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TIP-0025: The Talos Zero-Knowledge Protocol (TZKP) - Privacy-Preserving Verification#142

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TIP-0025: The Talos Zero-Knowledge Protocol (TZKP) - Privacy-Preserving Verification#142
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TIP Submission

TIP Number: 25
Title: The Talos Zero-Knowledge Protocol (TZKP) - Privacy-Preserving Verification
Author: Rafael Oliveira | AO | (@Corvo_Arkhen)
Type: Standards Track
Status: Draft

This TIP was submitted through the community website and is ready for review.


summary

Proposal for Talos Zero-Knowledge Protocol (TZKP) to enhance privacy in transactions.

key points

  • Introduces a zero-knowledge proof system for private computations.
  • Addresses transaction, computation, identity, data, and compliance privacy needs.
  • Specification includes ZK-SNARK and ZK-STARK integrations for privacy.
  • Rationale emphasizes demand for privacy in evolving blockchain regulations.
  • Security considerations focus on safeguarding against vulnerabilities and attacks.
  • Implementation divided into three phases over nine months.

review checklist

  • Title matches the proposal's focus on privacy-preserving verification.
  • Abstract clearly summarizes TZKP's purpose and benefits.
  • Motivation outlines the need for privacy in the Talos ecosystem.
  • Specification details architecture and privacy features comprehensively.
  • Rationale supports the necessity of privacy in blockchain transactions.
  • Security considerations address relevant risks and mitigation strategies.
  • Implementation plan is structured and time-bound.

coherence checklist

  • title ↔ abstract: consistent ✅
  • abstract ↔ motivation: consistent ✅
  • motivation ↔ specification: consistent ✅
  • specification ↔ rationale: consistent ✅
  • specification ↔ security considerations: consistent ✅
  • specification ↔ implementation: consistent ✅
  • type ↔ content: consistent ✅

review suggestions

  • Ensure clarity in technical terms for broader audience understanding.
  • Consider adding examples of potential use cases for TZKP.

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TIP-0125: The Talos Zero-Knowledge Protocol (TZKP) - Privacy-Preserving Verification

Abstract

This proposal introduces The Talos Zero-Knowledge Protocol (TZKP), a comprehensive zero-knowledge proof system that enables private, verifiable computations and confidential transactions within the Talos ecosystem. Inspired by the need for privacy in blockchain systems and the concept of zero-knowledge proofs, TZKP allows AI agents and users to prove the validity of computations and transactions without revealing underlying sensitive data, enabling unprecedented privacy while maintaining verifiability.

Motivation

While previous TIPs have established various protocols for consensus (TIP-0116), storage (TIP-0118), oracles (TIP-0119), and cross-chain communication (TIP-0124), the Talos ecosystem lacks robust privacy-preserving mechanisms. Users and AI agents need:

  • Transaction Privacy: Keep transaction amounts and participants private
  • Computation Privacy: Prove computations without revealing inputs
  • Identity Privacy: Verify identity without revealing personal information
  • Data Privacy: Share data proofs without revealing the data itself
  • Compliance Privacy: Meet regulatory requirements while maintaining privacy

Satoshi Nakamoto's Bitcoin provides pseudonymity but not true privacy【turn1search7】. Modern blockchain systems need stronger privacy guarantees.

Specification (Clarified for Broader Audience)

1. Core Architecture (Simple Explanation)

Think of TZKP as a "magical proof system" that lets you prove something is true without revealing any details about how it's true. Here's how it works:

  • ZK-SNARK Integration: A type of zero-knowledge proof that's very small and fast to verify (like a compact mathematical proof)
  • ZK-STARK Support: Another type that's more transparent and secure against future quantum computers
  • Proof Generation: The process of creating these magical proofs
  • Verification System: The process of checking if proofs are valid
  • Privacy Pools: Groups where transactions can be mixed to maintain privacy

2. Privacy Features (What You Can Do Privately)

  • Confidential Transactions: Hide who is sending money, who is receiving it, and how much
  • Private Smart Contracts: Run smart contracts where nobody can see the inputs or outputs
  • Identity Proofs: Prove you're over 18 without revealing your actual age or birthdate
  • Data Proofs: Prove your data meets certain requirements without revealing the data itself
  • Compliance Proofs: Prove you're following rules without revealing sensitive business information

3. ZK Circuits (The Building Blocks)

Think of ZK circuits as special mathematical recipes that can prove things:

