Obscura

🔐 Zero-Knowledge Privacy Mixer for Ethereum - ZK-SNARKs ensure private ETH transfers

Obscura

Created At

ETHOnline 2025

Project Description

Obscura is a decentralized privacy mixer that enables anonymous ETH transfers on Ethereum using ZK-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge).

Unlike traditional mixers that rely on trust, Obscura provides mathematical privacy guarantees through cryptography. Users can deposit ETH with a cryptographic commitment and later withdraw to any address using a zero-knowledge proof that proves ownership without revealing the deposit transaction.

Key Features:

  • Cryptographic Privacy: ZK proofs ensure deposits and withdrawals are mathematically unlinkable
  • Merkle Tree Architecture: Supports up to 1,048,576 deposits with efficient proof generation
  • Non-Custodial: Users maintain full control of funds throughout the process
  • Gas-Optimized: Assembly-level Poseidon hash implementation for minimal transaction costs

The system works by:

  1. User deposits ETH with a commitment hash (Poseidon(secret, nullifier, amount))
  2. Contract stores commitment in a Merkle tree
  3. User generates ZK proof proving knowledge of a valid deposit
  4. User withdraws to any address with the proof

This provides the same privacy benefits as Tornado Cash but with improved efficiency and a clear path to censorship resistance through the planned Hydra Protocol evolution.

How it's Made

Obscura is built using cutting-edge zero-knowledge cryptography and modern Ethereum development tools.

Core Technologies:

  • ZK-SNARKs: Groth16 proving system with custom Circom circuits
  • Smart Contracts: Solidity with OpenZeppelin security libraries
  • Circuit Development: Circom 2.0 for arithmetic circuit design
  • Hash Function: Optimized Poseidon hash (t=3) for ZK-friendliness
  • Testing Framework: Hardhat with comprehensive E2E test suites

Architecture:

  1. ZK Circuits (Circom): Custom circuits handle privacy transfer logic with 11,826 constraints
  2. Trusted Setup: Multi-round Powers-of-Tau ceremony with beacon finalization
  3. Smart Contracts: Gas-optimized contracts with reentrancy protection and emergency pause functionality
  4. Merkle Tree: 20-level incremental Merkle tree for efficient proof generation
  5. Testing: Local Hardhat network testing + Sepolia testnet integration

Key Technical Achievements:

  • Circuit Optimization: Reduced constraints through efficient range proofs and Merkle verification
  • Gas Optimization: Assembly-level Poseidon implementation saves ~30% gas vs Solidity
  • Security: Multi-layer protection with nullifier spending prevention and root rollback resistance
  • Scalability: Merkle tree design supports millions of deposits

The project demonstrates advanced understanding of ZK cryptography, Ethereum development best practices, and privacy-preserving system design. All code is open-source and thoroughly tested.

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