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Overview

The IPTF Map documents proven technical patterns for building privacy-preserving institutional blockchain systems. Each pattern addresses specific confidentiality requirements while maintaining regulatory compliance and interoperability.

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Core Patterns

L1 ZK Commitment Pool

Hide amounts and positions on Ethereum L1 using shielded pools with commitments and nullifiers. Best for low-frequency trades.

L2 Encrypted Off-chain Audit

Store only commitments on-chain with encrypted audit logs off-chain. Ideal for cost-sensitive settlements with selective disclosure.

Hybrid Public-Private Modes

Enable per-transaction selection between public and private execution. Optimizes cost and confidentiality per trade leg.

Modular Privacy Stack

Four-layer architecture separating Data, Execution, Settlement, and Disclosure concerns for flexible privacy design.

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Regulatory Disclosure

Regulatory Disclosure Keys & Proofs

Provide on-demand scoped visibility using threshold viewing keys and ZK proofs. Enables least-privilege access for regulators.

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Pattern Selection

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Choose by Trade Volume

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Choose by Privacy Requirement

  • Amount confidentiality only: L2 with encrypted audit logs
  • Full position privacy: ZK commitment pools
  • Selective per-transaction privacy: Hybrid modes
  • Flexible multi-layer approach: Modular privacy stack

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Choose by Deployment Complexity

1

Start Simple

Begin with L2 encrypted audit logs for rapid deployment with minimal infrastructure.
2

Add Privacy Layers

Introduce ZK proofs or shielded pools as transaction volume grows.
3

Scale Modularly

Adopt modular stack architecture for complex multi-environment deployments.

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Common Components

All patterns leverage these foundational standards:
  • ERC-7573: Atomic delivery-versus-payment settlement
  • ERC-3643: Compliant security token transfers
  • EAS: Ethereum Attestation Service for audit trails
Most patterns are compatible and can be combined. For example, use L2 encrypted audit for cash legs and L1 ZK pools for bond transfers in the same settlement.

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Related Sections

Privacy Approaches

Explore foundational privacy technologies: ZK, FHE, TEE, and MPC.

Vendor Implementations

See production implementations from Aztec, Zama, Railgun, and others.

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