paywith.glass: A Secure, Scalable, Compliant, Privacy Preserving, Global Electronic Payments System for Cryptographically Secure Digital Assets | October 2023 | sha256:4f440bbe2e620df9b3b2d2bbef97028827d4faddf20fd617cd78cdb9f769fc99

1. light paper - paywith.glass
© 2016 - 2023 paywith.glass B.V.
All rights reserved

2. Table of Contents
Abstract..........................................................................................................................................2
1. Introduction................................................................................................................................2
2. Revolutionising the financial landscape.....................................................................................3
3. Addressing the Privacy Issue.................................................................................................... 4
An Important Note on Anonymity vs Privacy......................................................................4
4. Self-Sovereign Digital Identity....................................................................................................5
5. The Powerful Applications of the Digital Identity Model.............................................................5
6. Real-time Payments Infrastructure is a Game Changer............................................................6
7. A New Economic Model Takes Shape.......................................................................................6
8. A New Paradigm for Financial Interaction................................................................................. 7
9. The Underlying Infrastructure of the New Economy..................................................................8
10. User-Centric Payment Solutions..............................................................................................9
11. The Super App Engine as Infrastructure..................................................................................9
12. Leveraging Technology for Competitive Advantage.............................................................. 10
13. Conclusion............................................................................................................................. 11
Glossary of Terms (A-z)...............................................................................................................13
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3. paywith.glass: A Secure, Scalable, Compliant,
Privacy Preserving, Global Electronic Payments
System for Cryptographically Secure Digital Assets
hatter 🎩, et al.
lightpaper@paywith.glass
paywith.glass
October 2023
Abstract
1. Introduction
In recent years, the global financial landscape has undergone a monumental transformation,
propelled by a digital revolution that traces its origins back to the aftermath of the 2008 financial
crisis. Recent years have witnessed a remarkable surge in enterprise adoption of digital assets,
government initiatives aimed at transitioning to digital asset-driven economies and the
proliferation of real-time payments systems. The implications of this seismic shift are nothing
short of extraordinary, extending far beyond mere convenience.
With substantial activity in the realms of real-time payments, user-centric financial
services, digital asset adoption, data privacy, data analytics and the integration of artificial
intelligence into financial services, it becomes evident that summarising the profound
transformation of this global industry in a few words would be a disservice to the monumental
impact that it is poised to unleash upon the world’s economies and society as a whole. In short,
what we are bearing witness to is no ordinary evolution; it is in fact, a financial revolution that
holds the potential to reshape our world.
2
This paper proposes a revolutionary single standard, akin to the foundational
concept behind Bitcoin's creation and with an ethos deeply rooted in the modern
distributed ledger technology world. It reimagines the very essence of digital
payments, seamlessly integrating a vast array of digital asset classes including
regulated capital assets, non-fungible assets and sovereign currencies, to
facilitate near-instantaneous cross-asset-class transaction settlement, while
enforcing robust security and privacy protections. The proposal embodies the
spirit of Satoshi Nakamoto's vision, establishing a unified, borderless financial
network, but goes further by embedding self-sovereign digital identity and global
financial compliance — a new paradigm where intermediaries diminish and
individuals gain control over their personal data and their financial destinies.

4. However, it is important to acknowledge that despite these fundamental changes in the
global financial sector, there is still much left to be desired in a number of areas which can
collectively be described as the way value is defined and the way it is moved. Additionally,
privacy and data ownership are still under addressed in many segments of the industry and
these present barriers to the potential promises of the world’s financial future.
Reflecting on the inception of the most recent chapter of this revolution, it is impossible
to overlook the pivotal role played by Bitcoin in the transformation of the industry. While
blockchain technology in financial services has promised revolutionary benefits across
dimensions such as privacy, transaction speed, simplification and transparency, the actual
realisation of these transformative solutions has been somewhat limited in reach and impact,
particularly for the general public.
2. Revolutionising the financial landscape
While the virtues of Bitcoin cannot be overstated, the reality of implementing a purely
peer-to-peer version of electronic cash, has not been without a number of unavoidable negative
social consequences that could be circumvented through some level of transparent global
regulatory oversight. The fundamental vision of the rule of code has by far and away been
proven to be a vital foundational principle in the realisation of what has become known as the
vision of Satoshi Nakamoto. A clear and comprehensive definition of what those rules should be
however, could be considered one of the failing oversights of Bitcoin’s design.
Bitcoin is very technically proficient at reliably facilitating secure and permissionless
transactions. However, its focus on the elimination of corporate and government control of the
financial systems presupposed a universal altruism among network participants. The design
therefore failed to account for the existence of individuals who primarily desired freedom from
social responsibility.
While we should not need permission to transact, it has been proven that we do need
enforcement of responsibility. The irony has not escaped that the trustless design of Bitcoin
which has benefits for the vast majority of the world’s population, is arguably its greatest
vulnerability in the face of exploitation by a minority of bad actors. If the rule of code governs
and protects human rights, it must also at the very least, govern human integrity and social
responsibility.
If you want to accomplish something in the world, idealism is not enough—you need to
choose a method that works to achieve the goal. In other words, you need to be “pragmatic.”
