Proving UTXO set inclusion in zero-knowledge

The utxozkp tool represents a significant step forward in enhancing privacy for Lightning Network (LN) channel announcements by enabling the proof of UTXO set inclusion in zero knowledge. This innovation allows one to affirm the existence of an LN channel on the blockchain without disclosing the specific UTXO involved. Its applications extend beyond this primary use case, potentially serving as an anti-DOS mechanism in various scenarios where proving the inclusion of a UTXO set is beneficial. However, it's important to note that the current iteration of the tool only verifies the prover's ability to sign a UTXO without precluding the possibility of that UTXO being utilized for multiple proofs. Future developments aim to broaden the tool's capabilities, including the selective revelation of details such as UTXO size, tapscript paths, and output age.

At its core, utxozkp utilizes the RISC Zero STARK platform alongside the Utreexo data structure for optimizing storage efficiency. The present version, characterized as a rough draft, exhibits a proof generation time of approximately 6 minutes and produces a proof size of 1.4 MB when tested on an Apple M1 Max laptop with 32GB of RAM, assuming the UTXO set has been pre-loaded into memory. Verification processes are substantially faster, requiring around 300 milliseconds. These performance metrics, including proving time and proof size, have not been optimized, pending further decisions on the project's trajectory.

The creator of utxozkp invites feedback and suggestions on the project, indicating an openness to collaborative development for future improvements. For more detailed information about the tool and its architecture, interested individuals are encouraged to consult the project's README document.