Using ideas from Jones, lattice gauge theory and loop quantum gravity, we construct 1 + 1 -dimensional gauge theories on a spacetime cylinder. Given a separable compact group G, we construct localized time-zero fields on the spatial torus as a net of C*-algebras together with an action of the gauge group that is an infinite product of G over the dyadic rationals and, using a recent machinery of Jones, an action of Thompson’s group T as a replacement of the spatial diffeomorphism group. Adding a family of probability measures on the unitary dual of G we construct a state and obtain a net of von Neumann algebras carrying a state-preserving gauge group action. For abelian G, we provide a very explicit description of our algebras. For a single measure on the dual of G, we have a state-preserving action of Thompson’s group and semi-finite von Neumann algebras. For G= S the circle group together with a certain family of heat-kernel states providing the measures, we obtain hyperfinite type III factors with a normal faithful state providing a nontrivial time evolution via Tomita–Takesaki theory (KMS condition). In the latter case, we additionally have a non-singular action of the group of rotations with dyadic angles, as a subgroup of Thompson’s group T, for geometrically motivated choices of families of heat-kernel states.