― Richard Stallman
Bitcoin sought to eliminate the need for a trusted third-party from the equation. In
practice, this has provided technical benefits at the expense of real-world feasibility and ease of
use for the average user. In the process, its design has suffered shortcomings in a failure to
address environmental and macro-economic realities. The proposed network design in this
paper will still support an efficient and minimalist structure, while embracing the complex
multi-dimensional economic environment of a healthy capitalist society. The third-party is
reintroduced but trust is still maintained through the rule of code. The third-party’s reimagined
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5. role becomes that of legal gatekeeper and customer service provider within a fair global,
commercially competitive environment, without compromise to the underlying principles of free
access for all.
3. Addressing the Privacy Issue
This paper proposes a solution that captures the essence of the original Bitcoin vision, including
a foundation of trust built on cryptographic proof. It however goes further in addressing the
shortcomings of the original peer-to-peer electronic cash system by enshrining privacy
protections and exploitation defences alongside improvements such as native general-purpose
multi-asset support, native real-time cross-currency/cross-asset transaction processing and
commercially focused application logic. Importantly, these improvements are realised without
compromising network performance at scale.
Gone are the native token, the environmentally unsustainable Proof of Work and the
inequality perpetrating Proof of Stake consensus models. In their place are a Proof of Authority
Consensus mechanism at the lowest layer and in successive layers, mandatory and
uncircumventable constructs which ensure that Authority is at all times imbued with social
responsibility.
An Important Note on Anonymity vs Privacy
While it was very idealistic and born of good intentions, the publicly perceived
untraceability and inherent anonymity of Bitcoin, laid the foundation for it to become “the
international criminal’s currency of choice”. The transparency of Bitcoin’s public ledger however
makes it in fact, one of the least anonymous payment systems ever created. Through careful
analysis of this public ledger and with only limited access to third-party records (including in
some instances, public records), it becomes quite trivial today for a skilled actor to uncover
private information about a network participant or even to uncover that participant’s identity. With
no reliable means for network participants to maintain self-sovereignty of identity or absolute
control over their personal data, Bitcoin invariably becomes a potential threat to the preservation
of privacy. In a modern electronic economy, the pursuit of absolute anonymity in payments could
be considered a fool’s errand. Attempts can be made to reduce the personal footprint by actively
minimising the number of financial-activity data points one generates, but even this will generate
a curve which merely tends to zero.
Anonymity is defined as keeping your identity private, but not your actions. It forms
a warm bed for the repudiation of responsibility. Privacy by contrast is defined as keeping the
things you choose, to yourself and this may include your actions. Human rights include the
right to life and liberty, freedom from slavery and torture, freedom of opinion and expression, the
right to work and education. While privacy should be the right of every living human being, it
should also be contingent on one’s personal relationship with the rights of others in society. If
one’s actions lead to the violation of the human rights of others (including the right to privacy),
then one should lose said right to privacy. Anonymity repudiates responsibility while privacy and
more importantly, the human right to privacy, is a fundamental tenet of our pact of personal
responsibility with society.
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6. 4. Self-Sovereign Digital Identity
A foundational component of the overall trust model, security model and of the core functionality
of paywith.glass is its Digital Identity model. It is a Self-Sovereign Digital ID system which serves
to secure the regulatory integrity of the network, ensuring that no transactions can occur without
full regulatory compliance validation of participating users — so called contamination avoidance.
It also serves to protect the users’ assets from theft or fraud and from being lost due to
user-error. In fact, the very fabric of the architecture of paywith.glass is fully dependent on its
digital ID model for all nominal operations.
The implementation of a digital identity framework introduces a number of risks which, if
not appropriately addressed, threaten to undermine the very benefits of the new model itself. To
avoid unnecessary liabilities and ensure privacy compliance, paywith.glass adopts the EU's
General Data Protection Regulation rev.2 (GDPR II) as a baseline for handling private user data.
Personal Identifying Information (PII) used to generate digital IDs is not stored by
paywith.glass. Instead, a Zero-Knowledge representation is employed through the use of a
cryptographically secure compliance credential, allowing real-time Anti-Money Laundering
(AML) checks without exposing users' private data. This approach fosters trust across
jurisdictions and institutions, while preserving privacy.
5. The Powerful Applications of the Digital Identity Model
Within the paywith.glass architecture every action requires that the user has first been
authenticated. This authentication process serves to unequivocally map each user’s activities
and actions to his/her own unique, verified digital ID within the paywith.glass system. After
establishing and validating this 1:1 mapping between the authenticated user and his/her digital
ID, it must be determined what actions the user is authorised to conduct within the system both
from a compliance perspective (eg no outstanding AML restrictions) and from an operational
perspective (the user has some valid account with specific privileges, which is in turn associated
with some institution connected to the platform). Once the status of the user has been
established, the system is ready to accept commands from that user within the boundaries of
that profile and authorization set.
OAuth2.0 offers a solid starting point for a reliable authorization model that can be used
to handle the authorisation within the digital ID framework of paywith.glass. There are however
weaknesses within this chain which could be exploited if such a system is poorly implemented.
It is therefore in the methods of authentication used to give that authorization in the first place as
well as the methods used to secure the data upon which the authentication and authorization
systems are built and meant to secure, that provides the greatest source of vulnerability.
