> For the complete documentation index, see [llms.txt](https://docs.nearby.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nearby.finance/legal-and-support/faq.md). # FAQ ### General #### What is Nearby Protocol? Nearby Protocol is a privacy-focused infrastructure stack that enables: * Verifiable geolocation without exposing exact location * Local communication without internet dependency * Offline stablecoin payments with later blockchain settlement It combines zero-knowledge proofs, mesh networking and offline-first financial systems into one unified protocol. *** #### What problems does Nearby Protocol solve? Nearby Protocol is designed for real-world conditions where traditional systems fail or become restrictive: * Poor or unavailable internet connectivity * Over-centralized communication platforms * Excessive location data collection * Inability to transact without online banking infrastructure * Lack of coordination systems for physical-world events It enables coordination in environments where connectivity cannot be assumed. *** ### Proof of Location #### How does Proof of Location work? Proof of Location uses zero-knowledge cryptography and device attestation to verify that a user is within a defined geographic area without revealing their exact coordinates. The proof is generated on-device and can be verified without exposing raw location data. *** #### Can someone fake their location? The system is designed to make spoofing difficult by combining: * Trusted Execution Environments (TEE) * Device attestation * Multi-signal validation (GPS, network, environmental checks) * zk proof constraints While no system is absolutely unbreakable, spoofing becomes economically and technically expensive at scale. *** #### Does Nearby Protocol store my location data? No raw location data is stored or required to generate proofs. Only cryptographic proofs are created and optionally verified. The system is designed around privacy-preserving verification, not surveillance. *** ### Nearby Mesh #### What is Nearby Mesh? Nearby Mesh is a decentralized peer-to-peer communication layer that allows devices to communicate directly when they are physically near each other. It does not require internet access and forms dynamic networks based on proximity. *** #### What happens if there is no internet? Nearby Mesh is specifically designed for offline or unstable environments. Devices communicate using: * Bluetooth * WiFi Direct * Local relay nodes * Optional mesh propagation Messages can still be sent and received without internet connectivity. *** #### Is messaging private? Messages are encrypted and propagated locally between devices. However, like all mesh systems, metadata (such as propagation patterns) may still exist in certain conditions. The protocol prioritizes resilience and local communication over absolute anonymity guarantees. *** ### OfflinePay #### What is OfflinePay? OfflinePay is a system that enables users to transfer USDC and USDT without internet connectivity. Transactions are executed locally between devices and later settled on-chain when connectivity is restored. *** #### How do offline payments work? Offline payments use cryptographically signed “payment notes” that can be: * Created on-device * Transferred via QR, Bluetooth, NFC or mesh * Verified locally without internet Final settlement occurs later on Base during reconciliation. *** #### What happens if someone tries to double-spend offline? OfflinePay allows temporary double-spend risk in offline environments. However, during reconciliation: * Conflicts are detected * Invalid transactions are rejected * Final state is computed deterministically Double-spending cannot persist after global settlement. *** #### Are funds safe during offline transactions? Yes. Funds are protected through: * Cryptographic signatures * Ownership verification * Post-hoc reconciliation on-chain * Witness-based validation signals (optional) Security is enforced at the settlement layer, not in real-time. *** ### $NEARBY Token #### What is $NEARBY used for? $NEARBY is the utility token of the ecosystem. It is used to incentivize: * Proof of Location generation * Mesh network participation * OfflinePay validation and reconciliation * Witness attestations * Node operations *** #### What is the total supply of $NEARBY? The total supply is fixed at: **100,000,000 $NEARBY** *** #### Is $NEARBY required to use the protocol? No. The protocol can be used without holding the token. However, $NEARBY is used to reward participation and secure network incentives. *** ### Technical & Security #### Is Nearby Protocol fully decentralized? Nearby Protocol is designed as a decentralized system at the network and verification layers. However: * Device attestation introduces hardware trust assumptions * Final settlement occurs on Base blockchain It is a hybrid decentralized infrastructure system. *** #### What are the main risks? Key known limitations include: * Offline double-spend risk (resolved during reconciliation) * Metadata leakage in mesh environments * Dependence on hardware security (TEE assumptions) * Reduced guarantees in fully adversarial environments The system is designed to make these risks detectable and economically constrained rather than fully eliminated in real time. *** #### Can Nearby Protocol work in censorship-heavy environments? Yes. The protocol is designed for environments where connectivity or communication may be restricted. Mesh networking and offline transaction capabilities allow local coordination even without traditional infrastructure access. *** ### Closing #### What makes Nearby different? Nearby Protocol is not just a messaging system, location system or payment system. It is a **physical-world coordination layer** that combines: * Verifiable presence * Local communication * Offline value transfer into a single unified infrastructure stack. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.nearby.finance/legal-and-support/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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