Ethereum developers explore Secret Santa ZK protocol in on-chain privacy push

Ethereum developers are developing a zero-knowledge protocol to increase on-chain privacy. The deployment will kick off with a Secret Santa-style matching system that retains user anonymity through zero-knowledge proofs and transaction relayers. 

Ethereum developers have made significant efforts to develop privacy frameworks for the network’s on-chain activities, including private token distribution and anonymous voting. The developers are working on a “Secret Santa”-style matching system that could transform into a framework for private coordination. 

The team is currently spearheading the deployment of a zero-knowledge protocol to enhance on-chain privacy for Ethereum users. The protocol will utilize transaction relayers and zero-knowledge proofs to mask user identities and prevent Sybil attacks during on-chain interactions. 

Secret Santa deployment on Ethereum is possible, says Artem Chystiakov

Artem Chystiakov, a Solidity engineer, brought his research to the spotlight on Monday through an Ethereum community forum post citing work he had published in January on arXiv. Chystiakov expressed his belief that deploying Secret Santa on-chain was possible. 

The engineer proposed a three-step Secret Santa algorithm that facilitates chain transactions between senders and receivers while maintaining the confidentiality of the involved parties. He explained that the algorithm could recreate the anonymous gift-exchange game on the Ethereum blockchain.

According to Chystiakov, the algorithm is decentralized and maintains a permutational derangement, which makes it implementable in Solidity. The dev suggested that the rollout faces distinct challenges, including Ethereum’s inability to allow computations privately.

His suggested solution to the challenge involves using a transaction “relayer” together with ZKP to hide the identities and addresses of Secret Santa participants. 

Chystiakov also explained in the community post that true randomness is unachievable on-chain but suggested that the choice of gift sender/receiver pair could be outsourced to the Secret Santa participants and verified via ZKP. The verification will ensure that no participant will select themselves, according to the developer. 

Chystiakov also described double voting as another challenge that could arise, but he proposed the concept of “nullifiers (blinders)” as the solution. The blinders will allow the protocol to verify participation without jeopardizing user anonymity.

The proposal’s proof-of-concept detailed that users register using their Ethereum addresses in a smart contract and retrieve a unique digital signature that will inhibit identical entries. The participants will then submit a random number to a shared list through the relayer.

The relayer will be responsible for broadcasting transactions, preventing participants from knowing which number belongs to which address. The shared numbers will also enable receivers to encrypt their delivery details, which can only be decrypted by their paired counterparts. 

The matching process will complete once a participant selects someone else’s random number, after which the protocol will reveal the receiver’s identity details, but only to the participant paired to them as their “Santa.” The rest of the network will not gain access to the pairing details and involved parties, thereby retaining the anonymity of the sender and receiver.

Ethereum heightens privacy protection for the network’s user activity

The news comes after Ethereum co-founder Vitalik Buterin recently referred to privacy as a hygiene rather than a network feature. Cryptopolitan reported that the remarks followed the compromise of several U.S. banking institutions by malicious attackers, who stole client information.

According to the report, the crypto pioneer outlined a plan for Ethereum to conceal transaction details and enhance privacy by using stealth addresses.

On November 18, the network introduced a privacy-oriented toolkit called Kohaku as part of its efforts to drive privacy evolution.

Buterin explained that the network divulges too much user personal data and urged developers to ensure users can achieve privacy protection. The toolkit comprises a wallet reference design, a lightweight client architecture, and a series of privacy protocols that work in sync to hide users’ data and validate the security of transactions.

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