> For the complete documentation index, see [llms.txt](https://sats-layer.gitbook.io/sats-layer-white-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sats-layer.gitbook.io/sats-layer-white-paper/technical-architecture.md).

# Technical Architecture

## 3.1 Underlying Technology

Sats Layer is the first BTC Layer2 based on Multi-Party Computation (MPC), Trusted Execution Environment (TEE), and Zero-Knowledge Proof (ZKP), enabling full-chain interoperability across heterogeneous ecosystems. Additionally, we introduced Ring VRF, a protocol based on ZKP to ensure the system's underlying security.

## 3.2 Key Components

Overall, the core of Sats Layer consists of three main modules: Dynamic Hidden Committees (DHC), Sats Layer, and the External Relay System.

### **3.2.1 Dynamic Hidden Committees (DHC)**

* Sats Layer's security guards ensure cross-chain message security at the application layer.
* Each committee manages a unique private key, which has been distributed to a specific group of MPC nodes.
* Collections of each private key fragment are stored separately in the TEE hardware of the committee members (i.e., MPC nodes).
* The Ring Verifiable Random Function (Ring VRF) protocol is the underlying algorithm for protecting and proving the identity of MPC node committee members.

### **3.2.2 Sats Layer**

* Acts as the public chain for the general distributed ledger.
* In its early stages, this chain is specifically used to support and record the lifecycle and behavior of dynamic hidden committees within the network.
* It is an EVM-compatible blockchain, allowing for the future development of applications on top of the Bool chain.

### **3.2.3 External Relay Role**:

* Participants in Sats Layer responsible for relaying transactions.
* Designed as a competitive, efficient, and highly accessible system, open to the market.
* Participants can profit from each transaction they submit to the target chain.
* Does not guarantee the security of cross-chain messages.

###

## 3.3 Technical Features

Utilizes Zero-Knowledge Proof, MPC, and Trusted Execution Environment (TEE) technologies, innovatively introducing DHC to address the challenges of secure computation in decentralized environments and enhance asset cross-chain capabilities.

### **3.3.1 Speed**

* Optimized design results in minimized on-chain and off-chain computations, contributing to enhanced cross-chain transaction speed.
* Eliminating relay chain design removes unnecessary secondary verifications, further boosting cross-chain speed.
* High-speed cross-chain communication in Sats Layer significantly improves the overall blockchain user experience.

### **3.3.2 Security**

* An advanced security model within Sats Layer effectively protects against external hacks, ensuring the integrity of assets and data.
* Internal conspiracy prevention mechanisms prevent collusion and internal threats, enhancing network credibility.
* A solid security foundation gives users confidence, making Sats Layer an ideal platform for decentralized signing services.

### **3.3.3 Vitality**:

* Each Dynamic Hidden Committee (DHC) in Sats Layer is equipped with one or more backup DHCs upon creation to ensure continuous availability.
* Backup DHCs effectively mitigate the risk of downtime due to a large number of Trusted Execution Environment (TEE) nodes going offline.
* The high level of vitality within Sats Layer ensures ongoing operations, crucial for time-sensitive cross-chain transactions.

### **3.3.4 Universality:**

* Sats Layer's versatility extends to supporting various asset types, facilitating seamless cross-chain exchanges.
* The network's ability to transmit any message across heterogeneous networks makes it a flexible solution for various use cases.
* Through its universal approach, Sats Layer can adapt to new and evolving blockchain assets and protocols, ensuring long-term relevance.

### **3.3.5 Scalability:**

* The network has successfully integrated with all mainstream blockchains as well as non-Turing complete chains like Bitcoin, further demonstrating its scalability.
* Sats Layer adapts to the diverse blockchain ecosystem, positioning itself as a powerful and visionary infrastructure for cross-chain bridges.