# Design Overview

<figure><img src="https://2615436117-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIvVpNw8jY11FoFLma6sk%2Fuploads%2FCwMCV5QEhCNgDRZNR1Rj%2FNetwork%20architecture%20overview%201%20-%20Footnote%20out.png?alt=media&#x26;token=c8a707a0-ab51-498d-b2ef-d2846e5c8ced" alt=""><figcaption><p>Fig. ICN overview</p></figcaption></figure>

## Core Components

1. **Smart Contracts**: \
   Enforces the ICN economic & resource allocation system, and implements the performance validation logic.
2. **ScalerNodes**: \
   Base resource unit node in the protocol. Physical servers of specific hardware class provisioned to the network by Hardware Providers.&#x20;
3. **Daemon**: \
   Core diagnostic agent for provisioning, telemetry, and hardware response. Provisioning of ScalerNodes is achieved through the installation of the Daemon.&#x20;
4. **HyperNodes**: \
   Independent validator nodes verifying Hardware resource quality and performance. HyperNodes reports are evaluated by the ICN Smart Contracts, ensuring that Builders receive the expected quality of service.
5. **Satellite Network**: \
   Guarantees the availability and integrity of off-chain challenge data. In the current implementation, the Satellite Network is bootstrapped as part of the system setup.&#x20;
6. **Services & Apps**: \
   Builders book capacity in the network in ScalerNode units and deploy services and applications at scale.

## Protocol Lifecycle

<figure><img src="https://2615436117-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIvVpNw8jY11FoFLma6sk%2Fuploads%2FbJIs7eunzg2uhvyZnpAt%2FNetwork%20architecture%20overview%202%20-%20Footnote%20out.png?alt=media&#x26;token=0c336ded-1731-4292-adea-5978f7160a20" alt="" width="563"><figcaption><p>Fig. Protocol Lifecycle</p></figcaption></figure>

The ICN architecture operates via a streamlined workflow that ensures efficiency and accountability:

1. **Provisioning**: \
   ScalerNodes join the protocol under a specific hardware class and Daemons are deployed.
2. **Resourcing**: \
   Builders, via the Console, book capacity in ScalerNode units in a specific region and access to the hardware is provided for deployment of services.
3. **Monitoring**: \
   HyperNodes continuously audit performance metrics against the Daemons and submit reports off-chain to the Satellite Network. Daemons and HyperNodes execute challenges in sync via an Indexer from events captured from Smart Contracts.
4. **On-chain Settlement**: \
   Smart contracts settle penalties and rewards based on challenge results from the Satellite Network and commit verifications.