# Verification Nodes (VN)

### What is the XEQ Verification System?

The XEQ Verification System is a secondary, independent verification layer that records Equilibria service node data on Ethereum (via Arbitrum).

In simple terms:

> Service node activity is now verifiable on two blockchains instead of one.

All service node registrations, stakes, and reward-related data exist on:

* The Equilibria blockchain (primary network)
* The Ethereum blockchain via Arbitrum (verification layer)

This creates a dual-source verification model where anyone can independently confirm that service nodes are real, properly staked, and operating as claimed.

### Why Equilibria Uses Ethereum

#### The Problem (Before)

Previously, all service node data lived only on the Equilibria blockchain.

That meant:

* You had to trust Equilibria’s internal records
* External auditors had no neutral reference point
* Verifying network claims required deep protocol knowledge

#### The Solution (Now)

Equilibria writes the same service node metadata to Ethereum smart contracts.

Now:

* Two independent blockchains confirm the same facts
* Anyone can verify node data using public Ethereum tools
* Network claims are externally auditable

This does not affect privacy or transaction confidentiality.

### What Is an XEQ Verification Node (XEQ VN)?

An XEQ Verification Node (XEQ VN) is a server that acts as a gateway between Equilibria and Ethereum.

In the codebase, this is called an L2 Provider.\
In community documentation, we refer to it as an Equilibria Verification Node or XEQ VN for clarity.

#### Simple Explanation

Your service node needs to read Ethereum smart contracts to verify:

* Which service nodes are registered
* How much stake they have
* How rewards are calculated

Instead of every service node connecting directly to Ethereum (which would be expensive, slow, and complex), they connect through a Verification Node.

***

#### **How It Works (Flow)**

```
Your Service Node
        ↓
Requests verification data
        ↓
XEQ Verification Node (VN)
        ↓
Queries Arbitrum / Ethereum
        ↓
Reads smart contracts
        ↓
Returns verified data
```

**T**he VN is a read-only relay, not a controller.

***

### What an XEQ Verification Node Does

An XEQ VN:

* Accepts verification requests from Equilibria service nodes
* Queries Ethereum / Arbitrum smart contracts
* Returns verified service node data
* Handles all Ethereum RPC communication

***

### What an XEQ Verification Node Does *Not* Do

An XEQ VN:

* ❌ Does not see private XEQ transactions
* ❌ Does not access your wallet
* ❌ Does not store private keys
* ❌ Does not compromise Equilibria privacy
* ❌ Does not influence consensus or rewards

It only handles public service node metadata.

***

### The Smart Contracts (Arbitrum)

Equilibria uses two Ethereum smart contracts on Arbitrum.

#### Rewards Contract

Purpose: Official registry of all service nodes

Records:

* Service node registrations
* Stake amounts
* Operator fees
* Contributor stakes
* Deregistration & exit requests

📍 Arbiscan:\
<https://arbiscan.io/address/0xC2B9fC251aC068763EbDfdecc792E3352E351c00>

***

#### Pool Contract

Purpose: Reward calculation logic

Tracks:

* Total reward pool
* Block reward rate
* Distribution schedules

📍 Arbiscan:\
<https://arbiscan.io/address/0x11f040E89dFAbBA9070FFE6145E914AC68DbFea0>

***

### How Your Service Node Connects

Every service node maintains two parallel connections.

#### 1️⃣ Equilibria Network (P2P)

* Syncs the blockchain
* Communicates with other nodes
* Processes private transactions

```
seed1.equilibria.network:9230
seed2.equilibria.network:9230
```

***

#### **2️⃣** ETH Verification Network (XEQ VN)

* Reads Ethereum smart contracts
* Verifies service node legitimacy

```
eth-verification-node=https://l2-us.xeqlabs.com
eth-verification-node=https://l2-eu.xeqlabs.com
```

(Current config name: `l2-provider`)

***

### **Privacy & Security Model**

#### **What’s Public on Ethereum**

| Data                    | Visible |
| ----------------------- | ------- |
| Service node public key | ✅       |
| Stake amount            | ✅       |
| Operator fee            | ✅       |
| Registration date       | ✅       |
| Contributor addresses   | ✅       |

***

#### **What Stays Private**

| Data              | Visible |
| ----------------- | ------- |
| Wallet balances   | ❌       |
| XEQ transactions  | ❌       |
| Sender / receiver | ❌       |
| Identity          | ❌       |
| Private keys      | ❌       |

Key point:\
Ethereum only sees infrastructure metadata, never user activity.

### Running Your Own XEQ Verification Node

#### GitHub Link: <https://github.com/EquilibriaHorizon/equilibria-l2-provider-docs/tree/main>

#### Who Should Run One?

* Operators running multiple service nodes
* Technical community members
* Anyone prioritizing decentralization & performance

#### Benefits

* Full control over limits & monitoring
* Faster response times
* No shared rate limits
* Reduced reliance on public infrastructure

#### Configuration Example

```
eth-verification-node=http://your-own-server.com   # Primary
eth-verification-node=https://l2-us.xeqlabs.com    # Backup
eth-verification-node=https://l2-eu.xeqlabs.com    # Backup
```

Nodes automatically fail over if one goes down.

### Why XEQ Verification Nodes Matter

XEQ VNs provide:

* 🔐 Stronger security (two chains must agree)
* 🔍 Public verifiability (Ethereum explorers)
* 🧩 Institutional credibility
* 🌉 Foundation for future bridges & DEXs
* 🧠 Decentralized verification infrastructure

This is how Equilibria scales trust without sacrificing privacy.

> An XEQ Verification Node is a read-only gateway that lets Equilibria service nodes verify registrations and rewards using Ethereum smart contracts—without exposing private transactions.
