1. Architectural Overview
The TAXR system implements a multi-layer architecture that spans blockchain smart contracts, web services, and user interfaces. This document provides a comprehensive technical reference for the overall system design, component relationships, and implementation details.
1.1 Architectural Principles
The TAXR architecture is guided by several key principles:
Separation of Concerns : Clear delineation between smart contracts, frontend, and computing modulesModularity : Components with well-defined interfaces and responsibilitiesType Safety : End-to-end type safety from contracts to frontendProgressive Enhancement : Functionality that works with various levels of technology adoptionSecurity by Design : Security considerations embedded throughout the architectureScalability : Design for horizontal scaling of non-blockchain components
1.2 High-Level System Components
1.3 Component Repository Structure
The TAXR system is organized into the following repositories:
Repository
Description
Primary Technologies
taxr-persistence Smart contracts and blockchain components
Solidity, Foundry, Hardhat
taxr-frontend Web application and user interfaces
Next.js, TypeScript, HTMX
taxr-core Rust/WASM modules for computation
Rust, WebAssembly
startup_scripts Environment setup and deployment utilities
Bash, Node.js
eth_scripts Ethereum node management scripts
Bash
2. Blockchain Layer
The blockchain layer forms the foundation of the TAXR system, providing the immutable ledger for tax operations and tokenized assets.
2.1 Smart Contract Architecture
2.2 Core Smart Contracts
The central coordination contract that integrates all manager modules and serves as the primary entry point for the system.
Purpose : Central coordination of tax operationsKey Responsibilities :
Integration of manager modules
Deployment and initialization of system
Cross-module communication
Event emission for system operations
Inheritance : ERC1155, Ownable, ITaxrMastr, ITaxMasterEventEmitter, ITaxMasterErrorEmitterKey Functions : deploySystem(), mintSheriff(), mintJurisdiction(), createBill(), processClaim()
Specialized modules that handle specific aspects of the tax system.
JurisdictionManager.sol
Purpose : Management of tax jurisdictions and domainsKey Responsibilities :
Jurisdiction creation and configuration
Jurisdiction-to-sheriff mapping
Domain management within jurisdictions
Inheritance : TaxrMastrBaseKey Functions : mintJurisdiction(), configureJurisdiction(), addDomain(), isSheriffForJurisdiction()
ClaimManager.sol
Purpose : Management of tax bills and claimsKey Responsibilities :
Bill creation and tracking
Claim submission and verification
Payment processing
Delinquency management
Inheritance : TaxrMastrBaseKey Functions : createBill(), submitClaim(), processPay}ment(), markDelinquent()
CommissionManager.sol
Purpose : Management of sheriff authority delegationKey Responsibilities :
Commission token creation
Authority delegation tracking
Commission transfer and revocation
Inheritance : TaxrMastrBaseKey Functions : grantCommission(), transferCommission(), revokeCommission(), hasCommission()
Specialized token implementations for different assets in the system.
SheriffToken.sol (ERC-721)
Purpose : Implementation of sheriff identity badgesKey Responsibilities :
Sheriff badge issuance
Badge metadata management
Sheriff identity verification
Inheritance : ERC721, Ownable, ISheriffTokenKey Functions : mintSheriff(), getSheriffName(), isSheriff(), getSheriffByAddress()
TaxrToken.sol (ERC-20)
Purpose : Implementation of the TAXR token with dual-layer functionalityKey Responsibilities :
Token supply management
Utility layer token operations
Market layer token operations
Price conversion functions
Inheritance : ERC20, AccessControl, ITaxrMastrTokenKey Functions : mintUtility(), burnUtility(), calculateUsdValue(), calculateTokensForUsd()
2.3 Type Libraries
The TAXR system uses custom type libraries to ensure type safety and semantic clarity:
// Example type library implementation
library JurisdictionID {
// Type wrapper for jurisdiction IDs
type ID is uint256;
// Create a new ID from a uint256
function wrap(uint256 value) internal pure returns (ID) {
return ID.wrap(value);
}
// Unwrap to a uint256
function unwrap(ID id) internal pure returns (uint256) {
return ID.unwrap(id);
}
// Compare two IDs
function eq(ID a, ID b) internal pure returns (bool) {
return unwrap(a) == unwrap(b);
}
}
Similar type libraries exist for:
BillID: Type-safe representation of tax bill identifiers
ClaimID: Type-safe representation of claim identifiers
DomainID: Type-safe representation of domain identifiers
SheriffTokenID: Type-safe representation of sheriff badge identifiers
Note: The type libraries enforce semantic meaning at compile time, preventing accidental misuse of different ID types. The TypeComparisons library provides utilities for comparing and working with these wrapper types.
