Technical Specifications

Blockchain Architecture

This section provides detailed technical specifications for the blockchain architecture across all development stages. It covers platform selection, network topology, consensus mechanisms, data structures, security protocols, and implementation guidelines.

Platform Selection

The blockchain platform evolves across the three development stages to accommodate increasing requirements for scalability, performance, and functionality:

Foundation Stage

Ethereum Mainnet

  • Mature, secure platform with robust smart contract capabilities
  • ERC-20 and ERC-721 token standards support
  • Extensive development tools and community support
  • Proof of Stake consensus mechanism
  • Limitations: Higher gas costs, lower transaction throughput

Intermediate Stage

Polygon (Layer 2)

  • Ethereum-compatible Layer 2 scaling solution
  • Significantly lower transaction costs
  • Higher throughput (7,000+ TPS)
  • Faster block confirmation times (2 seconds)
  • Maintains security through Ethereum finality

Advanced Stage

Custom Blockchain

  • Purpose-built Layer 1 blockchain with insurance-specific features
  • Sharded architecture for horizontal scalability
  • Specialized consensus for insurance claim validation
  • Cross-chain interoperability with Ethereum ecosystem
  • Zero-knowledge proofs for privacy-preserving operations

Network Topology

The network topology defines how nodes are organized and connected within the blockchain network:

Foundation Stage: Standard Ethereum Network

Utilizes the existing Ethereum network topology with full nodes, light clients, and mining/validator nodes. The system interacts with Ethereum through standard RPC interfaces.

  • Node Types: Full nodes, light clients, archive nodes
  • Connectivity: P2P network with discovery protocol
  • Client Diversity: Support for multiple Ethereum clients

Intermediate Stage: Polygon Sidechain

Leverages Polygon's sidechain architecture with a set of validator nodes securing the network through Proof of Stake.

  • Node Types: Validator nodes, full nodes, light clients
  • Heimdall Layer: For block validation and checkpointing
  • Bor Layer: For block production and transaction processing
  • Checkpointing: Regular state commitments to Ethereum

Advanced Stage: Sharded Custom Blockchain

Custom blockchain with a sharded architecture for horizontal scalability and specialized node roles.

  • Beacon Chain: Coordinates shards and maintains consensus
  • Shard Chains: Parallel chains for transaction processing
  • Validator Nodes: Secure the network through Proof of Stake
  • Oracle Nodes: Provide external data to the blockchain
  • Bridge Nodes: Enable cross-chain interoperability

Consensus Mechanism

The consensus mechanism ensures agreement on the state of the blockchain across all participants:

Foundation Stage: Ethereum Proof of Stake

Utilizes Ethereum's Proof of Stake consensus mechanism, where validators are selected to create blocks based on their staked ETH.

  • 32 ETH minimum stake for validators
  • Slot time: 12 seconds
  • Epoch: 32 slots (6.4 minutes)
  • Finality: ~15 minutes
  • Slashing conditions for malicious behavior

Intermediate Stage: Polygon PoS

Polygon's Proof of Stake consensus with faster block times and higher throughput.

  • Validator selection based on MATIC stake
  • Block time: ~2 seconds
  • Heimdall layer for checkpointing to Ethereum
  • Faster finality (~5-10 seconds)
  • Lower resource requirements for validators

Advanced Stage: Insurance-Specific PoS

Custom Proof of Stake consensus with specialized validation rules for insurance claims.

  • Validator selection based on AMB token stake
  • Role-based validation (Insurance, Inspector, Contractor)
  • Multi-signature approval for claim validation
  • Reputation-weighted consensus influence
  • Block time: ~1 second
  • Finality: ~3 seconds

Data Structures

The system employs various data structures to efficiently store and process information:

// Claim Data Structure
struct Claim {
    uint256 id;                  // Unique identifier
    address propertyOwner;       // Ethereum address of property owner
    address insurer;             // Insurance provider address
    uint256 policyId;            // Reference to insurance policy
    string propertyDetails;      // IPFS hash to property details
    uint256 damageDate;          // Timestamp of damage occurrence
    ClaimStatus status;          // Current status in workflow
    uint256 assessedAmount;      // Total damage assessment in tokens
    uint256 deductibleAmount;    // Deductible amount in tokens
    address inspector;           // Assigned inspector address
    address contractor;          // Assigned contractor address
    string reportIPFSHash;       // IPFS hash to inspection report
    Milestone[] milestones;      // Array of work milestones
    Payment[] payments;          // Array of payment records
    uint256 createdAt;           // Creation timestamp
    uint256 updatedAt;           // Last update timestamp
}

