Conceptual Relationship Between a KERI Chain and a UTXO Chain

A KERI chain and a UTXO chain share the same conceptual values, even though they apply them to different domains (identity vs value).

1. Both use minimal, append-only facts

• UTXO: each output is a tiny immutable fact about value.
• KERI: each event is a tiny immutable fact about identity.

Both avoid bloated, mutable global state.

2. Both favour locality over global state

• UTXO: no “balance”; just local spends.
• KERI: no central registry; just local event logs.

Truth emerges from small, linked pieces, not from a central database.

3. Both rely on cryptographic continuity, not institutions

• UTXO: continuity via input → output hash chain.
• KERI: continuity via event digests and key rotations.

The hash chain is the authority.

4. Both treat time as order, not timestamps

• UTXO: consensus ordering defines time.
• KERI: event sequence numbers and digests define time.

Time is relational, not wall-clock.

5. Both protect users through isolation and composability

• UTXO: each coin is isolated.
• KERI: each identifier is autonomous.

Identity objects and value objects both have their own self-contained histories.

6. Both avoid global coupling

• UTXO: no shared account state.
• KERI: no shared identity registry.

This makes both portable, offline-verifiable, and resistant to systemic failure.

7. Both build trust through witnessing

• UTXO: consensus witnesses the spend.
• KERI: witnesses sign receipts for events.

Trust is accumulated, not granted.

8. Both prefer integrity over convenience

They prioritise:

• verifiable history
• deterministic replay
• cryptographic guarantees
• user sovereignty

Even if it costs a bit more friction.

9. Both produce a replayable story

• UTXO: replay all spends → get ledger state.
• KERI: replay all events → get identity state.

State = minimal facts + deterministic logic.

10. Both treat keys as the root of authority

Ownership = whoever can sign the next valid step.

Summary

KERI and UTXO chains share the same philosophy:
a world built from small, verifiable, append-only facts that create trustworthy state through cryptographic continuity rather than central authority.