Eclypse Protocol: A Next-Generation Privacy Framework for Ethereum, Solana, and Cross-Chain Ecosystems

The Imperative for Blockchain Privacy

Ethereum’s public ledger is the backbone of its trustless, decentralized ecosystem, enabling transparent and verifiable transactions without intermediaries. However, this transparency exposes sensitive data sender and recipient addresses, transaction amounts, and gas payments to all network participants. Such visibility creates significant risks: adversaries can deanonymize users by correlating addresses with real-world identities, businesses face competitive intelligence leaks in applications like supply chain tracking or decentralized finance (DeFi), and front-running attacks allow miners or bots to reorder transactions for profit. As decentralized applications (dApps) expand into finance, healthcare, governance, and beyond, the demand for robust, scalable, and interoperable privacy solutions has become critical.

Current privacy solutions are inadequate. Mixers like Tornado Cash face regulatory scrutiny due to potential misuse in illicit activities. Shielded pools, as implemented in Zcash, isolate transactions from Ethereum’s composable ecosystem, limiting their utility in DeFi. Confidential transactions, while promising, introduce computational overhead and disrupt Ethereum’s fee market dynamics. The Eclypse Protocol addresses these challenges by delivering a modular, privacy-preserving transaction framework that seamlessly integrates with Ethereum, its Layer-2 (L2) scaling solutions (e.g., Arbitrum, zkSync, Optimism), and cross-chain ecosystems like Polkadot, Cosmos, and Solana. Leveraging Solana’s high-TPS with native privacy tools such as Confidential Transfers for encrypted SPL tokens, Elusiv zk-SNARKs for pooled anonymity, and Light Protocol for zk-compression and private execution. Eclypse leverages obscured addresses (via EIP-5564), transient relay bidding with AI-driven anomaly detection, zk-Fee Tokens powered by Halo 2, and cross-chain privacy to provide unmatched privacy, security, scalability, and interoperability.

This litepaper presents Eclypse’s architecture, technical implementation, performance metrics, regulatory compliance, and future roadmap. It is crafted for developers building private dApps, researchers advancing cryptographic protocols, and policymakers navigating blockchain compliance, positioning Eclypse as a leader in the privacy-preserving blockchain landscape.

Formalizing Privacy and Security Objectives

Consider a set ( B ) of externally owned accounts (EOAs) across a blockchain ( D ), which may include Ethereum, its L2s, or other chains like Polkadot, Cosmos, or Solana. A linkage function ( link: B imes B o {0, 1} ) outputs 1 if a probabilistic polynomial-time (PPT) adversary ( mathcal{A} ) can correlate two addresses using public blockchain data. Eclypse’s primary objective is to ensure that the probability of successful linkage is negligible:

Additional objectives include:

- Front-running resistance: Ensure the probability of an adversary reordering an encrypted transaction intent is p<10^-6

• - Fee anonymity: Minimize mutual information between sender and gas payer, i.e., I(sender;gas_payer)≤ϵ.log(gas)
• - Regulatory compliance: Provide a polynomial-time algorithm (revealAudit(Pi) ) that generates a non-interactive proof linking a transaction ID to a user-controlled audit key, enabling selective disclosure for regulatory purposes.
• - Cross-chain privacy: Maintain consistent privacy guarantees across Ethereum, Polkadot, Cosmos, and Solana.
• - Proactive security: Implement AI-driven anomaly detection to identify and mitigate attacks (e.g., front-running, Sybil attacks) in real-time.

These objectives define Eclypse as a comprehensive privacy framework built for today’s on-chain ecosystem. By ensuring resistance to front-running, preserving fee anonymity, enabling selective regulatory disclosure, and maintaining consistent privacy across multiple chains, Eclypse provides a robust foundation for secure, compliant, and scalable decentralized applications.