While a token based authorization system like OAuth2.0 could be used, that token is
completely pointless if the validation of the identity of the actor gaining authorization cannot be
trusted incontrovertibly. To improve this trust, the design first calls for the number of points of
authentication to be narrowed to the minimum possible. Then, a reliable and robust method of
monitored and trusted authentication around this now minimal set of points is established. The
paywith.glass authentication model therefore uses a single point of authentication from which all
authorizations are originated. This design choice brings with it the added benefit of actively
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7. reducing the platform’s number of attack surfaces which could be exploited in the event of
attempted identity theft.
6. Real-time Payments Infrastructure is a Game Changer
The real-time payments juggernaut is already in motion, showcased by trailblazing nations such
as India (UPI), Brazil (Pix), the UK (Faster Payments) and the latest entrant, the United States,
with FedNow. Yet, we have barely scratched the surface of the revolutionary potential inherent
in real-time payments infrastructure.
In today's relentless financial arena, the emergence of real-time payments infrastructure
is a seismic force poised to reshape the industry's very foundations. Not only is it challenging
the entrenched incumbents but it is introducing a new wave of nimble, trailblazing disruptors. Its
emergence is predicated on the modern, interconnected world's demand for seamless, instant
and global financial services.
Yet, even the most recent entrants into the real-time payments arena have not fully
quenched the market's thirst for innovation. In fact, they have ushered in new complexities and
threats, given the lightning-fast exchange of digital value. The historical acceleration in money
movement has often birthed complex and unpredictable consequences.
Traditional financial institutions, in their quest to upgrade core banking systems and
integrate with groundbreaking payment networks like UPI, Pix and FedNow, face a labyrinthine
journey. Fintech companies have emerged as knights in shining armour, offering solutions,
modernization services, API wizardry and links to instant payment networks. Still, this
transformation requires hurdling adoption barriers, navigating a maze of backend integrations
and remaining one step ahead of the ever-advancing threat of fraud.
This paper proposes a new entrant into the digital revolution but one which brings with it
the bridge between the real-time payments landscape and the digital asset and tokenization
world, while addressing the fundamental elephant in the room that is user privacy and
self-sovereignty of identity. The paywith.glass Digital Currency/Electronic Payments (DC/EP)
Infrastructure, is a pioneering force poised to disrupt the market through the new digital asset
and tokenization transformation which will serve to define this new era. It is positioned to
redefine the market by combining real-time payments with digital assets and tokenization. This
innovative approach creates a new category within the broader payments industry. Traditional
asset markets operate within fixed hours with their assets siloed. The new landscape facilitated
by this infrastructure would seed real-time trading capabilities which make even first generation
tokenized asset trading platforms seem obsolete.
7. A New Economic Model Takes Shape
As the financial landscape evolves, an emerging economic model is taking shape. Traditional
institutions are being joined by innovative disruptors, challenging the status quo and driving
competition. However, this new era demands nimble, forward-thinking strategies to secure a
foothold in the evolving financial ecosystem.
The paywith.glass groundbreaking strategies of seamless integration of digital assets
and tokenization into its real-time payments network, allows for the seamless transfer of value
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8. across borders, eliminating intermediaries and reducing costs. Tokenization is not just a
technology; it is a paradigm shift that unlocks new possibilities for users, businesses and the
global economy.
Assets on the paywith.glass network are created through a minting process, primarily
performed by Financial Institutions (FIs). Central Banks and regulated FIs may mint sovereign
currencies, creating legal tender or issue stablecoins pegged to local sovereign currencies.
Additionally, paywith.glass supports tokenization of digital and physical assets, such as
cryptocurrencies, stocks, bonds, ETFs, real estate and collectibles, fostering a new era of asset
representation and exchange.
Real-time payments infrastructure is more than just technology; it is a game-changer that
is redefining how individuals and businesses transact. Existing real-time payments systems
often fall short in addressing key market demands, particularly in terms of privacy and financial
inclusion but with paywith.glass, this transformation reaches new heights. At its core,
paywith.glass is built on the principles of speed, security and accessibility. It adheres to the core
vision of Bitcoin - a peer-to-peer electronic cash system. However, it recognizes the
shortcomings in defining clear rules within Bitcoin's design and has been built to, among other
things, address them.
paywith.glass is positioned to facilitate user-centric, privacy-focused solutions. Users can
enjoy the benefits of digital payments without compromising their data security. Additionally,
paywith.glass actively seeks to enhance financial inclusion by providing access to its innovative
infrastructure for all.
It would create a foundation for FIs to build solutions that enable instant cross-asset
trading, providing seamless transaction paths that were never before possible within a single
environment. With it, tokenized assets such as ETFs, Commodities, Bonds or Stocks could be
traded directly for cryptocurrencies, tokenized real estate, or other tokenized assets from around
the world, within seconds and with 24/7 availability. This would open up incredible arbitrage
opportunities and fundamentally change the global asset trading category.
With traditional asset management tools designed for a world where trading was limited
in comparison, the new 24/7 instant settlement digital markets will fundamentally alter trading
behaviours. This renders known prediction models - derived from historical behavioural data
sets - utterly ineffective. Opportunities will therefore emerge for Fintechs and FIs to build new
AI-powered tools to support the real-time global, tokenized asset trading markets which emerge.
