End-to-End Minimal Disclosure Cryptography Secures Wallet Privacy and Decentralization → Research

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Briefing

The core problem addressed is the systemic privacy and security risk inherent in relying on centralized RPC providers and full transaction data disclosure at the wallet layer. The foundational breakthrough is the introduction of a composable Minimal Disclosure Wallet Architecture (MDWA) , delivered as an open-source SDK, which integrates a collection of advanced cryptographic primitives → such as local WebAssembly light clients for state verification and various privacy protocols for transaction execution → to achieve end-to-end user data protection. This new architectural model’s most important implication is the re-establishment of the user’s device as the primary security boundary, shifting the burden of trust away from third-party infrastructure and making wallet privacy an inseparable, default feature of the decentralized system.

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Context

Before this research, the prevailing model for blockchain interaction forced users to expose their full transaction metadata, IP addresses, and balance information to centralized Remote Procedure Call (RPC) providers, which function as necessary but trusted intermediaries. This reliance on a central point of data aggregation created a critical vulnerability, undermining the core principle of decentralization by reintroducing a single point of failure and data leakage for user activity, despite the on-chain data being immutable.

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Analysis

The Minimal Disclosure Wallet Architecture (MDWA) fundamentally differs from previous approaches by moving key security and privacy functions from the network layer directly into the user’s wallet via a modular SDK. The core mechanism involves two components → first, a local light client (like the Helios WASM client) embedded in the wallet to perform state verification locally, thereby eliminating the need to trust an external RPC provider for accurate blockchain data. Second, the SDK provides a suite of composable cryptographic primitives for minimal disclosure in transactions, ensuring only the strictly necessary information is revealed for a successful transaction, effectively routing private send/receive flows through integrated privacy protocols.

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Parameters

Core Architectural Shift → Wallet security becomes end-to-end, not just on-chain.
Key Security Component → Helios light client (WASM), which enables local, trust-minimized blockchain state verification.
Primary Privacy Goal → Minimal disclosure, ensuring only strictly necessary transaction data is revealed to external parties.
Roadmap Feature → Post-quantum encryption options, a planned feature for deeper security layers by 2026.

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Outlook

This research opens new avenues for application-layer mechanism design, as the MDWA provides a robust, private foundation for next-generation Web3 applications. In the next 3-5 years, this architecture is likely to unlock truly private decentralized finance (DeFi) interactions and novel social-recovery mechanisms, such as ZK email or ZK passport integration, by providing developers with the necessary building blocks to treat user privacy as a default setting, not an optional add-on. The focus will shift to optimizing the performance and composability of these client-side cryptographic stacks.

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Verdict

The Minimal Disclosure Wallet Architecture is a critical, foundational step toward realizing a truly trustless and privacy-preserving user experience for all decentralized systems.

Wallet security, Minimal disclosure, Cryptographic primitives, End-to-end privacy, Decentralized systems, Local state verification, Post-quantum encryption, Web3 wallets, Browser extension, Privacy SDK, Protocol integration, Trustless interaction, User data protection, RPC provider risk, Light client technology, Private transactions, Aggregated balance view, ZK social recovery, Composable architecture Signal Acquired from → coinedition.com