What Type of Privacy Users Get

When using ArcNano, users and autonomous agents receive mathematically proven Zero-Knowledge privacy across four distinct operational dimensions:

Privacy & Identity Leakage Comparison Matrix

Click any row for architectural deep-dive

Evaluation Vector	Standard On-Chain (ERC-20)	Stripe / Credit Card	ArcNano (Shielded ZK)
Payer Identity (msg.sender)	100% Leaked	Full KYC / Real Name	0% Leakage (Cryptographically Blind)
Counterparty & API Prompt Metadata	Publicly Correlatable	Vendor & Processor Logging	Zero Knowledge Linkage
Balance & Holdings Snooping	Total Portfolio Exposed	Credit Limits Checked	Single Note Confidentiality
Sanctions / Clean Funds Compliance	Manual Chainalysis Screener	Traditional KYC / OFAC checks	Privacy Pools ASP Proof
Sub-Cent Micropayments Viability	Failed by Gas Fees	30¢ Minimum Base Fee	Sub-8ms (<$0.0001 amortized)

Detailed Breakdown: Payer Identity (msg.sender)

Standard Web3:

Wallet address is permanently visible on public explorer. Every API call links directly to payer address.

Centralized Stripe:

Legal name, billing address, bank account or credit card number required and logged.

ArcNano Shielded ZK:

The withdrawal transaction is submitted by the provider or relayer. User wallet is NEVER referenced on-chain.

1. 0% On-Chain Signer Traceability (`msg.sender` Severed)

Traditional Crypto: Your wallet address is the signer (msg.sender) on every call. Anyone tracking the explorer knows which APIs you use.

ArcNano Guarantee: You never sign or broadcast an on-chain transaction when spending. The proof is handed off-chain to the API receiver. When the API receiver settles the notes on Arc L1, the explorer only shows the API receiver claiming funds from the pool. Your wallet address is 100% absent from the transaction envelope.

2. Zero Prompt Intelligence & Counterparty Leakage

Traditional Crypto: Inferences, prompt triggers, trading agent models, and data oracle subscriptions are exposed on public ledgers.

ArcNano Guarantee: The link between the depositor wallet and the API service is severed. Neither blockchain miners, validators, nor competitors can determine which depositor paid which API service.

3. Cryptographic Note Credential Secrecy

How Secrets Are Kept: Notes are derived from two cryptographically secure 256-bit random scalars: secret and nullifier_seed.

Preimage Resistance: The on-chain contract only ever receives:

$$\text{commitment} = \text{Poseidon}(0.01\text{ USDC}, \text{secret}, \text{nullifier\_seed})$$

Due to the one-way properties of the Poseidon algebraic hash function, no quantum or classical computer can invert the commitment to learn your secret credentials.

4. Privacy Pools Compliance Without Doxxing

Traditional Privacy: Mixers force you to choose between being sanctioned or doxxed.

ArcNano Guarantee: You prove inclusion in an Association Set of non-sanctioned deposits:

$$\text{VerifyMembership}(\text{aspRoot}, \text{commitment}) == 1$$

The API provider verifies OFAC/KYC compliance with mathematical certainty without ever knowing who you are.