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Introduction to Zero-Knowledge Cash

A Group-Theoretic Framework for Privacy-Preserving Monetary Systems

The Problem

Conventional cryptocurrencies reveal every intermediate transfer on-chain, sacrificing confidentiality to obtain public auditability. Zero-knowledge cash (ZKC) reverses this trade-off: every transaction is provably valid, yet the ledger discloses nothing beyond the final state.

The Solution

The construction presented here couples group-theoretic entropy, homomorphic commitment chains, and oracle-mediated timekeeping to yield a privacy-preserving monetary layer that remains verifiable for every participant.

By binding initial randomness to a hard discrete-logarithm group, evolving it through algebra-preserving maps, and validating each epoch with succinct zero-knowledge proofs, the system achieves computational soundness while hiding every intermediate value.

Five Cryptographic Pillars

Entropy-Binding Group Sources

Grounded in Rényi entropy on finite groups, providing cryptographic randomness

Homomorphic Time Evolution

Structure-preserving maps that maintain group law compatibility across epochs

Pedersen Commitments

Perfect hiding and additive homomorphism for privacy-preserving transactions

General Zero-Knowledge Proofs

Ensuring completeness, soundness, and zero-knowledge properties

Oracle Subsystem

Anchoring genesis state and time-stamping epochs with cryptographic proof

Key Mathematical Concepts

Rényi Entropy: Hα(si) ≥ Hmin for initial randomness pool

Homomorphic Evolution: φH : Si → Si+1 preserving group law

Pedersen Commitments: C(m,r) = gmhr with perfect hiding

Zero-Knowledge Proofs: π ← Prove(x,w) with completeness, soundness, and ZK