Validated and enforced, peer to peer

What mints issue (debit tokens representing outright bitcoin, and credit tokens redeemable in bitcoin on the mainchain) must be verifiable, to minimise the trust requirement and keep the system fully auditable.

These proofs can be checked both by end user wallets and by mints, which mutually recognise each other’s tokens and thereby secure the system in a fully decentralised, self-responsible fashion.

E‑bill proofs

PROOF OF VALUE

Tied to a real price

Issuance must tie to real value. In a market economy a price is a factual compromise between buyer and seller, so minting requires the seller to upload a signed, encrypted invoice for the goods or services sold.

PROOF OF DELIVERY

Only for what exists

Credit must be issued only against goods already produced and services already rendered, so minting requires the buyer to upload a cryptographically countersigned, encrypted confirmation of delivery.

PROOF OF REDEMPTION

Settled at maturity

Redemption must be verifiable through mandatory final e‑bill payment at maturity, in outright bitcoin on the mainchain.

Mint proofs

PROOF OF ASSETS

What the mint holds

The total value of a mint’s e‑bill holdings is verifiable through the itemised holding balance recorded on its identity’s statechain; its bitcoin backing is provable on chain.

PROOF OF LIABILITIES

What the mint owes

The total value of asset-backed credit tokens in circulation is verifiable from auditable lists of minted and redeemed tokens, published at e‑bill maturity at the latest, or at shorter intervals if needed.

PROOF OF GUARANTEE

How much is at stake

A mint’s current guarantee percentage can be verified from its e‑IOU holdings at their market value in bitcoin (its available guarantee assets) relative to its total liabilities.