# Protocol Overview

In this section, we'll provide a high-level overview of the **Nomos** smart contracts. We'll explore the key components that make up the system, how they interact, and the role each component plays in the ecosystem.

## System Architecture

The **Nomos** smart contract protocol consists of a single factory to deploy every multisig wallet.

<figure><img src="https://github.com/chelofinance/documentation/blob/main/v1/.gitbook/assets/Nomos_Basic.drawio.png" alt=""><figcaption><p>Basic nomos overview</p></figcaption></figure>

1. **Factory**: The `Factory` contract serves as the main entry point for users wanting to create a wallet.
2. **Multisig**: The `Multisig` contract is the base of the **Nomos** project. It's the wallet that users will use to send messages to the blockchain together in a secure and flexible way.

## Interaction Flow

<figure><img src="https://github.com/chelofinance/documentation/blob/main/v1/.gitbook/assets/Nomos_Basic-Page-2.drawio%20(1).png" alt=""><figcaption><p>Nomos flow</p></figcaption></figure>

1. A new user initiates the creation of a **Nomos** wallet with the first members and the number of approvals for a proposal.
2. The `Factory` deploys a new `Multisig` contract. The users then can start sending proposals of transactions to the wallet.
3. Other users approve this proposal.
4. Once the proposal has reached the minimum amount of approvals its executed. This proposal can be anything from a withdrawal to an IBC transfer.


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