Eclypse’s Advanced Architecture

Eclypse integrates five state-of-the-art components to deliver a comprehensive privacy framework, each designed to address specific challenges in blockchain privacy, security, and interoperability:

• 1. Obscured Addresses: One-time, unlinkable addresses standardized by EIP-5564, decoupling public identities from transaction endpoints.
• 2. Transient Relay Bidding: Decentralized auctions to obscure transaction flows and prevent front-running, enhanced with AI-driven anomaly detection for real-time security.
• 3. zk-Fee Tokens: Zero-knowledge proofs powered by Halo 2 zk-SNARKs, enabling anonymous gas payments with no trusted setup and improved scalability.
• 4. Cross-Chain Privacy: Interoperability with Chainlink CCIP and Polkadot XCM, ensuring private transactions across Ethereum, Polkadot, Cosmos, and Solana with native tech like Confidential Transfers for encrypted SPL tokens, Elusiv zk-SNARKs for pooled anonymity, and Light Protocol for zk-compression and private execution.
• 5. AI-Driven Anomaly Detection: Machine learning models (e.g., XGBoost) to monitor relayer behavior and transaction patterns, proactively mitigating attacks.

These components leverage established Ethereum standards (EIP-5564, ERC-4337) and emerging technologies (Halo 2, AI, cross-chain protocols) to create a scalable, secure, and interoperable solution.

Technical Implementation Details

Obscured Addresses with EIP-5564

Obscured addresses, formalized by EIP-5564 (Standards Track: ERC, July 2025), enable private transactions by generating recipient-exclusive addresses that cannot be linked to public identities. EIP-5564 specifies a singleton contract at `0x55649E01B5Df198D18D95b5cc5051630cfD45564` and uses the SECP256k1 elliptic curve, ensuring compatibility with Ethereum’s cryptographic infrastructure.

Parameters:

• ( G ): Base point on SECP256k1.
• ( N ): Curve order (≈2²⁵⁶).
• P_auth: Recipient’s authorization public key, tied to their identity.
• P_view : Viewing public key, shared with senders for address derivation.

Derivation Process:

A sender computes:

The resulting P_tx is a one-time address, accessible only by the recipient’s private key. The singleton contract emits metadata to facilitate fund access without compromising privacy. This process, costing approximately 50,000 gas, is optimized for Ethereum’s mainnet and L2s, making it efficient for high-throughput applications.

Transient Relay Bidding with AI-Driven Anomaly Detection

Eclypse’s transient relay bidding mechanism obscures transaction origins and prevents front-running by broadcasting encrypted transaction intents to a decentralized network of relayers using a libp2p-based gossip protocol on Ethereum/L2s, or Solana’s Turbine propagation for fast, high-TPS relays. Relayers compete in a Dutch auction to process intents, incentivizing low fees while maintaining privacy. To enhance security, AI-driven anomaly detection employs machine learning models, such as XGBoost, to monitor relayer behavior and transaction patterns in real-time, detecting potential attacks like front-running or Sybil attacks.

Relay Bidding Mechanism:

• Input: Encrypted intent ( I ), minimum fee μ
• Output: Selected relayer r^∗.
• Process:

  - Broadcast ( I ) to ( n ) relayers via libp2p (Ethereum) or Turbine (Solana).

  - An XGBoost model analyzes bids for anomalies, such as bids deviating more than two standard deviations (>2σ) from the median, which may indicate front-running attempts.

  - Collect valid bids b_i≥μ from each relayer r_i.

  - Select r^*=argmin_i(b_i)

  - Assign ( I ) to r^∗ for on-chain execution.

AI Anomaly Detection:

• Train XGBoost models off-chain using historical transaction and relayer data, deployed on cloud infrastructure like AWS SageMaker for scalability.
• Detect anomalies such as rapid relay patterns or suspiciously low bids, rerouting intents to prevent attacks.
• Latency: <100ms, ensuring real-time protection without delaying transactions.

To further mitigate timing-based correlation attacks, Eclypse incorporates Poisson-distributed delays, adapted from Bitcoin’s Dandelion++ protocol. This randomizes intent propagation, reducing the risk of adversaries linking intents to senders. The relaying process incurs approximately 40,000 gas, making it efficient for Ethereum and L2 environments.

zk-Fee Tokens with Halo 2

Ethereum’s gas payments typically reveal sender identities, undermining privacy. Eclypse’s zk-Fee Tokens leverage Halo 2 zk-SNARKs, developed by the Electric Coin Company, to anonymize gas payments without requiring a trusted setup. Halo 2’s recursive proof capabilities enable batching multiple fee payments into a single proof, significantly reducing computational overhead. A paymaster contract, compliant with ERC-4337 (Account Abstraction), verifies these tokens without linking them to the sender’s identity.

