#None #Algorithmic Trading #MT5 #VeritasChain

VeritasChain Protocol v1.1: Setting New Standards in Auditability

The VeritasChain Standards Organization (VSO) has officially launched VeritasChain Protocol (VCP) v1.1, a groundbreaking update that introduces cryptographic audit mechanisms for AI-driven trading in MetaTrader 5 (MT5) and cTrader environments. This innovative protocol is recognized as the first of its kind globally, offering enhanced integrity and verifiability for algorithmic trading systems.

Key Features of VCP v1.1

The VCP v1.1 achieves backward compatibility with its predecessor, version 1.0, while significantly strengthening external verifiability. This upgrade has been shaped by technical discussions within the Internet Engineering Task Force (IETF) and substantial feedback from enterprises that have utilized VCP v1.0 in real-world operations.

One of the most notable advancements in this release is the explicit incorporation of Completeness Guarantees. This feature allows third parties to not only verify that recorded events remain unchanged but also ensure that no critical events have been selectively omitted from the logs. This addresses a fundamental issue with traditional trading logs, which often fail to detect subsequent modifications or partial disclosures.

Non-Intrusive Evidence Collection

In conjunction with the specification update, VSO has introduced an open-source evidence pack that illustrates a production-level implementation of VCP running in the MT5 environment. This implementation follows a 'sidecar' approach, meaning it operates without modifying the trading platform itself. AI-generated trading decisions, order lifecycles, and execution results are captured and logged non-invasively, ensuring that no changes are required to MT5 terminals or broker infrastructure.

Recorded AI decision signals and trading events are cryptographically hashed and structured in a Merkle Tree, secured externally through anchoring processes. This structure enables independent third-party verification without impacting the market execution of trades. The design prevents log processing failures from affecting market transactions, thereby enhancing reliability.

Transparency and Accountability through Reporting

To substantiate its claims of being the world's first implementation of such technology, VSO has released a dedicated evidence report. This report encompasses a comprehensive survey of existing technologies, including academic papers, patent databases, commercial RegTech products, and open-source projects. The survey confirms that no documented instances of prior similar technologies—meeting the specified requirements for MT4/MT5 compatibility, cryptographic verification, and non-invasive configurations—have been found.

The provided evidence pack and report are available as open-source resources, allowing regulators, auditors, researchers, and market participants to independently verify and reproduce findings. This initiative aligns with the transparency requirements outlined in MiFID II and the EU AI Act, while maintaining a vendor-neutral design that avoids dependencies on specific implementations.

cTrader Implementation and Expansion

In addition to MT5, VSO has successfully completed a proof of concept in the cTrader environment, an extension building upon earlier collaborations with prop firms. This endeavor also generates cryptographically verifiable audit trails in a production setting, again acknowledged as a global first.

The reference implementation aligns with VCP v1.1 and does not require modifications to existing trading platforms. By utilizing official APIs, trading events are captured while conducting cryptographic processing asynchronously via the sidecar approach. This structure guarantees that the recorded data remains tamper-proof through sophisticated hashing and digital signature methods.

Informative Outreach to Regulators

As of January 2, 2026, VSO has shared technical details regarding VCP with regulatory authorities across Luxembourg, Malta, Lithuania, Poland, the Cayman Islands, and Bermuda, bringing the total coverage to 50 jurisdictions worldwide and 67 regulatory bodies. This outreach serves not to facilitate the establishment of new regulations, but rather to supplement existing AI and financial regulations concerning record-keeping and verification requirements from a technical standpoint.

Introducing VAP-GAM

Alongside these developments in trading technology, VSO has released a new domain profile for its Verifiable AI Provenance Framework (VAP), specifically designed for online gaming applications, termed VAP-GAM. This framework applies the principle of ‘Verify, Don’t Trust’ to enhance fairness and transparency in games involving randomness, such as gacha or card games.

VAP-GAM aims to introduce cryptographic proof mechanisms for random number generation and game logic that players cannot verify internally. By committing to a random number before gameplay and providing event logs that detect tampering, VAP-GAM allows for both players and operators to confirm fairness based on the same evidence.

In summary, the launch of VeritasChain Protocol v1.1, the successful implementation in cTrader, and the innovative VAP-GAM framework represent significant strides towards enhancing accountability and transparency in trading and gaming.

For further details, you may explore the following resources:
1. VCP v1.1 Specification
2. VCP v1.1 Implementation Instructions
3. Open-source VCP Reference Trading Agent and Evidence Pack
4. World's First Evidence Report (PDF)

Stay informed with VeritasChain's advancements as they continue to redefine standards across technological domains.