3. Blockchain Interface Layer
The blockchain interface layer provides type-safe interaction between the application layer and the underlying blockchain contracts.
3.1 TypeChain Integration
TypeChain generates TypeScript bindings from Solidity contracts, providing:
Type-safe contract function calls
Strongly typed event parameters
IntelliSense/autocomplete for contract interactions
Compile-time checks for parameter correctness
// Example of TypeChain-generated interface
export interface TaxrMastr extends BaseContract {
// Type-safe contract functions
mintSheriff(
to: string,
name: string,
overrides?: Overrides
): Promise;
mintJurisdiction(
sheriffId: BigNumberish,
name: string,
overrides?: Overrides
): Promise;
// Type-safe events
filters: {
SheriffMinted(
badgeId?: BigNumberish | null,
to?: string | null
): EventFilter;
JurisdictionMinted(
jurisdictionId?: BigNumberish | null,
sheriffId?: BigNumberish | null
): EventFilter;
}
}
3.2 Contract Wrappers
The system implements higher-level wrapper classes around TypeChain-generated interfaces:
// Example contract wrapper class
export class TaxrMastrWrapper {
private contract: TaxrMastr;
constructor(address: string, provider: Provider) {
this.contract = TaxrMastr__factory.connect(address, provider);
}
// High-level function with additional logic
async mintSheriffAndNotify(
to: string,
name: string,
notificationEmail?: string
): Promise {
const tx = await this.contract.mintSheriff(to, name);
const receipt = await tx.wait();
// Extract badge ID from event logs
const event = receipt.events?.find(
e => e.event === "SheriffMinted"
);
const badgeId = event?.args?.badgeId.toString();
// Notification logic (if email provided)
if (notificationEmail && badgeId) {
await this.sendNotification(notificationEmail, badgeId);
}
return badgeId;
}
private async sendNotification(email: string, badgeId: string) {
// Implementation of notification logic
}
}
3.3 Transaction Management
The blockchain interface layer implements transaction management capabilities:
Gas Estimation : Pre-transaction gas usage estimationRetry Logic : Automatic retry for failed transactionsGas Price Management : Dynamic gas price adjustmentTransaction Batching : Multicall support for batch operationsReceipt Parsing : Structured parsing of transaction receiptsError Handling : Semantic error translation from revert reasons
3.4 Event Listening
The system implements structured event listening:
// Example event listener implementation
export class TaxrEventListener {
private contract: TaxrMastr;
private eventHandlers: Map = new Map();
constructor(address: string, provider: Provider) {
this.contract = TaxrMastr__factory.connect(address, provider);
this.initializeListeners();
}
private initializeListeners() {
// Set up listeners for contract events
this.contract.on("SheriffMinted", (badgeId, to, event) => {
this.triggerHandlers("SheriffMinted", { badgeId, to, event });
});
this.contract.on("JurisdictionMinted", (jurisdictionId, sheriffId, event) => {
this.triggerHandlers("JurisdictionMinted", { jurisdictionId, sheriffId, event });
});
// Additional event listeners...
}
// Register a handler for a specific event
onEvent(eventName: string, handler: Function) {
if (!this.eventHandlers.has(eventName)) {
this.eventHandlers.set(eventName, []);
}
this.eventHandlers.get(eventName)?.push(handler);
}
// Trigger all registered handlers for an event
private triggerHandlers(eventName: string, data: any) {
const handlers = this.eventHandlers.get(eventName) || [];
for (const handler of handlers) {
handler(data);
}
}
}
4. Application Layer
The application layer implements business logic, state management, and backend services.
