1. Blockchain Architecture - Rationale and Implementation

This section addresses a critical question from grant committees and regulators:

"Why does this system require a blockchain, and what does it specifically do?"

To avoid the “buzzword trap,” the functions are narrowly defined and technically justified.

1.1 Role of Blockchain in OpenAssets (U2U Network)

1. Immutable Invoice Registry

Only SHA-256 hashes and metadata (not PDFs or PII) are stored on-chain.

Purpose:

• Prevent double financing across lenders

• Provide tamper-proof audit trail

• Enable independent verification without revealing invoice details

  Justification: Banks and factors typically maintain siloed databases; a shared ledger prevents cross-institutional fraud.

2. Tokenized Senior Tranche Instruments

Investor capital is represented as tokenized participation units that reflect proportional claims in a financing pool.

Purpose:

• Enforces transparent, immutable pro-rata distribution

• Locks investor shares until settlement

• Prevents manual allocation errors

  Why blockchain: Reconciled accounting between investors and platform reduces operational risk.