Financial fraud is becoming physically impossible at the hardware level.
April 14, 2026
Original Paper
Atomic Auditability in Financial Execution Pipelines via Hardware-Enforced Ternary States
SSRN · 6276939
The Takeaway
Using ternary logic to add an 'Escrow' state ensures a transaction cannot execute unless audit evidence is physically created. It moves auditing from a bypassable software check to an immutable law of the hardware.
From the abstract
This paper presents a hardware architecture for Atomic Auditability in high-frequency trading systems through the physical enforcement of a ternary execution state primitive. We demonstrate that binary commit semantics-where transactions are either committed or not committed at the hardware boundary-fundamentally cannot eliminate certain classes of race conditions, audit gaps, and irreversibility errors that arise from the temporal decoupling of execution and verification. By introducing a physi