Table of Contents

1. Project Overview

Mission Statement

Data Proof Labs provides enterprise-grade blockchain proof-of-existence services, enabling organizations to create immutable, verifiable records of data integrity on multiple blockchain networks with optimal cost efficiency through advanced cryptographic techniques.

Key Objectives

Immutable Proof Creation

  • Cryptographic hashing of data
  • Blockchain transaction creation
  • Multi-network support
  • Timestamp verification

Cost Optimization

  • Merkle tree batching
  • Gas fee optimization
  • Network selection algorithms
  • Transaction fee monitoring

Enterprise Integration

  • RESTful API design
  • Multi-language SDKs
  • Webhook notifications
  • Comprehensive documentation

Technical Requirements

Functional Requirements

  • Single and batch proof creation
  • Multi-blockchain support (Ethereum, Bitcoin)
  • Proof verification and validation
  • Merkle tree construction and verification
  • API key authentication
  • Real-time transaction monitoring
  • Comprehensive audit logging

Non-Functional Requirements

  • 99.9% uptime availability
  • Sub-second API response times
  • Horizontal scalability
  • SOC 2 compliance readiness
  • GDPR data protection
  • Multi-tenant architecture
  • Disaster recovery capabilities

2. System Architecture

High-Level Architecture

Data Proof Labs employs a microservices architecture with clear separation of concerns, enabling scalability, maintainability, and fault tolerance.

System Architecture Flow

Client Applications
API Gateway
Core Services
Authentication
Blockchain Services
Data Layer
Azure Key Vault
Monitoring
External APIs
Layer Components Responsibilities Technology Stack
Presentation React Frontend, Demo App User interface, client interactions React 19, TypeScript, Module Federation
API Gateway Controllers, Middleware Request routing, authentication, rate limiting .NET Core 8, ASP.NET Web API
Business Logic Core Services, Proof Management Business rules, proof creation, validation .NET Core 8, Dependency Injection
Blockchain Ethereum Service, Bitcoin Service Blockchain interactions, transaction management Nethereum, Bitcoin Core, Web3
Data Entity Framework, SQL Server Data persistence, audit logging SQL Server, Entity Framework Core
Security Key Vault, Authentication Key management, secure transactions Azure Key Vault, JWT, OAuth 2.0

3. Component Specifications

Core Components

ProofController (API Layer)

Location: /Controllers/ProofController.cs
Responsibilities:
- Handle HTTP requests for proof operations
- Input validation and sanitization
- Response formatting and error handling
- Rate limiting enforcement

Key Endpoints:
- POST /api/proof - Create single proof
- POST /api/proof/batch - Create batch proof
- GET /api/proof/{recordId}/verify - Verify proof
- GET /api/proof/history - Get proof history
- GET /api/proof/balance - Get balance status

DataProofLabsService (Business Logic)

Location: /Services/DataProofLabsService.cs
Responsibilities:
- Proof creation workflow orchestration
- Data validation and hash generation  
- Blockchain service coordination
- Transaction status tracking
- Metadata management

Key Methods:
- RecordProofAsync() - Creates blockchain proof
- VerifyProofAsync() - Verifies existing proof
- GetProofHistoryAsync() - Retrieves proof records

BatchBlockchainService (Batch Processing)

Location: /Services/BatchBlockchainService.cs
Responsibilities:
- Merkle tree construction and validation
- Batch transaction creation
- Individual proof path generation
- Cost optimization algorithms

Key Methods:
- RecordBatchProofAsync() - Creates batch proof
- GetMerkleProofAsync() - Generates merkle proof
- VerifyMerkleProofAsync() - Validates merkle proof

Blockchain Services

EthereumService

  • Web3 connection management
  • Smart contract interactions
  • Gas fee optimization
  • Transaction confirmation tracking

BitcoinService

  • Bitcoin Core RPC integration
  • UTXO management
  • Transaction fee calculation
  • Block confirmation monitoring

4. Database Design

Entity Relationship Model

The database schema supports multi-tenant architecture with comprehensive audit trails and blockchain transaction tracking.

