Technical Architecture

Building a high-performance, blockchain-powered prediction platform at scale

Technology Stack Overview

2.1s
Settlement Confirmation Time (Polygon L2)
$0.0009
Cost per Blockchain Transaction

Architecture Philosophy

Hybrid Model: Speed + Transparency

Traditional database for performance-critical operations (real-time predictions, odds calculation)

Blockchain for transparency and immutability (prediction receipts, settlement proofs, audit trail)

Frontend Stack

Web Application

  • Framework: Next.js 14 (React)
  • Language: TypeScript
  • State Management: Zustand + React Query
  • Styling: Tailwind CSS + Shadcn/ui
  • Charts: ApexCharts, Recharts
  • Real-time: WebSockets (Socket.io)

Mobile Apps

  • Framework: React Native (Expo)
  • Platform: iOS & Android
  • Notifications: Firebase Cloud Messaging
  • Biometrics: Face ID / Fingerprint
  • Offline Mode: Async Storage

Web3 Integration

  • Wallet Connect: WalletConnect v2
  • Web3 Library: Ethers.js v6
  • Wallet Support: MetaMask, Trust, Coinbase
  • Chain Support: Polygon, Ethereum

Performance Optimization

  • CDN: Cloudflare (global edge caching)
  • Image Optimization: Next.js Image, WebP
  • Code Splitting: Dynamic imports
  • SSR/SSG: Server-side rendering for SEO

Backend Architecture

Microservices Design

Why Microservices? Independent scaling, fault isolation, language flexibility

Each service handles a specific domain with its own database and API

Core Services

Service Technology Responsibility Scale Requirements
API Gateway Node.js + Express Route requests, auth, rate limiting 10k+ req/sec
Prediction Engine Rust Process predictions, calculate odds, settlements Critical (sub-100ms latency)
User Service Node.js + TypeScript Auth, profiles, KYC, preferences Medium load
Blockchain Service Node.js + Ethers.js Write to blockchain, receipt generation Async queue-based
Payment Service Node.js + TypeScript Deposits, withdrawals, fiat/crypto High reliability required
Price Feed Service Python + FastAPI Aggregate price data, normalize feeds Real-time streaming
Analytics Service Python + Pandas User stats, win rates, insights Batch processing
Notification Service Node.js + Bull Queue Email, SMS, push notifications Queue-based async
Gamification Service Node.js + TypeScript Badges, seasons, leaderboards Medium load
Compliance Service Python + FastAPI KYC, AML, geo-blocking, risk scoring Critical for legal compliance

Why Rust for Prediction Engine?

Database Architecture

Multi-Database Strategy

Different data types require different storage solutions:

PostgreSQL (Primary)

Use Case: Transactional data, user accounts, predictions

  • ACID compliance for financial data
  • Complex queries and joins
  • Partitioning for historical data
  • Read replicas for scaling

Redis (Caching + Real-time)

Use Case: Session data, live odds, hot data

  • Sub-millisecond read times
  • Pub/Sub for WebSocket events
  • Leaderboard sorted sets
  • Rate limiting counters

TimescaleDB

Use Case: Price history at "9" timestamps

  • Optimized for time-series data
  • Store only :09, :19, :29, etc. prices
  • Infinite historical lookback
  • Fast aggregation queries

MongoDB

Use Case: Logs, events, unstructured data

  • Flexible schema for analytics
  • Document-based prediction receipts
  • Audit trail storage
  • Fast writes for logging

Data Retention Strategy

Data Type Hot Storage Cold Storage Blockchain
Active predictions PostgreSQL + Redis - -
Settled predictions (30 days) PostgreSQL - Receipt hash
Settled predictions (30+ days) - S3 Glacier Receipt hash
Price data (all "9" timestamps) TimescaleDB S3 + TimescaleDB archive Merkle root daily
User analytics MongoDB S3 Parquet -

Blockchain Integration (Polygon)

Why Polygon Layer 2?

