Verifiable Settlements

This section further researches specific steps, benefits and challenges for the brainstormed ideas

To do list:

1. Design the Zero-Knowledge Proof System:

   1. Define the statement to be proven: In this case, the statement is that the settlement calculations performed by the Transactor server are correct and fair based on the final game state and the game rules. This may involve proving that the winnings are calculated correctly, that the asset distributions match the predefined shares or prize pool structure, and that all player balances are updated accurately.

   2. Choose a suitable zero-knowledge proof scheme: The choice of proof scheme will depend on factors like proof size, verification time, and the complexity of the settlement calculations.

   3. Develop the prover and verifier algorithms: The prover will be implemented in the Transactor server, and the verifier will be implemented in the client applications.

2. Modify the Servers:

   1. Integrate 01js library: Add the 01js library to the Transactor/Validator server's dependencies.

   2. Generate the proof during settlement: After the Transactor calculates the settlements based on the final game state, it uses 01js to generate a zero-knowledge proof of the correctness of the calculations.

   3. Include the proof in the settlement transaction: The Transactor includes the zero-knowledge proof as part of the settlement transaction that is submitted to the blockchain.

3. Modify the Client Applications:

   1. Integrate 01js library: Add the 01js library to the Race SDK or directly into the client application code.

   2. Verify the proof upon receiving the settlement: When the client receives the settlement transaction from the blockchain, it extracts the zero-knowledge proof and uses 01js to verify its validity. This allows the client to independently confirm that the settlements are correct and fair.

Benefits:

• Enhanced Transparency and Trustlessness: Players can independently verify the correctness of the settlements, further increasing trust and transparency in the game.

• Reduced Reliance on the Transactor: Players do not need to solely rely on the Transactor for accurate settlements, as they can verify the results themselves through the zero-knowledge proof. Though same is achieved in the existing implementation with Validators and Clients Voting, Zero-Knowledge would provide an extra level of verification.

• Dispute Resolution: In case of any disputes regarding the game outcome or asset distribution, the zero-knowledge proof can serve as evidence of the Transactor's correct calculations.

Challenges:

• Performance Overhead: Generating and verifying zero-knowledge proofs for complex settlement calculations can be computationally intensive. Optimization and efficient proof schemes are crucial to maintain acceptable performance.

• Increased Transaction Size: Including the zero-knowledge proof in the settlement transaction increases its size, which may lead to higher transaction fees on the blockchain. Developers need to find a balance between verifiability and transaction costs.

Conclusion:

Despite the challenges, integrating 01js and zero-knowledge proofs for verifiable settlements can significantly enhance the transparency, trustlessness, and fairness of Race Protocol games. This approach can provide players with greater confidence in the game outcomes and contribute to a more secure and reliable web3 gaming ecosystem.