Complaince

Compliance is deeply integrated into Veilnyx’s transaction system to prevent illicit activities and protect innocent users. We have designed a Selective De-Anonymization (SeDe) network to establish regulatory and compliant standards. This framework enables privacy-preserving applications to trace illicit transactions without centralized control, ensuring adherence to regulatory requirements.

The system consists of guardians and revokers, who operate as independent parties responsible for controlling the private key for de-anonymization in a decentralized manner. The choice of guardians and revokers can vary depending on the application’s requirements.

De-Anonymization Scenarios:

• Compliance checks may be triggered based on specific criteria. Transactions could be de-anonymized if they are associated with illicit activities. However, for law-abiding, innocent users, their privacy remains intact throughout their zkFi transactions.

• Details of the transaction, including user addresses, are revealed only to the Revoker requesting de-anonymization.

There are two ways transactions can be de-anonymised in zkfi:

Voluntary Selective De-Anonymization (SeDe)

In-Voluntary Selective De-Anonymization (SeDe)