Technology Overview

Singularity’s Darkswap – Technical FAQ

1. How does the proof algorithm work in Singularity’s Darkswap?

Singularity’s Darkswap uses UltraPLONK, an advanced form of zk-SNARK.

• The prover (end trader) generates cryptographic proofs in their browser.

• These proofs confirm transactions are valid without revealing transaction details.

2. Can you explain the UTXO model and anonymity in Singularity’s Darkswap?

• The UTXO model treats assets and transaction amounts as hidden data within UTXOs.

• Verification happens through zero-knowledge proofs, ensuring anonymity without exposing underlying data.

3. What is the role of nullifiers and how do they prevent double spending?

• Nullifiers are unique identifiers in UTXOs.

• They ensure each transaction is distinct and traceable, preventing double spending.

4. How does Singularity handle the matching of orders in its Darkswap?

• Uses a combination of:

  • Fully Homomorphic Encryption (FHE)

  • Multi-Party Computation (MPC)

5. What are the expected proof times and gas costs for transactions?

Currently under development. The goals are:

• Proof times: under 1 minute

• Gas costs: ~$10 on Ethereum and < $0.10 on Layer 2s

6. Why is it built using the Noir ZK-Language?

• Noir is the most flexible zk-language.

• Allows easier upgrades and no trusted setup (unlike traditional SNARKs).

• Makes the system more adaptable for the platform.

7. How are ZK circuits used in the settlement layer?

• ZK circuits guarantee both:

  • Integrity of transactions

  • Confidentiality of transaction data

8. How do FHE and MPC work in tandem for orderbook matching?

• FHE: Orders are encrypted with a public key; computations for matching are done directly on encrypted data.

• MPC: No single node has the full decryption key. Keys are split across multiple nodes, requiring consensus to decrypt results.

• Together, they ensure matches can be confirmed without exposing order details.