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ACE Chain

A High Performance, PQC-Native Layer 1 Blockchain Without TPS Penalty

ACE Chain is a Layer 1 public blockchain designed from cryptographic primitives upward. Its core methodology is not incremental optimization of existing blockchain systems, but a unified solution framework for seven systemic challenges facing the industry -- led by the quantum computing threat -- derived from a single fundamental design decision: identity-authorization separation.

All features described in this whitepaper have been fully implemented. Every protocol, algorithm, and architectural decision is formally specified in the ACE Chain Research Papers, which serve as the implementation basis for the entire system. The source code will be publicly available after the completion of a third-party security audit. Readers are encouraged to consult the paper repository for full mathematical proofs, security analyses, and protocol specifications underlying every component of ACE Chain.

Core Insight: Identity-Authorization Separation

Traditional blockchains follow the equation: Public Key = Identity = Address. ACE Chain breaks this by decomposing it into two independent layers:

  • Identity layer: idcom = Commitment(REV, salt, domain) -- a 32-byte cryptographic commitment that reveals no public-key information and is not bound to any signature algorithm.
  • Authorization layer: credential = f(attest_key, payload) -- a replaceable credential that can be an Ed25519 signature, secp256k1 signature, HMAC-SHA256 MAC, or a post-quantum ML-DSA-44 signature.

This single design decision is a generative principle from which a series of previously independent problems are naturally resolved as corollaries.

Design Goals

Industry Pain Point Design Goal Solution
Quantum computing threat Native PQC, zero migration cost Identity-authorization separation; dual-algorithm native layer (Ed25519 + ML-DSA-44)
Private-key trilemma Simultaneous self-custody, inheritance, and yield ACE-GF deterministic derivation; CT-DAP; Yault ERC-4626 vault
Signature verification bottleneck Eliminate per-tx signature overhead O(1) block verification via recursive ZK proofs
Addressing and recovery deficiencies Human-readable payment and recovery VA-DAR serverless recovery; HFI-Pay human-friendly identifier payment
Cross-chain identity fragmentation Unified identity with multi-chain native execution 7-stream HKDF derivation; n-VM multi-chain scheduling
Finality efficiency Sub-second cryptographic hard finality ZK proof-based two-tier finality (~600 ms hard finality)
Agent economy infrastructure High-frequency micro-payments, policy boundaries, zero-fee DeFi AESP protocol; in-runtime DeFi; ~$0.01/M tx

Architecture Overview

ACE-GF: The Cryptographic Foundation

ACE-GF (Atomic Cryptographic Entity Generative Framework) starts from a single memorized secret and deterministically generates a complete multi-chain cryptographic identity without persisting any key material. From a single REV (Root Entropy Value), seven cryptographically independent key streams are derived via HKDF-SHA256 domain separation:

Stream Domain Tag Algorithm Purpose
1 ACEGF-V1-ED25519-SOLANA Ed25519 Solana signing
2 ACEGF-V1-ED25519-POLKADOT Ed25519 Polkadot signing
3 ACEGF-V1-SECP256K1-EVM secp256k1 Ethereum/EVM signing
4 ACEGF-V1-SECP256K1-BTC secp256k1 Bitcoin Taproot
5 ACEGF-V1-SECP256K1-COSMOS secp256k1 Cosmos signing
6 ACEGF-V1-X25519-IDENTITY X25519 End-to-end encryption
7 ACEGF-V1-ML-DSA-44-PQC-IDENTITY ML-DSA-44 Post-quantum signing

Dual-Algorithm Native Layer

Ed25519 (classical) and ML-DSA-44 (FIPS 204, post-quantum) operate as peer first-class citizens at the protocol layer from day one, achieved through a three-layer algorithm abstraction:

  1. Tagged cryptographic primitives -- every public key and signature carries a 1-byte algorithm identifier (TaggedPubkey, TaggedSignature).
  2. Multi-algorithm account model -- each account holds a primary authorization key and up to 3 additional keys, supporting Ed25519 and ML-DSA-44 coexistence. Users can switch algorithms at runtime via OP_SET_AUTH_PUBKEY without changing address or migrating assets.
  3. Unified verification dispatch -- a single verify_signature() function dispatches to the corresponding verifier based on the algorithm tag.

Consensus and Finality

ACE Chain employs a hybrid BFT + PoH + ZK consensus model:

  • PoH (Proof-of-History): Serial SHA-256 hash chain for verifiable temporal ordering.
  • BFT voting: 2/3 stake-weighted voting achieves soft finality (~400 ms). Votes are off-chain messages -- zero on-chain vote transactions.
  • ZK proofs: STARK/FRI recursive proofs provide cryptographic hard finality (target ~600 ms), post-quantum secure.

