StockProof is an innovative blockchain-based platform that seamlessly bridges the world of traditional finance with the burgeoning crypto ecosystem. Our groundbreaking system enables stockholders to receive airdropped tokens and other benefits on the blockchain by proving their ownership of publicly traded stocks without compromising their privacy.

At the heart of StockProof lies zero-knowledge proof (ZKP) technology. This cryptographic construct allows users to demonstrate their stock/portfolio ownership conclusively without divulging sensitive information such as the specific stocks they own or the quantities held. By leveraging ZKPs, we ensure the privacy and security for our users while maintaining the integrity of the verification process.

The platform features a user-friendly interface where stockholders can easily submit their ownership information and generate zero-knowledge proofs. Our smart contract then verifies these proofs on-chain and automatically airdrops tokens to eligible participants. This process not only rewards traditional market participants with crypto assets but also introduces them to the world of blockchain and its myriad possibilities.

StockProof opens up exciting new avenues for financial innovation, potentially paving the way for enhanced stakeholder engagement, novel governance models, and seamless integration with DeFi protocols. By bridging the gap between traditional equities and digital assets, we’re fostering a more inclusive and interconnected financial ecosystem for the future.

Architecture Overview

StockProof is built using a combination of blockchain technology, cryptographic protocols, and web technologies. The system consists of several interconnected components: 1. Smart Contracts: Deployed on a blockchain (e.g., Scroll Sepolia in our case) 2. Zero-Knowledge Proof System: For verifying stock ownership parameters 3. Backend Server: Used for generating off-chain proof 4. Frontend Application: User interface for interacting with the system 5. Stock Ownership Verification Service: Integrates with brokerage APIs or manual verification processes 6. Seamless on-boarding for web2 and web3 users using Web3Auth

Key Components

1. Smart Contracts - The core of the system is implemented as Solidity smart contracts on the EVM-compatible blockchain. This contract handles token minting and distribution based on verified proofs.
2. Zero-Knowledge Proof System - The project utilizes snarkjs libraries to generate and verify proofs. The circuit for proving stock ownership paramters is defined using a domain-specific language, which is Circom in this case. This circuit proves that a user owns stocks above a certain value threshold without revealing the exact value.
3. Backend Server - The backend is implemented using Nest.js, handling proof generation and updating Pyth oracle price feeds.
4. Frontend Application - The user interface is built using NextJS with Ethersjs for connection with EVM chains and Web3Auth for ease of onboarding using social login as well as MetaMask.
5. Stock Ownership Verification - This component integrates with brokerage APIs.

This architecture allows for a secure, privacy-preserving system that bridges traditional finance with blockchain technology, enabling stock owners to claim tokens based on their stock holdings parameters without revealing sensitive information.