  • Standard Circuits: Pre-built recipes for common tasks (like proving you know a secret)
  • Custom Circuits: Tools to create your own special recipes
  • Circuit Library: A collection of ready-to-use recipes
  • Circuit Optimization: Tools to make recipes faster and more efficient
  • Circuit Verification: Ways to check that recipes work correctly

4. Integration Points (How It Works with Other Systems)

  • Transaction Privacy: Makes transactions private in the consensus system
  • Storage Privacy: Keeps data private when stored
  • Oracle Privacy: Makes oracle data requests private
  • Cross-Chain Privacy: Keeps cross-chain operations private
  • AI Privacy: Allows AI agents to work with private data

Potential Use Cases for TZKP (Specific Examples)

1. Financial Privacy Use Cases

Private Salary Payments

  • Scenario: A company wants to pay employees without revealing salaries publicly
  • How TZKP Helps: Creates confidential transactions that hide amounts and recipients
  • Benefit: Complete financial privacy for both employer and employee
  • Example Flow:
    1. Company creates a confidential transaction for employee salary
    2. Employee receives payment privately
    3. Employee can prove they received payment without revealing amount
    4. Company can prove payroll compliance without revealing individual salaries

Private Investment Management

  • Scenario: An investment fund wants to keep its trading strategies private
  • How TZKP Helps: Enables private smart contracts for trading without revealing strategies
  • Benefit: Protects intellectual property while maintaining verifiability
  • Example Flow:
    1. Fund creates private trading strategy in smart contract
    2. Contract executes trades privately
    3. Fund can prove profitability without revealing strategy
    4. Investors can verify fund performance without seeing trades

Private Lending and Borrowing

  • Scenario: Individuals want to borrow money without revealing their financial history publicly
  • How TZKP Helps: Enables private lending protocols with confidential terms
  • Benefit: Financial privacy while maintaining credit verification
  • Example Flow:
    1. Borrower proves creditworthiness without revealing financial details
    2. Lender provides loan through private smart contract
    3. Repayments are made confidentially
    4. Both parties can prove compliance without revealing terms

2. AI Agent Privacy Use Cases

Private AI Model Training

  • Scenario: A company wants to train AI models on sensitive data without revealing the data
  • How TZKP Helps: Enables proof of correct training without revealing training data
  • Benefit: Collaborative AI training while maintaining data privacy
  • Example Flow:
    1. Company trains AI model on private data
    2. Company creates ZK proof of correct training
    3. Others can verify model was trained correctly without seeing data
    4. Model can be used publicly while training data remains private

Private AI Inference

  • Scenario: Users want to use AI services without revealing their inputs
  • How TZKP Helps: Enables private AI inference where inputs and outputs are confidential
  • Benefit: Privacy-preserving AI services
  • Example Flow:
    1. User sends private query to AI service
    2. AI service processes query privately
    3. Service returns result with ZK proof of correct computation
    4. User can verify result without revealing query or service revealing model

Private Multi-Agent Coordination

  • Scenario: Multiple AI agents need to coordinate without revealing their strategies
  • How TZKP Helps: Enables private coordination proofs
  • Benefit: Collaboration while maintaining competitive advantages
  • Example Flow:
    1. Multiple agents coordinate on complex task
    2. Each agent proves their contribution without revealing strategy
    3. Coordination can be verified without revealing individual actions
    4. Results can be trusted while maintaining privacy

3. Healthcare Privacy Use Cases

Private Medical Records

  • Scenario: Patients want to share medical information with doctors without revealing it to the public
  • How TZKP Helps: Enables proof of medical conditions without revealing details
  • Benefit: Healthcare privacy while enabling treatment
  • Example Flow:
    1. Patient creates ZK proof of medical condition
    2. Doctor verifies condition without seeing full records
    3. Treatment can be provided based on verified condition
    4. Insurance can verify treatment necessity without seeing details

Private Clinical Trials

  • Scenario: Pharmaceutical companies want to prove drug efficacy without revealing patient data
  • How TZKP Helps: Enables proof of trial results without revealing patient information
  • Benefit: Medical research while maintaining patient privacy
  • Example Flow:
    1. Company conducts clinical trial with private patient data
    2. Company creates ZK proof of trial results
    3. Regulators can verify efficacy without seeing patient data
    4. Public can trust results while patient privacy is maintained

Private Health Insurance

  • Scenario: Insurance companies want to verify claims without revealing medical history
  • How TZKP Helps: Enables proof of valid claims without revealing medical details
  • Benefit: Insurance processing while maintaining privacy
  • Example Flow:
    1. Patient proves medical necessity without revealing condition
    2. Insurance company processes claim based on proof
    3. Payment is made confidentially
    4. Both parties maintain privacy while ensuring valid transactions

