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BACKGROUND - Modern war is a drone war: Ukraine fields ~7M cheap FPV drones in 2026 — now the #1 cause of battlefield casualties, ahead of artillery. - The US is unprepared: No mass-produced $400 drone, no doctrine for swarm-on-swarm attrition — a critical gap if Taiwan, Korea, or the Baltics ignite. - ~50% of friendly drones are killed by friendly fire: No working IFF (Identification-Friend-or-Foe) for low-end drones; EW interceptors jam anything emitting video. - Legacy IFF doesn't fit: Transponders cost more than the drone, are too heavy, and emit RF that lets the enemy target friendlies. - Solving this doubles the arsenal: +3.5M effective drones/yr for Ukraine today; a ready-to-deploy IFF layer for the US before peer conflict. - Ground-truthed with operators: Built with the founder of DWARF Engineering, Ukraine's leading UAV-stack scaleup — kill-zone reality, not Pentagon theory. TECHNICAL - Steganographic watermark, invisible to the enemy: HMAC-SHA256 marker hidden in unused VBI lines of the analog video stream — undetectable without the key, so the enemy can't use it to target friendlies (the failure mode of every other IFF). - Unforgeable and unreplayable: Rolling counter blocks replay; pre-shared key never goes over air; hierarchical keys (master → unit → drone) limit blast radius if a drone is captured. - Zero added BOM, zero new procurement: Firmware-only on the drone (Betaflight + MAX7456 OSD chip); ~$50 receiver on the EW side ($15 capture card + $35 Raspberry Pi). One-frame decision latency (~16ms). - 7-signal fusion, 6 states, one-way safety invariant: Degraded signals can only lower confidence, never raise. Crypto decides; gated YOLOv8n only corroborates — unvalidated ML can never promote a drone to "friendly." - Distribution flywheel: Free Betaflight/Kordyceps integration → MoD-mandated logistics-stage flash (NATO IFF model) → per-drone OEM license → sub-cent pay-per-contact at scale. - Working demo today: ESP32 firmware ↔ Python receiver byte-identical; React mission control; 17/17 tests green.

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