LayerLedger Whitepaper (v1.1)

LL2: The Provenance Layer for Everything Real

0. Abstract

LayerLedger (LL2) is a hybrid Layer-2 protocol built on XRPL that provides programmable, tamper-evident provenance for real-world assets, digital collectibles, NFC-linked objects, and multi-app ecosystems such as CardLayer, Mintlings, and LegacyLayer.

LL2 acts as:

A sequencer for off-chain actions
A state machine for asset ownership
A ledger for physical/digital events
A gas abstraction layer for managed custody
A unified provenance root for assets
A multi-world engine powering the LayerVerse

The XRPL provides trust anchoring, settlement, and finality, while LL2 handles scalable state transitions, social actions, bundles, repacks, fractions, and multi-app activity.

Phase 2 introduces the ability to anchor LL2 states to multiple L1 chains, enabling LL2 to become the universal provenance layer for any chain.

1. Introduction

Modern digital asset ecosystems suffer from fragmentation, chain silos, and missing provenance. Real-world assets are especially constrained by inconsistent custody rules, incomplete history, and differing chain standards.

LayerLedger addresses these issues by creating a unified provenance engine for all LayerVerse applications. LL2 becomes a programmable middle layer between applications and XRPL, providing scalable state transitions and full asset lineage.

2. Architecture Overview

2.1 Three-Layer Stack

┌───────────────────────────────┐
│ Application Worlds            │
│ (CardLayer, Mintlings, Legacy)│
└────────────┬──────────────────┘
             │
┌────────────▼──────────────────┐
│ LayerLedger (LL2)             │
│ Off-chain sequencer           │
│ Managed custody execution     │
│ Provenance + event logs       │
│ Physical/digital state engine │
└────────────┬──────────────────┘
             │
┌────────────▼──────────────────┐
│ XRPL L1                       │
│ Settlement, minting, burns    │
│ Hash commitments              │
│ Trust / validator layer       │
└───────────────────────────────┘

LL2 is the programmable state and provenance layer connecting application worlds to XRPL.

3. LayerLedger Core Concepts

3.1 State Machine

Each asset is a stateful object tracked both on XRPL and LL2.

Asset State = {
  issuance,
  custody_type,
  owner,
  wallet_origin,
  app_context,
  fraction_history,
  bundle_lineage,
  nfc_scans,
  metadata_updates
}

LL2 enforces valid transitions between asset states.

3.2 Sequencer

The LL2 Sequencer performs:

Ordering of off-chain events
Anti-double-spend guarantees
Bundle/repack state management
Provenance hashing
Multi-app orchestration
Gas accounting and abstraction

XRPL finalizes confirmed intervals.

3.3 Managed Custody

LL2 supports both self-custody (XRPL wallets) and managed custody (LL2 custody wallets).

Managed custody enables:

Instant transfers
Gas-free UX
Kid-safe flows for Mintlings
Internal market operations
Repack and bundle mechanics
Fractional ownership management

All off-chain transfers and state transitions are logged for complete provenance.

3.4 Gas Abstraction

Users do not hold XRPL-based LAYER tokens.
LL2 charges virtual gas and treasury wallets sponsor real burns on XRPL.

This ensures:

Smooth onboarding
No token purchasing required
Consistent accounting for actions

Virtual gas is tracked internally in LL2.

4. Cross-App Provenance & LayerVerse Structure

Each app world (Mintlings, CardLayer, LegacyLayer):

Has its own schema
Own UX flows
Own metadata structures

All connect to:

layer_engine.* → the central LL2 engine

Shared capabilities:

Identity
Wallets
Managed custody
Event logs
Provenance state
NFC registry
Gas abstraction
Dev wallets
App routing

The LayerVerse = multiple worlds sharing a unified provenance engine.

5. Asset Flow Examples

5.1 Mint a Mintling

XRPL issuer mints an MPT
LL2 registers asset state
NFC tag (NTAG424) is bound
LL2 logs physical-to-digital binding
Social/story events occur in LL2
Periodically XRPL anchors state

5.2 CardLayer Repack

User bundles multiple assets
LL2 creates a virtual asset representing the bundle
Underlying assets become frozen
Bundle inherits component provenance
Managed custody transfers occur internally
Bundle dissolves and original states restore
Anchored snapshot to XRPL

6. Data Structures

6.1 LL2 Event Log

id,
event_type,
asset_id,
actor,
origin_app,
previous_state_hash,
new_state_hash,
metadata,
timestamp

Event types include:

mint
scan
write
custody_change
fraction_create
bundle_create
bundle_dissolve
transfer
virtual_burn
gas_usage
metadata_update

This event log forms the foundation of LL2 provenance.

7. Phase 2: Multi-Chain Anchors & Cross-Chain Provenance

Phase 2 extends LL2 to anchor provenance and asset states to additional chains.