Cost Comparison

  • Ethereum L1: $1.58 per transaction
  • Polygon L2: $0.0009 per transaction
  • At 1M predictions/day: Save $1.57M daily

Performance

  • Confirmation Time: 2.1 seconds
  • Throughput: 71.2 TPS
  • Finality: Probabilistic (safe after 128 blocks)

Smart Contracts Architecture

Core Contracts (Solidity 0.8.20+)

PredictionVault.sol

Purpose: Hold user funds, process payouts

  • Multi-sig wallet (3 of 5 keys)
  • Automated payout execution
  • Emergency pause functionality
  • Upgradeable proxy pattern

PredictionReceipt.sol

Purpose: Immutable prediction records

  • Store prediction hash on-chain
  • Timestamp, asset, direction, amount
  • Settlement price and result
  • Provably fair verification

PriceOracle.sol

Purpose: Decentralized price feeds

  • Chainlink integration
  • Fallback to multiple oracles
  • Median price calculation
  • Dispute resolution mechanism

NFTBadges.sol

Purpose: Achievement NFTs

  • ERC-721 standard
  • Soulbound (non-transferable)
  • Dynamic metadata (SVG on-chain)
  • Rarity tiers and levels

Transaction Flow

1. User Makes Prediction (Off-Chain)

Prediction stored in PostgreSQL, instant confirmation

User experience: <1 second response

2. Prediction Queued for Blockchain

Redis queue with prediction hash

Batched with other predictions (gas optimization)

3. Blockchain Write (Async)

Smart contract writes receipt hash

~2 seconds confirmation

4. Settlement at :X9

Price oracle provides settlement price

Smart contract validates and executes payout

5. Receipt Updated

Blockchain receipt includes final result

User can verify on Polygonscan

Gas Optimization Strategies

NFT Integration: Badges & Collectibles

NFT-Powered Gamification

Blockchain badges = Provably rare, tradeable achievements

Unlike traditional gaming achievements, TheSixNines badges are:

  • Owned by the user (not the platform)
  • Verifiably rare (blockchain proves only X exist)
  • Tradeable on secondary markets (OpenSea, etc.)
  • Cross-platform compatible (show off in other apps)

NFT Types

Achievement Badges (Soulbound)

Non-transferable, permanent achievements

  • First Win badge
  • 100 Wins badge
  • Hot Streak (10+ wins in a row)
  • Legendary (1000+ wins)

These cannot be sold or transferred - prove YOUR skill

Special Moment NFTs (Tradeable)

Collectible, limited edition

  • $420.69 wins (capped at 420 total)
  • $69.69 wins (capped at 6,969 total)
  • Perfect timing wins (prediction placed <5s before cutoff)
  • Season champion badges

Tradeable on OpenSea, have resale value

VIP Membership NFTs

Access pass with utility

  • Diamond VIP: 0% fees for life
  • Gold VIP: 50% fee reduction
  • Early access to new features
  • Exclusive Discord channels

Limited supply, appreciates with platform growth

Dynamic NFTs (Evolving)

Metadata changes based on performance

  • Level up based on total wins
  • Visual changes (bronze → gold → diamond)
  • Stats embedded in NFT metadata
  • Win rate displayed on badge

NFT "grows" with your skill

Revenue from NFTs

NFT Type Mint Price Supply Royalty Revenue Potential
$420.69 Win NFT Free (earned) 420 max 5% royalty Secondary market volume
Diamond VIP Pass $5,000 1,000 max 10% royalty $5M + ongoing royalties
Season Champion Free (earned) 1 per season 10% royalty High collector value
Founder Badge Free (first 1,000 users) 1,000 max 5% royalty Community building

