Zero-Knowledge Proof Token Commitments for Distributed Ledger Privacy
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Solution Overview
Problem
Distributed ledger-based networks (DLNs) face challenges in maintaining privacy and security while providing transparency, as public networks expose sensitive information, and private non-ZKP-enabled DLNs are inefficient and costly to maintain.
Innovation Solution
Implementing zero-knowledge proofs (ZKPs) in DLNs to verify transactions without revealing private information, allowing for secure and private transfer of assets by using token commitments and hashing functions, enabling secure and efficient management of transactions on both public and private networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If public DLNs are used to provide transparency and consensus-based verification, then security and trust are improved, but privacy of participants and transaction details is compromised
Solution Approach 1:
The patent segments transaction information into public components (verification data, token commitments) and private components (participant identities, asset details). The token commitment system divides the transaction proof into discrete cryptographic elements that can be verified without revealing underlying sensitive information, allowing the ledger to maintain security through consensus while preserving privacy through information segmentation.
Solution Approach 2:
The patent introduces cryptographic intermediaries including zero-knowledge proofs, hashing functions, and token commitments as mediators between public verification requirements and private information protection. These intermediaries enable third-party verification of transaction validity without exposing participant identities or sensitive asset details, acting as a buffer that satisfies public DLN transparency requirements while maintaining privacy.
2Loss of information
If private networks are used to maintain privacy and security, then privacy is improved, but efficiency and cost-effectiveness deteriorate
Solution Approach 1:
The patent enables participants to perform privacy-preserving operations independently through self-executing code segments and automated cryptographic verification. The system allows participants to generate their own token commitments, perform hashing operations, and verify transactions without requiring centralized private network infrastructure, thereby maintaining privacy while improving efficiency by eliminating the need for costly private network maintenance.
3Measurement precision
If all transaction details are exposed for validation on public DLNs, then verification accuracy is improved, but information security and participant anonymity deteriorate
Solution Approach 1:
The patent applies different levels of information disclosure to different aspects of transaction verification. Critical verification elements such as token commitment validity and asset availability are fully exposed for public verification, while sensitive information such as participant identities and specific asset details remain private. This local differentiation of information quality allows accurate verification of transaction legitimacy without compromising overall information security.
Solution Approach 2:
The patent transforms transaction data through cryptographic parameter changes including hashing and zero-knowledge proof generation. These transformations convert sensitive information into verification-ready formats that maintain mathematical properties necessary for accurate validation while removing personally identifiable information. The parameter transformation enables verification accuracy to be maintained through cryptographic invariants while information security is preserved through parameter obfuscation.
Data Source
AI summary
One or more embodiments described herein disclose methods and systems that are directed at providing enhanced privacy, efficiency, convenience and security to distributed ledger-based networks (DLNs) via the implementation of zero-knowledge proofs (ZKPs) in the DLNs. ZKPs allow participants of DLNs to make statements on the DLNs about some private information and to prove the truth of the information without having to necessarily reveal the private information publicly. As such, the disclosed methods and systems directed at the ZKP-enabled DLNs provide privacy, ease and efficiency to participants of the DLNs while still allowing the DLNs to remain as consensus-based networks.