2.1 Quantum Resistance Framework

Quantum Chain implements a multi-layered post-quantum security architecture:

• ZK-QARK Cryptography: Our proprietary hybrid zero-knowledge lattice-based cryptography ensures transaction confidentiality and quantum-resistance simultaneously. It is purpose-built for compliance-aware smart financial instruments.

• Quantum Trapping System (QTS): A dynamic protocol-level defense system that continuously monitors and detects computational anomalies potentially arising from quantum-powered attacks. It uses entropy mapping and signature deviation heuristics to isolate and mitigate threats in real time.

• Post-Quantum Encryption Layers: All data at rest and in transit is protected using lattice-based algorithms and cryptographic primitives recommended by NIST’s post-quantum standardization process.

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These combined mechanisms create a chain that is resilient not just to present-day threats but future adversarial quantum models.

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2.2 AI-Powered Compliance Layer

• On-chain validation of AML, sanctions, UBO, jurisdiction-based permissions

• Utilises an AI engine trained on global regulatory frameworks

• Dynamic compliance rules update via governance (without hard forks)

• All token transfers and smart contracts are checked by the compliance layer

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2.3 Smart Financial Messaging and Settlement

• Native support for message-based financial instructions (similar to ISO 20022)

• Customizable, composable smart contracts for:

  • Settlement

  • Token issuance

  • FX conversions

  • Derivatives & structured products

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2.4 QRC Tokenization Protocol

• Quantum Chain supports a native token standard: QRC (Quantum-Resistant Contract)

• Enables issuance of:

  • Equities, bonds, funds, real estate tokens

  • Insurance products

  • Carbon credits and ESG assets

• QRC tokens embed compliance logic directly into transfer permissions and asset control