OpenFiat Protocol Suite

Abstract#

The OpenFiat Protocol Suite (OFS) defines the complete collection of open technical specifications that together form the OpenFiat decentralized fiat marketplace.

Rather than existing as a single monolithic specification, OpenFiat is divided into a collection of modular documents. Each document describes a specific protocol, subsystem, or architectural component.

This modular approach allows the protocol to evolve incrementally while maintaining backward compatibility, encouraging independent implementations, and enabling governance to upgrade individual protocol layers without redesigning the entire ecosystem.

1. Introduction#

OpenFiat is an open protocol for decentralized peer-to-peer fiat exchange.

Its purpose is to enable anyone in the world to buy or sell digital stablecoins directly with local fiat currencies without relying on centralized exchanges or custodial intermediaries.

The protocol defines:

• Network communication
• Peer discovery
• Trading
• Escrow
• Settlement
• Reputation
• Governance
• Identity
• Notifications
• External services
• Security intelligence

Every compliant implementation follows these specifications.

2. Design Principles#

The OpenFiat ecosystem is built upon several fundamental principles.

Open Standards#

All protocol specifications are publicly documented.

Anyone may implement them.

Permissionless Participation#

Users do not require approval to:

• Run a node
• Build a client
• Operate infrastructure
• Become a merchant
• Integrate OpenFiat

Self Custody#

Users always control their own wallets.

Neither OpenFiat nor any infrastructure provider has custody of user assets.

Deterministic Behavior#

Identical protocol inputs must produce identical protocol outputs.

This guarantees interoperability between implementations.

Modular Architecture#

Each subsystem is independently specified.

New protocol versions can improve one layer without affecting unrelated components.

Progressive Decentralization#

OpenFiat initially launches with AllenHark leading development and ecosystem funding.

Governance progressively transitions protocol stewardship to the wider community as the network matures.

3. Protocol Layer Architecture#

The protocol suite is organized into layers.

Applications & Wallets

Reputation • Governance • Identity

Trading • Settlement • Disputes • Escrow

Discovery • Gossip • Sessions • Registry

Transport • Cryptography • Storage

Each layer depends only on the layers beneath it.

4. Protocol Numbering#

Every specification belongs to a protocol family.

Range	Category
OFS-0000	Core
OFS-1000	Network
OFS-2000	Marketplace
OFS-3000	Reputation
OFS-4000	Governance
OFS-5000	Identity
OFS-6000	Notifications
OFS-7000	Oracle & Risk Intelligence
OFS-8000	Future Extensions
OFS-9000	Experimental

Additional specifications may be introduced through governance.

5. Current Specifications#

Core#

• OFS-0000 — OpenFiat Protocol Suite

Network Layer#

• OFS-1000 — OpenFiat Network Protocol (OFNP)
• OFS-1100 — Peer Discovery
• OFS-1200 — Gossip Protocol
• OFS-1300 — Snapshot Synchronization
• OFS-1400 — Session Synchronization
• OFS-1500 — Service Registry
• OFS-1600 — Service Quality (SWQoS)
• OFS-1700 — Node Synchronization
• OFS-1800 — Network Security
• OFS-1900 — Storage Engine

Marketplace Layer#

• OFS-2000 — OpenFiat Trade Protocol
• OFS-2100 — Advertisement Protocol
• OFS-2200 — Reservation Protocol
• OFS-2300 — Settlement Protocol
• OFS-2400 — Dispute Protocol

Trust Layer#

• OFS-3000 — Reputation Engine

Governance Layer#

• OFS-4000 — Governance Protocol
• OFS-4100 — Tokenomics Specification
• OFS-4200 — On-Chain Program Architecture
• OFS-4300 — Chain Bridge Protocol (OCBP)

Identity Layer#

• OFS-5000 — Identity Claims Protocol

Infrastructure Layer#

• OFS-6000 — Notification Protocol

External Services#

• OFS-7000 — Oracle Protocol
• OFS-7100 — Risk Intelligence Protocol

External Registries & API#

• OFS-8000 — Error Code Registry (OECR)
• OFS-8100 — Event Type Registry (OETR)
• OFS-8200 — Node API (ONA)

6. Protocol Dependencies#

The specifications intentionally build upon one another.

OFS-1000 Network Foundation

OFS-1100 Discovery

OFS-1200 Gossip

OFS-1400 Sessions

OFS-1500 Service Registry

OFS-2000 Trade Protocol

O2100 Adverts

O2200 Reservations

O2300 Settlement

OFS-2400 Disputes

O3000 Reputation

O5000 Identity

O6000 Notify

O7000 Oracle

OFS-7100 Risk Intelligence

OFS-4000 Governance

7. Reference Implementations#

The OpenFiat Foundation intends to maintain official reference implementations for educational and interoperability purposes.

Reference implementations are not authoritative.

The specifications themselves define protocol behavior.

Independent implementations are encouraged.

8. Versioning#

Each specification includes:

• Document Version
• Protocol Version
• Compatibility Information
• Status

Possible statuses include:

• Draft
• Proposed Standard
• Standard
• Deprecated
• Obsolete

9. Backward Compatibility#

Protocol changes SHOULD preserve backward compatibility whenever practical.

Breaking changes SHOULD:

• Be explicitly documented.
• Include migration guidance.
• Specify activation procedures.
• Receive governance approval.

10. Governance#

All protocol specifications evolve through the OpenFiat Governance Protocol (OFS-4000).

Governance may:

• Create specifications.
• Modify specifications.
• Deprecate specifications.
• Archive obsolete specifications.

Historical specifications remain permanently accessible.

11. Licensing#

The OpenFiat Protocol Suite is intended to be published under a permissive open specification license, allowing anyone to:

• Read the specifications.
• Implement compatible software.
• Build commercial products.
• Contribute improvements.

Reference implementations may use separate open-source software licenses.

12. Future Protocol Families#

OFS-8000, OFS-8100, and OFS-8200 are no longer reserved for future use — they are assigned to the Error Code Registry, Event Type Registry, and Node API respectively (§5's "External Registries & API"). Future protocol groups may include:

• OFS-8300 — Cross-chain interoperability
• OFS-8400 — Zero-knowledge extensions
• OFS-8500 — AI-assisted marketplace services
• OFS-8600 — Institutional settlement
• OFS-8700 — Hardware security integration
• OFS-8800 — Mobile-first optimizations

These ranges are reserved for future governance.

13. Summary#

The OpenFiat Protocol Suite is the architectural foundation of the OpenFiat ecosystem.

By organizing the protocol into independent, interoperable specifications, OpenFiat enables developers, businesses, infrastructure providers, researchers, and governments to implement only the components they require while remaining fully compatible with the wider network.

This modular architecture encourages innovation, simplifies protocol evolution, and ensures that OpenFiat can continue growing for decades without sacrificing interoperability or decentralization.

The OpenFiat Protocol Suite answers one overarching question:

"How do all OpenFiat specifications work together to create a global, decentralized, self-custodial fiat marketplace?"