# TLDR;
In this proposal, we implement confidential transfer, zk rollup pallet, and related cryptographic primitives.  
These are the solution for privacy and scaling that are blockchain missing pieces.  
Every pallets and primitive libraries are completely compatible with Parity Scale Codec and no_std, and data structures are optimized for the latest cryptography scheme friendly.  
By importing pallets and primitive libraries to Substrate, it achieves simple-to-use, privacy-preserving, and speedy, cheap transactions.  
The full proposal is [here](https://docs.google.com/document/d/14RM72brMzxUR0I8BrrRa40RussjjDaiB/edit#heading=h.gjdgxs).

# Core Idea
> It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. - Darwin

The blockchain technology lacks privacy and scalability features, which can be resolved by utilizing a combination of zero-knowledge proof and homomorphic encryption.  
Cryptography advances but traditional blockchains are not suitable to handle these cryptographic schemes.  
The more cryptography advances, the more we feel Ethereum EVM is old in the same way as we feel Bitcoin UTXO and PoW are old.  

Polkadot offers a unique feature that allows us to upgrade the blockchain runtime with the latest cryptography model.
By incorporating modern Substrate pallets, we can seamlessly integrate the latest cryptography into the Substrate architecture.  
This ensures that our system stays up-to-date with the latest advancements in cryptography.  
By directly modifying the blockchain data structure, we can greatly simplify its usage and make the process more efficient.  
That's the best differentiation from other blockchains.

# Benefits
Polkadot developers, users, and investors get benefits from this proposal.

**Firstly**, we implement zero-knowledge proof circuit language and related primitives. These libraries are compatible with Polkadot therefore they can use these functionalities on the Substrate blockchain and build new privacy projects on top of these.

**Secondly**, we implement confidential transfer transactions functionality, zk rollup construction, and wallet client. These libraries are public and users can use them and send transfer transactions privately or cheaply. They can hide the transfer amount and use scalable transfer.

**Finally**, our project focuses on Polkadot. Few projects are working on privacy blockchain and there are no official libraries related to privacy transaction components completely compatible with Polkadot. The zero-knowledge proof is also used for scaling. This makes Polkadot far easier to support privacy and scaling functionality. More users and projects will want to use Polkadot instead of other blockchains.

# Direction
We would like to collaborate with the Polkadot community and, brush up on our libraries and ideas.  
We especially, focus on zero-knowledge proof and hardware verification protocol.  
If we receive feedback from the community, we would be happy to reflect it on our libraries.  
Our purpose is to implement zkVM and IoT verification protocol parachain.  
On the way, it would be nice if we collaborate together and implement a strong infrastructure.

Thank you for reading!  
Please ping me if you have any questions.  
Element (@ash_white_hat:matrix)

- The proposal is about implementing privacy and scaling features in the blockchain.
- They want to use zero-knowledge proof and homomorphic encryption to improve privacy and scalability.
- They will use Substrate pallets to integrate the latest cryptography into the blockchain.
- The benefits include new privacy projects, private and cheap transfer transactions, and easier support for privacy and scaling on Polkadot.
- They want to collaborate with the Polkadot community and implement a strong infrastructure.

Requested: 0.20 undefined

#273 Privacy Transfer and Zk Rollup Pallet with Modern Blockchain Structure