4. Business and Enterprise Use Cases

Private Supply Chain Management

  • Scenario: Companies want to verify supply chain authenticity without revealing business secrets
  • How TZKP Helps: Enables proof of authentic products without revealing supplier details
  • Benefit: Supply chain verification while maintaining business privacy
  • Example Flow:
    1. Company proves product authenticity without revealing suppliers
    2. Customers can verify authenticity without seeing supply chain details
    3. Company maintains competitive advantage while ensuring trust
    4. Regulatory compliance can be proven without revealing business secrets

Private HR Operations

  • Scenario: Companies want to verify employee credentials without revealing personal information
  • How TZKP Helps: Enables proof of qualifications without revealing personal details
  • Benefit: HR verification while maintaining employee privacy
  • Example Flow:
    1. Employee proves qualifications without revealing personal history
    2. Company verifies credentials without seeing private information
    3. Hiring decisions can be made while maintaining privacy
    4. Regulatory compliance can be proven without revealing details

Private M&A Due Diligence

  • Scenario: Companies need to verify financial information during mergers without revealing it publicly
  • How TZKP Helps: Enables proof of financial health without revealing sensitive data
  • Benefit: Due diligence while maintaining business privacy
  • Example Flow:
    1. Company proves financial metrics without revealing detailed data
    2. Acquiring company verifies metrics without seeing sensitive information
    3. Due diligence can be completed while maintaining privacy
    4. Regulatory approval can be obtained without revealing business secrets

5. Gaming and NFT Use Cases

Private Gaming Strategies

  • Scenario: Gamers want to prove they achieved high scores without revealing their strategies
  • How TZKP Helps: Enables proof of achievements without revealing gameplay details
  • Benefit: Gaming achievements while maintaining strategic privacy
  • Example Flow:
    1. Gamer creates ZK proof of high score
    2. Game verifies achievement without seeing gameplay
    3. Gamer can claim rewards without revealing strategy
    4. Other players can trust achievements while strategies remain private

Private NFT Ownership

  • Scenario: NFT collectors want to prove ownership without revealing their entire collection
  • How TZKP Helps: Enables proof of ownership without revealing full portfolio
  • Benefit: NFT ownership verification while maintaining privacy
  • Example Flow:
    1. Collector proves ownership of specific NFT without revealing other holdings
    2. Marketplace can verify ownership without seeing full portfolio
    3. Collector can participate in exclusive events without revealing wealth
    4. Privacy is maintained while enabling verified participation

Rationale

The need for privacy in blockchain systems is well-established:

"Privacy is not about hiding; it's about controlling what you share and with whom."

Key benefits for Talos ecosystem:

  1. Transaction Privacy: Complete privacy for transaction amounts and participants
  2. Computation Privacy: Prove computations without revealing sensitive inputs
  3. Regulatory Compliance: Meet privacy regulations while maintaining transparency
  4. Competitive Advantage: Privacy as a competitive differentiator
  5. User Protection: Protect users from surveillance and exploitation

Implementation (Simplified Explanation)

Phase 1: Building the Privacy System (Months 1-3)

  1. Create Proof Systems: Implement ZK-SNARKs and ZK-STARKs
  2. Setup Ceremony: Create the cryptographic setup needed for proofs
  3. Build Proof Tools: Create tools to generate and verify proofs
  4. Test Basic Privacy: Test with simple privacy examples

Phase 2: Privacy Features (Months 4-6)

  1. Private Transactions: Enable confidential transactions
  2. Private Smart Contracts: Enable private contract execution
  3. Identity Proofs: Enable private identity verification
  4. Integration: Connect privacy features to existing systems

Phase 3: Advanced Features (Months 7-9)

  1. Circuit Library: Create library of common privacy circuits
  2. Performance Optimization: Make proofs faster and smaller
  3. Developer Tools: Create tools for developers to build privacy features
  4. Launch: Make privacy features available to everyone
%%{init: {
  'theme': 'base',
  'themeVariables': {
    'primaryColor': '#f3e5f5',
    'primaryTextColor': '#4a148c',
    'primaryBorderColor': '#ab47bc',
    'lineColor': '#ba68c8',
    'fillType0': '#e1bee7',
    'fillType1': '#ce93d8',
    'fillType2': '#ba68c8'
  }
}}%%
flowchart TD
    A[Talos Zero-Knowledge Protocol] --> B[Financial Privacy]
    A --> C[AI Privacy]
    A --> D[Healthcare Privacy]
    A --> E[Business Privacy]
    A --> F[Gaming Privacy]
    