4.1 Next.js API Routes
The system implements API functionality through Next.js API routes:
// Example API route for sheriff status
// File: /app/api/user/sheriff-status/route.ts
import { NextRequest, NextResponse } from 'next/server';
import { getTaxrMastrContract } from '@/lib/web3/contracts';
import { getCurrentUserAddress } from '@/lib/web3/wallet';
export async function GET(req: NextRequest) {
try {
// Get the current user address
const userAddress = await getCurrentUserAddress();
if (!userAddress) {
return NextResponse.json({ error: 'User not authenticated' }, { status: 401 });
}
// Get the TaxrMastr contract
const taxrMastr = await getTaxrMastrContract();
// Check if the user is a sheriff
const isSheriff = await taxrMastr.isSheriff(userAddress);
if (!isSheriff) {
return NextResponse.json({ isSheriff: false });
}
// Get sheriff details
const sheriffId = await taxrMastr.getSheriffByAddress(userAddress);
const sheriffName = await taxrMastr.getSheriffName(sheriffId);
// Get jurisdictions for this sheriff
const jurisdictions = await taxrMastr.getJurisdictionsForSheriff(sheriffId);
return NextResponse.json({
isSheriff: true,
sheriffId: sheriffId.toString(),
sheriffName,
jurisdictions: jurisdictions.map(j => ({
id: j.id.toString(),
name: j.name
}))
});
} catch (error) {
console.error('Error fetching sheriff status:', error);
return NextResponse.json({ error: 'Failed to fetch sheriff status' }, { status: 500 });
}
}
4.2 WebSocket Server
The system implements a WebSocket server for real-time updates:
// Example WebSocket server implementation
// File: /websockets/server.ts
import { WebSocketServer } from 'ws';
import { createServer } from 'http';
import { parse } from 'url';
import { TaxrEventListener } from '@/lib/web3/events';
import { getTaxrMastrAddress } from '@/lib/config';
// Create HTTP server
const server = createServer();
const wss = new WebSocketServer({ server });
// Set up event listener
const taxrMastrAddress = getTaxrMastrAddress();
const eventListener = new TaxrEventListener(taxrMastrAddress, provider);
// Track connected clients
const clients = new Set();
wss.on('connection', (ws, req) => {
const url = parse(req.url || '', true);
// Add client to set
clients.add(ws);
// Send welcome message
ws.send(JSON.stringify({ type: 'connected', timestamp: new Date().toISOString() }));
// Handle client messages
ws.on('message', (message) => {
try {
const data = JSON.parse(message.toString());
// Handle subscription requests
if (data.type === 'subscribe' && data.events) {
handleSubscription(ws, data.events);
}
} catch (error) {
console.error('Error processing message:', error);
}
});
// Handle disconnection
ws.on('close', () => {
clients.delete(ws);
});
});
// Register for blockchain events
function handleSubscription(ws, events) {
for (const eventName of events) {
eventListener.onEvent(eventName, (eventData) => {
if (ws.readyState === ws.OPEN) {
ws.send(JSON.stringify({
type: 'event',
event: eventName,
data: eventData,
timestamp: new Date().toISOString()
}));
}
});
}
}
// Start the server
server.listen(3001, () => {
console.log('WebSocket server listening on port 3001');
});
4.3 State Management
The application implements state management through custom hooks and context providers:
// Example TaxrContext implementation
// File: /hooks/useTaxrContext.tsx
import { createContext, useContext, useEffect, useState } from 'react';
import { getTaxrMastrContract } from '@/lib/web3/contracts';
import { useWallet } from '@/hooks/useWallet';
// Define context type
interface TaxrContextType {
isSheriff: boolean;
sheriffId: string | null;
sheriffName: string | null;
jurisdictions: Array<{ id: string; name: string }>;
loadingStatus: boolean;
refreshStatus: () => Promise
;
}
// Create context
const TaxrContext = createContext(undefined);
// Provider component
export function TaxrProvider({ children }) {
const { address, connected } = useWallet();
const [isSheriff, setIsSheriff] = useState(false);
const [sheriffId, setSheriffId] = useState(null);
const [sheriffName, setSheriffName] = useState(null);
const [jurisdictions, setJurisdictions] = useState>([]);
const [loadingStatus, setLoadingStatus] = useState(false);
// Function to load sheriff status
const loadSheriffStatus = async () => {
if (!connected || !address) {
setIsSheriff(false);
setSheriffId(null);
setSheriffName(null);
setJurisdictions([]);
return;
}
try {
setLoadingStatus(true);
const taxrMastr = await getTaxrMastrContract();
// Check if the address is a sheriff
const sheriffStatus = await taxrMastr.isSheriff(address);
setIsSheriff(sheriffStatus);
if (sheriffStatus) {
// Get sheriff details
const id = await taxrMastr.getSheriffByAddress(address);
setSheriffId(id.toString());
