Architecture
- Protocol
- Fiduciary token protocol
- runs on EVM (Ethereum)
- Redemption & vault operation protocol
- runs on bankchain (Cosmos sidechain)
- Fiduciary token protocol
- Bank Service
- Bank Software
- Bank Hardware
Banks
- Abstractly, a "bank" is a market maker in the loanable funds market
- Loanable funds inherently involve trust/credit
- Banks will own and operate Bitcoin (and other layer-1 cryptos) vault(s) on bankchain
- Banks issue fiduciary tokens
- Two different fiduciary token types
- Redemption
- discretionary (KYC)
- in BTC for bank depositors
- nondiscretionary
- in stablecoin bank currency on EVM
- in BTC on bankchain
- discretionary (KYC)
- Fiduciary tokens have a tokenURI with onchain JSON object metadata
- with a "contract" field
- and a "suspensionClause" field
- encoding two different term structures of yield bearing contracts
- for stablecoins "contract" is {"type": "one", "currency": "BTC"}
- contract that pays 1 BTC on demand
- to holder of 1 unit of the stablecoin
- Banks consume bank services to manage and trade their tokens
- Banks are auditable
- vaults and fiduciary tokens onchain
- Banks are reputable
- through staked tokens on bankchain
- and branding
- Banks are accountable
- redemption of fiduciary tokens
Redemption
- Anyone may deposit fiduciary tokens for redemption on bankchain
- Daily clearance
- Based on the term structures
- All redeemable deposited tokens are valued
- Only the differences in what depositors total owed - owe are redeemed
- Economizing on layer-1 transfers
- Redemptions transfer out of the vaults to depositors
- Then the redeemed fiduciary tokens are burned on the EVM
Vault Operation
- Banks can create, transferFrom, suspend, unsuspend and terminate their vaults
- Anyone can transfer their Bitcoin to any Bitcoin vault
- Suspension & Termination
- Illiquid banks can
- Suspend a vault
- Bank can't transferFrom the vault
- Suspending switches fiduciary duty to the suspensionClause contract
- Unsuspending switches back, re-enables transferFrom
- Modeled on the option clauses used by Scottish banks
- high interest and briskly resumed redeemability
- Acts as "insurance" against bank runs for solvent banks
- Insolvent banks can
- Terminate a vault that is suspended
- Bank still can't transferFrom the vault
- Depositors have six months to deposit fiduciary tokens on bankchain
- Vault tokens and bank stake tokens are transferred to depositors
- Illiquid banks can
Bank Software
- Server
- Automates minting of stablecoins
- And transferring them to be assets for fiduciary share tokens
- According to fiduciary contract obligations
- Dapp
- Bank level
- Customer level
Bank Hardware
- Polymer banknotes
- counterfeit countermeasures
- denominated value
- unique branded artistic design
- space for fiduciary contract
- space for visible public addresses
- tamper-evident seal and space for concealed secret key
- Banknote Creator
- banknote stack input
- for each note
- prints fiduciary contract
- prints public address
- prints secret key
- applies tamper evident seal
- Transfers fiduciary stablecoin tokens to notes
- Banknote Redeemer
- Banknote input
- Secret key revealed
- Deposits fiduciary tokens for redemption
- Teller Machine
- Simplified Dapp screen interface
- Withdraw and deposit banknotes
- Includes Banknote redeemer for accepted rival banknotes
- Bankcards, Bankchecks, et cetera