8. A New Paradigm for Financial Interaction
The paywith.glass architecture safely enables a wide array of financial and non-financial
services. Transactions occur via internal automated proxy services authenticated by digital IDs,
reducing capital costs, minimising errors and complying with global financial crime reporting and
anti-money laundering regulations. The two-tiered financial model ensures compliance,
scalability and operational independence of the underlying network, while also aligning with
existing economic models, thus facilitating rapid global adoption.
Every payment transaction within paywith.glass is, at its core, a peer-to-peer interaction.
The platform's architecture allows various transaction types, accommodating real-time,
programmed, or periodic payments. paywith.glass supports real-time remittance capabilities,
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9. point-of-sale payments, e-commerce transactions, IoT payments, legacy card payments and
more. All transactions are settled and cleared instantly, incorporating advanced real-time
anti-fraud technologies supported through best-in-class technology collaborations.
paywith.glass enables native support for third-party services, enriching the platform's
functionality and compatibility by relying on its built-in extensibility layer. This ensures that
real-time compliance, anti-money laundering and fraud detection are foundational elements of
the network’s operations. The extensibility also supports the infrastructure’s unique
interoperability with legacy payment networks, existing digital asset networks, web3 networks
and an emerging wave of real-time payments systems around the world.
9. The Underlying Infrastructure of the New Economy
At the infrastructure level, paywith.glass features two distinct types of digital wallets: Personal
wallets for individuals and Treasury wallets for businesses and government entities. These
wallets are bound to unique digital IDs, ensuring secure and exclusive access. The architecture
accommodates the binding of an individual's wallet to multiple financial service institutions and
supports offline payments, delivering a plethora of unique advantages.
paywith.glass offers a unique blend of transparency, privacy and regulatory
responsibility. Meanwhile, banks, asset managers and other institutions have become intrigued
by the technological potential of asset tokenization. This is generally defined as the process of
issuing a digital representation of a traditional asset on a distributed ledger. The leaders of
multiple prominent organisations in the financial markets space have publicly stated their
interests in the potential of asset tokenization to transform capital markets.
Forecasts project that more than $290 trillion of value could be unlocked through
tokenization of real-world assets and digital securities in the coming years. While these numbers
are merely projections, in-production examples at scale have begun to emerge. By mid-2023,
the US-based fintech infrastructure company Broadridge was facilitating over $1 trillion worth of
tokenized repurchase agreements each month on its private distributed ledger platform.
While tokenization adoption was poised for success several years ago, progress was
hindered by the limitations of technology and of regulatory engagement in the nascent space.
Renewed interest today is fostered by stronger business fundamentals and structural changes
that provide a powder keg to drive much anticipated innovation and explosive growth. As the
digital economy continues to evolve however, there still exists a distinct gap between the two
camps of real-time payments systems and the tokenized assets market. The raw unimaginable
potential of the new global economy that could emerge from the successful blending of these
two worlds cannot be overstated.
Legacy payments and settlement systems were built on a model where actions and
obligations are executed sequentially. This model is an echo of a bygone era where human
operators manually performed the intricate steps which powered financial transactions. These
systems could not endow each party with a complete view of real-time status information,
requiring expensive manual reconciliation and inherent transaction latencies. Innovation
suffered as a result and substantial value remained locked in limbo across markets.
New asset tokenization systems and markets sit lightyears ahead of the traditional
archaic trading model and real-time payments systems have eliminated a substantial
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10. percentage of the latency that was suffered in bygone eras. Yet, with all of this innovation, there
remains an incredible untapped potential that could be released should these two systems be
combined in a user-centric model that allows all forms of tradeable value to operate in a
tokenized, real-time payments environment. paywith.glass not only enables this environment for
the first time in history but provokes a paradigm shift that has the potential to redefine the way
we transact, invest and interact with money and value.
10. User-Centric Payment Solutions
Fintech companies have a broad range of opportunities to develop products and services that
leverage instant payments and tokenization. These cutting-edge applications hold the potential
to revolutionise the way consumers, businesses and gig-workers access funds, manage cash
flows and engage in real-time transactions for diverse purposes.
Recognizing that user-centric innovation is the cornerstone of success in today's
dynamic payments landscape, paywith.glass places users squarely at the heart of its
ecosystem. This enables FIs to craft payment solutions that not only excel in security and
efficiency but also exude intuitiveness, all while seamlessly adapting to ever-evolving user
needs.
The rise of Multi-Services Tech Platforms, or "super apps" is poised to trigger a new
digital gold-rush. These versatile mobile or web applications consolidate an array of services
under one digital roof. They typically offer a core set of features complemented by independent
mini-apps that users can access without leaving the platform.
This surge in interest around super apps has been catalysed, in part, by recent
developments at Twitter, now rebranded as X.com, as it sets its sights on creating the "WeChat
of the West." However, this pursuit comes with its unique set of challenges, stemming from the
stark cultural disparities between WeChat's home market and the fiercely competitive Western
landscape. The success of X.com will likely spawn a multitude of competing super apps, all
vying for supremacy in this category and inevitably fueled by a surge in venture capital, akin to
the waves we have seen with generative AI and Web3 technologies.
11. The Super App Engine as Infrastructure
The value of any super app is intricately linked to the quantity and quality of mini-apps available
within its ecosystem, reminiscent of the model observed in mobile operating systems reliant on
their app stores. In the event of X.com's successful super app launch, strategic collaborations
with leading service providers become imperative to cultivate its mini-app ecosystem. Imagine
partnerships with the likes of Starbucks or Lyft, where each entity maintains its dedicated mini
app within the X.com ecosystem.