const name = await taxrMastr.getSheriffName(id);
setSheriffName(name);
// Get jurisdictions
const jurisdictionData = await taxrMastr.getJurisdictionsForSheriff(id);
setJurisdictions(
jurisdictionData.map(j => ({
id: j.id.toString(),
name: j.name
}))
);
}
} catch (error) {
console.error('Error loading sheriff status:', error);
} finally {
setLoadingStatus(false);
}
};
// Load status when address changes
useEffect(() => {
loadSheriffStatus();
}, [address, connected]);
// Provide context value
const value = {
isSheriff,
sheriffId,
sheriffName,
jurisdictions,
loadingStatus,
refreshStatus: loadSheriffStatus
};
return (
{children}
);
}
// Hook for consuming the context
export function useTaxrContext() {
const context = useContext(TaxrContext);
if (context === undefined) {
throw new Error('useTaxrContext must be used within a TaxrProvider');
}
return context;
}
4.4 Authentication
The system implements authentication through wallet-based verification:
// Example authentication implementation
// File: /lib/web3/wallet/index.ts
import { ethers } from 'ethers';
import { useState, useEffect } from 'react';
// Custom hook for wallet authentication
export function useWallet() {
const [provider, setProvider] = useState(null);
const [address, setAddress] = useState(null);
const [connected, setConnected] = useState(false);
const [chainId, setChainId] = useState(null);
const [error, setError] = useState(null);
// Initialize wallet connection
useEffect(() => {
const initWallet = async () => {
if (typeof window !== 'undefined' && window.ethereum) {
try {
// Create provider
const ethersProvider = new ethers.providers.Web3Provider(window.ethereum);
setProvider(ethersProvider);
// Get accounts
const accounts = await ethersProvider.listAccounts();
if (accounts.length > 0) {
setAddress(accounts[0]);
setConnected(true);
// Get network
const network = await ethersProvider.getNetwork();
setChainId(network.chainId);
}
// Set up event listeners
window.ethereum.on('accountsChanged', handleAccountsChanged);
window.ethereum.on('chainChanged', handleChainChanged);
return () => {
// Clean up listeners
window.ethereum.removeListener('accountsChanged', handleAccountsChanged);
window.ethereum.removeListener('chainChanged', handleChainChanged);
};
} catch (err) {
console.error('Failed to initialize wallet:', err);
setError('Failed to initialize wallet');
}
} else {
setError('No Ethereum provider found');
}
};
initWallet();
}, []);
// Handle account changes
const handleAccountsChanged = (accounts: string[]) => {
if (accounts.length > 0) {
setAddress(accounts[0]);
setConnected(true);
} else {
setAddress(null);
setConnected(false);
}
};
// Handle chain changes
const handleChainChanged = (chainIdHex: string) => {
const newChainId = parseInt(chainIdHex, 16);
setChainId(newChainId);
// Reload provider for new chain
if (window.ethereum) {
const updatedProvider = new ethers.providers.Web3Provider(window.ethereum);
setProvider(updatedProvider);
}
};
// Connect wallet
const connect = async () => {
if (!provider) {
setError('No Ethereum provider available');
return;
}
try {
// Request accounts access
const accounts = await provider.send('eth_requestAccounts', []);
setAddress(accounts[0]);
setConnected(true);
setError(null);
} catch (err) {
console.error('Failed to connect wallet:', err);
setError('Failed to connect wallet');
}
};
// Disconnect wallet (clear state only)
const disconnect = () => {
setConnected(false);
setAddress(null);
};
// Get signer for transactions
const getSigner = () => {
if (!provider || !connected) {
throw new Error('Wallet not connected');
}
return provider.getSigner();
};
return {
provider,
address,
connected,
chainId,
error,
connect,
disconnect,
getSigner
};
}
5. Client Layer
The client layer provides user interfaces and browser-side functionality.
5.1 Next.js Components
The system implements UI components using Next.js App Router:
// Example sheriff dashboard component
// File: /app/sheriff/page.tsx
import { Suspense } from 'react';
import { SheriffDashboard } from '@/components/sheriff/SheriffDashboard';
import { SheriffStatsPanel } from '@/components/sheriff/SheriffStatsPanel';
import { JurisdictionList } from '@/components/sheriff/JurisdictionList';
import { BillManagementPanel } from '@/components/sheriff/BillManagementPanel';
import { ConnectWalletButton } from '@/components/ConnectWalletButton';
import { useWallet } from '@/hooks/useWallet';
import { useTaxrContext } from '@/hooks/useTaxrContext';
export default function SheriffPage() {
const { connected } = useWallet();
const { isSheriff, loadingStatus } = useTaxrContext();
if (!connected) {
return (
Sheriff Dashboard
Please connect your wallet to access the Sheriff Dashboard.
