# Technical Architecture

PowerU adopts the Arbitrum chain as the underlying blockchain technology for the project. Arbitrum is a Layer 2 scaling solution built on Ethereum that utilizes Optimistic Rollup technology for transaction processing and data handling. Optimistic Rollup improves transaction throughput and efficiency by batching verifications on the Ethereum main chain. The choice of the Arbitrum chain provides PowerU with high performance and low-cost transaction processing capabilities.

In terms of smart contract design and functionality, PowerU deploys smart contracts on the chain, including token contracts, LIWA NFT issuance and functionality, mining license generation, mining reward mechanisms, etc. These smart contracts' core functionalities ensure the reliable operation of PowerU on the Arbitrum chain and the realization of the economic model and incentive mechanisms.

In terms of data storage and privacy protection, PowerU adopts a combination of centralized and distributed data storage technologies in the early stages. Real-time status information of energy-sharing devices, user usage data, etc., will be stored in a centralized manner, while completed order information will be regularly stored on-chain. Important data and user information will be stored on decentralized networks to ensure data security and reliability. Privacy protection measures will be implemented to ensure that user privacy data is not leaked or misused. These measures will include data encryption, access control, and identity verification techniques.
