Z.E.N.I.T.H.

Zero-knowledge Encrypted Network for Inference & Temporal Heuristics

Layer-0 B2B2G Middleware — Privacy-Preserving Compliance via ZK-SNARKs (Groth16) + Real-time Smurfing/Layering Detection via Temporal Graph Networks

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What is Z.E.N.I.T.H.?

Traditional AML/KYC compliance forces financial institutions to expose raw customer data to third-party services — creating GDPR conflicts, data sovereignty issues, and honeypot attack surfaces.

Z.E.N.I.T.H. solves the Data-Sharing vs. Privacy paradox using two cryptographic layers:

Layer	Technology	What It Does
Layer 1 — Identity Compliance	ZK-SNARK (Groth16)	Proves KYC predicate is satisfied without revealing the underlying data
Layer 2 — Behavioral Compliance	Temporal Graph Network	Detects smurfing, layering, and mixer usage via spatio-temporal wallet graph analysis

Both layers are enforced atomically on-chain in a single transaction — eliminating TOCTOU attack surfaces.

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Architecture

┌─────────────────────────────────────────────────────────────┐
│                    B2B Client (Exchange/Bank)                │
│                       client_prover.js                       │
│  • Loads input.json (secretData stays LOCAL, never sent)     │
│  • Generates Groth16 ZK proof via snarkjs locally (~1-2s)    │
│  • POSTs proof + transaction intent to middleware API        │
└──────────────────────────┬──────────────────────────────────┘
                           │ POST /api/v1/compliance-check
                           ▼
┌─────────────────────────────────────────────────────────────┐
│              Z.E.N.I.T.H. Middleware (FastAPI)               │
│                   zenith_middleware.py                       │
│  • TGN Graph Engine: builds wallet interaction graph         │
│  • Scores behavioral risk 0-100 across 4 signal components   │
│  • Forwards ZK proof + risk score → blockchain oracle        │
└──────────────────────────┬──────────────────────────────────┘
                           │ web3.py → executeCrossBorderTransfer()
                           ▼
┌─────────────────────────────────────────────────────────────┐
│           ZenithEscrow.sol (Polygon zkEVM / Amoy)            │
│  • Verifies Groth16 proof via Groth16Verifier (O(1) pairing) │
│  • Checks TGN risk score < 85 threshold                      │
│  • Emits DigitalComplianceCertificate event                  │
│  • Executes atomic fund transfer from escrow                 │
└─────────────────────────────────────────────────────────────┘

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Project Structure

ZENITH/
├── compliance_circuit.circom        # ZK circuit: proves secretData * threshold = result
├── compliance_circuit.zkey          # Groth16 proving key (generated, not committed)
├── compliance_circuit.r1cs          # R1CS constraint system
├── compliance_circuit_js/
│   ├── compliance_circuit.wasm      # Compiled circuit (witness generation)
│   ├── generate_witness.js          # snarkjs witness generator
│   └── witness_calculator.js        # snarkjs witness calculator
├── input.json                       # Circuit input: {secretData, publicThreshold}
├── public.json                      # Public signals output: [result, threshold]
├── proof.json                       # Sample generated proof
├── verification_key.json            # Groth16 verification key
├── witness.wtns                     # Generated witness (binary)
├── pot12_0000.ptau                  # Powers of Tau ceremony file
├── pot12_0001.ptau                  # Powers of Tau (contributed)
├── pot12_final.ptau                 # Powers of Tau (final)
│
├── Verifier.sol                     # Auto-generated Groth16 verifier (snarkjs export)
├── ZenithEscrow.sol                 # Main compliance escrow smart contract
│
├── zenith_middleware.py             # FastAPI microservice: TGN engine + web3 oracle
├── client_prover.js                 # B2B client SDK: local proof generation + API call
├── TGN_vis.py                       # Phase 1: static TGN visualization (networkx)
│
├── Dockerfile                       # Multi-stage optimized container for middleware
├── requirements.txt                 # Python dependencies
├── package.json                     # Node.js dependencies
├── .env.example                     # Environment variable template
└── README.md

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Phase 1 — Local Proof of Concept (Completed)

Built the ZK circuit and verified proof generation locally:

# Compile circuit
circom compliance_circuit.circom --r1cs --wasm --sym

# Powers of Tau ceremony
npx snarkjs powersoftau new bn128 12 pot12_0000.ptau -v
npx snarkjs powersoftau contribute pot12_0000.ptau pot12_0001.ptau
npx snarkjs powersoftau prepare phase2 pot12_0001.ptau pot12_final.ptau

# Groth16 setup
npx snarkjs groth16 setup compliance_circuit.r1cs pot12_final.ptau compliance_circuit.zkey

# Generate & verify proof
npx snarkjs groth16 fullprove input.json compliance_circuit_js/compliance_circuit.wasm compliance_circuit.zkey proof.json public.json
npx snarkjs groth16 verify verification_key.json public.json proof.json

Circuit: result <== secretData * publicThreshold — proves the multiplication was done correctly without revealing secretData.