Mechanism:

• Setup: Generate a universal reference string for Halo 2, eliminating the need for trusted setups, unlike STELS’s Groth16-based zk-Gas Vouchers.
• Proof Generation: The sender creates a recursive Halo 2 proof π, attesting to the validity and unspent status of a fee token commitment ( c ).
• Verification: The paymaster contract verifies π, burns ( c ), and covers the gas costs for the transaction.

Halo 2’s efficiency brings verification costs down to approximately 150,000 gas, enabling Eclypse to scale effectively on Ethereum mainnet and Layer 2 networks. This performance supports high-throughput applications such as private DeFi trading.

Cross-Chain Privacy with Interoperability

Eclypse extends its privacy guarantees across multiple blockchains using Chainlink Cross-Chain Interoperability Protocol (CCIP) chain.link/cross-chain for Ethereum-compatible chains and Polkadot’s Cross-Consensus Messaging (XCM) polkadot.network for parachain ecosystems, while supporting Solana through bridges like Wormhole wormhole.com and leveraging native privacy tools such as Confidential Transfers (v1.16) for encrypted SPL token balances and amounts, Elusiv zk-SNARKs for pooled fund anonymity, and Light Protocol for zk-compression and UTXO-based private execution. This enables private transactions across Ethereum, Polkadot, Cosmos, and Solana, integrating seamlessly with Eclypse’s obscured addresses and zk-Fee Tokens. Encrypt transaction intents using EIP-5564 stealth addresses, relay intents via CCIP for Ethereum-to-Cosmos/Solana transfers or XCM for Polkadot parachain interactions, incurring 100,000 gas per cross-chain relay, and verify privacy across chains using Halo 2 proofs, ensuring consistency and security. For Solana, privacy is kept by combining Eclypse’s obscured addresses with Confidential Transfers hiding amounts/balances, Elusiv for pooled anonymity, and Light for compressed private execution, ensuring no traceability across chains, unlocking private cross-chain dApps like encrypted Jupiter swaps or DeFi on Solana’s ecosystem while bridging Ethereum’s EVM with Solana’s high-speed execution.

This cross-chain capability supports global DeFi applications, enabling private asset swaps, lending, and governance across heterogeneous blockchain ecosystems.

Implementation:

• Encrypt transaction intents using EIP-5564 stealth addresses, ensuring recipient privacy.
• Relay intents via CCIP for Ethereum-to-Cosmos transfers, XCM for Polkadot parachain interactions, or Wormhole for Solana.
• Verify privacy across chains using Halo 2 proofs, ensuring consistency and security, with Solana privacy kept by combining Eclypse’s obscured addresses with Confidential Transfers hiding amounts/balances, Elusiv for pooled anonymity, and Light for zk-compression/private execution.
• Example: A user transfers 10 ETH privately from Ethereum to a Cosmos or Solana chain. The intent is encrypted with a stealth address, relayed via CCIP or Wormhole, and verified with a Halo 2 proof, maintaining end-to-end privacy.

This cross-chain capability supports global DeFi applications, enabling private asset swaps, lending, and governance across heterogeneous blockchain ecosystems.

Integration with Blockchain Standards

Eclypse is built on a foundation of industry-standard protocols to ensure compatibility and scalability:

• EIP-5564: Standardizes obscured addresses for privacy, leveraging a singleton contract and SECP256k1 curve.
• ERC-4337: Enables account abstraction through paymaster contracts, facilitating zk-Fee Tokens.
• Libp2p: Provides a secure, decentralized gossip protocol for relayer communication libp2p.io.
• Dandelion++: Enhances network-layer privacy with Poisson-distributed delays arXiv:1805.11060.
• Chainlink CCIP: Supports cross-chain interoperability for Ethereum-compatible chains chain.link.
• Polkadot XCM: Enables cross-parachain privacy for Polkadot ecosystems polkadot.network.
• Solana Integration: Eclypse supports Solana through bridges like Wormhole and native privacy tools (e.g., Elusiv zk-SNARKs for private SPL tokens, Light Protocol for zk-compression). Adapt EIP-5564-like stealth addresses using Solana’s Confidential Transfers (v1.16), enabling private DeFi on Solana (e.g., Jupiter swaps). zk-Fee Tokens extend to Solana via Halo 2 proofs, with AI anomaly detection monitoring relayers. This bridges Ethereum’s EVM with Solana’s high-speed execution, unlocking private cross-chain dApps.

This integration ensures Eclypse operates seamlessly within Ethereum’s core protocol, L2s, and cross-chain environments, offering developers a flexible platform for building private dApps.

