Fiat-Backed Peer-to-Peer Settlement

This Artical proposes GDRN, a global digital reserve network designed to enable peer-to-peer

settlement of fiat currencies without reliance on centralized intermediaries or volatile

crypto-assets. By introducing a mathematically verifiable, state-backed consensus model,

GDRN bridges the gap between traditional finance and distributed ledger systems. Each

transaction is recorded within a national reserve framework while maintaining global

interoperability, enabling instant cross-border clearing and verifiable monetary issuance

without dependence on third-party custodians.

1. Introduction

The evolution of digital money has shown that decentralization without reserve backing invites

volatility, while full centralization risks control and opacity. GDRN introduces a mathematically

governed framework for fiat-based peer-to-peer settlement across nations, combining

accountablity with distributed verification.

2. System Overview

GDRN functions as a hybrid reserve ledger in which each participating national node issues

digital representations of its fiat currency. These representations-known as GDRN

units are cryptographically verified and mathematically constrained by national reserve

proofs, ensuring both transparency and stability.

3. Mathematical Model

Ledger Consistency

1"T"Σ," Tou

All fiat token inputs equal outputs across the global reserve ledger.

Reserve Ratio

R, = D /S,

Where R, is the reserve ratio of country c, D the fiat deposits held by its national reserve node, and S the GDRN tokens issued.

Cross-Node Validation

V, = H(B, B)Hash-based reconciliation between blockchains of countries i and j.

Consensus Function (Weighted Trust)

C=Ln=t institution Where represents institutional weight (central bank, commercial bank, or verified and f (s ) the signature validity function.

Monetary Integrity

vc, S,s D.

No currency may issue more GDRN tokens than its actual reserves held.

4. Network Operation

Each reserve node maintains a synchronized ledger copy validated through a weighted consensus mechanism. Nodes exchange hashed proofs of balances rather than raw transaction data, preserving confidentiality while ensuring verifiable reserves.

5. Conclusion

GDRN establishes the foundation for a globally verifiable, mathematically bound digital reserve network. It unites the precision of cryptography with the stability of fiat systems, forming a new paradigm for trustless yet accountable value exchange.

"When trust becomes proof, value returns to truth."