7.1 Motivation

Cross-chain anchoring enables:

Broader trust guarantees
Multi-chain visibility
Marketplace interoperability
RWA composability
Liquidity expansion

LL2 always remains the canonical provenance root.

7.2 Three Modes of Cross-Chain

Mode 1: Anchor Mirroring (Phase 2)

LL2 State → Hash Commit → XRPL, Base, Polygon, Solana

Low risk, low complexity, high trust.

Mode 2: Digital Twin Mirroring (Optional)

LL2 assets can appear as tokens on other chains for visibility and marketplace access.

Mode 3: Native Multi-Chain Execution (Future)

Cross-chain orchestration:

Mint on XRPL
Fraction on LL2
Sell fractions on Base
Repack on Polygon
Final settlement on XRPL

LL2 becomes the universal RWA execution layer.

8. Security Model

XRPL finality
NTAG424 DNA cryptography
Sequencer ordering guarantees
RLS and schema isolation
Event hashing and chain commits
Replay protection
Deterministic state machine

9. Roadmap

Phase 1 (Current)

LL2 engine
Managed custody
Mintlings, CardLayer, LegacyLayer
Provenance engine
Asset lineage
Repack engine
NFC registry
State hashing

Phase 2

Multi-chain anchoring
Hash commits to Base, Solana, Polygon
Proof explorer
Optional digital twin minting

Phase 3

Cross-chain fractions
Multi-chain repacks
Liquidity routing
Chain abstraction layer

10. Conclusion

LayerLedger defines a unified, programmable provenance layer for digital and real-world assets across the LayerVerse.

By combining:

XRPL for settlement
LayerLedger for orchestration
NFC for physical linking
Multi-chain anchoring for trust amplification

LL2 becomes a universal provenance engine across chains, apps, and asset classes.

The future of RWA ownership is chain-agnostic, app-agnostic, and provenance-driven.
LayerLedger is the foundation of that future.

Appendix A: Architecture Diagrams

Worlds Architecture

Mintlings  CardLayer  LegacyLayer
    \         |         /
     \        |        /
      \       |       /
   ┌────────────────┐
   │  LayerLedger   │
   │  (Sequencer)   │
   │ (State Engine) │
   └──────┬─────────┘
          │
   ┌──────▼─────────┐
   │      XRPL      │
   │  (Settlement)  │
   └────────────────┘

Phase 2 Multi-Chain Anchors

           ┌────────── XRPL (Primary)
           │
LL2 State ─┤
           ├────────── Base (Anchor)
           ├────────── Polygon (Anchor)
           └────────── Solana (Anchor)

Appendix B: Technical Implementation

Database Schema

LayerLedger is implemented using a multi-schema PostgreSQL database:

layer_engine.asset_registry - Global asset list
layer_engine.asset_states - Current state snapshots
layer_engine.asset_transactions - Core ledger (all provable changes)
layer_engine.asset_events - Social/view events
layer_engine.gas_ledger - Managed custody gas accounting
layer_engine.xrpl_sync_log - XRPL transaction sync

Transaction Types

The system supports 15 transaction types:

MINTED - Asset creation
TRANSFERRED - Ownership change
FRACTIONED - Asset fractionation
MERGED - Fraction recombination
PACK_CREATED - Bundle creation
PACK_OPENED - Bundle dissolution
BURNED - Asset destruction
LISTED - Marketplace listing
SOLD - Marketplace sale
INTERNAL_GAS_CHARGE - Gas accounting
INTERNAL_GAS_COVERAGE - Treasury coverage
ONCHAIN_SEND - XRPL send transaction
ONCHAIN_RECEIVE - XRPL receive transaction
ONCHAIN_BURN - XRPL burn transaction
METADATA_UPDATED - Metadata changes

Event Types

The system tracks 10 event types:

SCANNED - NFC tag scan
STORY_ADDED - Social story creation
VIEWED - Asset view
PACK_TAPPED - Pack interaction
METADATA_UPDATED - Metadata change event
SOCIAL_ACTION - Generic social interaction
REACTION_ADDED - Like/heart reaction
REACTION_REMOVED - Reaction removal
COMMENT_ADDED - Comment creation
SHARED - Asset sharing

API Access

LayerLedger provides a type-safe tRPC API for querying:

Asset provenance (full history)
User asset history
Gas reports
XRPL transaction sync
State reconstruction

See docs/LAYERLEDGER_EXAMPLE_QUERIES.md for detailed query examples.

Appendix C: References

LayerLedger Architecture - Detailed architecture documentation
LayerLedger Example Queries - Query examples and use cases
Database Schema Migration Plan - Schema organization
XRPL Documentation - XRPL protocol reference
NTAG424 DNA Specification - NFC tag cryptography

Version: 1.1
Last Updated: 2024
Status: Phase 1 - Active Development

LayerLedger is the foundation of the LayerVerse - a unified provenance engine for digital and real-world assets across chains, apps, and asset classes.