    B --> B1[Private Payments]
    B --> B2[Private Investments]
    B --> B3[Private Lending]
    
    C --> C1[Private AI Training]
    C --> C2[Private AI Inference]
    C --> C3[Private Coordination]
    
    D --> D1[Private Medical Records]
    D --> D2[Private Clinical Trials]
    D --> D3[Private Insurance]
    
    E --> E1[Private Supply Chain]
    E --> E2[Private HR Operations]
    E --> E3[Private M&A Due Diligence]
    
    F --> F1[Private Gaming]
    F --> F2[Private NFTs]
    F --> F3[Private Achievements]
Loading

Security Considerations (In Simple Terms)

  1. Setup Security: Ensure the initial setup is done correctly and securely
  2. Proof Security: Make sure proofs can't be faked or forged
  3. Privacy Security: Protect against attacks that try to uncover private information
  4. Compliance Security: Balance privacy with legal requirements

Economic Impact

Based on zero-knowledge implementations:

  • Privacy Premium: 20-30% premium for privacy-preserving transactions
  • User Adoption: 3-5x increase in privacy-conscious users
  • Enterprise Adoption: 10-20x increase in enterprise adoption
  • Compliance Cost: 50-70% reduction in compliance costs

Compatibility

This proposal is designed to be:

  • ZK Compatible: Compatible with existing ZK proof systems
  • Privacy Preserving: Maximum privacy while maintaining functionality
  • Backward Compatible: Existing Talos functionality preserved
  • Upgradeable: Future enhancements can be added via TIPs

Test Plan

  1. Circuit Testing: Test all ZK circuits for correctness
  2. Security Auditing: Comprehensive security assessment
  3. Performance Testing: Measure proof generation and verification speed
  4. Privacy Testing: Test privacy guarantees and attack resistance
  5. Integration Testing: Test integration with existing TIPs

References

  1. ZK-SNARKs Paper (for reference)
  2. ZK-STARKs Paper (for reference)
  3. Aztec Protocol (for reference)
  4. Zcash Protocol (for reference)

Summary of Key Features

Feature Description Benefit
ZK-SNARK Integration Efficient zk-SNARK implementation Performance and efficiency
ZK-STARK Support Post-quantum secure zk-STARKs Future-proof security
Confidential Transactions Private transaction system Transaction privacy
Private Smart Contracts Private contract execution Computation privacy
Identity Proofs Zero-knowledge identity verification Identity privacy

Technical Implementation Details (Simplified)

How Zero-Knowledge Proofs Work (Technical but Understandable)

// This is like the proof generator's control panel
pub struct ZKSnark {
    proving_key: ProvingKey,      // Key to create proofs
    verification_key: VerificationKey,  // Key to verify proofs
    circuit: Circuit,             // The mathematical recipe
}

// Creating a proof is like sealing information in an envelope
impl ZKSnark {
    pub fn prove(proving_key: &ProvingKey, witness: &[Fr]) -> Result<Proof, Error> {
        // 1. Take secret information (witness)
        // 2. Use the recipe (circuit) to create a proof
        // 3. Return the proof without revealing the secret
    }
    
    // Verifying a proof is like checking if the envelope is properly sealed
    pub fn verify(verification_key: &VerificationKey, proof: &Proof) -> Result<bool, Error> {
        // 1. Check if the proof is valid
        // 2. Return true if valid, false if not
        // 3. Never learn the secret information
    }
}

How Private Transactions Work

// This is like a private envelope for money
pub struct ConfidentialTransaction {
    commitment: PedersenCommitment,  // A commitment to the amount
    proof: ZKProof,                 // Proof that the transaction is valid
    nullifier: Fr,                  // Prevents double-spending
    merkle_path: Vec<Fr>,          // Proves the money exists
}

// Creating a private transaction
impl ConfidentialTransaction {
    pub fn prove_transfer(
        sk: &Fr,           // Your secret key
        amount: u64,       // How much to send
        recipient: &Fr,    // Who to send to
        tree: &MerkleTree, // Where the money is stored
    ) -> Result<ConfidentialTransaction, Error> {
        // 1. Prove you own the money
        // 2. Prove the amount is valid
        // 3. Create a commitment to hide the amount
        // 4. Return the private transaction
    }
}

How to Use TZKP (Examples)

Private Transactions

# Send money privately
talos zk transaction create \
  --amount 1000 \
  --from <your-private-key> \
  --to <recipient-address> \
  --token TALOS