);
}
if (loadingStatus) {
return (
Sheriff Dashboard
Loading sheriff status...
);
}
if (!isSheriff) {
return (
Sheriff Dashboard
You do not have sheriff credentials. Please contact the system administrator.
);
}
return (
Sheriff Dashboard
Loading statistics... }>
Loading jurisdictions...
}>
Loading bill management...
}>
);
}
5.2 HTMX Integration
The system implements progressive enhancement through HTMX components:
// Example HTMX blockchain status handler
// File: /app/htmx/blockchain-status/route.ts
import { NextRequest } from 'next/server';
import { headers } from 'next/headers';
import { getTaxrMastrContract } from '@/lib/web3/contracts';
export async function GET(req: NextRequest) {
const headersList = headers();
const isHtmxRequest = headersList.get('HX-Request') === 'true';
if (!isHtmxRequest) {
return new Response('Direct access not allowed', { status: 400 });
}
try {
const taxrMastr = await getTaxrMastrContract();
// Get system statistics
const billCount = await taxrMastr.getTotalBillCount();
const jurisdictionCount = await taxrMastr.getTotalJurisdictionCount();
const sheriffCount = await taxrMastr.getTotalSheriffCount();
// Generate HTML fragment for HTMX
const html = `
Blockchain Status
Bills:
${billCount.toString()}
Jurisdictions:
${jurisdictionCount.toString()}
Sheriffs:
${sheriffCount.toString()}
Last updated: ${new Date().toLocaleTimeString()}
`;
return new Response(html, {
headers: {
'Content-Type': 'text/html; charset=utf-8'
}
});
} catch (error) {
console.error('Error fetching blockchain status:', error);
// Return error HTML fragment
const errorHtml = `
Blockchain Status
Failed to load blockchain status. Please try again later.
`;
return new Response(errorHtml, {
headers: {
'Content-Type': 'text/html; charset=utf-8'
}
});
}
}
5.3 WebSocket Integration
The system implements real-time updates through WebSocket integration:
// Example WebSocket hook
// File: /hooks/useWebSocket.ts
import { useState, useEffect, useRef, useCallback } from 'react';
interface WebSocketMessage {
type: string;
event?: string;
data?: any;
timestamp: string;
}
interface UseWebSocketOptions {
url: string;
protocols?: string | string[];
autoReconnect?: boolean;
reconnectInterval?: number;
maxReconnectAttempts?: number;
}
export function useWebSocket({
url,
protocols,
autoReconnect = true,
reconnectInterval = 3000,
maxReconnectAttempts = 5
}: UseWebSocketOptions) {
const [isConnected, setIsConnected] = useState(false);
const [message, setMessage] = useState(null);
const [error, setError] = useState(null);
const wsRef = useRef(null);
const reconnectAttemptsRef = useRef(0);
const reconnectTimerRef = useRef(null);
// Create WebSocket connection
const connect = useCallback(() => {
// Close existing connection if any
if (wsRef.current) {
wsRef.current.close();
}
// Create new connection
const ws = new WebSocket(url, protocols);
wsRef.current = ws;
// Set up event handlers
ws.onopen = () => {
setIsConnected(true);
setError(null);
reconnectAttemptsRef.current = 0;
};
ws.onclose = (event) => {
setIsConnected(false);
// Attempt reconnection if enabled
if (autoReconnect && reconnectAttemptsRef.current < maxReconnectAttempts) {
reconnectTimerRef.current = setTimeout(() => {
reconnectAttemptsRef.current += 1;
connect();
}, reconnectInterval);
}
};
ws.onerror = (event) => {
setError(event);
};
ws.onmessage = (event) => {
try {
const data = JSON.parse(event.data);
setMessage(data);
} catch (err) {
console.error('Failed to parse WebSocket message:', err);
}
};
}, [url, protocols, autoReconnect, reconnectInterval, maxReconnectAttempts]);
// Connect on initial render
useEffect(() => {
connect();
// Clean up on unmount
return () => {
if (wsRef.current) {
wsRef.current.close();
}
if (reconnectTimerRef.current) {
clearTimeout(reconnectTimerRef.current);
}
};
}, [connect]);
// Send message
const sendMessage = useCallback((data: any) => {
if (wsRef.current && isConnected) {
wsRef.current.send(JSON.stringify(data));
} else {
console.error('Cannot send message: WebSocket not connected');
}
}, [isConnected]);
// Subscribe to events
