Overview

This guide covers the flagging process within a Rayls Private Subnet, a critical aspect of the network's auditability and integrity. Designed for the Subnet Auditor, it ensures transactions comply with governance rules and standards. The Flagger detects discrepancies, such as double minting, double spending, or other inconsistencies between calculated net token transactions on the Commit Chain and the balances published by Privacy Ledgers.

The process prioritizes security, privacy, and data integrity, ensuring only authorized users, like the Subnet Auditor, can access it. Strict privacy controls are enforced throughout to protect sensitive information.

Prerequisites

Before proceeding with the flagging process, ensure the following components are fully deployed and operational:

Commit Chain: Running and accessible.
Governance API: Deployed and functioning.
Listener: Actively monitoring the Commit Chain.
Flagger: Running and ready to analyze transactions.

Step-by-Step

Here are the steps of the automatic flagging transactions process within the Rayls Private Subnet:

1: Monitor and Decrypt Transactions

Listener Monitoring:

The Listener continuously monitors the Commit Chain for new transactions.
It decrypts the transaction data and stores the decrypted information in a segregated secure database part of the Subnet Auditor Infrastructure.

2: Validate Transactions with the Flagger

Flagging Discrepancies:

The Flagger checks the decrypted transaction data and calculates the net token balance for each Privacy Ledger.
It compares this calculated balance to the published balance from the Privacy Ledger's latest state commit.
If the balances match, no further action is needed. If there is a discrepancy (e.g., potential double minting or double spending), the transaction is flagged.

3: Review Flagged Transactions

Access Flagged Transactions:

Use the Governance API to retrieve a list of flagged transactions for review:

curl "http\://localhost:8080/flagged"

Investigate Discrepancies:

Each flagged transaction indicates a potential issue, such as an inconsistent balance. Further investigation is required to determine the root cause.

4: Report and Resolve Issues

Notify the Subnet Operator or Subnet Auditor:

Flagged transactions should be reviewed by the Subnet Auditor, who is responsible for investigating and resolving any discrepancies.

The Flagger's findings provide the necessary data to guide the investigation.

Take Corrective Actions if Needed:

Depending on the investigation's outcome, actions such as Freezing the affected Participant Privacy Ledger may be considered to maintain network integrity.