zkBanking Network

The MELD zkBanking nodes provide a network that brings traditional financial transactions onto the blockchain using zero-knowledge proofs (ZKPs). In conventional banking, transactions like those between bank accounts and foreign exchange accounts are trackable on the blockchain, leaving them off-chain and unverifiable without a trusted 3rd party. MELD zkBanking nodes change this by moving all transaction data on-chain, where it is verified and secured using ZKPs. This ensures that while transaction details are validated, sensitive information remains protected, allowing for secure and private financial operations within the blockchain environment.

These zkBanking nodes enable a variety of financial activities to be proven. For example, MELD users prove for activities such as debit, payments, or account balances without exposing sensitive data like account numbers or exact transaction amounts. The ZKPs confirm that the transactions comply with necessary rules and are legitimate, but they do so in a way that safeguards user privacy. This approach maintains the integrity and verifiability of transactions on the blockchain. Overall, MELD zkBanking nodes offer a powerful, privacy-preserving solution that bridges the gap between traditional finance and blockchain technology.

zkBanking Nodes

There will be a total of 37500 Nodes in the MELD zkBanking network. The node are fractionalized virtual nodes representing the totality of the MELD banking stack and supporting infrastructure both traditional cloud resources as well as blockchain nodes and systems to support the zkRollup activities. The zkBanking nodes are run by the community of Node NFT holders to secure the infrastructure to operate in a safe and secure manner.

Zero-knowledge proofs offer a way for MELD to enhance privacy and security, comply with regulations, and integrate with the broader blockchain and DeFi ecosystem while protecting user data. As the technology matures, it could become a standard part of blockchain-based financial systems, particularly for institutions that prioritize customer privacy and regulatory compliance.

Static & Dynamic Nodes

State zkBanking Nodes are set on a fixed annual yield claimable quarterly in $MELD tokens.

Dynamic zkBanking Nodes are based on quarterly performance of the banking network supported by the zero-knowledge proof nodes. The more activity on the network the more the nodes yield block rewards. The yield is claimed quarterly in $MELD tokens.

zkRollups

The core technology we will employ is Zero Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs), a form of ZKP that allows the system to prove the correctness of daily transaction batches without exposing any sensitive user data. Rather than generating a proof for every individual transaction, zk-SNARKs are applied to the aggregate daily transaction data, which is structured as a Merkle tree. The system verifies that all transactions follow the bank’s rules (e.g., account balances remain valid, no double spending) by generating zk-SNARK proofs for the Merkle root of the day’s transactions. This root and the corresponding zk-SNARK proof are then written to the blockchain, enabling any party to verify the integrity of the transactions without accessing the details.

Each day, the bank’s transactions are aggregated into a Merkle tree, where each leaf represents a single transaction. The zk-SNARK proof confirms that all transactions conform to the rules encoded in the circuit, without revealing individual transaction data. This process scales efficiently, as zk-SNARKs reduce verification time to a constant level, regardless of the number of transactions. The proofs and Merkle root are stored on the blockchain, minimizing on-chain data footprint, reducing transaction costs, and enhancing scalability.

The cryptographic guarantees of zk-SNARKs ensure that only valid transactions are included in the daily records, and fraudulent activity is detectable immediately. Users benefit from complete privacy since their transaction data is never revealed publicly, while the system maintains transparency and accountability through verifiable proofs. In case of an audit or dispute, these proofs can be used to validate the correctness of the transaction set while keeping private data confidential.

Operationally, the system follows a three-phase process: transaction collection, zk-SNARK proof generation, and blockchain integration. Each day, transactions are aggregated into a Merkle tree, zk-SNARK proofs are generated to confirm compliance with the bank’s rules, and the proofs are recorded on the blockchain. This process provides an efficient and secure mechanism for maintaining a privacy-preserving yet fully auditable ledger.

By reducing on-chain data through zk-SNARK proofs and the Merkle root structure, the system remains cost-effective and scalable, ensuring that operational costs stay low even as the transaction volume grows. This design also future-proofs the system by enabling it to adapt to new regulations and increasing transaction volumes while retaining the core benefits of privacy and transparency.