Transaction Proof

Purpose of Transaction Proof

Transaction proof defines how on-chain transfers are cryptographically linked to internal balance changes. Its purpose is to demonstrate that every credited or debited amount originates from an observable blockchain transaction and follows deterministic accounting rules.

On-Chain Event as Source Input

The proof pathway begins with an on-chain transaction that is finalized by the underlying network. This includes deposits sent to controlled addresses or withdrawals broadcast by the system. Each event is identified by its transaction hash, network identifier, and block inclusion data.

Extraction of Verifiable Attributes

From each on-chain transaction, a fixed set of attributes is extracted without interpretation. These attributes include sender, recipient, token contract, raw amount, chain identifier, and confirmation state. No economic transformation occurs at this stage.

Deterministic Normalization

The extracted attributes are normalized into the internal settlement format using deterministic rules. Token amounts are converted into the system’s internal unit representation, preserving value equivalence. The normalization logic is versioned and reproducible.

Ledger Correlation

Each normalized transaction is correlated to exactly one internal ledger entry. The ledger entry references the original transaction hash and network metadata, creating a direct linkage between the blockchain event and the balance change.

Balance Consistency Check

Before finalization, the system verifies that the ledger entry produces a balance transition consistent with prior state. The before and after balances must reconcile with the normalized transaction amount and any explicitly defined fees.

Finalization and Immutability

Once recorded, the ledger entry becomes immutable. Subsequent corrections, if required, are expressed as new entries that reference the original transaction rather than modifying it. This preserves a complete causal history.

Independent Verification

Transaction proof is independently verifiable by replaying the ledger alongside publicly accessible blockchain data. Any observer can confirm that internal balances correspond exactly to on-chain movements using the same deterministic rules.

System Boundary Clarification

The transaction proof mechanism does not assert correctness of the blockchain itself. It establishes a verifiable boundary where on-chain facts are faithfully reflected into the internal accounting system without discretionary alteration.

Scope and Dependencies

This page is a derivative specification within GMG Engine. It does not define or redefine core primitives such as settlement, determinism, finality, proof, or exception handling. All authoritative definitions are inherited from the locked GMG Engine core primitives.

Related Core Primitives

This page depends on the authoritative definitions established in: Deterministic Outcomes, Settlement Ledger Format, Settlement Finality,