// Milestone Data Structure
struct Milestone {
    uint256 id;                  // Milestone identifier
    string description;          // Description of work
    uint256 amount;              // Payment amount in tokens
    bool completed;              // Completion status
    string evidenceIPFSHash;     // IPFS hash to completion evidence
    uint256 completedAt;         // Completion timestamp
}

// Payment Data Structure
struct Payment {
    uint256 id;                  // Payment identifier
    address recipient;           // Payment recipient address
    uint256 amount;              // Payment amount in tokens
    PaymentType paymentType;     // Type of payment
    PaymentStatus status;        // Payment status
    uint256 scheduledAt;         // Scheduled timestamp
    uint256 executedAt;          // Execution timestamp
}

// User Data Structure
struct User {
    address id;                  // Ethereum address
    UserRole role;               // User role in system
    uint256 reputationScore;     // Reputation score (0-100)
    bool verified;               // Verification status
    string detailsIPFSHash;      // IPFS hash to user details
    uint256 tokenBalance;        // AMB token balance
    uint256 stakedAmount;        // Staked AMB tokens
    uint256 createdAt;           // Registration timestamp
    uint256 lastActiveAt;        // Last activity timestamp
}

The system uses a hybrid on-chain/off-chain data storage approach:

On-Chain Storage

Critical data stored directly on the blockchain for maximum security and transparency:

  • Claim status and lifecycle events
  • Financial transactions and payment records
  • User identities and role assignments
  • Reputation scores and stake amounts
  • Milestone completion status
  • IPFS hashes for off-chain data

Off-Chain Storage (IPFS)

Large data sets stored on IPFS with hashes recorded on-chain:

  • Inspection reports and photographs
  • Property details and documentation
  • Insurance policy documents
  • Contractor work evidence
  • User verification documents
  • Historical claim data

Indexing and Querying

Efficient data access through specialized indexing services:

  • The Graph Protocol for blockchain data indexing
  • GraphQL API for complex queries
  • Caching layer for frequently accessed data
  • Event-based subscription system
  • Real-time data synchronization

Security Protocols

The system implements multi-layered security measures to protect user data, funds, and system integrity:

Smart Contract Security

Comprehensive security measures for smart contract development and deployment:

  • Formal Verification: Mathematical proof of contract correctness
  • Multiple Audits: Independent security audits by reputable firms
  • Open Source: Public code repositories for community review
  • Upgradeability: Secure upgrade patterns (proxy contracts)
  • Rate Limiting: Protection against flash loan attacks

Access Control

Granular permission system to ensure appropriate access to system functions:

  • Role-Based Access Control: Permissions based on user roles
  • Multi-Signature Requirements: For critical operations
  • Timelock Mechanisms: Delay for significant changes
  • Emergency Pause: Ability to pause contracts in emergency
  • Governance Approval: For system parameter changes

User Security

Measures to protect user accounts and data:

  • KYC/AML Compliance: For all platform participants
  • Secure Authentication: Multi-factor authentication
  • Privacy Protection: Zero-knowledge proofs for sensitive data
  • Data Encryption: For off-chain storage
  • Account Recovery: Secure recovery mechanisms

Financial Security

Protections for financial operations and token management:

  • Escrow Mechanisms: Secure fund holding during claims
  • Milestone-Based Releases: Gradual fund disbursement
  • Slashing Conditions: Penalties for malicious behavior
  • Insurance Fund: Protection against extreme events
  • Circuit Breakers: Automatic pause during anomalies

Smart Contract System

This section provides comprehensive design specifications for the smart contract system that powers the platform. It covers contract architecture, data structures, function specifications, interaction patterns, security considerations, and implementation guidelines.

Contract Modules

The smart contract system follows a modular architecture with specialized contracts for different aspects of the system:

SystemController

Central coordination contract that manages system-wide parameters and connects other modules.

  • System initialization and configuration
  • Module registration and updates
  • Access control management
  • Emergency controls (pause/unpause)
  • System-wide event emission

UserRegistry

Manages user identities, roles, and reputation within the system.

  • User registration and verification
  • Role assignment and permissions
  • Reputation score calculation
  • Staking requirements enforcement
  • User profile management

ClaimRegistry

Handles the lifecycle of insurance claims from initiation to completion.

  • Claim creation and validation
  • Status tracking and updates
  • Assignment of inspectors and contractors
  • Milestone tracking and verification
  • Claim history and documentation

InspectionManager

Coordinates the inspection process and damage assessment.

  • Inspection scheduling and assignment
  • Report submission and verification
  • Damage assessment recording
  • Budget and deductible calculation
  • Quality control enforcement

PaymentController

Manages all financial transactions within the system.