O(1) Block Verification

A single recursive ZK proof covers all transactions in a block. Verification cost is O(1), independent of transaction count:

  • Traditional (e.g., Solana): T_verify = n * 76 us per transaction
  • ACE Chain: T_verify ~ 0.5 ms (STARK/FRI verification), independent of n

Execution Layer: n-VM and Parallel Scheduling

The execution layer is an n-VM scheduler that routes transactions to the corresponding execution engine based on the opcode prefix:

Opcode Range Engine Functionality
0x01-0x0F ACE Native Native transfers, account creation
0x10-0x1F EVM (revm) Ethereum smart contracts (Shanghai-compatible)
0x20-0x2F SVM Solana BPF programs
0x30-0x3F BVM Bitcoin Script + UTXO model
0x40-0x4F TVM Tron-compatible contracts

Native transaction formats from each chain can be submitted directly to ACE Chain for execution. Developers can deploy Solidity contracts or Solana programs as-is, enjoying post-quantum security and sub-second finality while maintaining full compatibility with native toolchains.

PQC-Shielded Cross-VM Execution

Because PQC capability resides in the authorization layer rather than the execution layer, all VM engines automatically inherit post-quantum signature protection without any VM-level modifications. A user can authorize EVM smart contract calls, SVM program execution, and BVM script operations using ML-DSA-44 signatures, without waiting for those ecosystems to upgrade to PQC themselves.

State Sharding: HKDF Context Isolation

The context isolation property of ACE-GF naturally supports zero-coordination state sharding. Different HKDF context values produce cryptographically disjoint address spaces -- no cross-shard coordination is needed.

Shards Total Sustained TPS Relative to Solana
1 ~5,000 ~1.25x
4 ~17,000 ~4.25x
8 ~31,000 ~7.75x

Human Reachability

  • VA-DAR (Vendor-Agnostic Deterministic Artifact Resolution): Serverless wallet recovery using only a password and a human-memorable identifier (e.g., email). The on-chain DiscoveryID registry enables full cryptographic identity restoration with zero server dependency.
  • HFI-Pay (Human-Friendly Identifier Payment): Payment addressing reduced to the cognitive overhead of sending an email -- enter the recipient's email or phone number to complete a payment.

Performance Comparison

Dimension ACE Chain Solana
Hard finality Target ~600 ms (ZK proof) ~12 s (31 confirmations)
Block verification O(1) (single recursive proof) O(n) (per-tx signature)
On-chain signature storage None (consumed in proof) 96 B/tx
Vote transactions Off-chain messages ~65% of total TPS
Cost per million tx ~$0.01 ~$2.86

The current devnet benchmark (single laptop, shared resources) demonstrates engineering stability at ~265 sustained TPS. Based on architectural modeling, we project significantly higher throughput with dedicated multi-node deployments and sharding enabled:

Configuration Projected Sustained TPS
Single shard, dedicated servers ~5,000
4 shards ~17,000
8 shards ~31,000

These projections are derived from ACE Chain's structural advantages: zero vote transaction overhead, O(1) block verification, and HKDF-based zero-coordination sharding that scales TPS linearly with shard count. See the Whitepaper Section 8 for the full analysis.

Devnet Early Benchmark: Full-Pipeline PQC Stress Test

To verify engineering stability, we deployed a 3-node devnet on a single MacBook Pro (Apple M3, 12 cores, 36 GB RAM) and conducted sustained stress testing with all transactions signed using ML-DSA-44 (NIST FIPS 204) post-quantum signatures -- a full end-to-end PQC pipeline including signing, verification, consensus, and finality.

The load generator employs an adaptive TPS probing strategy: it progressively increases the submission rate until the node begins rejecting transactions due to overload (HTTP 500 back-pressure), then automatically backs off to find the sustainable throughput ceiling. This is not a fixed-rate test -- the system actively seeks its own limits.