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Phase 2 — Testnet MVP Orchestration (Completed)

Prerequisites

# Node.js dependencies
npm install snarkjs axios

# Python dependencies
pip install fastapi uvicorn[standard] web3 networkx numpy pydantic httpx

# Generate Verifier.sol from zkey
npx snarkjs zkey export solidityverifier compliance_circuit.zkey Verifier.sol

Environment Setup

Copy .env.example to .env and fill in your values:

cp .env.example .env

Start the Middleware

uvicorn zenith_middleware:app --host 0.0.0.0 --port 8000 --reload

Verify it's running:

curl http://localhost:8000/health
# Expected: {"status":"healthy","chain_connected":true,"chain_id":2442,...}

Deploy Smart Contracts (Remix IDE)

1. Open remix.ethereum.org
2. Upload Verifier.sol and ZenithEscrow.sol
3. Compile both with Solidity 0.8.20
4. Deploy Groth16Verifier first → copy address
5. Deploy ZenithEscrow with the verifier address as _verifier parameter
6. Update ZENITH_ESCROW_ADDRESS in your .env

Deployed on: Remix VM (local EVM) / Polygon zkEVM Cardona (chain ID 2442) / Polygon Amoy (chain ID 80002)

Run the B2B Client Prover

node client_prover.js
# With custom params:
node client_prover.js --sender "0xExchangeWallet" --receiver "0xBankWallet" --amount 5000

---

API Reference

GET /health

System liveness check — returns chain connection status and TGN threat node count.

POST /api/v1/compliance-check

Main compliance orchestration endpoint.

Request:

{
  "sender_wallet": "Wallet_A_Exchange",
  "receiver_wallet": "Wallet_B_Bank",
  "amount": 5000,
  "amount_wei": 5000000,
  "zk_proof": {
    "pi_a": ["...", "..."],
    "pi_b": [["...", "..."], ["...", "..."]],
    "pi_c": ["...", "..."],
    "protocol": "groth16"
  },
  "public_signals": ["123456000", "1000"]
}

Response:

{
  "status": "APPROVED",
  "transaction_hash": "0x...",
  "certificate_id": "0x...",
  "tgn_analysis": {
    "risk_score": 20,
    "risk_level": "LOW",
    "anomaly_flags": ["STRUCTURING_PATTERN: Amount 5000.00 is within 10% of structuring threshold 4999"],
    "graph_metrics": {"nodes": 6, "edges": 5}
  }
}

Status codes:

Status	Meaning
APPROVED	ZK proof valid + TGN score ≤ 85 + on-chain settlement successful
REJECTED_ZK	Groth16 proof verification failed
REJECTED_TGN	TGN behavioral risk score > 85 (smurfing/layering detected)
BLOCKCHAIN_ERROR	ZK + TGN passed but blockchain submission failed

POST /api/v1/tgn-analyze

Lightweight pre-flight TGN check without proof submission — use to avoid wasting proof generation compute on high-risk transactions.

GET /api/docs

Interactive Swagger UI.

---

TGN Risk Scoring

The Temporal Graph Network engine scores transactions across 4 independent signal components:

Component	Max Points	Detects
Direct malicious node match	40	Receiver is a known mixer/smurf wallet
Graph proximity (hop decay)	30	1-2 hop distance to malicious cluster
Structuring pattern	20	Amount near AML reporting thresholds
Fan-out velocity	10	High out/in degree ratio (distribution pattern)

Threshold: Score > 85 → REJECTED_TGN (revert on-chain: Z.E.N.I.T.H: TGN Anomaly Detected)

Known threat nodes: Mixer_Contract, Smurf_1, Smurf_2, LayeringHub_A

---

Smart Contract

ZenithEscrow.sol

Key function: executeCrossBorderTransfer(receiver, a, b, c, publicInputs, tgnRiskScore, proofNonce, transferAmount)

Security features:

• Replay protection via bytes32 proof commitment mapping
• Checks-Effects-Interactions pattern (reentrancy safe)
• Manual reentrancy mutex (no OpenZeppelin dependency)
• Immutable verifier address (prevents governance attack)
• DigitalComplianceCertificate event as on-chain audit trail

Events

event DigitalComplianceCertificate(
    bytes32 indexed certificateId,
    address indexed sender,
    address indexed receiver,
    uint256 amount,
    uint8 tgnRiskScore,
    uint256 timestamp,
    bytes32 zkProofHash
);

---

Docker

# Build
docker build -t zenith-middleware:2.0.0 .

# Run
docker run -p 8000:8000 \
  -e WEB3_RPC_URL=https://rpc.cardona.zkevm-rpc.com \
  -e CHAIN_ID=2442 \
  -e ZENITH_ESCROW_ADDRESS=0x... \
  -e ORACLE_PRIVATE_KEY=0x... \
  zenith-middleware:2.0.0

---

Demo Results (Phase 2)

Health Check

{"status":"healthy","version":"2.0.0","chain_connected":true,"chain_id":2442,"tgn_threat_nodes":4}

Clean Wallet Transaction (Wallet_A → Wallet_B)

Risk Score:    20/100 (LOW)
Anomaly Flags: STRUCTURING_PATTERN (amount near threshold 4999)
Status:        BLOCKCHAIN_ERROR (expected — Remix VM not reachable by web3.py)

ZK Proof Generation (client_prover.js)

ZK Proof generated in 1082ms
Public signals: [123456000, 1000]
Protocol: groth16
Local proof verification: PASSED
TGN Risk Score: 20/100 → LOW

Mixer Contract Detection (Wallet_A → Mixer_Contract)

Risk Score:    >85/100 (CRITICAL)
Status:        REJECTED_TGN
Anomaly Flags: DIRECT_MALICIOUS_NODE, PROXIMITY_ALERT

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Team

Built for PidiHackathon — Z.E.N.I.T.H. by Orion

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License

MIT License — see LICENSE for details.