Zero-Knowledge Proof Network for Private Asset Transactions
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Solution Overview
Problem
Existing distributed ledger systems lack the ability to execute transactions privately, as on-chain transactions are publicly accessible, necessitating a networked system for private asset management across on-chain and off-chain machines.
Innovation Solution
A system utilizing off-chain transaction confirmation machines, zero-knowledge proof machines, and off-chain bank machines to validate and record private transactions, while on-chain bank machines record public transactions, ensuring privacy and security through zero-knowledge proof technology and smart contract pools.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If transactions are recorded on-chain in a distributed ledger, then transparency and public accessibility are improved, but privacy and security of transaction details deteriorate
Solution Approach 1:
The system segments transactions into two types: public on-chain transactions for settlement finality and private off-chain transactions for detailed asset transfers. This segmentation allows transparency at the settlement level while maintaining privacy at the transaction detail level, resolving the contradiction between public visibility and private protection.
Solution Approach 2:
The patent introduces off-chain transaction confirmation machines and zero-knowledge proof machines as intermediaries between users and the on-chain distributed ledger. These intermediaries enable private transaction execution off-chain while providing cryptographic proofs to the on-chain system, allowing transparency without exposing sensitive transaction details.
2Reliability
If all transaction details are made publicly accessible on-chain, then network trust and verification are improved, but security and confidentiality of sensitive information deteriorate
Solution Approach 1:
Zero-knowledge proof machines act as intermediaries that generate cryptographic proofs verifying transaction validity without revealing transaction details. These proofs are submitted to the on-chain system for verification, maintaining network trust while preventing information leakage of sensitive transaction data.
Solution Approach 2:
The patent replaces the traditional mechanical approach of public transaction broadcasting with a cryptographic proof system. Instead of mechanically publishing all transaction details on-chain, the system uses zero-knowledge proofs to cryptographically verify transaction validity while keeping details private, substituting transparency-based trust with proof-based trust.
Data Source
AI summary
A system has off chain transaction confirmation machines exchanging private transaction messages. Off chain zero knowledge proof machines are in communication with the off chain transaction confirmation machines. Off chain bank machines are in communication with the zero knowledge proof machines via proprietary code associated with the off chain zero knowledge proof machines. Off chain central bank machines are in communication with the off chain bank machines to validate a network transaction and form a private network transaction record and a public network transaction record. On chain bank machines and on chain central bank machines record the public network transaction record in a distributed ledger.


