Overview

Fractal Engine is a sophisticated tokenization platform built on Dogecoin that enables fractional ownership through minting, peer-to-peer trading, and payment processing. The system implements a hybrid architecture that combines on-chain protocol messages with off-chain gossip networking for optimal performance and cost efficiency.

System Overview

Core Concept

Fractal Engine allows users to create and trade tokens backed by the Dogecoin blockchain while leveraging off-chain communication for efficiency. The system uses Dogecoin's OP_RETURN mechanism to anchor critical protocol messages on-chain while utilizing the DogeNet gossip network for fast, cost-effective data distribution.

Key Features

• Token Minting: Create fractional tokens with configurable supply and metadata
• P2P Trading: Buy and sell offers with automatic matching and settlement
• Payment Processing: Invoice generation and payment handling
• Blockchain Anchoring: Critical operations anchored on Dogecoin L1
• Gossip Network: Fast off-chain data propagation via DogeNet
• Dual Database Support: SQLite for development, PostgreSQL for production

Component Architecture

Core Components

Service Orchestration

TokenisationService (pkg/service/service.go)

• Central orchestrator for all system components
• Manages lifecycle of all sub-services
• Coordinates startup sequence and graceful shutdown
• Handles database migrations and health monitoring

Integration Layer

DogeFollower (pkg/doge/follower.go)

• Monitors Dogecoin blockchain for Fractal Engine messages
• Extracts protocol messages from OP_RETURN data
• Stores on-chain transactions for processing
• Implements chain reorganization handling

DogeNetClient (pkg/dogenet/client.go)

• Connects to DogeNet gossip network
• Handles off-chain message propagation
• Manages mint announcements and metadata distribution
• Provides resilient network communication

DogeRpcClient (pkg/doge/rpc.go)

• Interface to Dogecoin Core RPC
• Handles transaction broadcasting
• Provides blockchain state queries
• Manages wallet operations

Processing Engine

FractalEngineProcessor (pkg/service/processor.go)

• Core business logic processor
• Matches off-chain gossip with on-chain transactions
• Validates transaction integrity and protocol compliance
• Handles state transitions for mints, offers, and payments

Protocol Layer

Protocol Handler (pkg/protocol/protocol.go)

• Defines message envelope structure (MessageEnvelope)
• Implements protocol constants and action types
• Handles message serialization/deserialization
• Supports versioned protocol evolution

Supported Actions:

• ACTION_MINT (0x01): Token creation
• ACTION_BUY_OFFER (0x02): Buy order placement
• ACTION_SELL_OFFER (0x03): Sell order placement
• ACTION_INVOICE (0x04): Payment request
• ACTION_PAYMENT (0x05): Payment settlement
• ACTION_DELETE_BUY_OFFER (0x06): Buy order cancellation
• ACTION_DELETE_SELL_OFFER (0x07): Sell order cancellation

Storage Layer

TokenisationStore (pkg/store/store.go)

• Abstraction over database operations
• Supports SQLite (development) and PostgreSQL (production)
• Handles automatic migrations
• Provides transaction management

Key Data Models:

• Mints: Token definitions and supply information
• OnChainTransactions: Blockchain-anchored protocol messages
• UnconfirmedMints: Pending mint transactions
• BuyOffers/SellOffers: P2P trading orders
• Invoices/Payments: Payment processing records

API Layer

RPC Server (pkg/rpc/server.go)

• HTTP/JSON-RPC API server
• RESTful endpoints for all operations
• Swagger documentation generation
• Request validation and error handling

Data Flow Architecture

Mint Creation Flow

Trading Flow

Technical Decisions & Trade-offs

Hybrid On-Chain/Off-Chain Architecture

Decision: Use Dogecoin OP_RETURN for critical anchoring with DogeNet for data distribution

Benefits:

• Reduces on-chain transaction costs
• Enables fast gossip-based communication
• Maintains blockchain security guarantees
• Supports high-throughput operations

Trade-offs:

• Increased complexity in message matching
• Requires robust off-chain network infrastructure
• Potential for temporary inconsistencies

Protocol Buffer Message Format

Decision: Use Protocol Buffers for structured message encoding

Benefits:

• Efficient binary serialization
• Schema evolution support
• Cross-language compatibility
• Built-in validation

Trade-offs:

• Additional tooling requirements
• Learning curve for developers

Database Abstraction

Decision: Support both SQLite and PostgreSQL

Benefits:

• SQLite for easy development setup
• PostgreSQL for production scalability
• Unified API across database backends

Trade-offs:

• Maintenance overhead for multiple backends
• Feature parity challenges

Processor Architecture

Decision: Separate matching processor for on-chain/off-chain correlation

Benefits:

• Clear separation of concerns
• Resilient to network partitions
• Handles chain reorganizations
• Enables retry mechanisms

Trade-offs:

• Eventual consistency model
• Complex state management

Tokenization on Dogecoin

Protocol Implementation

Fractal Engine implements tokenization through a multi-layered approach:

1. Protocol Envelope: Every message uses a standardized envelope with engine identifier (0xFE0001FE), action type, version, and data payload

2. On-Chain Anchoring: Critical operations (mints, payments) include a hash in Dogecoin OP_RETURN that corresponds to off-chain data

3. Off-Chain Metadata: Detailed token information, trade offers, and metadata are distributed via DogeNet gossip network

4. Matching Engine: The processor correlates off-chain announcements with on-chain anchors to confirm valid operations

Security Model

• Blockchain Immutability: Critical state changes require on-chain confirmation
• Gossip Redundancy: Off-chain data is replicated across DogeNet nodes
• Hash Verification: On-chain hashes validate off-chain data integrity
• Protocol Versioning: Supports backward-compatible protocol evolution

Scalability Approach

• Batched Operations: Multiple operations can be batched in single transactions
• Gossip Efficiency: Large metadata stays off-chain while maintaining verifiability
• State Pruning: Trimmer service removes expired unconfirmed transactions
• Horizontal Scaling: Multiple engine instances can process different token sets

Configuration & Deployment

The system supports flexible deployment configurations through:

• Docker Compose: Complete development environment
• Microservice Architecture: Individual component scaling
• Configuration Management: Centralized config with environment overrides
• Health Monitoring: Built-in health checks and metrics

This architecture enables Fractal Engine to provide a robust, scalable tokenization platform that leverages Dogecoin's security while maintaining high performance and low operational costs.