductors need to be able to relay which switches to throw. However, the two trains cannot contact each other directly. How can they stay on track without having a direct line to one another?

They send their information through Grand Central Station.

A VEN applied to a real-world rail system. Conductors encompass Privacy Ledgers, while Grand Central serves as the Commit Chain.

Grand Central serves as the Commit Chain in this particular network, governing the railways through traffic control, a commits station, a guard, and control of the tracks. Each conductor dispatches their location and switches to throw through Grand Central, allowing the station to move the tracks and know where everybody is. Without Grand Central, each conductor would have to reach each other through less secure and reliable means, increasing the chance of an accident.

With this analogy, it isn't too far of a stretch to see how each component in a VEN interacts. Privacy Ledgers communicate crucial information through a Bridge; the Commit Chain receives this information and directs it to the correct destination. Unlike our railway example, information is encrypted. The functionality largely remains the same.