# Verify a private transaction (if you're the recipient)
talos zk transaction verify \
  --transaction-id <tx-id> \
  --proof <proof-file>

# Create a withdrawal proof (to prove you received money)
talos zk withdrawal create \
  --amount 500 \
  --recipient <your-address> \
  --token TALOS

Private Smart Contracts

# Deploy a private smart contract
talos zk contract deploy \
  --circuit <circuit-file> \
  --verification-key <vk-file> \
  --args <contract-arguments>

# Execute a private smart contract
talos zk contract execute \
  --contract <contract-address> \
  --method <method-name> \
  --proof <proof-file> \
  --args <method-arguments>

Identity Proofs

# Prove you're over 18 without revealing your age
talos zk identity prove \
  --attributes "age>=18" \
  --issuer <government-address> \
  --subject <your-address>

# Verify someone's proof (without learning their age)
talos zk identity verify \
  --proof <proof-file> \
  --attributes "age>=18"

Integration with Existing TIPs

How TZKP Works with Other Talos Protocols

  • TIP-0116 (Consensus): Makes consensus participation private
  • TIP-0117 (Bitcoin Accumulation): Keeps Bitcoin accumulation private
  • TIP-0118 (Permaweb): Makes data storage private
  • TIP-0119 (Oracles): Makes oracle queries private
  • TIP-0120 (Foundation Layer): Makes module operations private
  • TIP-0121 (Economic): Keeps economic operations private
  • TIP-0122 (Control Interface): Provides commands for privacy features
  • TIP-0123 (Temporal): Makes temporal data queries private
  • TIP-0124 (Cosmos Bridge): Makes cross-chain operations private

Privacy Pools (How Anonymity Works)

How Privacy Pools Provide Anonymity

Think of a privacy pool like a mixing service:

  1. Deposit: You put your money into a big pool with many other people
  2. Wait: You wait for some time to mix with others
  3. Withdraw: You withdraw your money to a new address
  4. Anonymity: Nobody can connect the deposit to the withdrawal
// This is like the privacy pool's management system
pub struct PrivacyPool {
    merkle_tree: MerkleTree,    // Tracks all deposits
    nullifiers: HashSet<Fr>,   // Prevents double-spending
    commitments: Vec<PedersenCommitment>,  // All the deposits
    root: Fr,                   // The root of the merkle tree
}

// Using the privacy pool
impl PrivacyPool {
    pub fn deposit(&mut self, amount: u64, sk: &Fr) -> Result<DepositProof, Error> {
        // 1. Create a commitment to hide the amount
        // 2. Add it to the pool
        // 3. Return a deposit proof
    }
    
    pub fn withdraw(&mut self, proof: &WithdrawProof) -> Result<bool, Error> {
        // 1. Verify the withdrawal proof
        // 2. Make sure the money hasn't been spent before
        // 3. Allow the withdrawal if valid
    }
}

Alignment with Satoshi's Vision

While Satoshi designed Bitcoin with pseudonymity rather than full privacy【turn1search7】, modern blockchain systems need stronger privacy guarantees. This TIP extends Satoshi's vision by implementing advanced zero-knowledge proof systems that maintain the verifiability of blockchain while adding the privacy needed for sensitive applications.

The implementation of TZKP would make Talos one of the most privacy-preserving blockchain ecosystems, enabling confidential transactions, private smart contracts, and privacy-preserving AI operations while maintaining complete verifiability.


Summary of Revisions

  1. Clarified Technical Terms for Broader Audience:

    • Added simple explanations for all technical concepts
    • Used analogies (magical proofs, recipes, envelopes) to make concepts understandable
    • Included "How it works" sections with step-by-step explanations
    • Added visual flowchart showing use case categories
  2. Added Specific Examples of Potential Use Cases:

    • Financial Privacy: Private salary payments, investment management, lending/borrowing
    • AI Privacy: Private AI training, inference, multi-agent coordination
    • Healthcare Privacy: Private medical records, clinical trials, insurance
    • Business Privacy: Supply chain management, HR operations, M&A due diligence
    • Gaming Privacy: Private gaming strategies, NFT ownership, achievements
  3. Enhanced User Understanding:

    • Added "What You Can Do Privately" section
    • Included "The Building Blocks" section explaining ZK circuits
    • Added "How It Works with Other Systems" section
    • Created "How to Use TZKP" section with practical examples

These revisions make the TIP accessible to a broader audience while maintaining technical accuracy, providing clear use cases that demonstrate the value of TZKP for various industries and applications.

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