Core Concepts
Achieving privacy and compliance through zkFi's middleware solution.
Abstract
Standalone Note here
Abstract:
Middleware solution for integrating privacy using zero-knowledge proofs in various domains.
zkFi aims to preserve consumer privacy while ensuring regulatory compliance.
Offers plug-and-play solution for developers, abstracting complexities of ZK proofs.
Introduction:
Challenges in achieving privacy on blockchain applications.
Transparent nature of conventional blockchains hinders mass adoption.
Demand for privacy solutions across various sectors.
Limitations in current architecture:
Lack of privacy exposes private data to the public.
Weak compliance deters institutional investors from entering the blockchain space.
Building private applications on blockchain is complex.
Previous Solutions:
ZCash, Monero, Tornado protocol, Aztec faced limitations in terms of compliance and user experience.
zkFi: A Middleware Solution:
Provides a packaged solution for privacy and compliance.
Utilizes ZKPs for private transactions and stronger compliance guarantees.
Use Cases of zkFi:
Enables pluggable privacy for DeFi protocols.
Supports private payments via stealth addresses.
Integrates shielded accounts into protocol UIs.
Architecture:
Involves Wallet Provider, Consumer, EIP-4337 Bundler, Gas Price Oracle, EIP-4337 Paymaster, Core, Convertor, Protocol Proxy, Guardians.
Cryptographic Primitives:
Includes Hash Function (Poseidon), Elliptic Curve (Baby JubJub), Digital Signature (Schnorr), Zero Knowledge Proofs (Groth16), Merkle Tree usage.
Conclusion:
Emphasizes the importance of privacy and compliance in web3 adoption.
Proposes middleware solution zkFi to address these challenges effectively.
Stats
ZCash blockchain was among the first to tackle privacy by facilitating anonymous transactions.
Tornado protocol on Ethereum amassed a significant number of usage despite not-so-good UX.
Chainalysis reported that crypto mixer usage reached all-time highs in 2022.
Quotes
"zkFi aims to preserve consumer privacy while achieving regulation compliance through zero-knowledge proofs."
"Building private applications on the blockchain has been made possible by advancements in Zero Knowledge (ZK)."
"Enabling privacy on decentralized platforms has been very well known to attract malicious actors abusing the platform."