ASOZ: A Decentralized Payment System with Privacy Preserving and Auditing

Project Status: Advanced Implementation Complete

Components Implemented:

1. Smart Contract Layer

   • Transaction Contract: Full implementation with deposit, withdrawal, and transaction execution
   • Auditor Contract: Complete auditor management and audit request handling
   • Governance Contract: Advanced proposal and voting system
   • Bridge Contract: Cross-chain communication with multi-sig validation

2. Cryptographic Components

   • Advanced Field Operations
   • Ring Signatures
   • Stealth Addresses
   • Bulletproofs for Range Proofs
   • Zero-Knowledge Proof System
   • Pedersen Commitments
   • Poseidon Hash Function

3. Transaction Management

   • Transaction Pool
   • Fee Market System
   • Batch Processing

4. Privacy Features

   • Ring Signature Verification
   • Stealth Address Generation
   • Zero-Knowledge Proofs
   • Commitment Schemes

5. Integration Layer

   • Oracle Integration with Price Feeds
   • Cross-Chain Bridge Implementation
   • External Data Verification

6. Security Features

   • Key Recovery System
   • Multi-Signature Validation
   • Threshold Cryptography
   • Advanced Access Control

7. Testing Framework

   • Unit Tests for All Components
   • Integration Tests
   • Security Tests
   • Stress Tests

Recent Updates:

• Implemented advanced cryptographic operations
• Added comprehensive bulletproofs implementation
• Integrated oracle system with validator management
• Enhanced key recovery mechanism
• Added extensive test suite

Security Features:

• Secure key management
• Threshold signatures
• Social recovery system
• Advanced access control
• Multi-signature validation

Testing Coverage:

• Unit tests for all components
• Integration tests for workflows
• Security and penetration tests
• Performance and stress tests

Next Steps:

1. Security audits
2. Performance optimization
3. Integration testing
4. Documentation updates

Getting Started

Prerequisites

• Cairo 1.0 or higher
• StarkNet CLI
• Rust toolchain

Installation

git clone [repository-url]
cd ASOZ-cairo-implementation

Building

scarb build

Testing

scarb test

Architecture

The system implements a privacy-preserving payment system with auditing capabilities on public blockchain. Key features:

1. Privacy: Uses ring signatures and stealth addresses
2. Auditability: Supports selective disclosure through zero-knowledge proofs
3. Scalability: Implements efficient batch processing
4. Security: Multiple layers of cryptographic security

Contributing

Contributions are welcome! Please read our contributing guidelines and code of conduct.

License

This project is licensed under [LICENSE] - see the LICENSE file for details.

Acknowledgments

Based on the ASOZ paper and implemented with advanced cryptographic primitives.

Detailed Implementation Information

Core Components

1. Cryptographic Operations (src/privacy_pools/crypto/)

• Pairing Operations (pairing.cairo)
  • Optimal ate pairing implementation
  • Miller loop calculations
  • Elliptic curve operations for G1 and G2
  • Field element arithmetic
  • Efficient final exponentiation

2. Fee Management System (src/privacy_pools/fees/)

• Fee Manager (fee_manager.cairo)
  • Dynamic fee calculation based on transaction complexity
  • Automatic fee adjustment mechanisms
  • Fee distribution among validators and governance
  • Support for multiple fee tokens
  • Configurable fee parameters

3. Audit System (src/privacy_pools/audit/)

• Audit Trail (audit_trail.cairo)
  • Comprehensive event logging
  • Cryptographic verification of audit entries
  • Report generation with validator signatures
  • Audit data retention and retrieval
  • Access control for auditors

4. Event Management (src/privacy_pools/events/)

• Event Manager (event_manager.cairo)
  • Event subscription system
  • Asynchronous event processing
  • Event verification and validation
  • Subscription management
  • Event notification system

5. State Management (src/privacy_pools/state/)

• State Manager (state_manager.cairo)
  • Version control for state updates
  • Merkle root tracking
  • State transition validation
  • Cryptographic state signatures
  • Recovery mechanisms

6. Security Features (src/privacy_pools/security/)

• MEV Protection (mev_protection.cairo)

  • Commitment scheme implementation
  • Timelock enforcement
  • Front-running prevention
  • Commitment verification

• Security Manager (security_manager.cairo)

  • Advanced security checks
  • Incident reporting and handling
  • Emergency shutdown capabilities
  • Access control management
  • Rate limiting and lockout mechanisms

7. Testing (src/privacy_pools/tests/)

• Integration Tests (test_integration.cairo)
  • End-to-end transaction flow testing
  • Governance action validation
  • Error handling scenarios
  • Recovery procedure testing
  • Security feature validation

Architecture

The system is built with a modular architecture where each component handles specific functionality while maintaining clear interfaces with other components. Key architectural features include:

1. Separation of Concerns

   • Each module is self-contained with clear responsibilities
   • Well-defined interfaces between components
   • Minimal coupling between modules

2. Security First

   • Multiple layers of security checks
   • Cryptographic verification at each step
   • Rate limiting and access control
   • Emergency shutdown capabilities

3. Scalability

   • Efficient cryptographic operations
   • Optimized state management
   • Batch processing capabilities
   • Event-driven architecture

4. Maintainability

   • Comprehensive test coverage
   • Clear documentation
   • Consistent code style
   • Modular design

Features

Advanced Privacy Features

• Zero-knowledge proof integration
• Commitment-based transaction hiding
• Timelock enforcement
• Front-running protection

Dynamic Fee System

• Transaction complexity-based fees
• Automatic fee adjustments
• Fair distribution mechanism
• Multiple token support

Comprehensive Audit Trail

• Cryptographic verification of all events
• Detailed activity logging
• Report generation
• Access control for auditors

Robust Security

• Multi-layer security checks
• Incident handling system
• Emergency procedures
• Rate limiting

State Management

• Version control
• Merkle tree verification
• State recovery
• Cryptographic signatures

Getting Started

1. Prerequisites

   • Cairo compiler
   • StarkNet environment
   • Rust toolchain

2. Installation

   git clone [repository-url]
   cd privacy-pools

3. Building

   cargo build

4. Testing

   cargo test

Documentation

Detailed documentation for each component is available in their respective directories:

• /crypto - Cryptographic operations
• /fees - Fee management system
• /audit - Audit system
• /events - Event management
• /state - State management
• /security - Security features
• /tests - Testing framework

Contributing

1. Fork the repository
2. Create your feature branch
3. Commit your changes
4. Push to the branch
5. Create a new Pull Request

License

[Insert License Information]

References

• Derecho Privacy Pools Paper
• StarkNet Documentation
• Cairo Programming Language