Ethereum developers push forward with the deployment of the ZK-based "Secret Santa" system.

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Ethereum developers are advancing a zero-knowledge protocol for enhanced on-chain privacy, starting with a 'secret Santa' system to enable anonymous gift-swapping. The protocol addresses blockchain transparency and randomness issues, with potential applications in voting and DAO governance.

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EthereumSmart ContractsLayer 1Zero Knowledge Proofszero-knowledge proofsprivacyblockchainsecret Santa
According to CoinDesk, Ethereum developers are refining a zero-knowledge protocol designed to provide stronger privacy guarantees for on-chain interactions. The project starts with a "secret Santa" matching system, which is expected to evolve into a wider suite of private collaboration tools. Solidity engineer Artem Chystiakov revisited this research in a post on the Ethereum community forum on Monday, referring to his initial work published on arXiv in January. The concept aims to recreate an anonymous gift-swapping game on Ethereum, where participants are randomly paired and no one knows who is sending whom a gift. However, achieving this on a transparent blockchain requires addressing several long-standing issues surrounding randomness, privacy, and resistance to Sybil attacks. Chystiakov stated that the core problem is simple: "Everything on Ethereum is visible to everyone," the blockchain cannot provide true randomness, and the system must prevent users from registering multiple times or assigning gifts to themselves. The proposed protocol uses zero-knowledge proofs to verify the relationship between sender and receiver without revealing identity information and uses transaction relays to submit operations, making it impossible for a single wallet to be associated with a specific action. This type of zero-knowledge layer can be applied to anonymous voting, DAO governance, whistleblowing channels, and private airdrops or token distributions that avoid leaking recipient information.

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