3.2 On-Chain trust and off-chain privacy

ARX is designed around the principle that privacy and transparency are not opposites. It separates interaction from coordination so that personal data remains private while system logic remains verifiable.

The Hybrid Architecture

To achieve both high performance and absolute privacy, ARX splits its operations into two distinct layers:

🔒 Off-chain Privacy

All communication, file transfers, and personal information remain encrypted and are transmitted through peer-to-peer channels.

  • Zero-Knowledge Transmission: Nothing is written to the blockchain.

  • Metadata Protection: Relay nodes only see encrypted payloads and routing identifiers, preventing metadata reconstruction or traffic analysis.

⛓️ On-chain Trust

Economic coordination and validator management occur transparently on ArxNet, an EVM-compatible Proof-of-Stake (PoS) chain.

  • Accountability: Governance, staking, and rewards are publicly auditable.

  • Network Integrity: Ensures performance and decision-making are verifiable by all participants.


Layer Comparison

Layer
Functionality
Privacy Level
Verifiability

Off-chain

Messaging, file sharing, identity

High (Encrypted)

Low (Ephemeral)

On-chain (ArxNet)

Staking, governance, rewards, VPN registry

Transparent

High (Auditable)


Why a Hybrid Model?

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The Resulting Balance By separating these layers, ARX ensures that performance is high (avoiding blockchain congestion), confidentiality is absolute (data stays local), and integrity is maintained (governance is public).

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