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0.1 - Q1 2026. DRAFT xln: a credit+collateral netting-account L2 for all EVM and future CBDC jurisdictions—unicast O(1) per hop, link-capped risk, local state, sovereign exits.

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XLN - Cross-Local Network

Instant off-chain settlement with on-chain finality.

Byzantine consensus meets Bloomberg Terminal meets VR. Run complete economic simulations in your browser—no backend needed.


🌐 Directory Structure

Core:
  /docs/                Philosophy, architecture, eternal specs
  /runtime/             Consensus engine (BFT entity + bilateral account state machines)
    /account-tx/        Account transaction handlers
    /entity-tx/         Entity transaction handlers
    /scenarios/         Economic simulations (ahb.ts, grid.ts, etc.)
    /evms/              EVM integrations (BrowserVM, remote)
  /jurisdictions/       Solidity contracts (Ethereum, Polygon, Arbitrum, ...)
  /frontend/            Main xln.finance app + 3D visualization
    /src/lib/components/   UI panels (Entity, Network, TimeMachine, etc.)
  /tests/               E2E tests (Playwright)

Dev:
  /scripts/             Utilities (playwright helpers, deployment, debug)
  /ai/                  AI integrations (STT server, telegram bot, council)
  bootstrap.sh          One-command setup
  CLAUDE.md             AI instructions
  .archive/             Old implementations (historical reference)

