System Design
Introduction
System design is the foundation of building a secure, robust and scalable escrow based wallet
app that enables users to have both wallet based transaction and escrow based agreement. The
process involves defining the architecture, user interfaces and data flow to ensure seamless
transaction between our customers. So our well-structured system design ensures that users
can send, receive and make escrow agreement securely with efficiency.
In the design phase, the system is built based on business and security requirements, such as
user authentication, KYC, AML, transaction and escrow based cost. This phase includes
database design too; APIs for small-large enterprises and user friendly UI/UX. Flowcharts,
wireframes and prototypes helps visualize finalizing how the transaction and escrow agreement
works.
The goal of the system design in this application is to distribute the responsibilities across
software and hardware components, such as databases for every customers account,
transaction report. With well-defined system architecture our system ensures that there is a
secure transaction and agreement made between sender and receiver (two parties) which
helps to facilitate trust and transparency in the digital transaction world.
Design Goals
Our system design goals define the fundamental objectives and principles that guide the
architecture and implementation of our system. These goals helps us to stay focused on what
we have determined to be most important in security(trust) and ensure that the system meets
its business needs efficiently while maintain SECURITY,TRUST AND TRANSPARENCY,
PERFROMANCE,SCALABILTY,RELIABILITY AND AVAILABILITY, REGULATORY COMPLIANCE AND
KYC/AML, DISPUTE RESOLUTION AND INTERPERABILITY.
Security: our app protects users’ money and private keys. Funds are kept in audited
smart contracts or licensed custodians, private keys are guarded with biometric/2FA and
every transaction is checked in real-time.
Trust and Transparency: every user gets a reputation score based on successful
transactions and agreement. Verified users will also have badges, large escrow can be
insured and 24.7 support in local languages helps solve problems quickly.
Regulatory Compliance and KYC/AML: to operate legally in our country, we will follow
the National Bank of Ethiopia (NBE) rules and policies, global AML standards. Our users
also go through quick KYC tiers (ID verification) so limits increase safely while sanctions
lists are checked instantly on every transfer or escrow.
Dispute resolution: when parties disagree, money stays safely locked while issue is
resolved quickly and fairly. Users can choose their preferred resolution method at the
start of every escrow.
Usability: the app is simple as other wallet or mobile banking apps, send money with
phone number/QR code, make agreement with simple form, chat inside the app and see
balance.
Performance: sending/receiving money, releasing escrow, sending agreement with
instant time.
Scalability and Availability: the backend is built to handle millions of users across our
country without slowing down.
Interoperability: users stay in control which means they can send/receive money from
banks and wallets because we will agree with national switch which will help us to
accomplish this function properly.
Design trade offs
Design trade off refers to the compromises made between two desirable but conflicting system
requirements when designing a system. The right tradeoffs depend on NBE rules, business
needs, user expectation, system performance, NBE rules and technical constraints.
System Requirement Design tradeoffs Solution
Performance Vs. Security Strong encryption and Use centralized ledger with
centralized monitoring improve encryption + fraud detection,
security but may slow tuned for NBE transaction limits
performance; lighter checks (daily 300,000 birr, balance
improve speed but risk fraud 150,000 birr)
Trust vs. Autonomy Operator-managed escrow Provide operator-managed
builds trust but requires users to escrow accounts, licensed under
rely on the institution; user NBE, with transparent reporting
autonomy reduces reliance but to build institutional trust.
increases risk.
Usability vs. Control Custodial wallets are easy but Offer custodial wallet service
reduce user control; non- with recovery options, ensuring
custodial increases control but compliance with NBE oversight
risks loss.
Flexibility vs. Consistency Human arbitration is flexible but
Use rule-based automated
slow; automated rules are release for standard cases, with
consistent but rigid manual arbitration team for
disputes, documented per NBE
risk guidelines
Compliance vs. Adoption Full audit trails increase Maintain centralized audit logs
transparency but add overhead; accessible to NBE regulators,
minimal logging reduces cost but while optimizing storage for
risks compliance efficiency
Predictability vs. Fairness Flat fees are predictable but Implement hybrid fee model: flat
(Fees) unfair for large transfers; fee for micro transactions,
percentage fees scale but percentage fee for larger
discourage big transfers transfers, disclosed per NBE
consumer protection rules
Scalability vs. Simplicity Simple centralized database is Use centralized core banking-
easy but may not scale; style ledger with horizontal
advanced infrastructure scales scaling (sharding/replication),
but adds complexity. ensuring NBE reporting
compliance
Subsystem Decomposition
The subsystem decomposition for our app begins by breaking the system into cohesive
subsystems that reflects its core function, such as user management, wallet management,
escrow management, compliance and risk and communication. Each subsystem is then divided
into well-defined components for example, user management includes Sign-up/log-in,
Authentication and profile handling, while wallet management covers balance tracking,
transaction processing and audit logging. Escrow management is composed of account
creation, fund holding and release and dispute resolution whereas compliance and risk involves
KYC/AML verification, transaction monitoring and regulatory reporting aligned with NBE
directives. Finally, communication handles notifications and customer support. Each
component is further decomposed into subcomponent, such as data validation, data
integration and verification within sign up or conditional release rules and arbitration workflows
within escrow. This hierarchical decomposition ensures that the system remains scalable,
maintainable and compliant with regulatory requirements while providing a clear structure for
development and future enhancements.
Design Phase models
The design phase model serves as a vital point where the gathered software requirements are
transformed into a structured design document. A detailed blueprint detailing essential
elements such as architectural design, user interface design, and data base design is created.
More technical information about the product such as screen designs, databases, sketches, and
prototypes are developed during this phase. The resulting details contribute to making the
crucial final product design decisions.
All these details are compiled into a Software Requirement Specification (SRS) document which
encapsulates the standards, requirements, and expectations for the prospective product.
Here are the design phase models:
Class Diagram
User Interface
Flow Diagram
Deployment Diagram
Class Diagram
The class diagram is essential as itdefines the object orineted strcture of the system. It identifies
attributes and operations for each class outlines their relationships. This model not only helps in
structuring the backend and ensuring consistency but also illustrates how different
componenets interact with each other. By providing a clear blueprint, the class modelensures
with each other. By providing a clear blueprint, the class model ensures developers understand
the static elements and changes within the system, facilitating efficient development and
maintenance.
User Interface
User interface design plays a crucial role in ensuring a seamless user experience. Out system is
designed to let customer make agreement using escrow feature and make transaction between
users, which facilitates structured and professional process. Visually appealing and friendly
interfaces will allow our users to make agreement and transactions securely and easily.
Flow Diagram
Flow diagram maps out the sequence of actions, decisions and system responses that occur
during key processes like when a user log-in.
Deployment Diagram