Entity Purpose Key Fields Relationships
ProofRecord Store proof metadata and blockchain references RecordId, EntityId, Hash, TransactionHash, BlockNumber Many-to-One with TenantAccount
TenantAccount Multi-tenant organization management TenantId, OrganizationName, ApiKey, CreatedDate One-to-Many with ProofRecord
BlockchainConfiguration Blockchain network settings and credentials NetworkName, RpcUrl, IsActive, KeyVaultKeyName Referenced by blockchain services
BatchProofRecord Batch processing metadata and Merkle roots BatchId, MerkleRoot, TransactionHash, ItemCount One-to-Many with ProofRecord

Database Schema

-- Core proof storage table
CREATE TABLE ProofRecords (
    Id BIGINT IDENTITY(1,1) PRIMARY KEY,
    RecordId NVARCHAR(200) NOT NULL,
    EntityId NVARCHAR(100) NOT NULL,
    OrgId NVARCHAR(100) NOT NULL,
    DataHash NVARCHAR(64) NOT NULL,
    BlockchainType NVARCHAR(50) NOT NULL,
    TransactionHash NVARCHAR(66),
    BlockNumber BIGINT,
    NetworkName NVARCHAR(50),
    Timestamp DATETIME2 NOT NULL,
    IsVerified BIT DEFAULT(0),
    Metadata NVARCHAR(MAX), -- JSON metadata
    CreatedAt DATETIME2 DEFAULT(GETUTCDATE()),
    
    INDEX IX_ProofRecords_RecordId (RecordId),
    INDEX IX_ProofRecords_OrgId (OrgId),
    INDEX IX_ProofRecords_TransactionHash (TransactionHash)
);

-- Tenant management
CREATE TABLE TenantAccounts (
    Id BIGINT IDENTITY(1,1) PRIMARY KEY,
    TenantId NVARCHAR(100) UNIQUE NOT NULL,
    OrganizationName NVARCHAR(200) NOT NULL,
    ApiKey NVARCHAR(100) UNIQUE NOT NULL,
    IsActive BIT DEFAULT(1),
    CreatedDate DATETIME2 DEFAULT(GETUTCDATE()),
    LastActivity DATETIME2,
    
    INDEX IX_TenantAccounts_ApiKey (ApiKey),
    INDEX IX_TenantAccounts_TenantId (TenantId)
);

Performance Optimizations

Indexing Strategy

  • Clustered index on ID fields
  • Non-clustered index on RecordId
  • Composite index on OrgId + Timestamp
  • Covering index for common queries

Partitioning

  • Date-based partitioning on timestamp
  • Tenant-based partitioning for isolation
  • Automated partition management
  • Archive strategy for old data

5. Security Architecture

Security Layers

Data Proof Labs implements defense-in-depth security with multiple layers of protection.

API Security

  • API key authentication
  • JWT token validation
  • Rate limiting per tenant
  • Request/response validation
  • CORS policy enforcement

Data Security

  • Encryption at rest (TDE)
  • Encryption in transit (TLS 1.3)
  • Field-level encryption
  • PII data anonymization
  • Secure key rotation

Infrastructure Security

  • Azure Key Vault integration
  • Hardware Security Modules
  • Network segmentation
  • VPN-only admin access
  • Intrusion detection systems

Blockchain Security

  • Private key isolation
  • Transaction signing validation
  • Multi-signature support
  • Replay attack prevention
  • Gas limit protections

Authentication Flow

API Authentication Process

1. API Key Validation
Client sends X-API-Key header → Middleware validates against database → Sets tenant context
2. Request Authorization
Check tenant permissions → Validate resource access → Apply rate limits
3. Request Processing
Input validation → Business logic execution → Audit logging
4. Response Security
Data sanitization → Security headers → Response encryption

6. Blockchain Integration

Multi-Chain Architecture

Supports multiple blockchain networks with unified interface and automated network selection based on cost and performance requirements.

