Aleo’s ZeFi application: technical details of anonymous transactions and lending
Aleo is a privacy-preserving blockchain platform, and its ZeFi application provides users with the ability to trade and borrow anonymously. This article will introduce in detail how Aleo’s ZeFi application implements anonymous transactions and loans from a technical point of view, and explore the key technical details.
1. Application of zero-knowledge proof:
ZeFi applications leverage the Aleo blockchain’s zero-knowledge proof technology to enable anonymous transactions and lending. Zero-knowledge proofs allow participants to prove the truth of a statement without revealing specific information. In ZeFi, zero-knowledge proofs are used to verify the validity of transactions and loans while hiding the specific identities of participants and transaction details.
2. Realization of anonymous transactions:
(a) Identity Concealment: ZeFi uses zero-knowledge proof technology to hide the identity of transaction participants. Participants can generate zero-knowledge proofs containing transaction information, proving that they are qualified for transactions without revealing identity information. This ensures the privacy and anonymity of transactions.
(b) Transaction verification: Using zero-knowledge proofs, ZeFi applications can verify the validity of transactions, including availability of funds and compliance with transaction rules. During the verification process, it is not necessary to reveal specific transaction details, but only to prove the correctness and legitimacy of the transaction.
© Smart Contract Execution: ZeFi applications execute transactions through smart contracts on the Aleo blockchain. The smart contract acts as the central coordinator, verifies the validity of the zero-knowledge proof, and executes transaction operations. Through the execution of smart contracts, the security and credibility of transactions are ensured.
3. Realization of anonymous lending:
(a) Asset Stealth: During the lending process, ZeFi applications use zero-knowledge proofs to hide the specific identities of borrowers and lenders. Participants can generate zero-knowledge proofs containing loan information, proving that they are qualified for the loan without revealing their identity.
(b) Loan condition verification: Through zero-knowledge proof, ZeFi applications can verify that borrowers meet loan conditions, including credit evaluation, collateral verification, etc. This ensures loan compliance and security while protecting the privacy of participants.
© Smart contract execution: ZeFi applications execute lending operations through smart contracts. The smart contract verifies the validity of the zero-knowledge proof, and executes the corresponding lending logic according to the lending agreement, including fund transfer, interest calculation, etc. The execution of lending operations is automated and credible through smart contracts.
4. Privacy protection mechanism:
(a) Zero-knowledge proof: ZeFi applications use zero-knowledge proof technology to protect users’ transaction and lending privacy. Zero-knowledge proofs allow participants to prove the truth of a fact, such as having sufficient funds or meeting the conditions of a loan, without revealing specific information. This enables participants in transactions and lending to protect their identities and sensitive information.
(b) Encryption: ZeFi applications use encryption to protect the confidentiality of transaction and lending data. Participant identities and transaction details are encrypted during transmission and storage to ensure data security and confidentiality.
5. Smart contract security:
The ZeFi application realizes the transaction and lending functions through the smart contract of the Aleo blockchain, and ensures its security. The deployment and execution of smart contracts are jointly participated by multiple nodes, avoiding the risk of single point of failure and centralization. The execution logic of smart contracts has undergone strict security audits and tests to ensure the safety and reliability of transactions and lending operations.
