Development Fund Proposal
Author: Cem Sel
Status: Submitted
Created: 2026-02-24
Abstract
This proposal funds Phase 1 of a native Zero-Knowledge (ZK) verification and anchoring framework for the Daml on Canton ecosystem. The project will deliver a Groth16 verifier integration, reusable Daml templates, and a developer SDK enabling confidential off-chain computations to be verified and anchored on Canton without revealing underlying private data. The goal is to provide shared, open-source infrastructure that strengthens Canton’s institutional privacy positioning and reduces duplicated cryptographic effort across builders.
Specification
1. Objective
Canton enables privacy-preserving, multi-party coordination using Daml smart contracts. However, there is currently no standardized infrastructure for integrating zero-knowledge proof verification directly into Daml workflows.
The objective of Phase 1 is to:
- Implement a Groth16 proof verification framework compatible with Daml on Canton
- Provide reusable Daml templates for anchoring verified proofs
- Deliver an SDK that abstracts proof generation and Daml transaction construction
- Ensure deterministic and secure verification behavior within Canton’s execution model
This proposal focuses strictly on delivering core infrastructure, not an application-layer product.
2. Implementation Mechanics
The architecture follows a library-based approach and does not require modification of Canton node software or the Daml interpreter.
Off-Chain Layer (Prover)
- Supported proof system: Groth16
- Curve: BN254 (Phase 1 scope)
- Proofs generated using Arkworks or Circom-compatible tooling
- Public inputs and proof elements serialized deterministically
SDK Layer
- TypeScript SDK package
- Constructs Daml command payloads
- Encodes:
- Verification key
- Proof elements
- Public inputs
- Handles deterministic serialization and transaction submission
On-Ledger Layer (Daml)
The following templates will be implemented:
VerificationKeyProofSubmissionProofAnchored
Workflow:
- Verification key stored via
VerificationKey template.
- Prover generates proof off-chain.
- SDK submits proof using
ProofSubmission.
- Verification logic executed deterministically.
- If valid →
ProofAnchored contract created.
- If invalid → transaction fails.
Phase 1 verification will be implemented using deterministic verification logic consistent with Daml interpreter constraints. No consensus-layer or protocol modifications are required.
3. Architectural Alignment
This proposal aligns with Canton’s architecture in the following ways:
- Respects Daml’s fine-grained data visibility model
- Enables confidential proof anchoring without exposing private data to unauthorized parties
- Preserves multi-party atomic transaction guarantees
- Avoids external chain dependencies
- Requires no changes to Canton protocol or node software
Alignment with CIP-0082:
- Core R&D advancing ecosystem capabilities
- Shared developer tooling
- Reusable infrastructure
Alignment with CIP-0100:
- Milestone-gated funding
- Open-source outputs
- Transparent reporting commitment
4. Backward Compatibility
No backward compatibility impact.
This proposal introduces new Daml templates and SDK tooling without modifying existing contracts or protocol behavior.
Milestones and Deliverables
Milestone 1: Architecture & Technical Specification
- Estimated Delivery: Month 1
- Focus: Formal specification and architecture design
- Deliverables / Value Metrics:
- Published technical specification
- Defined proof system (Groth16, BN254)
- Daml integration design
- Threat model and cost estimation
- Public GitHub repository
Funding: 150,000 CC upon acceptance
Milestone 2: Groth16 Verifier & Daml Integration
- Estimated Delivery: Month 2–3
- Focus: Functional implementation
- Deliverables / Value Metrics:
- Daml templates:
VerificationKeyProofSubmissionProofAnchored
- TypeScript SDK
- End-to-end demo
- Open-source publication
Acceptance demonstration:
- Valid proof → transaction succeeds and anchors
- Invalid proof → deterministic transaction failure
- At least 1 external integration or formal integration commitment
Funding: 250,000 CC upon acceptance
Acceptance Criteria
The Tech & Ops Committee will evaluate completion based on:
- Milestones delivered as specified
- Deterministic verification behavior
- Successful demonstration of proof anchoring
- Code published under open-source license
- Documentation sufficient for third-party reuse
Funding
Total Funding Request: 400,000 Canton Coin (CC)
Payment Breakdown by Milestone
- Milestone 1: 150,000 CC
- Milestone 2: 250,000 CC
Volatility Stipulation
The project duration is under 6 months.
Funding is denominated in fixed Canton Coin.
If scope changes extend the project beyond 6 months, funding terms may be renegotiated to account for significant USD/CC price volatility.
Co-Marketing
Upon release, the implementing entity will collaborate with the Foundation on:
- Coordinated announcement
- Technical blog or documentation post
- Developer-facing walkthrough
Motivation
Canton’s institutional positioning emphasizes privacy-preserving coordination. Zero-knowledge verification infrastructure enhances this capability by enabling:
- Confidential compliance attestations
- Verifiable off-chain computation
- Private asset proofs
- Privacy-preserving settlement triggers
Providing shared infrastructure reduces duplication and lowers the barrier for builders to integrate advanced cryptographic functionality.
Rationale
Groth16 over BN254 was selected for Phase 1 due to:
- Maturity and ecosystem support
- Efficient verification cost profile
- Compatibility with existing tooling
A library-based architecture was chosen instead of protocol modification to:
- Minimize execution risk
- Preserve backward compatibility
- Accelerate adoption
- Reduce governance overhead
Future phases may extend support to additional proof systems (e.g., PLONK) or performance optimizations, but are intentionally excluded from Phase 1 to maintain scoped delivery.
