Core Concepts Overview
Understanding the fundamental building blocks of Pelago's payment infrastructure.
System Architecture
Pelago is built on three core pillars from the PolyFlow protocol:
Core Components
| Component | Purpose | Learn More |
|---|---|---|
| Payment ID (PID) | Decentralized identity for payments | PID System → |
| Liquidity Pool | Aggregated settlements, reduced fees | Liquidity Pool → |
| Payment Flow | Transaction lifecycle management | Payment Flow → |
| Settlement | Batch processing and reconciliation | Settlement → |
| Security Model | ZKP, encryption, and compliance | Security → |
How Payments Flow
Key Advantages
Traditional vs Pelago
| Aspect | Traditional Gateway | Pelago |
|---|---|---|
| Custody | Gateway holds funds | Non-custodial |
| Settlement | T+2 to T+7 days | Real-time or batched |
| Fees | 2.5-3.5% | Under 0.5% |
| Privacy | Data exposed | ZKP protected |
| Identity | Central verification | Decentralized PID |
| Compliance | Complex KYC | On-chain KYC/KYA |
Next Steps
Dive deeper into each component:
- Architecture Details - System design deep-dive
- Liquidity Pool - How aggregation works
- PID System - Decentralized identity
- Payment Flow - Transaction lifecycle