With numerous startups and established players alike jumping on the super app
bandwagon, we can anticipate a deluge of incompatible mini-app development frameworks.
This scenario mirrors the early days of mobile OS proliferation, where app developers grappled
with the challenges of maintaining multiple versions of their apps or choosing preferred
platforms due to resource constraints. This landscape will inevitably grow messy, with many
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11. companies opting to forgo mini-app development and defer to the eventual category king, if one
emerges.
Contemporary super apps inherently necessitate that a payment layer is made an
integral part of the foundational functionality provided by the underlying platform to the
mini-apps layered upon it. In this evolving landscape, paywith.glass shines as a beacon of
innovation by seamlessly embedding a super app engine that cultivates a unified framework for
mini-app development. This ensures support for secure, privacy-centric real-time transaction
processing and tokenized assets by default. With every mini-app built on the single, globally
scalable paywith.glass core infrastructure, compatibility would be guaranteed with each super
app created using its common engine.
This guarantee holds even if the mini-app developer has not yet engaged with a
prospective super app creator. The environment effectively dismantles barriers and fosters
collaboration within the resulting ecosystem, serving as the cornerstone for creating a universe
of fully interoperable super apps. Through this, paywith.glass would enable accelerated growth
of the emerging sector, obviating the need for any mini-app developer to wait for a category king
to emerge.
12. Leveraging Technology for Competitive Advantage
In a world where technology development is a primary driver of innovation, the paywith.glass
team understands the importance of technological counter-positioning. paywith.glass is a novel
payment system that offers several benefits and improvements over the existing payment
methods and systems.
Our early differentiators in a saturated fintech market, are the following:
● Delivered through a technology licence via a global consortium membership
● Membership structured with flat tiered annual fees, no per-transaction charges
● Offers native cross-asset transactions securely across institutions
● Unlocks a global multi-trillion dollar tokenized asset market to not only free up
liquidity but to introduce new and currently untapped liquidity sources
● Unmatched future-proofed interoperability with legacy payments rails, web 3 networks
and other real-time payment systems
● Natively embeds a super app engine within the infrastructure layer to power an
interoperable super app+mini-app universe
● Enhances accessibility, simplifies user experience and addresses cash-flow
constraints
● Maintains simplicity and familiarity of traditional banking and Fintech apps
● Incorporates advanced AI-enhanced security features to combat fraud, especially
Authorised Push Payment (APP) fraud
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12. ● Provides quick access to funds, benefiting gig workers and those living paycheck to
paycheck
● Seamlessly integrates fiat currency with cryptocurrency and tokenized assets
● Supports real-time payments for merchants
● Reduces credit card transaction costs, eliminating them in some instances
● Facilitates instant refunds and streamlines payment processes, improving customer
experiences
● Enhances financial inclusion by offering simple and secure payment options via
non-traditional Fintechs and FIs
● Outperforms traditional wire settlement systems in terms of speed, accessibility and
security for high-value transactions
● Natively supports the issuance, distribution and transaction processing of retail CBDCs
and Global Stablecoins
13. Conclusion
paywith.glass aims to create a financial ecosystem that combines the strengths of Bitcoin's
vision with enhanced regulatory oversight, privacy protection and a robust digital identity
system. It stands out by combining the best features of existing payment systems while
addressing their limitations and then extending the possible far beyond what is imagined today.
Its real-time settlement, scalability, accessibility, simplicity and security improvements
make it a compelling option for governments, consumers and businesses. With the ability to
support tokenized and other digital assets including Central Bank Digital Currencies (CBDCs)
and cryptocurrencies along with a focus on addressing cash flow constraints and financial
inclusion issues, paywith.glass is well positioned as an innovative and forward-thinking payment
solution in the evolving payments landscape.
The simultaneous introduction of self-sovereign digital identity, digital asset tokenization
and user-centric real-time payments infrastructure, collectively mark a momentous milestone in
the annals of financial history. These herald a new era where the velocity and sophistication of
value exchange challenges the established norms. From a scientific perspective, this impending
shift in the financial landscape underscores an imperative for interdisciplinary collaboration. It
beckons a convergence of economics principles, technology and data analysis capabilities to
comprehend and navigate the intricate landscapes of the new real-time payments and digital
asset ecosystems.
To seize the full potential of this transformative juncture, paywith.glass must navigate a
terrain characterised by rapid modernization, intricate integration processes and heightened
concerns regarding privacy and security. Success is only possible through active collaboration
with global financial institutions, fintech companies and other industry leaders to co-create
integrated solutions for the benefit of all network participants and their respective customers.
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13. Their invaluable input will drive its journey towards becoming the go-to platform for
organisations seeking to harness the full potential of real-time digital asset transactions.
Through rigorous scientific inquiry, paywith.glass sits at the precipice of the opportunity
to not only ride the wave of change but to also guide it towards a future marked by enriched
financial inclusivity, innovation and economic prosperity. Nonetheless, claiming a leadership
position in the realm of digital payments and tokenization during this new era necessitates a
multi-faceted approach.
paywith.glass serves as a testament to the fact that success hinges not solely on
technology but also on visionary insight, strategic acumen and an unwavering commitment to
user-centric values. This robust financial infrastructure is the brainchild of seasoned
professionals dedicated to constructing secure and reliable systems. Its founders bring a wealth
of expertise to the mission of erecting a strong foundation for the world’s financial future.