Smart Contract Example: Dynamic Badge

// Dynamic NFT that levels up based on wins
contract DynamicBadge is ERC721 {
    struct Badge {
        uint256 wins;
        uint256 level;
        uint256 lastUpdated;
    }

    mapping(uint256 => Badge) public badges;

    function updateWins(uint256 tokenId, uint256 newWins) external {
        badges[tokenId].wins = newWins;
        badges[tokenId].level = calculateLevel(newWins);
        badges[tokenId].lastUpdated = block.timestamp;
    }

    function tokenURI(uint256 tokenId) public view returns (string memory) {
        // Generate SVG based on current level
        return generateDynamicSVG(badges[tokenId]);
    }
}

Real-Time Data Infrastructure

Price Feed Aggregation

Primary Sources

  • Stocks: Polygon.io, Alpaca Data API
  • Crypto: Binance, Coinbase, Kraken
  • Backup: Yahoo Finance, IEX Cloud

Aggregation Logic

  • Pull from 3+ sources simultaneously
  • Calculate median price (outlier resistant)
  • Discard prices >0.1% from median
  • Store at :09, :19, :29, :39, :49, :59 only

WebSocket Architecture

Event Stream

Event Type Frequency Data Sent
Price Update Every 1 second Current price, change %, timestamp
Countdown Timer Every 1 second Seconds until next settlement
Prediction Made Real-time Anonymous prediction (direction, asset, count)
Settlement Every 10 minutes Final price, results, payouts
Leaderboard Update Every 5 minutes Top 10 rankings

Security Architecture

Multi-Layer Security

1. Infrastructure Security

  • AWS VPC with private subnets
  • WAF (Web Application Firewall)
  • DDoS protection (Cloudflare + AWS Shield)
  • Encrypted at rest (AES-256)
  • Encrypted in transit (TLS 1.3)

2. Application Security

  • Rate limiting (Redis-based)
  • Input sanitization (all user data)
  • SQL injection prevention (parameterized queries)
  • XSS protection (Content Security Policy)
  • CSRF tokens on all forms

3. Smart Contract Security

  • Audited by CertiK, OpenZeppelin
  • Formal verification (critical functions)
  • Multi-sig wallet (3 of 5 keys)
  • Time-locked upgrades (48h delay)
  • Emergency pause capability

4. Financial Security

  • Hot wallet: <5% of funds
  • Cold storage: 95% in hardware wallets
  • Insurance: $10M coverage (Nexus Mutual)
  • Withdrawal limits: $10k/day (adjustable)
  • 2FA required for all withdrawals

Compliance & Monitoring

DevOps & Infrastructure

Cloud Architecture (AWS)

Component Service Configuration
Compute ECS Fargate Auto-scaling, containerized microservices
Load Balancer ALB Multi-AZ, health checks, SSL termination
Database RDS PostgreSQL Multi-AZ, automated backups, read replicas
Cache ElastiCache Redis Cluster mode, auto-failover
Object Storage S3 Versioning, lifecycle policies, Glacier archive
CDN CloudFront + Cloudflare Global edge locations, DDoS protection
Monitoring CloudWatch + Datadog Metrics, logs, traces, alerts
CI/CD GitHub Actions Automated testing, deployment pipelines

Deployment Strategy

Monitoring & Observability

Metrics

  • Response times (p50, p95, p99)
  • Error rates by endpoint
  • Database query performance
  • Blockchain confirmation times

Logging

  • Structured JSON logs
  • Centralized (CloudWatch Logs)
  • Request tracing (trace ID)
  • Sensitive data redaction

Alerts

  • Error rate >1%: Page on-call engineer
  • API latency >500ms: Slack alert
  • Blockchain queue >1000: Auto-scale
  • Anomaly detection: ML-based alerts

Distributed Tracing

  • OpenTelemetry instrumentation
  • Trace requests across microservices
  • Identify bottlenecks
  • Visualize service dependencies

API Design

RESTful + GraphQL Hybrid

REST API (Public)

Simple, cacheable endpoints for common operations

  • GET /api/v1/assets
  • GET /api/v1/prices/:asset
  • POST /api/v1/predictions
  • GET /api/v1/user/bets

GraphQL (Advanced)

