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arXiv · 2506.04853

A Private Smart Wallet with Probabilistic Compliance

Andrea Rizzini·Marco Esposito·Francesco Bruschi·Donatella Sciuto
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Abstract

We propose a privacy-preserving smart wallet with a novel invitation-based private onboarding mechanism. The solution integrates two levels of compliance in concert with an authority party: a proof of innocence mechanism and an ancestral commitment tracking system using bloom filters for probabilistic UTXO chain states. Performance analysis demonstrates practical efficiency: private transfers with compliance checks complete within seconds on a consumer-grade laptop, and overall with proof generation remaining low. On-chain costs stay minimal, ensuring affordability for all operations on Base layer 2 network. The wallet facilitates private contact list management through encrypted data blobs while maintaining transaction unlinkability. Our evaluation validates the approach's viability for privacy-preserving, compliance-aware digital payments with minimized computational and financial overhead.

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Andrea Rizzini, Marco Esposito, Francesco Bruschi, Donatella Sciuto. 2025-06-05. A Private Smart Wallet with Probabilistic Compliance. https://doi.org/10.1109/dapps65174.2025.00021

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