While today’s tech industry generally operates with a fail fast and fail often mentality,
paywith.glass’ creators recognize that in the realm of critical financial infrastructure, there is no
room for error. The paywith.glass vision instead prioritises the establishment of solid and
enduring foundations. Its progenitors firmly believe that triumph in this domain hinges on
unwavering dedication, meticulous planning and an unwavering commitment to excellence. In
creating the Internet, for the world’s money, the paywith.glass ethos is predicated upon the
guiding principle of carpe magnus scientiam; highlighting the significance of seeking out and
taking firm hold of profound knowledge to forge a legacy of lasting significance.
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14. Glossary of Terms (A-z)
ACH / Automated Clearing House - The Automated Clearing House is an electronic
funds-transfer system, which forms the backbone for the electronic movement of money and
data in the United States. It is run by the National Automated Clearinghouse Association
(NACHA), which manages the development, administration, and governance of the ACH
Network. With ACH, funds are electronically deposited into financial institutions, and payments
are made online.
AML / Anti-Money Laundering - AML (Anti-Money Laundering) is a term used for fighting
money laundering and financial crimes. The fight against money laundering in the world
includes all policies, regulations, and laws. These regulations are designed to prevent criminals
from hiding illegally obtained money.
API / Application Programming Interface - In the context of APIs, the word Application refers
to any software with a distinct function. Interface can be thought of as a contract of service
between two applications. This contract defines how the two communicate with each other using
requests and responses.
Atomic Swap - An atomic swap on the paywith.glass network is an absolute exchange of value
between two different asset types. This is facilitated through the paywith.glass currency fluidity
model where a sender can start a transaction with one asset and the recipient receives a
different asset but of equal value.
BACS / Bankers’ Automated Clearing System - BACS refers to a UK payments scheme and
the network of banks and building societies that participate in its UK-only domestic transfer
system. It is responsible for the clearing and settlement of automated direct debit, BACS Direct
Credit and the provision of third-party services in the UK.
Blockchain - Blockchain is a system in which an immutable record of transactions is maintained
across computers that are linked in a peer-to-peer network. It is one type of Distributed Ledger
Technology (DLT).
Canton Network - Canton is an interoperability protocol of Daml. Every single node that hosts a
participant (a company like Deloitte or BNP) can transact on the blockchain using the Daml
written smart contracts or canton protocol (information transfer between the computers).
CBDC / Central Bank Digital Currency - Central bank digital currencies (CBDCs) are the
digital form of a sovereign currency that are not directly pegged to a physical commodity. They
are a digital form of existing legal tender (cash) issued by a nation’s Central Bank or Monetary
Authority and can be used for any transaction in which cash is a legally acceptable way to pay.
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15. CHAPS / Clearing House Automated Payment System - CHAPS is a UK Sterling same-day
system that is used to settle high-value wholesale payments as well as time-critical, lower-value
payments like buying or paying a deposit on a property.
Commercial Money / Commercial Bank Money - Commercial money refers to money in an
economy that is created through debt issued by commercial banks. It is created by your local
bank under the Fractional Reserve model that is regulated in your local jurisdiction and not by
the Central Bank itself. It is generally the money that resides in your digital account balance
within your bank account vs the cash you may withdraw from an ATM which is created by the
Central Bank.
Cryptocurrency - A cryptocurrency, is a digital currency designed to work as a medium of
exchange through a computer network that is not reliant on any central authority, such as a
government or bank, to uphold or maintain it.
Cryptographically Secure - Cryptography refers to secure information and communication
techniques derived from mathematical concepts and a set of rule-based calculations called
algorithms, to transform messages in ways that are very difficult to decipher.
CTF / Combating the Financing of Terrorism - Combating the Financing of Terrorism (CFT) is
a set of government laws, regulations, and other practices that are intended to restrict access to
funding and financial services for those whom the government designates as terrorists. By
tracking down the source of the funds that support terrorist activities, law enforcement may be
able to prevent some of those activities from occurring.
Currency Peg - A fixed exchange rate, often called a pegged exchange rate, is a type of
exchange rate regime in which a currency's value is fixed or pegged by a monetary authority
against the value of another currency, a basket of other currencies, or another measure of
value, such as gold.
Digital Literacy - Digital literacy is the ability to access, manage, understand, integrate,
communicate, evaluate and create information safely and appropriately through digital
technologies for employment, decent jobs and entrepreneurship.
DLT / Distributed Ledger Technology - Distributed ledger technology (DLT) describes a type
of digital database system for recording the transaction of assets in which the transactions and
their details are recorded in multiple places at the same time (distributed). Unlike traditional
databases, distributed ledgers have no single central data store.
eCommerce / Electronic Commerce - Electronic commerce is the activity of electronically
buying or selling products on online services or over the Internet.
ETF / Exchange-traded Fund - Exchange-Traded Funds (ETFs) are funds that trade on
exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of
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16. assets you can buy and sell during market hours—potentially lowering your risk and exposure,
while helping to diversify your portfolio.
