Pedersen Commitment Reserve Proof for Faster Zero-Knowledge Verification
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Solution Overview
Problem
Existing methods for Proof of Reserves (POR) in virtual assets using Merkle trees are inefficient due to long contract and proving times, necessitating a faster alternative.
Innovation Solution
A method utilizing Pedersen commitments and zero-knowledge proof algorithms to generate and verify commit values, enabling fast and secure contracting and proving of reserves through smart contracts and blockchain networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If Merkle tree data structure is used for Proof of Reserves, then security and transparency are improved, but the time required for reserve contract and proving becomes too long
Solution Approach 1:
The patent extracts the core verification function from the Merkle tree structure and implements it using Pedersen commitment schemes. Instead of relying on the complex Merkle tree data structure for reserve proof, the invention uses cryptographic commitment values that can be verified independently and much faster, while maintaining the essential security properties of proving reserves without exposing sensitive information.
Solution Approach 2:
The patent replaces the mechanical Merkle tree data structure with a cryptographic-based Pedersen commitment system. This substitution transitions from a tree-based hierarchical verification mechanism to a mathematical commitment scheme that leverages elliptic curve cryptography, enabling faster verification times while preserving the zero-knowledge proof properties needed for secure reserve verification.
2Productivity
If Pedersen commitment is used for contracting reserves, then the speed of reserve contracting is improved, but the complexity of the cryptographic operations increases
Solution Approach 1:
The patent performs preliminary generation of Pedersen commitment values and their corresponding opening proofs during the reserve contracting phase. By pre-computing these cryptographic elements and storing them in smart contracts, the system avoids performing complex cryptographic operations during the actual reserve verification process, thereby improving speed while managing complexity through advance preparation.
Solution Approach 2:
The patent implements self-verification mechanisms where the Pedersen commitment values and their opening proofs are automatically verified by smart contracts without requiring external intervention. The system uses the mathematical properties of Pedersen commitments to enable automatic verification of reserve sufficiency, reducing the need for complex external validation processes and improving overall contracting speed.
Data Source
AI summary
The present invention relates to a method of contracting reserves using a Pedersen commitment and a method of proving reserves using a Pedersen commitment based zero-knowledge proof algorithm. The method of contracting reserves performed by at least one processor includes loading a reserve database in which a plurality of reserves corresponding to a plurality of accounts are stored; generating a plurality of commit values respectively corresponding to the plurality of accounts using a commit key and a plurality of random values; generating a transaction on a smart contract based on the generated plurality of commit values; calculating a total commit value based on the commit key, a total random value corresponding to a sum of the plurality of random values, and a total reserve; and generating a data set including the total commit value, the total reserve, and the commit key.