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A Protocol for Compliant, Obliviously Managed Electronic Transfers

Geoffrey Goodell

TL;DR

This work tackles private, self-custodial digital asset transfers by integrating unforgeable stateful oblivious assets ($USO$) with an oblivious ledger and notarisation to prevent equivocation. It proposes a complete architectural and protocol framework, including asset creation, updating, and transferring flows, reinforced by Merkle-tree proofs of inclusion ($p(G_{L,i+n},k_j,F_j)$) and provenance tracking, as well as Chaumian blinding ($b$) and optional zero-knowledge/privacy options. A Chaumian Mint / ZKP path enables private token transfers, while a DLT-based commitment layer ($G_{D,t}$) helps bound cross-ledger equivocation; the protocol is explicitly specified with notation and UML diagrams for practical implementation. The approach offers a scalable, privacy-preserving, non-custodial digital-asset infrastructure with optional cross-ledger accountability, suitable for digital currencies and tokens in distributed networks.

Abstract

We describe a protocol for creating, updating, and transferring digital assets securely, with strong privacy and self-custody features for the initial owner based upon the earlier work of Goodell, Toliver, and Nakib. The architecture comprises three components: a mechanism to unlink counterparties in the transaction channel, a mechanism for oblivious transactions, and a mechanism to prevent service providers from equivocating. We present an approach for the implementation of these components.

A Protocol for Compliant, Obliviously Managed Electronic Transfers

TL;DR

This work tackles private, self-custodial digital asset transfers by integrating unforgeable stateful oblivious assets () with an oblivious ledger and notarisation to prevent equivocation. It proposes a complete architectural and protocol framework, including asset creation, updating, and transferring flows, reinforced by Merkle-tree proofs of inclusion () and provenance tracking, as well as Chaumian blinding () and optional zero-knowledge/privacy options. A Chaumian Mint / ZKP path enables private token transfers, while a DLT-based commitment layer () helps bound cross-ledger equivocation; the protocol is explicitly specified with notation and UML diagrams for practical implementation. The approach offers a scalable, privacy-preserving, non-custodial digital-asset infrastructure with optional cross-ledger accountability, suitable for digital currencies and tokens in distributed networks.

Abstract

We describe a protocol for creating, updating, and transferring digital assets securely, with strong privacy and self-custody features for the initial owner based upon the earlier work of Goodell, Toliver, and Nakib. The architecture comprises three components: a mechanism to unlink counterparties in the transaction channel, a mechanism for oblivious transactions, and a mechanism to prevent service providers from equivocating. We present an approach for the implementation of these components.
Paper Structure (9 sections, 13 equations, 4 figures)

This paper contains 9 sections, 13 equations, 4 figures.

Table of Contents

  1. Introduction
  2. Our approach to digital currency architecture
  3. Oblivious ledgers
  4. Creating assets
  5. Updating assets
  6. Transferring assets
  7. A Chaumian Mint (or ZKP) for Privacy
  8. Using DLT to prevent equivocation
  9. Protocol specification

Figures (4)

  • Figure 1: A schematic representation of a Merkle trie with root $G_{L,i+n}$
  • Figure 2: UML sequence diagram for withdrawing an asset using the Chaum method.
  • Figure 3: UML sequence diagram for withdrawing an asset using the ZKP method.
  • Figure 4: UML sequence diagram for transferring an asset; the transfer can be registered by either the sender or the recipient. If the sender used the ZKP method to withdraw the asset, then the sender can transfer a zero-knowledge proof $\pi$ relating $F_0$ to ($\tilde{F},\beta(F_0))$ to the recipient along with $F_j$ so that the recipient can verify that asset was created via a valid burning operation.