Microledger Foundation Charter

Proposal for Establishing a New Standards Organization

Mission Statement

The proposed Microledger Foundation will be a non-profit organization dedicated to establishing, maintaining, and advancing open standards for Microledgers - bilateral, cryptographically-secured transaction ledgers that enable peer-to-peer value transfer with centralized trust establishment and independent settlement. The technical implementation of this standard would be specified through Bank-Anchored State Channels (BASC).

We believe that the future of digital commerce requires lightweight, portable, and independently-verifiable transaction records that can be maintained between any two parties through shared cryptographic proofs, while leveraging existing financial infrastructure for trust anchoring and settlement.

Vision

To create a world where any two entities—whether individuals, businesses, machines, or software agents—can establish trusted financial relationships and exchange value directly through Microledgers, maintaining their own cryptographic proof of transactions while leveraging existing banking networks for trust establishment and settlement.

Foundation Proposal Overview

This charter outlines the proposed structure and mission for the Microledger Foundation, contingent upon securing sufficient industry support and founding membership. The Foundation would be established as a neutral, non-profit standards organization to advance Microledger technology adoption and interoperability.

Core Principles

1. Bank-Anchored Trust

Trust is established through existing financial institutions that provide escrow commitments and cryptographic guarantees, eliminating counterparty risk between unknown parties.

2. Bilateral Transaction Ledgers

Each Microledger exists solely between two parties, creating a private, shared transaction history without requiring global consensus or broadcasting.

3. Cryptographic Integrity

Every transaction is cryptographically signed by both parties and linked to previous transactions, creating an immutable, tamper-evident shared record.

4. Independent Settlement

Each party can settle their Microledger balance independently with their chosen financial institution using the shared cryptographic proof.

5. P2P Transaction Execution

After initial trust establishment, all transactions occur directly between parties without intermediary involvement in individual transactions.

6. Dedicated Fund Commitment

Banks provide specific, non-repudiable commitments that lock funds for individual bilateral Microledgers, preventing double-spending across multiple relationships.

Technical Overview

The Microledger protocol is implemented through Bank-Anchored State Channels (BASC), providing a lightweight, bilateral transaction system with institutional trust backing.

Core Components

• Genesis Block: Establishes the Microledger with dedicated bank escrow commitment
• Transaction Blocks: Record peer-to-peer transactions with dual signatures
• Settlement Block: Final balance reconciliation and closure
• Bank Integration: Institutional trust establishment and independent settlement

Key Features

• Bilateral Architecture: Private transaction channels between two parties only
• Bank-Anchored Trust: Eliminates counterparty risk through institutional backing
• Cryptographic Integrity: All transactions cryptographically signed and linked
• Independent Settlement: Each party settles with their chosen financial institution

For complete technical specifications, data structures, cryptographic requirements, and implementation details, see:

→ Microledger Protocol: BASC Reference Implementation

Microledger Lifecycle

The Microledger protocol follows a structured four-phase lifecycle:

1. Identity & Trust Establishment - Parties register identities and establish trust levels
2. Bank Commitment Creation - Financial institutions provide dedicated escrow commitments
3. Microledger Genesis - Bilateral ledger established with cryptographic guarantees
4. Transaction & Settlement - P2P transactions followed by independent bank settlement

Trust Framework

The protocol supports multiple trust levels from pseudonymous (public keys only) to fully collateralized arrangements with institutional backing and automatic settlement triggers.

Settlement Integration

Microledgers integrate with existing payment infrastructure including traditional banking (ACH, wire transfers), modern payment rails (FedNow, SEPA Instant, UPI), and emerging systems (CBDCs, stablecoins).

For detailed protocol flows, settlement patterns, and integration specifications, see the Technical Specification.

Proposed Governance Structure

The Foundation would operate as a neutral, member-governed organization with appropriate board oversight and technical steering committee guidance. Detailed governance structure, membership tiers, and decision-making frameworks are under development and will be established with founding member input.

Call to Action

The Microledger Foundation will be established upon securing sufficient industry interest and founding membership commitments.

Organizations interested in founding membership, partnership opportunities, or technical collaboration are invited to express interest through the contact mechanisms provided at microledger.org.

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This charter represents a proposal for the Microledger Foundation. It will be finalized and ratified by the founding membership upon establishment of the organization.