> For the complete documentation index, see [llms.txt](https://xio.gitbook.io/xio/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xio.gitbook.io/xio/architecture/system-engineering/security.md).

# Security

XIO employs a multi-layered security architecture to protect user data and assets. By integrating advanced technologies, XIO ensures secure transactions, privacy, and protection from external threats.

### Decentralized Identifiers (DIDs) & Verifiable Credentials (VCs)

XIO creates privacy-preserving identities with DIDs and VCs, streamlining KYC processes and minimizing user friction.

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* **Decentralized Identity**: DIDs remove the need for repeated authentication.
* **Streamlined KYC**: Accounts remain unverified until KYC is completed for security.
* **Privacy First**: Secure, decentralized structure for user identity management.

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### Multi-Device Authentication (XIO Component Access - XCA)

Link DIDs to multiple devices for seamless and secure account management.

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* **Device Sync**: Preferences and customizations are synced across devices.
* **Simple Authentication**: Uses 2FA or FaceID for secure access on multiple devices.

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### End-to-End Encryption

XIO ensures all sensitive communications are encrypted, both in-transit and on-device.

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* **Encryption**: Communications involving value transfers and sensitive data are encrypted.
* **Privacy**: Protects against data breaches and ensures privacy across the platform.

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### Air-Gap Wallet Security

A cold-to-hot air-gap mechanism secures fund transfers between offline and online wallets.

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* **Cold-to-Hot Security**: Transfers between cold and hot wallets are protected.
* **Zero Knowledge Proofs**: Prevents exposure of sensitive information during transactions.

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### Trusted Group Collaboration

Utilizing DIDs and VCs, users can form secure, trusted groups for collaborative trading and alerts.

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* **Secure Collaboration**: Trusted groups for safe and transparent trading and alerts.
* **VC-Based Onboarding**: Ensures authenticity and security in group interactions.

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### Additional Features

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* **Internal VM for Smart Contracts**: Handles secure execution of encrypted smart contracts.
* **In-Transit Data Encryption**: Ensures transaction and account data is always encrypted.
* **Compliance with Global Standards**: Built to meet global regulatory requirements, with modular policies.

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