Zodor Whitepaper
  • Zodor Whitepaper
  • Introduction
    • Introduction and Highlights
    • The Problem
    • Solution Overview : Zodor
  • Why Zodor?
  • PRODUCTS
    • Zodor Infra
      • Enterprise Onboarding Workflow
    • Zodor Capital
    • Zodor Energy
  • Zodor Infinity
    • How Zodor Infinity Works?
  • User Experience
    • User Onboarding
    • User Interaction Flow
    • Rewards and Loyalty Program
  • System Architecture
    • Overview of the Protocol
      • Maskade Blockchain
      • Masque ID
      • Homomorphic Encryption
      • ECDSA
    • Technical Implementation
    • Smart Contract Structure
    • Security Token Purchase Flow
    • Capital Inflow and Outflow
    • Incentive Program
  • Security and Privacy
    • Tokenization Security Measures
    • Security Measures
  • Tokenomics & Roadmap
    • $ZOD Token
    • Tokenomics
  • Roadmap
  • About us
    • Team
    • Join us
    • Contact Us
  • FAQs
    • Frequently Asked Questions (FAQs)
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  1. System Architecture

Security Token Purchase Flow

Security Token Purchase Flow with On-Chain Compliance and Encryption

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Last updated 2 months ago

The diagram below illustrates the underlying architecture and process flow involved in the purchase of security tokens on our platform. It outlines the key components—ranging from user onboarding and on-chain identity verification to compliance validation, token issuance, and secure transaction handling—ensuring a fully compliant and secure investment experience.

1. Wallet Setup and Deposits

Users start by depositing Tether (USDT) / USDC / $ZOD into their on-platform wallet, which is used to manage funds and facilitate both deposits, withdrawals, and token purchases.

2. KYC Verification and On-Chain Identity Registration

Users complete a KYC verification process. Upon approval, their identity is recorded on-chain via the IdentityRegistryV1 smart contract, and relevant claims (e.g., residency, investor type) are stored through ClaimRegistryV1. Failed attempts prompt users to retry.

3. Marketplace Access and Asset Selection

Once registered, users access a curated marketplace of tokenized assets, select an investment, and initiate the purchase using their wallet balance.

4. On-Chain Compliance Check

Each transaction is validated by the ComplianceV1 smart contract, which checks the user’s identity and claims for regulatory compliance. Non-compliant users are prevented from completing the purchase.

5. Security Token Transfer

Upon successful compliance, RWA tokens representing asset ownership are transferred to the user via the RWA Token Treasury smart contract.

6. Privacy-Preserving Encryption

Sensitive operations are secured using Partially Homomorphic Encryption (PHE), handled by the Cryptography Engine Smart Contract, ensuring private and compliant on-chain processing.