CHLOM License Exchange (LEX) — Smart Contract & Protocol Specification (Phase 3→4)

Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — Decentralized Licensing Marketplace Smart Contract & Protocol Framework

1. Purpose

This document defines the full smart contract architecture and blockchain protocol design for the LEX platform. It covers NFT/SFT licensing contracts, compliance verification hooks, ZKP verification layers, and on-chain governance integration, providing developers with an executable blueprint for production deployment.

2. Contract Architecture

• Contract Types:
• LicenseNFT
• LicenseSFT
• ComplianceVerifier
• FraudGuard
• Marketplace
• Upgradeable Pattern: OpenZeppelin proxy pattern with strict governance-controlled upgrades.
• Registry Contract: Global license registry with Merkle root for off-chain data commitments.

3. State Machine Logic

LicenseNFT Lifecycle:

1. Issue: DAO/authorized issuer mints license token with metadata.
2. Activate: Token becomes valid upon ZKP compliance verification.
3. Renew: Renewal via
4. Suspend/Revoke: Triggered by governance decision or AI/ML fraud signal.
5. Archive: Token metadata remains immutable, flagged as inactive.

4. Data Structures

• Metadata Schema:

{
  "issuer_id": "0x123...",
  "scope": "Software Distribution",
  "jurisdiction": "US-CA",
  "expiry": "2026-08-08T00:00:00Z",
  "zk_refs": ["cid://bafy..."],
  "ai_score": 0.98
}

• Proof Object: Compressed ZK proof + verification key reference.
• Fraud Score Payload: JSON-LD signed by AI/ML node key.

5. On-Chain Governance Hooks

• Proposal Execution: DAO vote triggers parameter changes or license state updates.
• Compliance Thresholds: Governance-set minimum AegisScore required for issuance.
• Dispute Resolution: On-chain arbitration contract linked to evidence storage in IPFS/Arweave.

6. ZKP Integration

• Supported Proof Systems: Groth16, PlonK, Halo2.
• Verifier Deployment: One verifier per circuit type, upgradeable via governance.
• Circuit Catalog: LicenseValidity, SanctionsCheck, RenewalAggregate.

7. Security Considerations

• Access Control: Role-based + multisig for high-impact functions.
• Replay Protection: Nonce system for transaction uniqueness.
• Audits: Independent third-party audits required pre-mainnet.
• Fail-Safes: Emergency pause via governance multi-sig.

8. Developer Build Notes

• Languages: Solidity (Ethereum/Polygon) or Ink! (Substrate) for deployment flexibility.
• Testing Framework: Hardhat + Foundry for EVM; Rust test harness for Substrate.
• Gas/Weight Optimization: Off-chain computation for AI/ML scoring, on-chain only for proof validation.
• Example Stub:

function issueLicense(address to, string memory metadataCID) public onlyIssuer returns (uint256) {
    require(aiScore >= minAegisScore, "Compliance score too low");
    uint256 tokenId = _mintLicense(to, metadataCID);
    emit LicenseIssued(tokenId, to);
    return tokenId;
}

This smart contract and protocol specification ensures LEX operates as a secure, upgradeable, and DAO-governed marketplace for verifiable digital licenses, with AI/ML fraud detection and ZKP-based compliance at its core.