XUNA Whitepaper
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XUNA Whitepaper

A Peer-to-Peer Anonymous Crypto Debit Card Protocol

Abstract

Xuna is a protocol for anonymous issuance and usage of crypto debit cards without linking on-chain identity to real-world identity. It allows users to prove wallet ownership and request virtual or physical cards via a privacy-preserving issuance process. Xuna eliminates reliance on centralized exchanges and KYC-heavy platforms, enabling users to convert cryptocurrency into fiat and spend globally while preserving sovereignty and privacy.

Privacy-First

No KYC requirements, preserving user anonymity throughout the entire process.

Self-Custody

Users maintain control of their private keys and funds at all times.

Global Access

Spend crypto anywhere that accepts traditional payment cards.

Introduction

While cryptocurrencies offer a decentralized means of transferring value, spending them in the physical world still relies on centralized, custodial services. Most existing crypto cards require identity verification and expose user data to third-party processors and regulators.

The financial traceability inherent in such systems undermines privacy — the core principle of decentralized finance. Xuna proposes a protocol that allows users to anonymously link blockchain wallets to fiat payment rails via pre-funded debit cards. No custodial wallet is required, and the card issuer only verifies cryptographic wallet ownership and optional NFT-based membership, not user identity.

Current Crypto Card Landscape vs. XUNA Approach

Feature Traditional Crypto Cards XUNA Protocol
KYC Requirements Full identity verification None (cryptographic proof only)
Custody Model Custodial wallets Self-custody
Data Collection Extensive personal & transaction data Minimal technical data only
Regulatory Exposure High (jurisdiction-dependent) Minimal by design
Privacy Level Low High

Background

The rise of cryptocurrencies has opened doors to borderless, permissionless financial systems. However, day-to-day spending of crypto remains tightly coupled with centralized intermediaries, especially when bridging into fiat payment networks (e.g., Visa/Mastercard).

Most crypto debit cards require:

  • Full KYC (Know Your Customer) compliance
  • Custodial wallets or accounts
  • Transaction logging and personal data storage
  • Regulatory exposure based on jurisdiction

These constraints defeat the decentralization and privacy ethos of cryptocurrency. Users lose autonomy and risk exposure of financial behavior, transaction history, and personal identity.

Privacy coins such as Monero and privacy-preserving networks like TON attempt to address on-chain privacy, but bridging them to fiat remains unsolved without compromising anonymity. Xuna aims to fill this gap.

Cryptographic Verification Example
// Example of wallet verification using ECDSA signatures
async function verifyWalletOwnership(address, message, signature) {
  // Recover the public key from the signature
  const msgHash = ethers.utils.hashMessage(message);
  const msgHashBytes = ethers.utils.arrayify(msgHash);
  const recoveredPubKey = ethers.utils.recoverPublicKey(msgHashBytes, signature);
  const recoveredAddress = ethers.utils.computeAddress(recoveredPubKey);
  
  // Verify the recovered address matches the claimed address
  return recoveredAddress.toLowerCase() === address.toLowerCase();
}

System Overview

Xuna is composed of the following components:

Wallet Verification

Users connect a self-custodied wallet and sign a message to prove ownership. No personal data is transmitted.

NFT Membership

Specific NFTs can act as access credentials, gating premium features or card tiers.

Card Issuance

A privacy-aware partner enables card creation. Only proof of wallet ownership is provided.

Transaction Funding

Users pre-fund the card with crypto, which is converted to fiat on demand.

App Interface

A decentralized frontend (web + mobile) lets users manage cards, balances, and transactions anonymously.

This design ensures no centralized party retains sensitive personal or behavioral data.

XUNA System Architecture

XUNA System Architecture

Wallet Verification & Ownership Proof

To initiate a card request, the user connects their wallet via a Web3 interface (e.g., MetaMask, TonConnect, WalletConnect). The system prompts them to sign a nonce-based message:

Signature Request Message
I am the owner of this wallet. Requesting Xuna card at [timestamp]. Nonce: abc123

This signature, along with the public address, is submitted to the backend or smart contract, which verifies authenticity without storing the user’s private key or metadata. Optionally, possession of a specific NFT can be checked via ownerOf() methods on-chain.

Wallet Verification Process

Connect Wallet
User connects Web3 wallet
Sign Message
Cryptographic proof of ownership
Verify Signature
Backend validates signature
Check NFT (Optional)
Verify membership tier
Signature Verification (Solidity)
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.17;

contract XunaVerification {
    // Verify a signature is valid for a given address and message
    function verifySignature(
        address _signer,
        string memory _message,
        bytes memory _signature
    ) public pure returns (bool) {
        bytes32 messageHash = keccak256(abi.encodePacked(_message));
        bytes32 ethSignedMessageHash = keccak256(
            abi.encodePacked("\x19Ethereum Signed Message:\n32", messageHash)
        );
        
        (bytes32 r, bytes32 s, uint8 v) = splitSignature(_signature);
        
        return ecrecover(ethSignedMessageHash, v, r, s) == _signer;
    }
    
    // Split signature into r, s, v components
    function splitSignature(bytes memory sig)
        internal
        pure
        returns (bytes32 r, bytes32 s, uint8 v)
    {
        require(sig.length == 65, "Invalid signature length");
        
        assembly {
            r := mload(add(sig, 32))
            s := mload(add(sig, 64))
            v := byte(0, mload(add(sig, 96)))
        }
        
        if (v < 27) {
            v += 27;
        }
        
        return (r, s, v);
    }
}

Anonymous Card Issuance Protocol

Once ownership is verified, a request is forwarded to the card issuance partner through a pseudonymous session. The partner provides a virtual or physical card associated with the funding address.

