Offline Value

Ghost Protocol enables value to exist in physical form, independent of network connectivity, stored on devices that can be transferred hand-to-hand like cash.

The Pattern

Offline value works as follows:

1. Commit value. You create a commitment representing specific value and record it on-chain.

2. Store the secret. You store the secret on a physical device: a smart card, a hardware token, an NFC chip, or any secure storage medium.

3. Transfer physically. You give the physical device to someone else. They now possess the secret and thus the value.

4. Redeem online. Eventually, the holder connects to the network and reveals the commitment to claim the value.

What This Provides

Offline value has properties that digital-only systems cannot match:

No connectivity required. The value exists in the device. Transfers happen without any network access.

Physical possession. Whoever holds the device holds the value. This creates intuitive ownership semantics.

Censorship resistance. No network means no one can block or reverse the transfer.

Gift economy. Value can be given as physical gifts, embedded in objects, or hidden for discovery.

How It Works

The physical device contains:

• The commitment reference (which commitment this value corresponds to)
• The secret needed to reveal it
• Optionally, metadata about the value (amount, token type)

When you transfer the device, you transfer all of this information. The recipient does not need to trust you; they can verify the commitment on-chain when they have connectivity.

Trust during the offline period depends on the security of the physical device and the relationship between parties.

Categories of Use

Offline value enables many categories of applications:

Physical currency. Cards or tokens that carry value and can be exchanged without infrastructure.

Stored value cards. Gift cards or prepaid cards that work even when systems are down.

Bearer instruments. Bonds, vouchers, or tickets embedded in physical objects.

Secure backup. Cold storage of value in physical form, isolated from network attacks.

Developing regions. Value transfer in areas with limited or unreliable connectivity.

Security Considerations

Offline value introduces unique security considerations:

Device security. If someone can extract the secret from the device, they can steal the value. The device must be tamper-resistant.

Double-spending window. During the offline period, the sender could theoretically reveal the commitment before the recipient. The recipient accepts this risk until they verify on-chain.

Loss and damage. If the device is lost or destroyed, the value is lost. Physical security matters.

Verification delay. You cannot instantly verify that value is valid without connectivity. You trust the device until you can check.

The Trade-Off

Offline value trades convenience for connectivity independence:

You gain the ability to transfer value without networks, but you accept the risks of physical custody and delayed verification.

This is appropriate for:

• Situations where connectivity is unavailable or unreliable
• Use cases where physical handoff is preferable to digital transfer
• Scenarios where the ceremony of physical exchange matters

It is less appropriate when instant verification is required or when physical security is difficult to maintain.

Implementation

Ghost Protocol does not mandate a specific physical form. Value can be stored on:

• NFC cards (tap to transfer)
• Hardware security modules
• Secure enclaves in phones (if offline capable)
• Paper (QR codes containing encrypted secrets)
• Any medium that can securely store a few hundred bytes

The protocol provides the commitment mechanism. The physical implementation is a design choice.