ZK Escrow v2

Abstract

ZK Escrow v2 is a decentralized escrow service built on the Aleo blockchain, leveraging zero-knowledge proofs to provide secure, trustless transactions between parties. The protocol eliminates the need for centralized intermediaries while maintaining privacy and security through cryptographic guarantees.

1. Introduction

Traditional escrow services require trust in a centralized third party to hold and release funds. This introduces counterparty risk, potential censorship, and privacy concerns. ZK Escrow v2 addresses these challenges by implementing a fully decentralized escrow mechanism on Aleo.

Built on Aleo's zero-knowledge virtual machine, the protocol ensures transaction privacy while maintaining verifiable correctness of all operations.

2. Technical Architecture

2.1 Core Components

The zk_escrow_v2.aleo program consists of the following key components:

2.2 State Management

Escrow states are stored on-chain using Aleo's mapping primitive, providing a transparent and verifiable record of all escrow transactions. Each escrow is identified by a unique u64 ID chosen by the creator.

3. Protocol Operations

4. Security Model

4.1 Access Control

The protocol implements role-based access control:

• Only the sender can release funds
• Only the designated recipient can claim funds
• Both parties can initiate cancellation
• All operations require amount verification to prevent errors

4.2 Cryptographic Guarantees

Leveraging Aleo's zero-knowledge proofs, all operations are cryptographically verified while maintaining privacy. The protocol ensures that only authorized parties can execute specific operations through on-chain verification.

5. Use Cases

6. Conclusion

ZK Escrow v2 demonstrates the power of zero-knowledge proofs in creating trustless financial infrastructure. By eliminating the need for centralized intermediaries while maintaining strong security guarantees, the protocol enables a new paradigm of peer-to-peer commerce on Aleo.