The card is topped up by sending cryptocurrency to a unique deposit address (generated per user or per transaction). Funds are auto-converted to fiat and loaded onto the card. No personal info (name, address, ID) is shared unless required by the card network's minimum compliance thresholds.

Card Issuance Flow

Verification Complete
Wallet ownership confirmed
Generate Deposit Address
Unique per user/transaction
Send Crypto
Fund card with crypto
Auto-Convert
Crypto to fiat conversion
Card Issued
Virtual or physical card
Card Issuance API (Pseudocode)
// Request card issuance
async function requestCardIssuance(walletAddress, signedProof, cardTier) {
  // Create pseudonymous session with card issuer
  const session = await createPseudonymousSession();
  
  // Submit only the necessary verification data
  const response = await session.post('/api/issue-card', {
    wallet_proof: {
      address: walletAddress,
      signature: signedProof
    },
    card_tier: cardTier,
    // No personal information transmitted
  });
  
  // Return deposit address and card details
  return {
    depositAddress: response.deposit_address,
    cardDetails: {
      lastFour: response.card_last_four,
      expiryDate: response.expiry,
      virtual: response.is_virtual,
      cardImageUrl: response.card_image
    }
  };
}

Transaction Flow

Complete Transaction Flow

Connect & Sign
Prove wallet ownership
Select Card Tier
Virtual, plastic, premium
Backend Processing
Communicate with issuer
Receive Address
For card funding
Send Crypto
Auto-converted to fiat
Card Loaded
Fiat credited to card
Global Spending
Via Visa/Mastercard
Transaction Monitoring (Pseudocode)
// Monitor deposit address for incoming transactions
async function monitorDeposits(depositAddress, targetAmount) {
  return new Promise((resolve) => {
    const checkInterval = setInterval(async () => {
      // Check for new transactions to the deposit address
      const transactions = await getAddressTransactions(depositAddress);
      
      // Calculate total confirmed amount
      const confirmedAmount = transactions
        .filter(tx => tx.confirmations >= 6)
        .reduce((sum, tx) => sum + tx.amount, 0);
      
      if (confirmedAmount >= targetAmount) {
        clearInterval(checkInterval);
        
        // Trigger conversion process
        const conversionResult = await convertCryptoToFiat(
          depositAddress,
          confirmedAmount,
          'USD' // Target currency
        );
        
        // Update card balance
        await updateCardBalance(cardId, conversionResult.fiatAmount);
        
        resolve({
          cryptoAmount: confirmedAmount,
          fiatAmount: conversionResult.fiatAmount,
          conversionRate: conversionResult.rate,
          timestamp: new Date()
        });
      }
    }, 30000); // Check every 30 seconds
  });
}

Security Model

No KYC

Unless jurisdiction mandates it, Xuna avoids collecting any user information

Self-Custody

Wallet keys remain with users at all times

Data Minimization

Only wallet address and cryptographic proof are transmitted

Issuer Firewalls

Card partner only sees technical proofs, not user metadata

Encrypted Channels

All API communication is encrypted

Security Implementation (Pseudocode)
// Security best practices for XUNA implementation
class XunaSecurityModel {
  constructor() {
    // Initialize with zero knowledge of user
    this.userMetadata = null;
    this.ipLogging = false;
    this.fingerprintTracking = false;
    
    // Setup secure communication channels
    this.setupEncryptedChannels();
  }
  
  setupEncryptedChannels() {
    // Use end-to-end encryption for all API communication
    this.apiEncryption = {
      algorithm: 'AES-256-GCM',
      keyRotationInterval: '24h',
      forwardSecrecy: true
    };
  }
  
  // Data minimization approach
  processUserRequest(walletAddress, signature) {
    // Only store cryptographic proof, nothing else
    return {
      walletVerified: this.verifySignature(walletAddress, signature),
      sessionId: this.generateAnonymousSession(),
      // No user data stored or logged
    };
  }
  
  generateAnonymousSession() {
    // Create session with no linkability to real identity
    return crypto.randomBytes(32).toString('hex');
  }
  
  // Implement secure data deletion
  cleanupAfterTransaction() {
    // Purge all temporary data after transaction completes
    this.temporaryData = null;
    // Zero out memory where sensitive data was stored
    this.secureErase();
  }
}

Privacy Considerations

No Tracking

Xuna does not track IPs, behavior, or device fingerprints

Burner Wallets

Users can rotate wallets to minimize linkage

No Logs

Minimal logs are kept on the backend, and sensitive data is anonymized or obfuscated

Non-Custodial Design

Prevents compromise of funds or user info by centralized databases

"In case of any illegal abuse XUNA will always stand by the side of the legal authorities against the person accused. History of a user will only be exposed if the proofs are strong enough, providing both transparency to the authorities as well as anonymity to the users."

