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Project Documentation

Understand how Reso handles zero-knowledge compliance on the Stellar Network.

Overview

Reso is a contemporary compliance and identity-guard framework built for the Stellar Network. It utilizes zero-knowledge proofs (ZKP), homomorphic encryption, and multisig authorization logic to guarantee regulatory alignment (KYC, AML, sanctions screening) without disclosing users' private wallet details or transaction histories on the public ledger.

How it Works

Traditional blockchains require compliance checks to occur on-chain, exposing private user credentials. Reso shifts the heavy cryptographic computations off-chain to an independent compliance oracle, verifying transactions securely in seconds:

1. Off-Chain Proof Generation

When a transaction is initiated, Reso compiles a cryptographic proof verifying that the user meets all requirements (KYC tier, sanctions clearance, daily transfer limits).

2. On-Chain Verification

The compiled ZK proof is transmitted to the Stellar network ledger. Rather than verifying the transaction contents, the network verifies only the mathematical correctness of the ZK proof.

Technical Features

ZK-Proof Transaction Simulator

Allows real-time verification of transaction rules. Simulates sanctions screening, KYC tiers, and homomorphic balance cap checks.

Additive Homomorphic Limits

Uses Paillier homomorphic encryption to aggregate daily spending limits without decrypting individual transaction amounts, maintaining financial privacy.

ZK-Gated Escrow

Locks funds on the Stellar network testnet. Releasing/claiming the locked funds requires presenting a valid off-chain ZK verification token.

Shamir Threshold Time-Locks

Implements a 3-of-5 trustee schema with built-in time delays to reveal user identities only under emergency or legal audit situations.

Compliance Workflows

Reso processes compliance checks sequentially inside isolated ZK circuits, generating verification proofs step-by-step:

1. Sanctions Merkle Proof

Checks if your wallet address exists in a Merkle tree of blacklisted/sanctioned entities. The ZK circuit proves the non-membership of your public key without revealing your actual address.

2. KYC Tier Verification

Verifies if your registered profile meets the required compliance tier (Tier 0, 1, or 2) for the target action. The proof validates that your credentials meet or exceed the threshold dynamically.

3. Homomorphic Limit Attestation

Aggregates transaction sums utilizing Paillier additive homomorphic encryption. This validates that the transaction is within daily spending limits without revealing the transaction amounts.

4. On-Chain Settlement

Once all compliance proofs are successfully compiled and folded together, the transaction is released to the Stellar Horizon API for final on-chain settlement.