const subscribe = useCallback((events: string[]) => {
sendMessage({
type: 'subscribe',
events
});
}, [sendMessage]);
return {
isConnected,
message,
error,
sendMessage,
subscribe
};
}
5.4 WASM Integration
The system integrates Rust-compiled WebAssembly modules for performance-critical operations:
// Example WASM integration
// File: /hooks/useWasmModule.ts
import { useState, useEffect } from 'react';
interface UseWasmOptions {
modulePath: string;
}
export function useWasmModule({ modulePath }: UseWasmOptions) {
const [module, setModule] = useState
(null);
const [loading, setLoading] = useState(true);
const [error, setError] = useState(null);
useEffect(() => {
const loadWasmModule = async () => {
try {
setLoading(true);
// Dynamic import of WASM module
const wasmModule = await import(`@/wasm/${modulePath}`);
// Initialize the module
await wasmModule.default();
setModule(wasmModule);
setError(null);
} catch (err) {
console.error('Failed to load WASM module:', err);
setError(err instanceof Error ? err : new Error('Unknown error loading WASM module'));
} finally {
setLoading(false);
}
};
loadWasmModule();
}, [modulePath]);
return {
module,
loading,
error,
ready: !loading && !error && !!module
};
}
// Example usage in a component
function ClaimVerifier({ claimData }) {
const { module, loading, error, ready } = useWasmModule({
modulePath: 'is_sheriff_lib'
});
const [verificationResult, setVerificationResult] = useState(null);
const verifySignature = async () => {
if (!ready || !module) return;
try {
// Call WASM function
const result = module.verify_claim_signature(
claimData.message,
claimData.signature,
claimData.publicKey
);
setVerificationResult(result);
} catch (err) {
console.error('Verification failed:', err);
}
};
if (loading) return Loading verification module...
;
if (error) return Error loading verification module: {error.message}
;
return (
Claim Signature Verification
Verify Signature
{verificationResult !== null && (
Signature is {verificationResult ? 'valid' : 'invalid'}
)}
);
}
6. Integration Patterns
The TAXR system implements several key integration patterns that span multiple layers.
6.1 Type Generation Pipeline
The system implements an automated type generation pipeline:
Solidity contracts are compiled using Hardhat
TypeChain plugin generates TypeScript interfaces
Generated types are exported to frontend directories
Frontend code imports and uses these typed interfaces
The build process validates type compatibility
6.2 Event Propagation
The system implements a multi-stage event propagation pattern:
Smart contracts emit events on the blockchain
Event listeners monitor the blockchain for relevant events
WebSocket server receives events and processes them
WebSocket server broadcasts events to connected clients
Client components update UI based on received events
6.3 Progressive Enhancement
The system implements a progressive enhancement pattern:
Client Capability Level
Available Functionality
Implementation Approach
Basic HTML/CSS
Core tax bill viewing and payment via traditional methods
Server-rendered HTML with minimal client requirements
JavaScript Enabled
Enhanced UI interactions and form handling
HTMX for partial page updates and smoother interactions
Modern Browser + WebSocket
Real-time updates and notifications
WebSocket connections for live data
Web3 Wallet Integration
Direct blockchain interaction and cryptocurrency payments
MetaMask or similar wallet integration
WebAssembly Support
High-performance operations (cryptography, large calculations)
Rust/WASM modules for specialized functions
6.4 Multiple Authentication Pathways
The system supports multiple authentication methods:
Web3 Wallet Authentication : Direct blockchain identity verificationTraditional Account Authentication : Username/password with optional 2FAJWT-Based API Authentication : For service-to-service communicationServer-Side Session Management : For non-Web3 usersCustodial Wallet Management : For users without their own wallets
7. Deployment Architecture
The TAXR system can be deployed in various configurations depending on scale and requirements.
