Threshold Compliance
The threshold compliance system allows authorized parties to decrypt compliance payloads attached to on-chain transactions, enabling regulatory investigations while preserving privacy for all other users.
Three operations hide a transaction amount and therefore attach a compliance ciphertext (trcCt, encrypted under TRC_PK): encryptedTransfer, encryptedMint, and encryptedBurn. The respective ZK circuit proves the compliance ciphertext encrypts the same hidden amount as the rest of the operation. publicToEncryptedTransfer and encryptedToPublicTransfer both have the amount visible on-chain (as a public ERC-20 burn or mint), so no compliance ciphertext is needed for either; publicMint / publicBurn are likewise in the clear. Sender and recipient EPKs are already public inputs in the Encrypted Balances account model; only the hidden amount requires encryption for compliance purposes.
The compliance public key is referred to as TRC_PK (Threshold Recursive Compliance Public Key). The "Recursive" in the name is forward-looking: the system at this stage is plain threshold compliance, and the recursive aspect arrives in a later iteration.
Decryption Protocol
Key generation, threshold decryption, and proofs of correct decryption.
On-Chain Components
Contracts and circuits that produce encrypted compliance payloads.
Revoking Process
Roles, workflow, and coordination service for regulatory requests.