# Kinto Rollup Architecture

## High-level Description

*Kinto is an Ethereum L2 rollup designed to accelerate the transition to an on-chain financial system. It features permissionless KYC/AML and native account abstraction to solve the two biggest blockers to mainstream adoption: compliance and user experience.*

## Modular Stack

We adopted the modular thesis to **maximize decentralization, credible neutrality, and scalability**. The modular thesis, where different layers of the blockchain architecture are separated and optimized, allows each layer to function more efficiently. Let's analyze the different components of the Kinto rollup:

<figure><img src="https://3204478300-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkwGpOqIolO3lPoyd0ZL8%2Fuploads%2F18YMMq4PeIRXrQsHYNiU%2Fimage.png?alt=media&#x26;token=f7319b6e-86e5-4994-a02c-33546745c394" alt=""><figcaption></figcaption></figure>

* Settlement: From day one, Kinto used **Ethereum as the settlement layer**. Ethereum is the network with the most mature infrastructure for on-chain financial applications and the most censorship-resistant, neutral block space.
* Execution: On the execution layer, we announced our partnership with Arbitrum a few weeks ago, **becoming the first Arbitrum-based L2**. Arbitrum is the undisputed L2 leader in TVL, maturity, and size of its DeFi ecosystem.
* Data Availability:  We have partnered with [<mark style="color:purple;">Celestia</mark>](https://medium.com/mamori-finance/%EF%B8%8F-kinto-goes-modular-with-celestia-43bbff3a7e30).  **Kinto will tap into Celestia via Blobstream on Ethereum Mainnet**, which provides L2s secure on-chain access to Celestia’s data root for integration with the bridge and Nitro. You can read our announcement [<mark style="color:purple;">here</mark>](https://medium.com/mamori-finance/%EF%B8%8F-kinto-goes-modular-with-celestia-43bbff3a7e30).
* Sequencer: Initially, Kinto will run its sequencer, but we are talking with [<mark style="color:purple;">Espresso</mark>](https://www.espressosys.com/) and others to transition to a decentralized sequencing system.

## Kinto Unique Features

* [<mark style="color:purple;">KYC & AML at the chain level.</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/broken-reference) Every user and developer must undergo our user-owned KYC process before transacting on the network.
* [<mark style="color:purple;">Smart-Contract Wallets Only.</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/rollup-features/kinto-account-abstraction) Users must create their non-custodial Kinto Wallet. Transactions initiated by EOAs are disabled and must be sent via Account Abstraction and its Entry Point.
* Sybil Resistance. Having KYC at the chain level opens a new design space where every application is automatically sybil-resistant.
* Higher Level of Security. Combining KYC/AML and Sybil Resistance with smart contract wallets provides a higher level of safety for both users and developers.

You can read more about the differences with other rollups [<mark style="color:purple;">here</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/differences-with-other-rollups).

## Kinto Participants

Here are the different participants in the Kinto ecosystem:

* Applications/Protocols:  Developers and institutions create and deploy financial applications on top of Kinto.
* Users: End users that visit the financial applications built by the developers above via the account abstraction wallet provided by Kinto.
* [<mark style="color:purple;">KYC Providers</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/broken-reference):  Perform KYC/AML services. The different KYC companies approved by governance allow users to complete their identity verification before transacting on-chain.
* Infrastructure Partners: These key partners are integrated into Kinto's rollup architecture and include Arbitrum, Celestia, and Caldera, among others.
* Kinto Core Team: The core team develops the infrastructure and tools needed so developers can build applications and protocols that leverage our native KYC/AML and account abstraction.

## Technical Details

* **Kinto is fully EVM-compatible**.
* To send a transaction, you must have a KintoWallet, and its first signer must hold a [<mark style="color:purple;">Kinto ID</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/smart-contract-reference/kintoid). The transaction must be sent to the entry point.
* **Only four contracts can receive direct transactions from EOAs**: [<mark style="color:purple;">EntryPoint</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/smart-contract-reference/kinto-entrypoint), [<mark style="color:purple;">SponsorPaymaster</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/smart-contract-reference/sponsorpaymaster), [<mark style="color:purple;">KintoWalletFactory</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/smart-contract-reference/kintowalletfactory), and[ <mark style="color:purple;">Kinto ID</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/smart-contract-reference/kintoid).
* **KintoWallet is fully non-custodial**, but there is a way for users to recover their accounts via a week-long recovery process.
* **EOAs can perform calls** that don't alter the chain's state without KYC.
* **Users do not need to pay for transactions**. Developers will charge users and top-up the paymaster to cover the applications users send to their contracts.
* If a user gets added to a sanction list, his **Kinto ID NFT will automatically be updated with this information**.
* **Kinto core contracts are upgradeable**. Upgradeable powers will eventually be handed out to governance.

## Getting Started

Please check the section [<mark style="color:purple;">getting up and running</mark>](https://docs.kinto.xyz/kinto-the-modular-exchange/building-on-kinto/development-setup). \
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Do not hesitate to contact us at <developers@kinto.xyz> if you need help.