### Benchmark The purpose of the Xerberus protocol is to provide objective and corruption-resistant Risk Ratings. This goal is essential and must be our benchmark to measure the success of Xerberus. ### Introduction To achieve this, we create a Service Blockchain with a proof-of-stake consensus mechanism that focuses on the correctness of risk ratings instead of transactions and balances. As part of our architecture, in order to build a solution for providing risk ratings across multiple blockchain networks, we leverage a combination of data providers, model runtime environments, decentralized nodes, and oracle services. This enables us to provide accurate and reliable risk ratings. The following diagram illustrates the components that underpin the Xerberus network: ![[Xerberus Protocol Introduction.png]] From a managed node we are aggregating transactions from various blockchain networks, and use the dataset for risk assessment. - **Blockchain Transactions** from multiple blockchain networks are collected and stored. These transactions form the raw data required for risk modelling. - **The Data** Provider is transforming the raw transactions into a modelled format that the risk rating models can interpret. As a result, node operators have access to modelled and structured data. - **Modelled Data** (Read-Only): The structured and modelled data is provided to the decentralised nodes. This data is essential for the execution of the risk rating models. The Oracle Provider is an intermediary component that links the traffic from other blockchain networks to the risk ratings of the Xerberus network. - **Order Event**: An event-driven mechanism that triggers actions based on specific transactions. These events are crucial for initiating the risk rating process. - **Oracle Order Contract**: A smart contract native to its respective blockchain that interacts with decentralized applications (DApps). This contract facilitates the asynchronous flow of risk rating requests and responses. - **Oracle Light Node**: This node listens for order events triggered by the Oracle Order Contract. It retrieves the necessary risk ratings from the Xerberus network and returns the results to the requesting DApp. The Oracle Light Node ensures that the ratings are delivered securely and in a timely manner. At the heart of the Xerberus network is a network of nodes. This network comprises individual nodes running local environments to process and generate risk ratings. - **Model Runtime Environment**: Each Xerberus node hosts a local runtime environment that executes the risk rating models. These environments pull the modelled data provided by the Data Provider. - **API**: A standardised interface that facilitates communication between the Model Runtime Environment and the Xerberus Node. - **Model**: The risk rating models, initially provided as Open Source code, can be downloaded and run locally by the node operators. In the future, decentralized hosting solutions like IPFS, Iagon or Filecoin will be evaluated to distribute the models. The Xerberus Network ensures the integrity and accuracy of the risk ratings through a decentralized validation process and will provide a scalable and resilient infrastructure. - **Xerberus Node**: Each node runs a Smart Contract application that processes and validates risk ratings. These nodes play a crucial role in the consensus mechanism of the Xerberus network. - **Staking & Delegation**: Validators are selected based on their staked \$XER tokens. Users can delegate their votes to validators, influencing their selection frequency. The more delegated stake a node has, the higher its chances of being selected to mint new risk ratings. - **Validation**: The network employs a cross-validation mechanism where nodes verify the accuracy of each other's minted ratings. Disputed ratings result in slashing the proposer's staked value, ensuring accountability and reliability.