Network architecture

The same execution substrate is deployed in two tiers: a canonical ledger operated by accredited validators, and closed subnets run by banks and consortia. Both anchor to the same Bitcoin chain, so the audit trail of the entire network, canonical and closed, is enumerable from public data.

Updated 08 Nov 20262 min read

#Two tiers

  • The canonical ledger is the flagship SQRL instance. It is operated by a named set of accredited validators and carries the shared contract registry, the subnet registry and the public asset layer. See Validators and the canonical ledger.
  • Subnets are independent SQRL instances run from the same codebase by a bank or consortium. Members hold full subnet state, outsiders see only Bitcoin-anchored commitments, and membership in the wider network comes from registering periodic checkpoints on the canonical ledger. See Subnets and routing.

The same node binary runs the canonical ledger and every subnet: a subnet is a configuration of the stack, not a fork of it.

#The four layers

LayerContentsPermission
Bank applicationsStablecoins and deposit tokens, bonds and funds, FX corridors, client walletsGated
Lightning distributionPartner-run hub nodes, multi-asset channels, AMMs for in-flight FXCurated
SQRL executionValidator seats, subnets, XRB-settled fees, observer nodes, issuer whitelists, post-quantum attestation and transportPermissioned
Bitcoin settlementAnchoring, ordering, finality and the public audit trailPermissionless

#What stays open, and what is gated

Open: Bitcoin settlement and the complete audit trail; the protocol source, with the reference node MIT licensed; the free T0 execution envelope, under which simple operations such as token transfers stay free; and the XRB market. Anyone can verify the network from the Bitcoin chain alone, run a node from source, and replay the state.

Gated: validator seats and state-root attestation on the canonical ledger; deployment above the free tier; subnet membership and checkpoint registration; cross-subnet routing standing; the AMM operator set; and admission to partner programmes.

Key takeaway

Permission is a property of the execution and governance layers only. If settlement or the token market were gated too, SQRL would be a consortium chain, so that boundary is a design invariant, not a policy.

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