zkLedger: privacy-preserving auditing for distributed ledgers
zkLedger: privacy-preserving auditing for distributed ledgers Narula et al., NSDI’18
Somewhat similarly to Solidus that we looked at late last year, zkLedger (presumably this stands for zero-knowledge Ledger) provides transaction privacy for participants in a permissioned blockchain setting. zkLedger also has an extra trick up its sleeve: it provides rich and fully privacy-preserving auditing capabilities. Thus a number of financial institutions can collectively use a blockchain-based settlement ledger, and an auditor can measure properties such as financial leverage, asset illiquidity, counter-party risk exposures, and market concentration, either for the system as a whole, or for individual participants. It provides a cryptographically verified level of transparency that’s a step beyond anything we have today.
The goals of zkLedger are to hide the amounts, participants, and links between transactions while maintaining a verifiable transaction ledger, and for the Auditor to receive reliable answers to its queries. Specifically, zkLedger lets banks issue hidden transfer transactions which are still publicly verifiable by all other participants; every participant can confirm a transaction conserves assets and assets are only transferred with the spending bank’s authority.
Setting the stage
A zkLedger system comprises n banks and an auditor that verifies certain operational aspects of transactions Continue reading