  • Escrow account management
  • Milestone-based payment releases
  • Deductible payment processing
  • Fee calculation and distribution
  • Payment verification and logging

TokenController

Handles token operations, staking, and rewards.

  • Token transfer and allowance
  • Staking and unstaking
  • Reward calculation and distribution
  • Fee management and burning
  • Token supply control

GovernanceController

Manages system governance and parameter adjustments.

  • Proposal creation and voting
  • Parameter adjustment execution
  • Voting power calculation
  • Delegation management
  • Governance history tracking

OracleController

Manages external data integration with the blockchain.

  • Weather data verification
  • Price feed integration
  • External API connectivity
  • Data validation and aggregation
  • Dispute resolution for oracle data

Data Models

The smart contract system uses structured data models to represent entities and relationships:

// User Data Model
struct User {
    address id;                  // Ethereum address
    UserRole role;               // Role enum (Insurance, Inspector, Contractor, etc.)
    uint256 reputationScore;     // 0-100 score
    bool verified;               // KYC verification status
    string detailsIPFSHash;      // IPFS hash to user details
    uint256 tokenBalance;        // AMB token balance
    uint256 stakedAmount;        // Staked AMB tokens
    StakingTier stakingTier;     // Tier based on stake amount and duration
    uint256 stakingStartTime;    // When current stake began
    uint256 stakingDuration;     // Lock period in seconds
    uint256 createdAt;           // Registration timestamp
    uint256 lastActiveAt;        // Last activity timestamp
}

// Claim Data Model
struct Claim {
    uint256 id;                  // Unique identifier
    address propertyOwner;       // Property owner address
    address insurer;             // Insurance provider address
    uint256 policyId;            // Reference to insurance policy
    string propertyDetailsIPFS;  // IPFS hash to property details
    GeoLocation propertyLocation;// Geographic coordinates
    uint256 damageDate;          // Timestamp of damage occurrence
    ClaimStatus status;          // Current status in workflow
    uint256 assessedAmount;      // Total damage assessment in tokens
    uint256 deductibleAmount;    // Deductible amount in tokens
    uint256 approvedBudget;      // Approved repair budget
    address inspector;           // Assigned inspector address
    address contractor;          // Assigned contractor address
    string reportIPFSHash;       // IPFS hash to inspection report
    Milestone[] milestones;      // Array of work milestones
    Payment[] payments;          // Array of payment records
    uint256 createdAt;           // Creation timestamp
    uint256 updatedAt;           // Last update timestamp
}

// Inspection Data Model
struct Inspection {
    uint256 id;                  // Unique identifier
    uint256 claimId;             // Reference to claim
    address inspector;           // Inspector address
    InspectionStatus status;     // Status enum
    uint256 scheduledTime;       // Scheduled timestamp
    uint256 completedTime;       // Completion timestamp
    string reportIPFSHash;       // IPFS hash to report
    DamageAssessment assessment; // Damage assessment details
    uint256 inspectorReward;     // Reward for inspector
    uint256 createdAt;           // Creation timestamp
    uint256 updatedAt;           // Last update timestamp
}

// Milestone Data Model
struct Milestone {
    uint256 id;                  // Unique identifier
    uint256 claimId;             // Reference to claim
    string description;          // Description of work
    uint256 amount;              // Payment amount in tokens
    MilestoneStatus status;      // Status enum
    string evidenceIPFSHash;     // IPFS hash to completion evidence
    uint256 scheduledTime;       // Scheduled completion time
    uint256 completedTime;       // Actual completion time
    uint256 verifiedTime;        // Verification timestamp
    address verifier;            // Address of verifier
}

// Payment Data Model
struct Payment {
    uint256 id;                  // Unique identifier
    uint256 claimId;             // Reference to claim
    address sender;              // Payment sender
    address recipient;           // Payment recipient
    uint256 amount;              // Payment amount in tokens
    PaymentType paymentType;     // Type enum (Deductible, Milestone, etc.)
    PaymentStatus status;        // Status enum
    uint256 scheduledTime;       // Scheduled timestamp
    uint256 executedTime;        // Execution timestamp
    string description;          // Payment description
    uint256 feeAmount;           // Platform fee amount
}

Function Specifications

Key functions within the smart contract system:

Claim Management Functions

  • createClaim(propertyDetails, damageDate)
    Creates a new claim with initial property details and damage date.
  • assignInspector(claimId, inspectorAddress)
    Assigns an inspector to a claim, either automatically or manually.
  • submitInspectionReport(claimId, reportIPFSHash, assessedAmount)
    Submits inspection results with damage assessment.
  • approveClaim(claimId, approvedBudget)
    Approves a claim with specified budget after inspection.
  • assignContractor(claimId, contractorAddress)
    Assigns a contractor to an approved claim.
  • createMilestone(claimId, description, amount)
    Creates a work milestone with payment amount.
  • completeMilestone(claimId, milestoneId, evidenceIPFSHash)
    Marks a milestone as completed with evidence.
  • verifyMilestone(claimId, milestoneId)
    Verifies milestone completion and triggers payment.
  • closeClaim(claimId)
    Marks a claim as completed after all milestones are finished.

