# Protocol

## Overview

The Collaterize Protocol is the decentralized backbone of the platform, designed to meet the growing demand for tokenized assets. It connects users, asset managers, and real-world assets in a transparent ecosystem, addressing key challenges like compliance and scalability while ensuring decentralization.&#x20;

By merging the openness of public networks with the efficiency of private networks, Collaterize provides both scalability and speed. This infrastructure dynamically scales to handle varying traffic, capable of processing up to 50 million transactions daily. Nodes can be scaled up to 30x in high congestion scenarios, with ongoing R\&D aimed at further enhancing scalability.

Security and compliance are integral. Wallets are activated only after users complete KYC, KYB, and AML checks, ensuring full regulatory compliance. Compliance modules verifies all assets on the protocol, maintaining rigorous standards and act as the gateway to ensure that only verified users and compliant assets interact within the Collaterize ecosystem.

Access to the Collaterize Protocol is straightforward through various interfaces, ensuring secure and compliant engagement with the blockchain. This approach guarantees an efficient, transparent platform for managing and trading tokenized assets.

<figure><img src="https://65675788-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fuf0c67pYdY984EfEygCA%2Fuploads%2FHpGhMq3VM6SgscmgJDcG%2Fimage.png?alt=media&#x26;token=c27f59bf-a74d-494e-8ba6-f3717931d40a" alt=""><figcaption><p>Protocol 1-pager description</p></figcaption></figure>

## Specifications

| Technical Stack                                   | Details                                                                                                                                         |
| ------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- |
| Network                                           | Collaterize Protocol ([view explorer](https://blockscout.collaterize.com/))                                                                     |
| **Block Validation Time**                         | 2\~5 seconds                                                                                                                                    |
| **Gas Fees**                                      | No gas fees required                                                                                                                            |
| **Compatibility**                                 | [Etherem Virtual Machine (EVM) ](https://ethereum.org/en/developers/docs/evm/)                                                                  |
| **Technology**                                    | [Hyperledger (Besu)](https://github.com/hyperledger/besu): Collaterize K8s Remastered Version                                                   |
| **Consensus Mechanism**                           | [IBFT2](https://besu.hyperledger.org/24.5.2/private-networks/how-to/configure/consensus/ibft)                                                   |
| **Open-Source Repo Adaptation**                   | The Hyperledger open-source repository has been reviewed and adapted for installation in Kubernetes environments (Clustering): Dynamic Scaling. |
| **Recommended Kubernetes Cluster Infrastructure** | Microsoft Azure Standard\_L16s\_v2 (NVME storage)                                                                                               |
| **Minimum Required Blockchain Nodes**             | 4 Nodes, each capable of scaling 60x                                                                                                            |
| **Maximum Blockchain Nodes**                      | 30 Nodes, each capable of scaling 60x                                                                                                           |
| **Maximum Performance**                           | 50 Million Transactions per Day                                                                                                                 |
| **Transaction Pool (Max) per Block**              | 4096 Transactions (If exceeded, the next block is required)                                                                                     |