F/X / Forex / Foreign Exchange - The foreign exchange (forex or F/X) market is a global
marketplace for exchanging national/sovereign currencies. Due to the worldwide reach of trade,
commerce, and finance, forex markets tend to be the world's largest and most liquid asset
markets. Currencies trade against each other as exchange rate pairs.
FedNow - FedNow is an instant payment service developed by the Federal Reserve for
depository institutions in the United States, which allows individuals and businesses to send and
receive money. The service launched on July 20, 2023 allowing banks to build products on top
of the FedNow platform.
FI / Financial Institution - A Financial institution is a business entity that provides services for
different types of financial monetary transactions.
GDPR II - The General Data Protection Regulation rev.2 is a European Union regulation on
Information privacy in the European Union and the European Economic Area. The GDPR II is
an important component of EU privacy law and human rights law, in particular Article 8 of the
Charter of Fundamental Rights of the European Union.
Immutable - Something that is described as immutable is unchanging over time or unable to be
changed.
Institutional User / paywith.glass Institutional User - The second of two classes of user
privileged with access to the universal management dashboard of the paywith.glass platform.
These are team members of the Financial Institutions or Fintech Technology partners which
manage their institution’s activities on the platform in order to enable, monitor and manage
services provided by their companies which are either enabled by the paywith.glass network or
provide third-party services to enhance the capabilities of the global paywith.glass network..
IoT / Internet of Things - The term IoT, or Internet of Things, refers to the collective network of
connected devices and the technology that facilitates communication between devices and the
cloud, as well as between the devices themselves. Thanks to the advent of inexpensive
computer chips and high bandwidth telecommunication, we now have billions of devices
connected to the Internet. This means everyday devices like toothbrushes, vacuums, cars, and
machines can use sensors to collect data and respond intelligently to users. These devices may
also be able to perform payments on behalf of the user and in the complete absence of the user.
KYB / Know Your Business - Know Your Business (KYB) refers to the due diligence review of
a business that a company is dealing with. AML regulations require that checks are carried out
on any potential business customer to establish its identity and authenticity.
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17. KYC / Know Your Customer - KYC means Know Your Customer and sometimes Know Your
Client. KYC or KYC check is the mandatory process of identifying and verifying the client's
identity when opening an account.
Meta identity - Traditionally, a Meta Identity, literally "beyond or transcending identity", refers to
electronic or viral consciousness which is able to move from one body to the next while retaining
the same personality. In the case of a digital Identity system a Meta Identity is an electronic
identity which is imbued with the same rights and privileges as the natural person or entity it
represents. As a result, it is for all intents and purposes the same natural person or entity it
represents and therefore able to take on the role of absolute representation of that natural
person, in a digital realm.
MfA / Multi-factor Authentication - Multi-factor authentication is a multi-step account login
process that requires users to enter more information than just a password. For example, along
with the password, users might be asked to enter a code sent to their email, answer a secret
question, or scan a fingerprint.
ML / Machine Learning - A branch of artificial intelligence (AI) which focuses on the use of data
and algorithms to imitate the way that humans learn, gradually improving its accuracy.
NFC / Near Field Communication - Near Field Communication is a set of short-range wireless
technologies, typically requiring a distance of 4 cm or less to initiate a connection. NFC allows
you to securely share a small amount of data between your bank card and the terminal when
you perform a contactless payment.
Non-Fungible - Non-fungible means that something is unique and can't be replaced. By
contrast, physical money and cryptocurrencies are fungible, which means any one unit of a
given currency can be traded or exchanged for another. Every Non-Fungible asset contains a
digital signature which makes each one unique.
OAuth2.0 - OAuth 2.0, which stands for “Open Authorization”, is a standard designed to allow a
website or application to access resources hosted by other web apps on behalf of a user.
Open Banking - Open banking/Open bank data is a banking practice that provides third-party
financial service providers open access to consumer banking, transaction, and other financial
data from banks and non-bank financial institutions through the use of application programming
interfaces (APIs). Open banking allows the networking of accounts and data across institutions
for use by consumers, financial institutions, and third-party service providers.
P2P / Peer-to-Peer - involving the exchange of assets or other resources directly through a
network, rather than using a centralised third-party.
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18. PAPSS / Pan-African Payment and Settlement System - The Pan-African Payment and
Settlement System is a Pan-African real-time gross settlement (RTGS) infrastructure for
cross-border payments in distinct local currencies.
PII / Personal Identifying Information - Personal Identifying Information (PII) is any type of
data that can be used to identify someone, from their name and address to their phone number,
passport information, and social security numbers. This information is frequently a target for
identity thieves, especially over the Internet.
PoS / Point of Sale - A point of sale is a place where a customer executes the payment for
goods or services. A PoS transaction may occur in person, with receipts generated either in
print or electronically.
Programmable Payment - Programmable payments are payments that are automatically
executed after certain conditions are met. Thus, these payments are automated and follow an
inherent, predetermined logic.
QR Code / Quick Response Code - A Quick Reference code is a type of two-dimensional
matrix barcode consisting of an array of black and white squares. It is typically used for storing
URLs or other information for reading by the camera on a smartphone.
R3 / R3 Corda - R3 Corda is a distributed ledger technology (DLT) platform that was specifically
designed for financial services. R3 Corda is built on the principles of privacy, security, and
interoperability. It allows for the secure and efficient exchange of data and value between
parties.