---

## 🚀 Quick Start

```bash
# Install + start everything
bun run dev

# Open browser
open http://localhost:8080

First run: ~2-3min (installs Foundry) After: ~10sec


🎯 What is XLN?

Cross-Local Network enables entities to:

  • Exchange value instantly off-chain (BFT consensus)
  • Anchor final state on-chain (Ethereum, Polygon, Arbitrum)
  • Run complete economic simulations in browser (BrowserVM - no backend!)
  • Visualize in VR (Quest/Vision Pro compatible)

Think: Lightning Network + Byzantine consensus + Bloomberg Terminal + Blender.

Finance is physics of trust


🏗️ Architecture (J-E-A Layers)

J - Jurisdiction Layer (On-Chain)

  • What: Solidity contracts managing reserves, collateral, settlements
  • Where: /jurisdictions/contracts/
  • Contracts:
    • Depository.sol - Implements IDepository (future ERC standard)
    • EntityProvider.sol - Entity registration + quorum verification
  • Deploy: Ethereum, Polygon, Arbitrum, any EVM chain

E - Entity Layer (Off-Chain BFT Consensus)

  • What: Distributed organizations with threshold signatures
  • Flow: ADD_TX → PROPOSE → SIGN → COMMIT
  • Source: /runtime/entity-consensus.ts
  • Deterministic: Nonce-based ordering, Merkle state roots

A - Account Layer (Bilateral Channels)

  • What: Payment channels between entity pairs
  • Perspective: Left/right with canonical ordering (entityA < entityB)
  • Source: /runtime/account-consensus.ts
  • Settlement: Bilateral state verification with Merkle proofs

💻 Key Commands

# Development
bun run dev              # Full stack (jurisdictions + runtime + frontend)
bun run check            # TypeScript + Svelte validation
bun run build            # Build runtime.js for browser

# Jurisdictions (Contracts)
bun run env:build        # Compile Solidity
bun run env:deploy       # Deploy to local network
bun run dev:reset        # Reset all networks + redeploy

# Frontend
cd frontend && bun run dev      # Vite dev server
cd frontend && bun run build    # Production build

# Testing
bunx playwright test            # E2E tests
bunx playwright test tests/ahb-smoke.spec.ts  # AHB smoke test

🎨 XLNView Panel System

Bloomberg Terminal-style workspace. Drag, dock, float, tab - full Chrome DevTools UX.

Core 4 Panels (Open by Default)

  1. 🌐 Graph3D - Force-directed network viz (WebGL/WebGPU toggle)
  2. 🏢 Entities - Live entity list (reserves, accounts, activity)
  3. 💰 Depository - On-chain J-state viewer (BrowserVM queries)
  4. 🎬 Architect - God-mode controls (5 modes: Explore/Build/Economy/Governance/Resolve)

Layouts

  • Default: 4-panel workspace
  • Analyst: Graph3D + Depository + Console (research mode)
  • Builder: Architect + Graph3D + Entities (creation mode)
  • Embed: Graph3D only (for docs/blog posts)

Tech: Dockview (2.8k stars), Svelte reactivity, localStorage persistence

Source: /frontend/src/lib/components/ + /docs/xlnview.md


🧪 Simnet (Offline Blockchain in Browser)

No localhost:8545. No cloud RPC. Pure browser.

  • Engine: @ethereumjs/vm v10 (official Ethereum Foundation implementation)
  • Deployed: Depository.sol + 500 prefunded entities
  • Tokens: USDC (id=1), ETH (id=2)
  • Reset: Refresh page = new universe
  • Persistent: Optional IndexedDB (resume sessions)

Config: Genesis configs in runtime/evms/browser-evm.ts

Demo: Load any scenario (AHB, Grid) - BrowserVM deploys contracts automatically


🎮 VR/Quest Support

  • WebXR: Enabled by default (WebGL renderer)
  • Offline: Simnet works without network (perfect for VR demos)
  • Performance: 72fps in Quest 3
  • Future: Hand tracking, voice commands, spatial UI

📚 Documentation Tree

Root:
  readme.md              This file - project overview
  CLAUDE.md              AI assistant instructions
  changelog.md           Version history

/docs/
  ├── contributing/      How to develop on XLN
  │   ├── workflow.md           Daily commands (bun run dev, etc)
  │   ├── bug-prevention.md     Pre-commit checklist
  │   ├── agentic.md            AI autonomous execution (80% rule)
  │   └── adhd-format.md        Response formatting guide
  │
  ├── research/          Explorations & specifications
  │   ├── insurance/            Insurance layer designs
  │   │   ├── claude-analysis.md
  │   │   ├── codex-analysis.md
  │   │   └── gemini-analysis.md
  │   ├── depository-core.md    Contract logic summary
  │   └── rollups-position.md   XLN vs rollups comparison
  │
  ├── planning/          Active & historical planning
  │   ├── active/
  │   │   └── next.md           Current priority tasks
  │   ├── completed/            Finished refactors
  │   └── launch-checklist.md   Pre-launch verification
  │
  ├── about/             Philosophy & origin
  │   ├── homakov.md            Founder's vision
  │   └── repo-structure.md     Private vs public repos
  │
  ├── testing/           Test procedures
  │   └── ahb-demo.md           AHB demo steps
  │
  └── docs/              Core architecture (existing)
      ├── rjea.md               R→E→A→J flow explanation
      ├── xlnview.md            Panel architecture
      ├── flow.md               Transaction flow
      └── ...                   (eternal specs)

Quick links:


🔥 Recent Updates (Oct 2025)

  • Repository restructure - Essence-driven naming (docs, runtime, jurisdictions, worlds)
  • BrowserVM integration - Offline simnet with @ethereumjs/vm
  • Panel workspace - Dockview-based Bloomberg Terminal UX
  • WebGPU/WebGL switch - Runtime renderer toggle (future-proof)
  • IDepository interface - Standardizable ERC for reserve management
  • Depository - 69% smaller, self-contained (6.6KB vs 21KB)

🛠️ Tech Stack

Runtime: TypeScript + Bun Frontend: Svelte + Vite + Three.js Contracts: Solidity + Hardhat Blockchain: @ethereumjs/vm (simnet) → Hardhat (local) → Ethereum/L2s (prod) Panels: Dockview (2.8k⭐) Tests: Playwright


🗺️ Network Roadmap

Simnet (Now - Oct 2025)

Browser-only simulation. Zero infrastructure.

  • Engine: @ethereumjs/vm (in-browser blockchain)
  • Contracts: Depository.sol (6.6KB, implements IDepository)
  • State: 500 prefunded entities, USDC + ETH
  • Reset: Refresh page = new universe
  • Use: Scenario rehearsals, VR demos, tutorials

Testnet (Q1 2026)

Shared PoA network. Multi-user coordination.

  • Network: Arrakis (custom PoA chain)
  • Contracts: Full suite (EntityProvider, Depository, SubcontractProvider)
  • Validators: 5 trusted nodes
  • Use: Integration testing, onboarding flows, load testing

Mainnet (Q4 2026)

Production deployment. Real value.

  • Chains: Ethereum (L1), Polygon/Arbitrum (L2s)
  • Governance: Multi-sig + timelock
  • Audits: Trail of Bits + OpenZeppelin
  • Use: Live settlement network

📖 Learn More

Start here:

  1. docs/contributing/workflow.md - Daily dev commands
  2. docs/docs/xlnview.md - Panel architecture + BrowserVM
  3. docs/docs/rjea.md - R→E→A→J flow explanation
  4. simnet/readme.md - Offline blockchain setup

For deep dives: docs/docs/


License: AGPL-3.0 Status: Active development (2025) Website: xln.finance (coming soon)

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0.1 - Q1 2026. DRAFT xln: a credit+collateral netting-account L2 for all EVM and future CBDC jurisdictions—unicast O(1) per hop, link-capped risk, local state, sovereign exits.

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