# Architecture Design

<div data-full-width="true"><figure><img src="/files/yv9bqfgdak7tnzgplIjf" alt=""><figcaption><p>Architecture Diagram - ELDER</p></figcaption></figure></div>

### Components

#### Users

Users send transactions directly to the Elder Network. Each transaction is tagged with a specific rollup ID, and fees are deducted within the network itself.

#### ELDER Network

The Elder network is a decentralized shared sequencer built using Cosmos SDK on the CometBFT (formerly Tendermint) consensus mechanism. It processes user transactions and creates a super-block, comprising blocks from various rollups registered with Elder

#### Data Availability Layer

The DA layer, or Data Availability layer, is crucial for blockchain systems. It guarantees that all transaction data is accessible to network participants, ensuring transparency, security, and the ability to validate the state of the blockchain at any time.

#### Rollups/Rollapps

These are stack-agnostic rollups. They pull transactions of a block from Elder and execute them on their own VM. They could be an EVM rollup or any alt-VM state machine as well.

#### Settlement Layer

The Settlement Layer(usually Ethereum) finalizes transactions, recording them immutably on the ledger. It ensures agreement among participants on transaction outcomes, providing finality, security, and trust in the system's integrity and the transfer of assets or values. The rollups will send fault/fraud proofs on Settlement Layer.

#### Watch Tower

Watch Tower is independent and stateless(very light) can submit disagreement transactions to the sequencer node in case of rootHash mismatch. If mismatch found, disagreement transaction is sent by watch tower and it can slash the registration stake of rollups.


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