REST / REST API - A REST API (also called a “RESTful” API) is a specific type of API that
follows the guidelines of the design principles of the REST architectural style. REST stands for
Representational State Transfer. This means that when a client requests a resource using a
REST API, the server transfers back the current state of the resource in a standardised
representation.
Ripple - Ripple is a real-time gross settlement system, currency exchange and remittance
network that is open to financial institutions worldwide. It was created by Ripple Labs Inc., a
US-based technology company.
RLN / Regulated Liability Network - The RLN project seeks to accommodate central bank,
commercial bank and regulated non-bank transactions operating within “partitions”, all on a
single network. The RLN is a regulated financial marketplace infrastructure in the U.K. with
contributors from financial institutions worldwide.
RTGS / Real-time Gross Settlement Systems - Real-time gross settlement systems are
specialist funds transfer systems where the transfer of money or securities takes place from one
bank to any other bank on a "real-time" and on a "gross" basis.
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19. RTP / Real-time Payments - Real-time payments are payments made between bank accounts
that are initiated, cleared and settled within seconds, at any time of the day or week, holidays
and weekends included. This improves transparency and confidence in payments, helping
consumers, banks and businesses manage their money.
SEPA / Single Euro Payments Area - SEPA is a payment integration initiative of the European
Union for simplification of bank transfers denominated in euro.
Sidechain - A sidechain is a blockchain that stems from the main blockchain and runs in
parallel to it.
SmartATM / Smart Automated Teller Machine - Smart ATMs are automated teller machines
(ATMs) that have more functionality than simply dispensing cash. Bank branches are closing
more of their branches, reducing their physical footprint to make way for more self-service,
smart banking options. Smart ATMs can enable consumers to do any number of tasks
previously requiring an appointment in a local branch, such as opening an account, depositing
cash and checks, or transferring funds.
Split Brain - Split brain is a state of a server cluster where nodes diverge from each other and
have conflicts when handling incoming I/O operations. The servers may record the same data
inconsistently or compete for resources.
Stablecoin - A stablecoin is a type of cryptocurrency where the value of the digital asset is
pegged to a reference asset, which is either fiat money, exchange-traded commodities, or
another cryptocurrency.
Super app / Multi-Services Tech Platform - A super app is a mobile or web application that
combines multiple services into one platform. Super apps have a set of core features and
independent mini apps that users can access within them.
SWIFT / S.W.I.F.T. / The Society for Worldwide Interbank Financial Telecommunication -
The Society for Worldwide Interbank Financial Telecommunication is a Belgian cooperative
society providing services related to the execution of financial transactions and payments
between certain banks worldwide. Its principal function is to serve as the main messaging
network through which international payments are initiated.
Tokenization - A token is a representation of a particular asset or utility. Tokenization is the
process of converting something of value into a digital token that's usable in a distributed ledger
technology application.
tps / transactions per second - Transactions Per Second (tps) refers to the number of
transactions a DLT network can process within a second. It measures the speed and throughput
of a digital asset network, reflecting its ability to handle a high volume of transactions
simultaneously.
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20. Tx / Transaction - A transaction (Tx) is a process of exchanging digital assets on a distributed
ledger.
UML / Unsupervised Machine Learning - Unsupervised learning is a paradigm in machine
learning where, in contrast to supervised learning and semi-supervised learning, algorithms
learn patterns exclusively from unlabeled data.
URL / Uniform Resource Locator - It is the mechanism used by browsers to retrieve any
published resource on the web. A URL is nothing more than the address of a given unique
resource on the Web.
UX / User Experience - User experience describes how a user interacts with and experiences a
product, system or service. It encompasses all aspects of the end-user's interaction with the
company, its services, and its products.
Wallet / Personal Wallet / Treasury Wallet - A Wallet on the paywith.glass platform is the
single unit of storage for all assets associated with a digital ID. This wallet may either be a
Personal Wallet or a Treasury Wallet. A personal wallet may only be accessed by a single user
authenticated against their digital ID. A Treasury wallet may be accessed to varying degrees of
authority by the suitably authorised roles within the organisation of an AO. All wallets on
paywith.glass are capable of holding multiple assets at once. All personal wallets are capable of
supporting more than one AO institution at once.
Web 3 / Web 3.0 - Web 3.0 is the third generation of the World Wide Web. Web 3.0 is meant to
be decentralised, open to everyone (with a bottom-up design), and built on top of blockchain
technologies and developments in the Semantic Web, which describes the web as a network of
meaningfully linked data.
Zero-net State - The zero-net state transaction is an end state where both sides of the
transaction have been satisfied with the ending value held on each side being equal to the
starting value that was initially held on each side. A transaction that ends in a zero-net state
sees a net movement of zero value between the transacting parties, despite the fact that the
stores of value may have changed as a result of the transaction. An example is a barter trade
between parties Alice and Bob where Alice trades $10 worth of oranges with Bob, in exchange
for $10 worth of apples. The transaction ends in a zero-net state since the value that has been
exchanged equally is worth $10, despite the fact that each party ends the transaction with
different assets from those with which they started.
Zk / Zero-Knowledge - The Zero knowledge concept from cryptography is an interactive
method for one party to prove to another that a statement is true, without revealing anything
other than the veracity of the statement.
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