Technical Specification

The VeritasChain Protocol (VCP) is a global standard for recording algorithmic trading decisions and execution results in an immutable, cryptographically verifiable format.

Protocol Overview

Purpose

VCP establishes a cryptographically secured chain of evidence for algorithmic trading operations, ensuring compliance with international regulations including MiFID II, GDPR, EU AI Act, and quantum-resistant security requirements.

Scope

  • High-Frequency Trading (HFT) systems
  • AI-driven trading platforms
  • Retail trading systems (MT4/MT5)
  • Cryptocurrency exchanges
  • Regulatory reporting systems
Cryptographic Integrity

Digital signatures (Ed25519) and RFC 6962-compliant Merkle trees ensure mathematical proof of immutability.

Regulatory Compliance

Protocol-level support for MiFID II, EU AI Act, GDPR with crypto-shredding privacy protection.

Crypto Agility

Future-proof design with seamless migration path to post-quantum cryptography (DILITHIUM, FALCON).

Compliance Tier Structure

VCP defines three compliance tiers to accommodate different technical requirements and use cases, from high-frequency trading to retail platforms.

Platinum

HFT / Exchange Grade

Clock Sync

PTPv2 <1µs precision

Performance

>1M events/sec, <10µs latency

Serialization

Binary (SBE/FlatBuffers)

Signature

Ed25519 (Hardware HSM)

Implementation

C++, Rust, FPGA

External Anchor

Every 10 min (REQUIRED)

Gold

Institutional / Prop Trading

Clock Sync

NTP <1ms precision

Performance

>100K events/sec, <100µs latency

Serialization

JSON (optimized)

Signature

Ed25519 (Client-side)

Implementation

Python, Java, C#

External Anchor

Every 1 hour (REQUIRED)

Silver

Retail / MT4/MT5

Clock Sync

Best-effort system time

Performance

>1K events/sec, <1s latency

Serialization

JSON (standard)

Signature

Ed25519 (Delegated)

Implementation

MQL5, Python

External Anchor

Every 24 hours (REQUIRED)

Core Modules

VCP is designed with a modular architecture, allowing implementations to adopt components based on their specific requirements and regulatory obligations.

VCP-CORE

Standard header and security layer with Three-Layer Architecture providing cryptographic integrity, timestamp precision, and event identification.

Event ID (UUIDv7)
Timestamp (nanosecond)
Digital signatures
Merkle tree integrity

VCP-TRADE

Trading data payload schema capturing order lifecycle from signal generation to execution and settlement.

Signal generation
Order submission
Execution details
Position tracking

VCP-GOV

Algorithm governance and AI transparency module ensuring human oversight and explainability of automated decisions.

Algorithm updates
AI decision tracking
Human intervention
Audit trails

VCP-RISK

Risk management parameter recording capturing position limits, stop-loss triggers, and risk control mechanisms.

Position limits
Stop-loss rules
Margin requirements
Risk threshold alerts

VCP-PRIVACY

Privacy protection with crypto-shredding technique, enabling GDPR-compliant "right to be forgotten" while maintaining audit integrity.

Crypto-shredding
GDPR compliance
Data encryption
Key management

VCP-RECOVERY

Chain disruption recovery mechanism ensuring audit trail continuity even during system failures or network partitions.

Failure detection
Chain reconstruction
Gap identification
Recovery protocols

VCP-XREF

NEW in v1.1

Cross-reference and dual logging extension enabling independent VCP streams from multiple parties for discrepancy detection.

Dual logging
Cross-party verification
Dispute resolution
Non-repudiation

Full Specification Documents

Download the complete VCP specification in your preferred format and language. All documents are maintained by the VeritasChain Standards Organization (VSO).

Technical Resources

JSON Schema

Machine-readable schema definitions for automated validation and code generation.

Download Schema
SBE Templates

Simple Binary Encoding templates for high-performance Platinum tier implementations.

Download Templates
Reference Implementation

Open-source SDK in multiple languages: Python, C++, Java, and MQL5 bridge.

View on GitHub
Implementation Guide

Step-by-step guide for integrating VCP into existing trading systems.

Read Documentation

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