Transfer Privacy

SphereNet provides robust privacy features through three distinct transfer types, each offering different levels of confidentiality and anonymity.

Transfer Types

Public Transfers

Public transfers are fully transparent transactions where the sender, receiver, and amounts are visible to all network participants. This is the default transfer type and is suitable for cases requiring complete auditability.

Confidential Transfers

Confidential transfers hide transaction amounts and balances while keeping sender and receiver addresses visible. These transfers utilize Twisted ElGamal encryption with zero-knowledge proofs to ensure transaction validity. Authorized auditors retain the ability to decrypt amounts when necessary.

Private Transfers

Private transfers offer maximum privacy protection by concealing both amounts and participant identities. This type obscures transaction patterns through many-out-of-many proofs while still maintaining auditability for authorized parties.

Privacy Technology

SphereNet implements a comprehensive suite of privacy technologies to secure transactions. Advanced encryption methods ensure amount confidentiality, while zero-knowledge proofs verify transaction validity without revealing sensitive details. The system employs homomorphic encryption for balance hiding and protects identities through anonymity sets using many-out-of-many proofs.

Auditing Support

SphereNet balances privacy with regulatory requirements by providing robust auditing capabilities. The system enables regulatory compliance verification and authorized transaction monitoring through selective disclosure mechanisms. Authorized parties can access compliance reporting and risk assessment functions while maintaining privacy for standard users.

This balanced approach ensures both strong privacy protections and necessary oversight capabilities, making SphereNet suitable for institutional use cases that require both confidentiality and regulatory compliance.