Complex queries, fetch exactly what you need

  • User dashboard (single query, all data)
  • Analytics (custom aggregations)
  • Leaderboards (paginated, filtered)
  • Real-time subscriptions

API Performance

Testing Strategy

Multi-Level Testing

Test Type Coverage Goal Tools Frequency
Unit Tests 80% Jest, Mocha, Pytest Every commit
Integration Tests Critical paths Supertest, Postman Every PR
E2E Tests User flows Playwright, Cypress Pre-deployment
Load Tests 10k concurrent users k6, Artillery Weekly
Security Tests OWASP Top 10 OWASP ZAP, Burp Suite Monthly
Smart Contract Audits 100% coverage Hardhat, Foundry Before deployment

Chaos Engineering

Deliberately break things to test resilience:

Scalability Roadmap

Scaling to 1 Million Users

Milestone Users Infrastructure Changes Cost
MVP (Month 1-6) 5,000 Single region, 4 ECS tasks, 1 DB $2k/month
Scale (Month 7-12) 50,000 Multi-AZ, 20 ECS tasks, read replicas $15k/month
Growth (Year 2) 200,000 Multi-region, 100 ECS tasks, sharded DB $80k/month
Massive (Year 3) 1,000,000 Global edge, 500+ ECS tasks, distributed DB $400k/month

Note: At 1M users generating $1.5B annual revenue, infrastructure is <0.3% of revenue

Database Sharding Strategy

Why This Stack Wins

🚀 Performance

Rust prediction engine = sub-100ms prediction processing

Redis caching = <10ms API responses

CDN = <50ms page loads globally

🔒 Security

Multi-sig wallets = No single point of failure

Audited contracts = Funds are safe

Insurance = $10M coverage

📈 Scalability

Microservices = Scale each component independently

Auto-scaling = Handle traffic spikes

Multi-region = Low latency globally

💰 Cost-Efficient

Polygon L2 = 1700x cheaper than Ethereum

Serverless = Pay only for what you use

Open-source = No vendor lock-in

🛠️ Developer Experience

TypeScript = Type safety, fewer bugs

GraphQL = Efficient data fetching

Comprehensive tests = Ship with confidence

🌐 Future-Proof

Blockchain = Transparent, immutable

NFTs = New revenue streams

API-first = Easy integrations

Technology Timeline

Months 1-3: MVP Development

  • Core prediction engine (Rust)
  • Web app (Next.js)
  • PostgreSQL + Redis setup
  • Basic smart contracts (testnet)
  • Paper money mode only

Months 4-6: Blockchain Integration

  • Smart contract audit
  • Polygon mainnet deployment
  • Real money predictions enabled
  • Payment integrations (Stripe, crypto)
  • KYC/AML implementation

Months 7-9: Mobile & NFTs

  • React Native apps (iOS + Android)
  • NFT badge system live
  • First collectible NFT drop
  • OpenSea integration

Months 10-12: Scale & Optimize

  • Multi-region deployment
  • GraphQL API
  • Advanced analytics
  • Database sharding
  • Performance optimization

Year 2: Advanced Features

  • AI-powered insights
  • Copy-trading functionality
  • White-label API
  • Cross-chain support (Ethereum, Arbitrum)

Development Team Structure

Core Engineering Team (Year 1)

Role Count Responsibilities Key Skills
Tech Lead / Architect 1 System design, architecture decisions 10+ years, distributed systems, blockchain
Backend Engineers 3 Microservices, APIs, databases Node.js, Rust, PostgreSQL, Redis
Frontend Engineers 2 Web app, mobile apps React, Next.js, React Native, TypeScript
Blockchain Engineer 1 Smart contracts, Web3 integration Solidity, Ethers.js, Polygon, auditing
DevOps Engineer 1 Infrastructure, CI/CD, monitoring AWS, Docker, Kubernetes, Terraform
QA Engineer 1 Testing, automation, quality assurance Playwright, k6, security testing

Total: 9 engineers for Year 1 ($800k budget)