Identity & Stealth Addresses

Zero-Knowledge KYC Credentials

DarkNet integrates with approved KYC providers (Fractal ID, Synaps, or equivalents). Identity data is never stored on-chain.

1. The user completes KYC with an approved provider, which issues a signed attestation:
   σ = Sign_skissuer(id_hash, attributes, expiry)
2. Locally, the user computes a ZK proof that they hold a valid, non-expired attestation signed by an approved issuer — without revealing the underlying identity data or the specific issuer.
3. The proof is presented to a protocol component (e.g., a compliance-gated lending pool) that verifies it against the registry of approved issuer public keys.

Satisfies KYC requirements at the protocol layer while maintaining user identity privacy from all other participants.

Stealth Address Protocol (DKSAP)

Stealth addresses ensure that transaction recipients cannot be identified by observing the blockchain — even with a Full Viewing Key. DarkNet implements a Dual-Key Stealth Address Protocol:

1. The recipient publishes a stealth meta-address (Pscan, Pspend).
2. The sender generates an ephemeral keypair (r, R) and computes the one-time address:
   P = P_spend + Hash(r · P_scan) · G
3. The recipient scans the chain using Pscan to identify payments and recovers the spending key for each.

Each transaction to a stealth address uses a unique, unlinkable on-chain address, preventing address-reuse tracking even by sophisticated analytics.

Private Multisig

For institutional users requiring multi-party authorisation, DarkNet provides a ZK-based N-of-M multisig in which the signing threshold is enforced cryptographically but the identities of the signers and the composition of the signing set are not revealed on-chain.

The construction uses a Shamir-Secret-Sharing-based scheme with ZK membership proofs: each signer generates a proof that their contribution constitutes a valid share; the aggregator proves a threshold of valid shares has been combined — without revealing which Nsigners of the set M participated.