Metric Value Notes
Sustained TPS 265 Successful transactions, 30s rolling average
Peak TPS 368 Single-second maximum successful throughput
P50 latency <1 ms End-to-end transaction confirmation latency
P90 latency 1 ms
P99 latency 3 ms
Block build time 34-135 ms Proposal build timing from node logs

Ramp-up phase -- TPS climbing under adaptive load, peak burst reaching ~447 TPS, individual blocks packing up to 669 transactions:

PQC Stress Test - Ramp-up

Stabilized phase -- 30-second rolling average settling at ~300 TPS, single block peak at 767 transactions:

PQC Stress Test - Stabilized

Steady state -- sustained ~293 TPS with a flat, stable curve and zero degradation over time:

PQC Stress Test - Steady State

Load runner console -- node-side block proposal logs (build_ms: 34-135 ms per block) and adaptive TPS probing output showing target_tps auto-adjustment based on error-rate feedback:

PQC Stress Test - Console

Key observation: The PQC (ML-DSA-44) performance curve is visually identical to the classical (Ed25519) benchmark under the same hardware conditions. This confirms ACE Chain's core thesis -- post-quantum cryptography introduces zero TPS penalty. The identity-authorization separation architecture absorbs PQC signature overhead (2,420-byte ML-DSA-44 vs. 64-byte Ed25519) entirely within the ZK proving layer, leaving the execution critical path untouched.

Note: These results reflect engineering stability, not production performance limits. All 3 consensus nodes and the load generator share a single laptop's CPU, memory, and I/O resources. For production-environment performance projections with dedicated servers, see the Whitepaper Section 8.

Test scripts are available in the devnet/ directory.

Ecosystem

Yallet: Post-Quantum Secure Multi-Chain Wallet

A browser extension wallet (Chrome Manifest V3) built on ACE-GF. Core cryptographic operations execute within a Rust-compiled WASM sandbox. Natively supports ML-DSA-44 post-quantum signatures, VA-DAR decentralized recovery, ZK-ACE zero-knowledge authorization, encrypted NFT storage (RWA), Verifiable Credentials (W3C VC 2.0), and unified multi-chain asset management across 10+ chains.

Yault: Self-Custody Asset Management Platform

A self-custody asset management platform that simultaneously addresses yield generation and inheritance. Breaks the self-custody-inheritance-yield trilemma through CT-DAP (Condition-Triggered Dormant Authorization Paths) and ERC-4626 smart vaults with deep Chainlink integration (CRE, Data Feeds, Automation, CCIP, Functions).

AESP: Agent Economic Sovereignty Protocol

An Agent economy protocol SDK enabling AI agents to autonomously execute economic actions under human sovereignty constraints. Includes a policy engine (8 deterministic checks), state-machine-driven inter-agent negotiation, EIP-712 structured commitments, and Google A2A (Agent-to-Agent) interoperability.

Research Papers

All features, protocols, and architectural decisions in ACE Chain are formally specified in peer-reviewed research papers. The complete paper repository is available at:

https://github.com/acechain-io/papers

Paper Topic Whitepaper Sections
ACE-GF: A Generative Framework for Atomic Cryptographic Entities (arXiv:2511.20505) Cryptographic identity framework, HKDF derivation, idcom Sections 2, 3
ZK-ACE: Identity-Centric Zero-Knowledge Authorization for Post-Quantum Blockchain Systems (arXiv:2603.07974) ZK circuit design, O(1) block verification Sections 5.3, 9.4
AR-ACE: ACE-GF-based Attestation Relay for PQC (arXiv:2603.07982) Lightweight mempool propagation without on-path proofs Section 6.2
ACE Runtime: A ZKP-Native Blockchain Runtime with Sub-Second Cryptographic Finality (arXiv:2603.10242) Consensus model, two-tier finality, transaction pipeline Sections 5, 6, 8
Condition-Triggered Cryptographic Asset Control via Dormant Authorization Paths (arXiv:2603.07933) CT-DAP inheritance mechanism, Yault vault design Sections 3.6, 10.2
VA-DAR: PQC-Ready, Vendor-Agnostic Deterministic Artifact Resolution (arXiv:2603.02690) Serverless wallet recovery, DiscoveryID Section 4.2
AESP: A Human-Sovereign Economic Protocol for AI Agents (arXiv:2603.00318) Agent policy engine, negotiation, settlement Section 10.3
n-VM: A Multi-VM Layer-1 Architecture with Shared Identity and Token State (forthcoming) Multi-VM execution, opcode routing, parallel scheduling Section 6
HFIPay: Privacy-Preserving, Cross-Chain Cryptocurrency Payments to Human-Friendly Identifiers (forthcoming) HFI-Pay protocol, intent-based payment Section 4.3

Security

ACE Chain's security model addresses key leakage, identity forgery, signature forgery, replay attacks, quantum attacks, VA-DAR registration overwrite, and cross-shard attacks through a comprehensive set of defense mechanisms. See the Whitepaper Section 9 and the individual research papers for full security analyses.

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License

Copyright 2026 ACE Labs. All rights reserved.

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