Technology

4.1 Architecture Overview

SunGrid is built on four layers:

┌─────────────────────────────────────────────────────────────┐
│  SETTLEMENT LAYER: Ethereum Mainnet                         │
│  └─ Final settlement of ET balances                         │
│  └─ Dispute resolution for oracle data                      │
│  └─ SGC token contract (ERC-20)                             │
├─────────────────────────────────────────────────────────────┤
│  EXECUTION LAYER: Arbitrum One (or Base)                    │
│  └─ ET trading (ET/SGC pairs)                               │
│  └─ Smart meter verification contracts                      │
│  └─ Grid balancing automation                               │
│  └─ 400ms finality, ~$0.001 transaction cost               │
├─────────────────────────────────────────────────────────────┤
│  ORACLE LAYER: Chainlink + Custom Energy Oracles             │
│  └─ Smart meter data feeds (verified via TLSNotary)          │
│  └─ Grid operator APIs (real-time pricing, congestion)       │
│  └─ Weather data (solar irradiance, wind speed)              │
│  └─ 3-of-5 multi-sig verification for all data              │
├─────────────────────────────────────────────────────────────┤
│  HARDWARE LAYER: SunGrid Smart Meter (SGM-1)                 │
│  └─ Tamper-resistant IoT device at generation point         │
│  └─ 0.01 kWh measurement precision                          │
│  └─ Hardware-signed data                                    │
│  └─ WiFi/cellular connectivity                              │
│  └─ $45 unit cost (mass production)                         │
└─────────────────────────────────────────────────────────────┘

4.2 The SGM-1 Smart Meter

The SGM-1 is SunGrid's hardware root of trust and primary competitive moat.

4.2.1 Specifications

4.2.2 Verification Flow

1. SGM-1 measures energy output every 60 seconds.
2. Measurement is signed with the device's hardware-bound private key.
3. Signed data is transmitted to the SunGrid oracle network via TLS.
4. Oracle network verifies the signature, cross-references weather data and grid telemetry.
5. If 3 of 5 oracle nodes agree, the attestation is accepted and ET is minted.

4.2.3 Tamper Resistance

• Physical tamper detection (accelerometer triggers key wipe on case opening).
• Secure element prevents key extraction even with physical access.
• Remote attestation: device proves its firmware integrity to the oracle network.
• Insurance fund covers compensation for verified meter failures.

4.3 Oracle Network

SunGrid uses a hybrid oracle architecture:

• Chainlink Price Feeds for real-time electricity prices and carbon intensity data.
• Custom Energy Oracles for smart meter attestation verification.
• TLSNotary for proving TLS session data without revealing private keys.
• 3-of-5 multi-sig requirement for all data submissions.

Oracle node operators stake SGC as collateral. Dishonest behavior results in slashing. Honest behavior earns a share of protocol fees.

4.4 Smart Contracts

All contracts are upgradeable via timelock (48-hour delay) for the first 12 months, after which upgradeability is frozen.

4.5 Security

• Dual audits by Trail of Bits and CertiK before mainnet launch.
• Formal verification of critical invariants (mint/burn conservation, staking accounting).
• Bug bounty program with $500K maximum payout.
• Timelock on all contract upgrades (48 hours).
• Insurance fund funded by 3% of protocol fees, covering smart contract failures and validator slashing.
• No admin keys after 12-month transition period. All parameters governed by SGC holder vote.

4.6 Scalability

• L2 settlement (Arbitrum/Base) provides ~400ms finality and $0.001 transaction costs.
• Batch minting: multiple generation attestations aggregated into single L2 transaction.
• Off-chain indexing via The Graph for fast querying of energy flows and token balances.
• Target throughput: 10,000 ET transactions per second at global scale.

Architecture diagram