> For the complete documentation index, see [llms.txt](https://powerx.gitbook.io/powerx/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://powerx.gitbook.io/powerx/technology-architecture.md). # Technology Architecture ## The underlying blockchain and smart contract execution layer PowerX adopts a multi-chain architecture, compatible with mainstream public chains such as Ethereum, BSC, Solana, Arbitrum, etc., and combines Layer 2 solutions (Optimistic Rollups, ZK-Rollups) to provide a high-throughput and low-cost transaction execution environment. All smart contracts are developed using Solidity (EVM compatible chain) and Rust (Solana ecosystem) , and undergo strict formal verification and security audits to ensure the security and transparency of asset management and transaction processes. Smart contracts are the core of PowerX's technical architecture, responsible for handling functions such as asset on-chain, revenue distribution, transaction matching, and DAO governance. All smart contracts adopt a modular design, including asset on-chain contracts, revenue distribution contracts, P2P transaction matching contracts, etc., to ensure the upgradeability and flexibility of smart contracts. When executing contracts, decentralized oracles are used to obtain new energy power generation data and market electricity price information, and the on-chain governance model is combined to optimize the revenue calculation and distribution mechanism. **Asset on-chain contract** PowerX tokenizes new energy assets through smart contracts, using NFT to record asset ownership, ST (Security Token) to record revenue rights , and binding the asset's power generation data. Ownership NFT uses ERC-721 or ERC-1155 standards , while ST tokens use ERC-1400 or ERC-3643 to ensure compliance with global security token compliance requirements. The contract will store basic information about new energy assets, including key parameters such as power generation capacity, geographic location, life cycle, and investment cost, and ensure that data is stored on the chain to prevent asset forgery or duplicate registration. **Profit Sharing Contract** The profit distribution contract is calculated based on the actual power generation of new energy assets, electricity price fluctuations and other factors, and the profit is distributed according to the proportion of ST tokens held. The system uses the time-weighted average price (TWAP) algorithm to calculate the profit trend, and combines AI to predict market demand fluctuations to optimize the profit model. The smart contract will regularly call the oracle to obtain the latest power generation data and electricity trading prices, and distribute profits based on the power generation contribution of the assets, while ensuring the transparency and security of the profits. **P2P transaction matching contract** PowerX provides a decentralized trading market, allowing NFT and ST assets to circulate freely. The trading contract adopts the automatic market maker (AMM) + order book matching model to ensure the market liquidity of NFT assets while optimizing transaction costs. All transactions are executed through smart contracts, ensuring that buyers and sellers can complete asset transfers without relying on intermediaries, and combining Layer 2 solutions to optimize Gas fees and increase transaction throughput. ## Asset Tokenization Layer PowerX adopts a two-layer asset tokenization architecture, mapping new energy infrastructure onto the blockchain, and combines intelligent income calculation and dynamic asset valuation systems to ensure that asset value is transparent, income is calculable, and can be used in the DeFi ecosystem. **NFT Asset Registration Protocol (ARP)** The NFT Asset Registration Protocol (ARP) is responsible for mapping new energy assets to the blockchain and ensuring the uniqueness and verifiability of ownership information. The system uses On-Chain Proof of Ownership combined with IPFS + Arweave for data storage to ensure that asset information is accessible in the long term. Each NFT asset comes with metadata, including key information such as asset location, power generation capacity, and operating status, and all data cannot be tampered with on the chain. **Income Calculation Protocol (ICP)** The Income Calculation Protocol (ICP) obtains power generation data based on decentralized oracles and calculates revenue in combination with dynamic market electricity prices. The system uses a multivariable AI model to calculate factors such as renewable energy power generation, electricity price fluctuations, and carbon trading market prices to ensure accurate and transparent revenue distribution. All revenue calculations are automatically executed by smart contracts to avoid human intervention and improve investment fairness. **Asset Valuation Protocol (AEP)** The Asset Evaluation Protocol (AEP) uses on-chain data analysis and AI algorithms, combined with market supply and demand and external energy market prices, to establish a decentralized asset pricing model (DAPM). The valuation results are used for NFT asset transactions and ST token income rights pricing, providing investors with a more transparent new energy asset market. ## P2P Trading Market (Decentralized Peer-to-Peer Trading Market) PowerX improves the liquidity of new energy assets through a decentralized P2P trading market (DEX), allowing investors to freely trade NFT assets (new energy ownership) and ST security tokens (new energy asset income rights) . This market uses a smart contract-driven matching mechanism , combined with an automated market maker (AMM) and order book matching model to ensure the fairness and transparency of transactions and reduce the friction costs of traditional trading markets. #### NFT Trading Market The NFT trading market supports the free trading of new energy asset ownership , allowing investors to purchase partial or full ownership of new energy infrastructure through NFT. Asset fragmentation transactions : The adoption of the ERC-1155 (semi-fungible asset) standard enables investors to purchase part of the new energy assets , lowering the investment threshold and improving market liquidity. smart leasing, asset custody, or secondary market transactions on the chain . Decentralized order book matching mechanism : The use of an on-chain automatic matching engine ensures that buyers and sellers of NFT assets can trade directly without the intervention of centralized institutions. Combined with the dynamic price discovery mechanism (Dynamic Pricing Discovery) , the NFT price is adjusted in real time according to market supply and demand to improve market liquidity. Asset mortgage and financing functions : NFT assets can be used in decentralized lending protocols (DeFi Lending) , and holders can pledge NFT assets to obtain liquidity funds (such as USDT, DAI). Combined with the Auto Liquidation Protection mechanism , it ensures that the risks of mortgage assets are controllable and avoids asset losses caused by market fluctuations. #### ST Security Token Market The ST token market supports the trading of new energy asset income rights . Investors can obtain long-term returns by purchasing ST tokens, which can be freely circulated in the market. Profit right transaction : ST tokens adopt the ERC-1400 or ERC-3643 security token standards , meet compliance requirements, and ensure that holders can enjoy the continuous income distribution of new energy assets . The Yield Tracking System is used to ensure transparency of returns, allowing ST token holders to clearly understand their investment returns. AMM + order book matching mechanism : Combining the automated market maker (AMM) + order book matching mechanism , the market liquidity of ST tokens is improved, supporting large-scale investors to participate in market transactions. Adopt dynamic liquidity provision mechanism (Dynamic Liquidity Provision) to ensure the depth and stability of the ST trading market. Smart contracts automatically execute transactions : Adopt Layer 2 Rollups technology to improve transaction throughput, reduce Gas fees, and support large-scale market transactions. All transactions are automatically executed through smart contracts to ensure market transparency and prevent centralized institutions from manipulating market prices.