Overview

This guide covers the flagging process within a Rayls Private Network, which is central to the network's auditability and integrity. It is written for the Private Network Auditor, and the process confirms that transactions comply with governance rules and standards. The Flagger detects discrepancies such as double minting, double spending, or other inconsistencies between the calculated net token transactions on the Private Network Hub and the balances published from each institution's Rayls Sovereign ledger.

The process prioritises security, privacy and data integrity, so only authorised users such as the Private Network Auditor can access it. Strict privacy controls apply throughout to protect sensitive information.

Prerequisites

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

Private Network Hub: Running and accessible.
Governance API: Deployed and functioning.
Listener: Actively monitoring the Private Network Hub.
Flagger: Running and ready to analyse transactions.

Step-by-Step

Here are the steps of the automatic transaction flagging process within the Rayls Private Network:

1: Monitor and Decrypt Transactions

Listener Monitoring:

The Listener continuously monitors the Private Network Hub for new transactions.
It decrypts the transaction data and stores the decrypted information in a segregated secure database that forms part of the Private Network 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 participant.
It compares that calculated balance against the balance published in the latest state commit from that participant's Rayls Sovereign ledger.
Where the balances match, no further action is needed. Where there is a discrepancy, such as 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, and further investigation is required to determine the root cause.

4: Report and Resolve Issues

Notify the Private Network Operator or Private Network Auditor:

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

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

Take Corrective Actions if Needed:

Depending on the outcome of the investigation, actions such as freezing the affected participant's Rayls Sovereign node may be considered to maintain network integrity.