XUNA balances privacy with legal compliance
Privacy Implementation (Pseudocode)
// Privacy-preserving implementation
class XunaPrivacyModel {
  constructor() {
    // Configure privacy settings
    this.privacySettings = {
      ipAddressStorage: 'none', // Don't store IP addresses
      deviceFingerprinting: false, // No device fingerprinting
      cookieUsage: 'minimal', // Only essential cookies
      dataRetention: {
        transactionHashes: '30d', // Keep only for 30 days
        walletAddresses: 'session-only', // Don't persist after session
        signatures: 'verification-only' // Only used during verification
      }
    };
  }
  
  // Implement privacy-preserving analytics
  collectAnonymousMetrics(action) {
    return {
      timestamp: this.roundToHour(new Date()), // Reduce timestamp precision
      actionType: this.generalizeAction(action), // Generalize action type
      // No user identifiers collected
    };
  }
  
  // Reduce timestamp precision to protect privacy
  roundToHour(date) {
    const rounded = new Date(date);
    rounded.setMinutes(0, 0, 0);
    return rounded;
  }
  
  // Generalize action types to protect privacy
  generalizeAction(action) {
    const actionMap = {
      'view_card_details': 'card_action',
      'check_balance': 'card_action',
      'fund_card': 'funding_action',
      // Map specific actions to general categories
    };
    
    return actionMap[action] || 'general_action';
  }
  
  // Implement secure data deletion
  implementForgetfulness() {
    // Automatically delete data after its purpose is fulfilled
    setInterval(() => {
      this.purgeExpiredData();
    }, 86400000); // Daily cleanup
  }
}

Deployment & Scaling

The initial launch will target Ethereum, TON, and Monero, with support for additional chains planned (e.g., Solana, BNB Chain). The card issuance backend will be containerized and load-balanced to handle region-specific deployment and availability.

Supported Blockchain Networks

Ethereum

Initial launch network with smart contract support

TON

Privacy-preserving network with high throughput

Monero

Privacy-focused cryptocurrency with built-in anonymity

Solana

Planned support for high-speed transactions

BNB Chain

Planned support for low-fee transactions

Future plans include:

  • Mobile apps for card management
  • NFT marketplace for membership
  • DAO governance for card features and fees
Deployment Architecture (Docker Compose)
version: '3.8'

services:
  # API Gateway
  api-gateway:
    image: xuna/api-gateway:latest
    ports:
      - "443:443"
    environment:
      - NODE_ENV=production
    depends_on:
      - wallet-verification
      - card-issuance
      - crypto-conversion
    networks:
      - xuna-network
    deploy:
      replicas: 3
      update_config:
        parallelism: 1
        delay: 10s
      restart_policy:
        condition: on-failure

  # Wallet Verification Service
  wallet-verification:
    image: xuna/wallet-verification:latest
    environment:
      - NODE_ENV=production
    networks:
      - xuna-network
    deploy:
      replicas: 5
      resources:
        limits:
          cpus: '0.5'
          memory: 1G

  # Card Issuance Service
  card-issuance:
    image: xuna/card-issuance:latest
    environment:
      - NODE_ENV=production
      - ISSUER_API_KEY=${ISSUER_API_KEY}
    networks:
      - xuna-network
    secrets:
      - issuer_credentials
    deploy:
      replicas: 3

  # Crypto Conversion Service
  crypto-conversion:
    image: xuna/crypto-conversion:latest
    environment:
      - NODE_ENV=production
    networks:
      - xuna-network
    deploy:
      replicas: 3

  # Blockchain Listeners
  blockchain-listeners:
    image: xuna/blockchain-listeners:latest
    environment:
      - NODE_ENV=production
      - ETHEREUM_RPC=${ETHEREUM_RPC}
      - TON_API_KEY=${TON_API_KEY}
      - MONERO_NODE=${MONERO_NODE}
    networks:
      - xuna-network
    deploy:
      replicas: 5

networks:
  xuna-network:
    driver: overlay
    attachable: true

secrets:
  issuer_credentials:
    external: true

Conclusion

Xuna addresses a critical gap in decentralized finance: anonymous crypto-to-fiat spending. By combining wallet-based authentication, optional NFT access layers, and third-party card issuance, Xuna makes crypto practical for everyday use while respecting the core principles of privacy and autonomy.

This protocol enables sovereign financial behavior without compromising usability or global access.

Sovereignty

Users maintain control of their financial identity

Privacy

Transactions without identity exposure

Accessibility

Global spending without borders

Interoperability

Works with existing payment infrastructure