Mystiko Auditable ZK Features
Privacy is a basic human right, but not for malicious and illegal activities. To protect the basic privacy rights for users with legitimate reasons from the bad actors exploiting on-chain privacy, Mystiko designed the first decentralized auditing system for onchain private transactions.
- What is the scope of auditing in Mystiko.Network? View only. Mystiko auditors will only be able to VIEW and audit transaction flow of suspicious deposits from bad actors, upon the request of regulators and the majority approval of the auditing committee. Mystiko auditors will only be able to VIEW the transaction history over a certain period of time upon the majority approval of the Mystiko auditing committee.
- Only suspicious transactions, such as sanctioned assets, will be audited. Auditing process will only be kicked off when sanctioned assets/addresses are identified in Mystiko user pool
- Your assets will always be secured by Mystiko. No one, not even Mystiko auditors, can intercept/temper private transactions in Mystiko.Network. Mystiko auditors will only be able to VIEW the transaction history over a certain period of time upon the majority approval of the Mystiko auditing committee.
- Who should be the Mystiko auditors? Reputable and reliable auditing partners, such as NGO, IGO, global auditing firms, regulators with strong background and expertise in compliance, technology, and finance are ideal Mystiko auditing committee members. The final members for the committees are chosen by the Mystiko community. Suggest and vote for the auditing partners that you trust the most to ensure a sustainable web3 privacy future.
- Auditing committee foundation : Trusted auditors of Mystiko.Network, such as regulators, reputational financial institutions and auditing firms, will be authorized to create auditor secret keys, whose paired public keys that are used for private transaction data auditing.
- Encryption: When a private deposit is withdrawn or transferred, while zero-knowledge proof is generated, the linkage between deposit and withdrawal/transfer will be split into multiple shares and encrypted with the public keys of auditors. Each auditor will have an encrypted secret share of the linkage data. [Tech reference: Shamir’s Secret Share]
- Audit: In order to view the complete info of a private transaction, the auditing committee will have to reach an agreement by passing a majority vote to decrypt the encrypted transaction history, with their privately stored secret keys.