Proving UTXO set inclusion in zero-knowledge

The recent update to the project involves the incorporation of a dynamic accumulator, which marks a significant improvement in handling transactions. This change is aimed at enhancing the efficiency and security of the process. Additionally, a novel approach has been introduced by appending a private key hash at the end of transactions. This method serves as an innovative attempt to craft a private identifier for the output, ensuring a higher level of privacy and security for users.

This technique leverages the relationship between private keys and public keys within cryptographic operations. By verifying that the private key, when used as a preimage to a hash function, yields the public key, it confirms the latter's inclusion in the Unspent Transaction Output (UTXO) set. Such a mechanism not only bolsters the integrity of transactions but also fortifies the system against potential vulnerabilities or exploits.

The implementation details and the rationale behind these updates are thoroughly documented in a recent commit to the project repository, accessible via this link. This documentation provides valuable insights into the technical underpinnings and strategic considerations driving these enhancements, offering a clear view of the project's direction and its commitment to advancing the state of transaction security and efficiency.