7.1 Development Environment
7.2 Production Environment
7.3 Security Architecture
The TAXR system implements multiple security layers:
Network Security :
TLS encryption for all communications
Web Application Firewall (WAF) protection
DDoS mitigation through rate limiting
IP-based access controls for admin functions
Authentication Security :
Multi-factor authentication support
Wallet signature verification
JWT with appropriate expiration policies
Credential security best practices
Contract Security :
Role-based access controls
Formal verification of critical functions
Reentrancy protection
Circuit breakers for emergency situations
Data Security :
Minimization of on-chain personal data
Encrypted storage for sensitive information
Appropriate data retention policies
Regular security audits
8. Performance Considerations
The TAXR system addresses performance through several strategies:
8.1 Frontend Optimization
Code Splitting : Dynamic imports for route-based code splittingStatic Generation : Pre-rendering of static contentIncremental Static Regeneration : For semi-dynamic contentImage Optimization : Next.js Image component with optimized loadingComponent Lazy Loading : Deferred loading for non-critical componentsCache Management : Appropriate caching policies for API responses
8.2 Blockchain Interaction Optimization
Batched Reads : Multicall for batched read operationsEvent Filtering : Targeted event queries with specific filtersClient-Side Caching : Caching of blockchain data with appropriate invalidationData Indexing : Use of The Graph or similar indexing servicesOptimistic UI Updates : Immediate UI updates with background confirmationTransaction Management : Efficient nonce management and gas optimization
8.3 WebAssembly Performance
Computation Offloading : Moving heavy computation to WASMMemory Management : Optimized memory allocation in Rust codeParallelism : Web workers for parallel processing when appropriateSpecialized Algorithms : Optimized implementations for cryptography and math operationsBinary Size Optimization : Minimizing WASM module size for faster loading
8.4 Scalability Considerations
The system is designed to scale through several approaches:
Horizontal Scaling : Stateless web server clustersWebSocket Clustering : Distributed WebSocket server architectureLayer 2 Blockchain Solutions : Support for scaling solutions (Optimism, Arbitrum, etc.)RPC Load Distribution : Multiple RPC endpoints with load balancingCaching Layers : Strategic caching at multiple levelsDatabase Sharding : For off-chain data when required
9. Integration Interfaces
The TAXR system provides several integration interfaces for external systems.
9.1 REST API
The system exposes REST APIs for integration with external systems:
Bill Information API : Retrieve tax bill detailsPayment Processing API : Process and verify paymentsJurisdiction API : Access jurisdiction informationSheriff Verification API : Verify sheriff credentialsSystem Status API : Check system operational status
9.2 WebSocket API
The system provides WebSocket interfaces for real-time updates:
Bill Status Updates : Real-time bill status changesPayment Notifications : Immediate payment confirmationsJurisdiction Events : Updates to jurisdiction configurationSheriff Commission Events : Authority delegation changesSystem Announcements : Broadcast system-wide notifications
9.3 Blockchain Events
The system emits blockchain events that can be monitored by external systems:
SheriffMinted : New sheriff badge issuanceJurisdictionMinted : New jurisdiction creationBillCreated : New tax bill creationClaimSubmitted : New taxpayer claim submissionPaymentProcessed : Successful payment processingCommissionGranted : Sheriff authority delegation
9.4 Data Export Formats
The system supports data export in multiple formats:
JSON Export : Structured data in JSON formatCSV Export : Tabular data for spreadsheet applicationsPDF Reports : Formatted reports for printing and distributionBlockchain Receipts : Cryptographic proof of transactionsIntegration Templates : Pre-configured formats for common integrations
10. Future Architectural Enhancements
The TAXR system architecture is designed to accommodate several planned enhancements:
10.1 Layer 2 Integration
Optimism rollup deployment for reduced transaction costs
Cross-chain messaging for multi-chain support
Payment hub architecture for efficient settlement
Bridging mechanisms for token transfers
Shared sequencer model for optimized transaction ordering
10.2 Enhanced Privacy Features
Zero-knowledge proof integration for private verifications
Shielded transactions for sensitive payment data
Selective disclosure mechanisms for taxpayer information
Privacy-preserving analytics capabilities
Homomorphic encryption for certain operations
10.3 Decentralized Identity Integration
Support for W3C Decentralized Identifiers (DIDs)
Verifiable Credentials for taxpayer verification
Self-sovereign identity principles for user data
Credential revocation mechanisms
Cross-platform identity portability
10.4 AI-Assisted Features
Predictive analytics for delinquency risk assessment
Natural language processing for taxpayer assistance
Anomaly detection for fraud prevention
Optimization algorithms for payment allocations
Machine learning for optimizing collection strategies
This document was prepared as part of the TAXR project documentation. For the latest version and additional resources, please visit the TAXR documentation repository .