Blockchain Network Average Cost Confirmation Time Use Case
Ethereum Sepolia (Testnet) Free (Test ETH) 15 seconds Development & Testing
Ethereum Mainnet $2-20 15 seconds High-value proofs
Bitcoin TestNet Free (Test BTC) 10 minutes Development & Testing
Bitcoin Mainnet $1-10 10 minutes Long-term storage

Transaction Lifecycle

1. Data Preparation
   ├── Hash calculation (SHA-256)
   ├── Metadata encoding
   └── Batch optimization (if applicable)

2. Network Selection
   ├── Cost analysis
   ├── Performance requirements
   └── Network availability check

3. Transaction Creation
   ├── Key retrieval from Azure Key Vault
   ├── Transaction signing
   └── Gas/fee estimation

4. Blockchain Submission
   ├── RPC call to blockchain node
   ├── Transaction broadcast
   └── Initial confirmation

5. Status Monitoring
   ├── Block confirmation tracking
   ├── Success/failure detection
   └── Database status update

6. Client Notification
   ├── Webhook dispatch (if configured)
   ├── Status API updates
   └── Audit log creation

7. Performance Requirements

Service Level Objectives (SLOs)

Metric Target Measurement Consequences
API Availability 99.9% Monthly uptime percentage Service credits, incident analysis
Response Time <500ms (95th percentile) API response time distribution Performance optimization review
Throughput 1000 requests/second Peak concurrent request handling Auto-scaling triggers
Error Rate <0.1% HTTP 5xx errors per total requests Incident response, bug fixes

Scalability Design

Horizontal Scaling

  • Stateless API design
  • Load balancer distribution
  • Container orchestration
  • Auto-scaling policies

Database Optimization

  • Connection pooling
  • Query optimization
  • Read replicas
  • Caching strategies

Caching Strategy

  • Redis for session data
  • Application-level caching
  • CDN for static assets
  • API response caching

8. Deployment Architecture

Environment Strategy

Development

  • Local development setup
  • Docker Compose orchestration
  • TestNet blockchain connections
  • Mock external services

Staging

  • Production-like environment
  • Integration testing
  • Performance testing
  • Security scanning

Production

  • Azure Kubernetes Service
  • Blue-green deployments
  • Health checks & monitoring
  • Disaster recovery

Container Strategy

# Dockerfile structure
FROM mcr.microsoft.com/dotnet/aspnet:8.0
WORKDIR /app
COPY --from=build /app/publish .

# Security hardening
RUN adduser --disabled-password --gecos "" appuser
USER appuser

# Health check
HEALTHCHECK --interval=30s --timeout=10s --retries=3 \
  CMD curl -f http://localhost/health || exit 1

ENTRYPOINT ["dotnet", "DataProofLabs.Api.dll"]

9. Monitoring & Observability

Monitoring Stack

Application Monitoring

  • Application Insights integration
  • Custom metrics tracking
  • Distributed tracing
  • Error rate monitoring

Infrastructure Monitoring

  • Azure Monitor
  • Container metrics
  • Network monitoring
  • Resource utilization

Business Metrics

  • Proof creation rates
  • Blockchain cost tracking
  • User activity patterns
  • Revenue metrics

Alerting Strategy

Critical Alerts (Immediate Response):
- API availability < 99%
- Error rate > 1%
- Database connection failures
- Blockchain service outages

Warning Alerts (1-hour Response):
- Response time > 1 second
- Memory usage > 80%
- Disk space > 85%
- Unusual traffic patterns

Info Alerts (Daily Review):
- Performance trends
- Cost optimization opportunities
- Security events
- Business metrics updates

10. Compliance & Standards

Regulatory Compliance

SOC 2 Type II

  • Security controls framework
  • Availability monitoring
  • Processing integrity
  • Confidentiality measures
  • Privacy protection

GDPR Compliance

  • Data minimization
  • Right to be forgotten
  • Data portability
  • Consent management
  • Privacy by design

Industry Standards

  • ISO 27001 alignment
  • NIST cybersecurity framework
  • OWASP security practices
  • Cloud security standards

Audit Requirements

Audit Trail Specifications:
- All API requests with timestamps
- User authentication events
- Data access and modification logs
- System configuration changes
- Security incidents and responses
- Performance and availability metrics

Retention Policy:
- Audit logs: 7 years
- Performance metrics: 2 years  
- Error logs: 1 year
- Debug logs: 30 days

Access Controls:
- Audit logs: Read-only access
- Administrative actions: Multi-factor authentication
- Data export: Approval workflow required
- Log modification: Prohibited (immutable storage)