# Actively Validated Services (AVS)

An Actively Validated Service (AVS) is a system that requires its own distributed validation semantics for verification. These services can range from sidechains and data availability layers to oracle networks and threshold cryptography schemes. Each AVS operates with its own set of contracts that manage the state relevant to the service's functionality, such as operator management and stake security.&#x20;

## Application to Wirex Pay-Reconciliation of Onchain and Offchain Transactional Data&#x20;

For Wirex Pay, an AVS is developed to handle the reconciliation of onchain and offchain transactional data. This AVS would ensure that transactions recorded on the blockchain (onchain) match the transactions processed by external systems (offchain), providing a robust mechanism for maintaining data integrity and consistency.&#x20;

The AVS breaks down its operations into units called "Tasks." Each Task represents the reconciliation of a set of transactions between the onchain records and offchain data sources. Operators will validate these reconciliations based on predefined rules and thresholds.&#x20;

The AVS specifies the type of trust it inherits, such as using geographically diverse operators to ensure decentralized trust. This setup ensures that the reconciliation process is both transparent and resistant to manipulation.&#x20;

Clearly defined conditions under which operators will be penalized (slashed) for incorrect validations is the key. This could include scenarios where mismatches in reconciled data exceed a certain threshold or where delays in processing exceed acceptable limits.&#x20;

> By leveraging the AVS framework, Wirex Pay can create a secure, decentralized system for reconciling onchain and offchain transactional data. This ensures data consistency, enhances transparency, and maintains the integrity of financial records, thereby improving overall trust in the Wirex Pay platform.&#x20;
