A. Executive Summary

What is Ghostcoin?

Ghostcoin is the native cryptocurrency of Umbraline, a Layer 2 blockchain built on Scroll's zkEVM technology. But Ghostcoin is more than just another token on another chain. It represents a fundamental shift in how cryptocurrency can work.

The core innovation is the Ghost Protocol — a system that allows users to take their cryptocurrency completely off the blockchain and store it in a file called a Phantom Key.

Think of it like withdrawing cash from a bank. When you withdraw cash, the money leaves the banking system entirely and exists only as physical bills in your possession. Ghost Protocol does the same thing for crypto. Your tokens leave the blockchain entirely and exist only in a file you control.

The Problem with Traditional Crypto

On normal blockchains, your tokens always exist on-chain:

Every balance is publicly visible
Every transaction is permanently recorded
Your entire financial history is exposed
You don't truly "hold" crypto — you just have permission to move it on a ledger

The Ghost Protocol Solution

Ghost Protocol introduces three core operations:

Vanish — Burn your tokens on-chain, receive a Phantom Key file
Hold Off-Chain — Your crypto now exists ONLY in the Phantom Key file
Summon — When ready, use the Phantom Key to mint tokens back on-chain to any wallet

The Phantom Key IS your crypto. It's not a receipt or a claim — it's the actual value, stored in a file you control completely offline.