We propose a privacy-preserving smart wallet with a novel invitation-based private onboarding mechanism. The solution integrates two levels of compliance in concert with an authority party: a proof of innocence mechanism and an ancestral commitment tracking system using bloom filters for probabilistic UTXO chain states. Performance analysis demonstrates practical efficiency: private transfers with compliance checks complete within seconds on a consumer-grade laptop, and overall with proof generation remaining low. On-chain costs stay minimal, ensuring affordability for all operations on Base layer 2 network. The wallet facilitates private contact list management through encrypted data blobs while maintaining transaction unlinkability. Our evaluation validates the approach's viability for privacy-preserving, compliance-aware digital payments with minimized computational and financial overhead.
@article{arxiv.2506.04853,
title = {A Private Smart Wallet with Probabilistic Compliance},
author = {Andrea Rizzini and Marco Esposito and Francesco Bruschi and Donatella Sciuto},
journal= {arXiv preprint arXiv:2506.04853},
year = {2025}
}