Custodial Payment Systems
When identity and payment authorization are cryptographically unified, intermediaries become unnecessary.
Legacy Custodial Model vs PTERI
| Category | Traditional Model | Problems | PTERI Replacement |
|---|---|---|---|
| Fund Control | Funds held by intermediaries | Custody risk | Self-custody |
| Fraud Handling | Fraud detection after the fact | Reversibility assumptions | Signed payment intent |
| Dispute Model | Dispute-based resolution | Operational overhead | Deterministic settlement |
| Automation | Manual review and approval layers | Limited automation | Native machine execution |
| Settlement | Platform-mediated clearing | Global settlement friction | UTXO-based settlement on Litecoin |
| Identity Link | Identity separate from payment authorization | Weak attribution | Identity and payment provably linked |
Core Principle
"Identity and payment authorization are provably linked."
When payment intent is signed, custody, reversal logic, and intermediary trust are no longer required.