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The Transaction Hierarchy

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Transaction Hierarchy: Transactions, Checkpoints, and Epochs on 1Money Network

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Introduction

The 1Money Network is engineered for speed, security, and scalable payments. To achieve these goals, it organizes activity within a structured transaction hierarchy—where individual transactions are grouped by checkpoints, all within well-defined epochs. Understanding this hierarchy provides a clear picture of how 1Money achieves instant settlement, reliable state management, and seamless network upgrades.

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1. Transactions: The Atomic Unit

Transactions are the most granular building block on 1Money. Every payment, token mint, burn, cancellation, or account recovery action happens as a transaction. Each transaction:

  • Is signed by the sender and verified independently by every validator.

  • Updates the sender and recipient account state upon finalization.

  • Achieves instant finality when a quorum of validator signatures (a “certificate”) is formed.

  • Carries a strictly incremented nonce, ensuring every operation’s order and uniqueness.

Transactions are processed continuously and individually—unlike many blockchains, they are not bundled into blocks, so confirmation is instant and cannot be reversed.

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2. Checkpoints: The Network’s Ledger Snapshots

Checkpoints are periodic, cryptographically-signed snapshots of the network’s entire state—account balances, nonces, and key protocol parameters. They serve vital functions:

  • State Consistency: Validators collectively agree on the network state at each checkpoint, preventing any drift or forks.

  • Efficient Data Handling: Old transactional data up to the latest checkpoint can safely be pruned, keeping network storage lean without sacrificing audibility.

  • Recovery & Resilience: In rare network interruptions or validator reinstatements, checkpoints offer a reliable way to restore or re-sync state across all nodes.

A checkpoint is formed when validators build consensus over a large batch of completed transactions. It records the cumulative effect of all finalized transactions up to that point, providing an authoritative history for audit or compliance purposes.

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3. Epochs: Governance and Validator Stability

Epochs define fixed periods during which the network’s validator set and certain protocol parameters remain constant. Their primary roles:

  • Validator Cohesion: The validator list (who can create certificates and checkpoints) is only adjusted at epoch boundaries. This stability eliminates mid-stream changes that might threaten consensus.

  • Governance Upgrades: Any protocol upgrades, fee adjustments, or major governance actions are scheduled to take effect at epoch transitions, ensuring a smooth network evolution.

  • Operational Predictability: Enterprises and users enjoy predictable network settings and fees throughout each epoch, aligning with financial and technical planning.

At an epoch’s conclusion, the network can introduce a new validator set and protocol rules, with changes coming into effect cleanly at the next checkpoint.

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How They Work Together

  • Transactions: Individual user and system actions.

  • Checkpoints: Regular “save points” that lock-in all completed transactions and clean up the ledger.

  • Epochs: Framework for validator management and protocol upgrades.

This layered structure:

  • Enables instant finality for payments,

  • Guarantees network consistency and auditability,

  • And allows for safe upgrades and governance without interruption.

By separating the concerns of transaction execution, state crystallization, and governance change, 1Money achieves a highly secure, efficient, and scalable payments platform ready for mainstream adoption.

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