Validating PI State Updates

The core responsibility of each Settlement Data Provider is to validate the proposed State Updates emitted by the PI.

• SDP MUST validate that the address recovered from the signature of the SignedStateUpdate matches the address of the participatingInterface set in the received data

• SDP MUST validate that the recovered address matches the tradeSigningKey set by the Participating Interface in the DSL smart contracts.

• SDP MUST process events in the same order as they were sequenced by the PI, as determined by the id of each SignedStateUpdate

• SDP MUST validate each SignedStateUpdate based on the type of StateUpdate the PI proposed by calling the corresponding function in the UTXO Ledger Engine