Payment Functions

  • fundEscrow(claimId, amount)
    Funds the escrow account for a claim.
  • payDeductible(claimId, amount)
    Processes deductible payment from property owner.
  • releaseMilestonePayment(claimId, milestoneId)
    Releases payment for completed milestone.
  • refundRemainingEscrow(claimId)
    Refunds any remaining escrow funds after claim completion.
  • calculateFees(amount)
    Calculates platform fees for a payment.
  • distributeFees(feeAmount)
    Distributes collected fees to stakeholders and burn pool.

Token and Staking Functions

  • stake(amount, duration)
    Stakes tokens for a specified duration.
  • unstake(amount)
    Unstakes tokens after lock period.
  • calculateRewards(address)
    Calculates staking rewards for an address.
  • claimRewards()
    Claims accumulated staking rewards.
  • updateStakingTier(address)
    Updates staking tier based on amount and duration.
  • applyFeeDiscount(address, amount)
    Applies fee discount based on staking tier.

Reputation Functions

  • updateReputation(address, score)
    Updates reputation score for a user.
  • calculateReputationMultiplier(address)
    Calculates reward multiplier based on reputation.
  • applyReputationPenalty(address, reason)
    Applies penalty to reputation for violations.
  • getReputationHistory(address)
    Retrieves reputation history for a user.

Governance Functions

  • createProposal(description, parameters)
    Creates a governance proposal.
  • castVote(proposalId, support)
    Casts a vote on a proposal.
  • executeProposal(proposalId)
    Executes an approved proposal.
  • calculateVotingPower(address)
    Calculates voting power based on tokens and staking.
  • delegateVotes(address)
    Delegates voting power to another address.

Interaction Patterns

The smart contracts interact through well-defined patterns to ensure security and modularity:

Facade Pattern

The SystemController acts as a facade, providing a simplified interface to the complex subsystem of contracts. External interactions primarily occur through this controller, which delegates to the appropriate module.

  • Simplified interface for external interactions
  • Centralized access control and validation
  • Coordinated updates across multiple modules
  • Consistent event emission and logging

Event-Driven Communication

Contracts communicate through events for state changes, allowing loose coupling between modules and efficient off-chain monitoring.

  • Standardized event structure across modules
  • Indexed parameters for efficient filtering
  • Comprehensive event logging for all state changes
  • Event-based triggers for dependent actions

Access Control

Role-based access control ensures that functions can only be called by authorized addresses.

  • OpenZeppelin AccessControl implementation
  • Role-based function modifiers
  • Granular permission management
  • Role hierarchy with admin capabilities

Proxy Pattern

Upgradeability through proxy contracts allows for system evolution while maintaining data continuity.

  • Transparent proxy pattern
  • Storage layout preservation
  • Versioned implementations
  • Governance-controlled upgrades

Security Considerations

The smart contract system incorporates multiple security measures to protect against common vulnerabilities:

Reentrancy Protection

Guards against reentrancy attacks where a malicious contract could call back into the system during execution.

  • ReentrancyGuard implementation
  • Checks-Effects-Interactions pattern
  • State updates before external calls
  • Minimal trust in external contracts

Integer Overflow/Underflow

Prevents arithmetic errors that could lead to unexpected behavior.

  • SafeMath library usage
  • Solidity 0.8.x built-in overflow checking
  • Explicit bounds checking for critical values
  • Consistent use of uint256 for amounts

Access Control

Ensures that functions can only be called by authorized addresses.

  • Role-based access control
  • Function modifiers for authorization
  • Explicit permission checks
  • Time-delayed admin actions

Oracle Security

Protects against manipulation of external data sources.

  • Multiple data sources with aggregation
  • Deviation thresholds for outlier detection
  • Time-weighted average prices
  • Chainlink decentralized oracles

Upgradeability Risks

Mitigates risks associated with contract upgrades.

  • Transparent proxy pattern
  • Storage layout preservation
  • Comprehensive testing of upgrades
  • Governance-controlled upgrade process
  • Timelock for upgrade implementation

Front-Running Protection

Prevents transaction ordering exploitation.

  • Commit-reveal schemes for sensitive operations
  • Minimum/maximum bounds for variable values
  • Batch processing for related transactions
  • Time buffers for critical operations