Security Guarantees

Eclypse’s security is grounded in robust cryptographic and AI-driven mechanisms:

• ECDH on SECP256k1: Ensures address unlinkability under the elliptic curve discrete logarithm problem (ECDLP), per EIP-5564 specifications.
• Halo 2 zk-SNARKs: Provides zero-knowledge and soundness, with a forgery probability of <2^-100, eliminating trusted setups Electric Coin Company.
• Keccak256: Guarantees collision resistance for address derivation, a standard in Ethereum’s cryptographic suite.
• AI-Driven Anomaly Detection: Employs XGBoost models to detect attacks like front-running or Sybil attempts in real-time, with latency <100ms.
• Cross-Chain Security: Leverages audited bridges in Chainlink CCIP, Polkadot XCM, and Wormhole for Solana, ensuring secure intent relaying (chain.link, polkadot.network, wormhole.com).

Formal Analysis in the Universal Composability (UC) Framework:

• Unlinkability: The probability of linking two addresses is Pr[link(b_i, b_j) = 1] ≤ 2^-80.
• Front-Running Resistance: The probability of reordering an encrypted intent is p < 10^-6.
• Fee Anonymity: Mutual information is minimized to I(sender; gas_payer) ≤ ϵ.log(gas).

Performance Metrics

Eclypse’s performance was evaluated on Arbitrum Sepolia and zkSync Era testnets using Intel i7-13700H (12 cores) and Apple M2 Pro hardware, ensuring scalability and efficiency:

• Gas Costs:

  - Obscured address derivation: ~50,000 gas (EIP-5564-compliant).

  - zk-Fee Token verification (Halo 2): ~150,000 gas, leveraging recursive proofs for batching.

  - Transient relay execution: ~40,000 gas, optimized for low overhead.

• Proof Generation: Halo 2 proof generation takes 70ms on Intel i7 and 50ms on M2 Pro, enabling rapid transaction processing.
• Relay Latency: Auction completion occurs in 200ms with 10 relayers, ensuring low latency.
• AI Processing: Anomaly detection via XGBoost completes in <100ms, performed off-chain to minimize on-chain costs.
• Scalability: Supports a theoretical maximum of ~1,000 transactions per second (TPS) on Arbitrum with 50 relayers; up to ~1,500 TPS on Solana for standard transfers, with privacy-enhanced TPS at ~650 for Confidential Transfers (due to zk-proof overhead) and ~1,000-2,000 for Elusiv/Light zk-compression in private dApps like Jupiter swaps.

Regulatory Compliance

Eclypse ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations through its (`revealAudit`) function, which generates non-interactive proofs linking transaction IDs to user-controlled audit keys. These proofs allow selective disclosure to regulators without compromising on-chain privacy. Audit keys are stored securely, ideally in hardware wallets like Ledger or Trezor, to prevent unauthorized access. The cross-chain privacy mechanism ensures consistent compliance across blockchains, addressing global regulatory frameworks and user concerns about KYC integration.

Roadmap and Future Vision

Eclypse’s development roadmap outlines a clear path to deployment and innovation:

• Q3 2025: Launch on Ethereum mainnet and L2s (Base, Scroll), with initial Solana support via Wormhole.
• Q4 2025: Optimize Halo 2 circuits to reduce verification costs to ~120,000 gas, enhancing scalability.
• Q1 2026: Implement on-chain inference for AI anomaly detection, reducing latency and improving security.
• Q2 2026: Open-source cross-chain contracts, AI models, and developer SDKs to foster community adoption.

These milestones position Eclypse to lead the privacy landscape, addressing user concerns about Web3 complexity through developer-friendly tools and scalable infrastructure.

Conclusion

The Eclypse Protocol redefines blockchain privacy through the integration of EIP-5564 obscured addresses, transient relay bidding enhanced by AI-driven anomaly detection, Halo 2-based zk-Fee Tokens, and cross-chain interoperability via Chainlink CCIP, Polkadot XCM, and Solana bridges like Wormhole. This architecture delivers a unified solution for privacy, security, scalability, and cross-network compatibility. Designed to meet the evolving needs of DeFi, healthcare, and governance, Eclypse also supports selective compliance and user-friendly integration. Developers, researchers, and policymakers are invited to help shape the future of privacy at https://www.eclypse.xyz/