Layer1 Conceptual Model

Components within the Layer 1 Model

There are four main components that function within Layer1 creation:

  1. Asset Pool: An asset pool represents a collection of funds across different currencies and networks. By grouping these funds together, the complexity of managing multiple crypto addresses and key pairs is hidden from the customer, enabling them to focus on actions at the pool level rather than individual addresses. The asset pool simplifies fund management by abstracting away network-specific details, providing a unified interface for handling diverse crypto assets.
  2. Keypair: A key pair is the cryptographic foundation of blockchain transactions. It consists of a public key and a private key. The key pair secures access to blockchain addresses and ensures that only authorized transactions can be conducted. Public-private key cryptography is integral to verifying transactions and securing assets on the blockchain.
  3. Address: An address is a unique identifier on a specific blockchain network where assets can be sent or received. It is generated using the public key from the key pair and serves as the "account number" for blockchain transactions.
  4. Asset: An asset refers to the value held in a specific currency that can be transferred on the blockchain. Assets represent the units that move between addresses and are accounted for within an asset pool.

Component Relational Diagram

This diagram should illustrate the relationships between these four components:

  • The Layer1 platform is a multi-tenant solution. A single tenant can create as many distinct asset pools as required.
  • Within a single asset pool, multiple key pairs can be created. A key pair is used to create an address on any of the supported blockchain networks.
  • A single key pair can be used to create a unique blockchain address on any of the supported networks. Each network address must be distinct and cannot be duplicated. For instance, a single key pair cannot generate multiple Ethereum addresses. However, the same key pair can be used to create different blockchain addresses on various networks such as Ethereum, Bitcoin, Tron, etc.
  • A single address can support multiple assets when the blockchain network allows it. As an example - a single Ethereum address can hold ETH, USDT and USDC assets.