zkA3: Zero-Knowledge Address Abstraction with Auditability for Cross-Chain Identity Management

Abstract

Regulatory frameworks like MiCA mandate KYC and auditability for stablecoins, but existing solutions fail to simultaneously achieve privacy, compliance, and cross-chain compatibility. We propose zkA3 (Zero-Knowledge Address Abstraction with Auditability), enabling users to generate pseudonymous identifiers from web2 certificates with unlinkability guarantees while incorporating encrypted audit tokens for authorized identity tracing. We formally prove five security properties: pseudonymity, unlinkability, zero-knowledge authentication, auditability, and cross-chain consistency. Our implementation achieves 29.8ms proof generation with 9,917 constraints, demonstrating practical feasibility. zkA3 is the first scheme simultaneously supporting privacy-preserving cross-chain stablecoin operations and regulatory compliance.