# The Inverter Protocol

<figure><img src="/files/YfwBGNxgTifok3BkQ28w" alt=""><figcaption></figcaption></figure>

### Key Protocol Features

The design and functionality of the Inverter Protocol are shaped by its high and low-level requirements:

* [**Modular Protocol Architecture**](/contracts/technical-paper.md): Enables deployment and iteration of token economies by combining various modules in a plug & play fashion, providing flexibility and adaptability without custom development.
* [**Module Library**](/concepts/protocol-concepts/module-library.md): Offers a collection of pre-audited, interoperable smart contract modules that can be utilized within the protocol.
* [**Inverter Security Standard:**](/concepts/protocol-concepts/security.md) Incorporates comprehensive off-chain and on-chain security measures, including rigorous audits, secure development practices, and built-in safeguards to protect assets and transactions.

### Architecture Components

The Inverter Protocol's architecture comprises of several key components that form the foundation of each token economy:

* [**Core Orchestrator Contract**](/concepts/protocol-concepts/workflow-model/orchestrator.md): The core contract that coordinates the interactions between various modules for a token economy workflow to ensure seamless operation and maintain system integrity.
* [**Module Types and Interfaces**](/concepts/protocol-concepts/module-library.md): Defines the standard interfaces for all modules to facilitate smooth integration and interoperability.
* [**Beacon Proxy Pattern**](/concepts/protocol-concepts/security/upgradeability.md): Upgrade mechanism that allows for system-wide updates without requiring redeployment of individual contracts, improving maintenance and gas efficiency.
* [**Deployment Factories**](/concepts/protocol-concepts/workflow-model/factories.md): Allow for permissionless deployments of all the workflow contracts.&#x20;

#### Architecture Diagram

<figure><img src="/files/F6wBvd3lVbpAv2HM5oBI" alt=""><figcaption></figcaption></figure>

### Token Economy Workflow

Inverter Protocol workflows consist of various modules, each serving a specific purpose in a token economy:&#x20;

* **Orchestrator**: Acts as the core engine that integrates all modules and manages their interactions within a workflow
* **Authorizer**: Controls access and permissions across a workflow, ensuring that only authorized entities can execute specific operations.
* **Funding Manager**: Handles token issuance and redemption against asset inflows, serving as the primary mechanism for managing the token supply.
* **Payment Processor**: Manages the distribution and processing of token payments according to predefined rules and conditions set within the workflow.
* **Logic Modules**: Execute specific business logic and functionalities required by different token utilities and behaviors.

For further details on how these components operate within a token economy, please visit our [Workflow Model Page](/concepts/protocol-concepts/workflow-model.md).


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