System Architecture
Deep dive into Valut's system architecture and technical components
This page provides a comprehensive overview of Valut's system architecture, designed to bridge the gap between cryptocurrencies and India's UPI payment system.
High-Level Architecture Overview
Valut's architecture consists of several core components working together to enable seamless crypto-to-UPI payments:
Core Components
1. User-Facing Mobile Application
The Valut mobile app provides:
QR code scanning functionality
Wallet management interface
Transaction history and analytics
User authentication and security features
Selection of cryptocurrencies for payment
Tech Stack:
React Native for cross-platform functionality
biometrics integration for enhanced security
Local storage with encryption for sensitive data
2. Base OnchainKit Integration
For identity verification and wallet generation:
Handles user registration and identity verification
Manages KYC/AML procedures
Provides a secure foundation for wallet creation
Ensures regulatory compliance with Indian financial regulations
3. Gnosis Safe Multisig Wallet
Each user's assets are secured by:
2-of-2 multisig wallet architecture
Shared control between user and Valut platform
Non-custodial design for enhanced security
Threshold signature mechanisms
This architecture ensures that:
Neither party can unilaterally move funds
User funds remain secure even if one key is compromised
Provides cryptographic proof of transaction authorization
4. Valut Smart Contract
The central contract system that:
Holds pre-approved access to user assets
Manages transaction execution
Enforces spending limits and security rules
Orchestrates the payment flow
Key Technical Features:
ERC-20 token handling
Configurable spending limitations
Gas optimization for cost efficiency
Upgrade mechanisms for future enhancements
5. Liquidity Pools and Exchange Engine
For instant crypto-to-INR conversion:
Maintains liquidity pools for supported cryptocurrencies
Sources real-time exchange rates from multiple providers
Executes conversions with minimal slippage
Manages risk from market volatility
6. UPI Payment Gateway Integration
The bridge to India's payment infrastructure:
Connects to UPI payment rails
Formats transactions to UPI specifications
Manages merchant payouts in INR
Monitors transaction status and confirmations
7. Backend Infrastructure
Supporting all operations:
API Gateway for client communication
Microservices architecture for scalability
Database layer for transaction records
Caching layer for performance optimization
Monitoring and logging systems
Data Flow
User Registration Flow
Payment Flow
Security Architecture
Valut implements multiple layers of security:
User-Level Security
Biometric authentication
PIN/password protection
Device binding options
Session management
Transaction-Level Security
Configurable spending limits
Suspicious transaction monitoring
Velocity checks and anomaly detection
Time-locked operations for high-value transfers
Infrastructure Security
End-to-end encryption for all communications
Regular security audits and penetration testing
HSM (Hardware Security Module) for key management
Multi-region redundancy and disaster recovery
Scalability Considerations
Valut's architecture is designed for scale:
Horizontal scaling capabilities across all services
Load balancing for high-traffic scenarios
Database sharding strategies for growth
Caching layers to minimize repeat computations
Asynchronous processing for non-critical operations
Integration Touchpoints
External System Integrations
UPI payment network connectivity
Cryptocurrency exchange APIs
Blockchain node connections
KYC/AML verification services
Banking partners for INR liquidity
API Architecture
RESTful API design for client communication
WebSocket connections for real-time updates
GraphQL endpoints for data-intensive operations
Webhook support for event notifications
Monitoring and Operations
Valut maintains robust systems for:
Real-time transaction monitoring
Performance metrics dashboards
Anomaly detection and alerting
Automated recovery procedures
24/7 operations team coverage
Future Architectural Considerations
The architecture is designed with flexibility for future enhancements:
Support for additional blockchain networks
Integration with emerging payment systems
Enhanced security features
Scaling to support higher transaction volumes
Cross-border payment capabilities
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