Ethereum researchers are studying a new protocol that uses zero-knowledge proofs to enable private on-chain matching while protecting user identities. The method relies on cryptographic tools, relayers, and participant-generated randomness to maintain anonymity on Ethereum’s transparent network.
Ethereum developer Artem Chystiakov shared new research on the community forum after resurfacing the proposal known as Zero Knowledge Secret Santa, or ZKSS. The proposal was first introduced in January in a public arXiv paper. It describes a process that uses zero-knowledge proofs to manage anonymous assignments between participants.
The design draws inspiration from the traditional Secret Santa game. Each participant receives one partner and gives one gift while remaining unknown. The research focuses on enabling similar anonymity on Ethereum.
Chystiakov notes three major obstacles when applying this activity to Ethereum. Everything on-chain remains visible, so a method must hide who sends to whom. The network also lacks native randomness, so participants must add their own values. It also requires protection against duplicate entries or self-matching.
The ZKSS design uses zero-knowledge proofs to establish sender and receiver links without exposing identities. It also uses transaction relayers that broadcast entries for participants. This approach keeps each submission separated from the sender’s visible address.
During the process, participants register their Ethereum addresses in a smart contract. This builds a verified list of users. Next, each participant commits to a single digital signature. This step stops attempts to join the activity multiple times.
Then, each participant adds a secret random number to a shared list through the relayer. The relayer prevents observers from linking numbers to specific addresses. This method supports privacy for the matching stage.
Each participant later selects a random value from the pool. The system reveals the paired receiver while concealing the sender’s identity. This structure allows recipients to encrypt their delivery addresses so only their assigned partner can decrypt them.
The renewed interest comes as blockchain privacy gains attention across financial and governance applications. Researchers say the protocol could support private voting in DAOs. Participants could prove membership and cast one vote without revealing their choices.
The protocol may also fit whistleblower systems. Employees could confirm authorization while submitting information anonymously. It may also support private airdrops, where tokens reach specific users without exposing allocations.
The research team continues working toward open-source deployment. Chystiakov said they are preparing further development work, though no timeline was given. These developments raise one key question: can zero-knowledge systems unlock broader privacy solutions for mainstream blockchain use?
The proof-of-concept that the solidity model offers is one path forward. It uses cryptographic nullifiers to prevent duplicate participation and preserve fairness. The relayer remains central to the process and detaches each transaction from its origin. This step protects identity links that would normally appear on-chain.
As the proposal evolves, developers continue testing approaches that merge anonymity with verifiable on-chain activity. The project aims to show that privacy and transparency can operate together in a trustless environment.
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Ethereum researchers continue testing the ZK Secret Santa protocol to enable private on-chain matching through zero-knowledge proofs, relayers, and cryptographic tools. The approach shows how privacy and verification can coexist on public networks. Developers may now push the work toward broader deployment and real-world applications across governance and secure interactions.