Compliance

Compliance is a fundamental part of Labyrinth's transaction system, designed to prevent illicit activities and protect innocent users.

Our Selective De-Anonymization (SeDe) network establishes regulatory standards, allowing privacy-preserving applications to trace illicit transactions without centralized control, ensuring adherence to regulations.

Guardians and Revokers

The system includes independent guardians and revokers who manage private keys for de-anonymization in a decentralized manner. The selection of guardians and revokers can vary depending on the application.

De-Anonymization Scenarios:

• Compliance checks may be activated based on specific criteria. Transactions may be de-anonymized if linked to illicit activities, while the privacy of law-abiding users remains protected throughout their Labyrinth transactions.

• Only the revoker requesting de-anonymization can access transaction details, including user addresses.

Two Methods of De-Anonymization

1. Voluntary Selective De-Anonymization (SeDe)

Users can demonstrate data ownership through viewing keys, which can be downloaded from the activity tab.

This allows them to selectively de-anonymize data for third parties, such as tax agencies or legal authorities.

This approach promotes compliance while empowering users and developers within a decentralized framework.

2. In-Voluntary Selective De-Anonymization (SeDe)

Labyrinth maintains decentralization by distributing decision-making authority among multiple entities, including revokers and guardians, instead of relying on a single entity.

For more details on Labyrinth compliance, visit here.

Private keys of both revokers and guardians are used to de-anonymize a Labyrinth ecosystem's transactions in a distributed manner.

Roles in the De-Anonymization Process

Revoker Responsibilities

The de-anonymization process begins with a revoker submitting requests.

Guardians safeguard against unauthorized de-anonymization, ensuring it only occurs when law enforcement presents a valid warrant or court order.

Without this legal authorization, guardians block de-anonymization attempts, protecting user privacy.

Guardian’s Responsibility

After a revoker submits a request, guardians vote on whether to de-anonymize the transaction.

Once enough guardians approve the request, they grant cryptographic permission, enabling the revoker to proceed with de-anonymization.

The revoker can then perform the 'Decrypt' action to access the de-anonymized transaction details, including stealth addresses and asset information.

Normal User Acess

Regular users, who are neither revokers nor guardians, can only view transaction history from the homepage of Decom.

They do not have access to de-anonymized transactions.

Compliance actors list

Labyrinth's decentralized compliance relies on distributing power among trusted entities, known as guardians and revokers.