Security Model

SafeBank's security architecture combines zero-knowledge cryptography, multi-layer defense, and autonomous monitoring to create a bank-grade security system.

Security Principles

Zero-Knowledge by Default - Sensitive data never leaves user control
Defense in Depth - Multiple security layers at every level
Autonomous Monitoring - AI-powered threat detection
Privacy-Preserving Compliance - Regulatory compliance without data exposure
User Sovereignty - Users maintain full control of their assets

Zero-Knowledge Proof System

CredZK Integration

SafeBank uses CredZK's zero-knowledge proof technology to enable credit without exposing user documents.

How ZK Proofs Work

Personal Documents -> Local Processing -> ZK Proof Generation -> 
On-Chain Verification -> Credit Decision

What Gets Proven:

Income range (e.g., "$50K-$100K annually") ✅
Credit score range (e.g., "700-750") ✅
Employment status ("Employed >2 years") ✅
Asset ownership ("Owns property") ✅

What Stays Private:

Actual salary amount ❌
Exact credit score ❌
Employer name ❌
Property address ❌

Technical Implementation

Proof Generation:

// Client-side proof generation
const proof = await credzkSDK.generateProof({
  document: bankStatement,
  claims: [
    { type: 'income', range: [50000, 100000] },
    { type: 'employment', duration: 24 } // months
  ],
  privateKey: userPrivateKey
});

On-Chain Verification:

function verifyAndScore(bytes calldata zkProof) 
    public view returns (uint256 creditScore) {
    
    // Verify the cryptographic proof
    require(verifier.verify(zkProof), "Invalid proof");
    
    // Extract verified claims (not raw data)
    Claims memory claims = extractClaims(zkProof);
    
    // Calculate credit score from verified ranges
    creditScore = calculateScore(claims);
}

Benefits of ZK Lending

Feature	Traditional Lending	SafeBank ZK Lending
Document Upload	✅ Required	❌ Not needed
Human Review	✅ Manual	❌ Automated
Data Storage	✅ Stored	❌ Never stored
Privacy	❌ Low	✅ Maximum
Speed	🐌 Days	⚡ Minutes
Portability	❌ None	✅ Cross-protocol

Smart Contract Security

Audit Process

Pre-Deployment:

Internal security review
Formal verification
Third-party audits (2+ firms)
Bug bounty program
Testnet deployment

Audit Partners:

Trail of Bits
OpenZeppelin
ConsenSys Diligence
Quantstamp

Contract Safeguards

Access Controls:

// Role-based access control
contract SafeBankLending is AccessControl {
    bytes32 public constant GOVERNANCE_ROLE = keccak256("GOVERNANCE");
    bytes32 public constant ORACLE_ROLE = keccak256("ORACLE");
    bytes32 public constant EMERGENCY_ROLE = keccak256("EMERGENCY");
    
    modifier onlyGovernance() {
        require(hasRole(GOVERNANCE_ROLE, msg.sender));
        _;
    }
}

Circuit Breakers:

// Emergency pause mechanism
bool public paused;

modifier whenNotPaused() {
    require(!paused, "Contract paused");
    _;
}

function emergencyPause() external onlyEmergency {
    paused = true;
    emit EmergencyPause(block.timestamp);
}

Reentrancy Protection:

// OpenZeppelin ReentrancyGuard
import "@openzeppelin/contracts/security/ReentrancyGuard.sol";

contract SafeBankLending is ReentrancyGuard {
    function withdraw() external nonReentrant {
        // Safe withdrawal logic
    }
}

Upgrade Timelock:

// 48-hour timelock for upgrades
uint256 public constant UPGRADE_DELAY = 48 hours;

function scheduleUpgrade(address newImplementation) 
    external onlyGovernance {
    upgradeTimestamp = block.timestamp + UPGRADE_DELAY;
    pendingImplementation = newImplementation;
}

Wallet Security

Multi-Factor Authentication

Three Factor Authentication:

Something you have - Device with SafeBank app
Something you know - PIN or password
Something you are - Biometric (Face ID / Touch ID)

Key Management

Hierarchical Deterministic (HD) Wallets:

Master Seed -> BIP-39 Mnemonic (12/24 words) -> 
Derivation Path -> Multiple Keys

Key Storage:

Mobile: Secure Enclave (iOS) / KeyStore (Android)
Backend: Hardware Security Modules (HSM)
Recovery: Social recovery + encrypted backup

Recovery Options:

Seed Phrase Recovery - 12/24 word backup
Social Recovery - Trusted contacts approve
Time-Locked Recovery - 7-day waiting period
Multi-Sig Recovery - Multiple approval required

Transaction Signing

Secure Signing Flow:

Transaction Request -> Local Validation -> User Confirmation -> 
Biometric Auth -> Sign with Private Key -> Broadcast

Validation Checks:

Amount verification
Recipient validation
Gas price limits
Whitelist checking

Privacy Architecture

Data Minimization

What We Collect:

✅ Wallet addresses (public)
✅ Transaction hashes (public)
✅ ZK proofs (no personal data)
✅ Encrypted analytics (anonymized)

What We DON'T Collect:

❌ Bank statements
❌ Tax returns
❌ Credit reports
❌ Personal documents

Encryption

Data at Rest:

AES-256 encryption
Encrypted database fields
Hardware security modules
Regular key rotation

Data in Transit:

TLS 1.3 minimum
Certificate pinning
Perfect forward secrecy
HSTS enabled

Zero-Knowledge Architecture:

User Device (Data Origin) -> Local Processing -> 
ZK Proof (No Raw Data) -> Blockchain (Public Verification)

Compliance & Monitoring

AML/KYC Integration

IDSentric Verification:

Identity document validation
Liveness detection
PEP screening
Sanctions list checking
Ongoing monitoring

Privacy-Preserving Compliance:

User Data -> IDSentric Verification -> Compliance Attestation -> 
On-Chain Credential -> NO RAW DATA STORED

Transaction Monitoring

AI-Powered Detection:

Unusual transaction patterns
Velocity checks
Geographic anomalies
Risk scoring
Automated alerts

Suspicious Activity Reporting:

def monitor_transaction(tx):
    risk_score = calculate_risk(tx)
    
    if risk_score > HIGH_RISK_THRESHOLD:
        flag_for_review(tx)
        
    if risk_score > CRITICAL_THRESHOLD:
        auto_block(tx)
        notify_compliance_team(tx)

Infrastructure Security

Network Security

DDoS Protection:

Cloudflare Pro
Rate limiting
IP reputation filtering
Geographic blocking

Web Application Firewall (WAF):

OWASP top 10 protection
Custom rule sets
Bot detection
SQL injection prevention

Application Security

Security Headers:

Strict-Transport-Security: max-age=31536000
Content-Security-Policy: default-src 'self'
X-Frame-Options: DENY
X-Content-Type-Options: nosniff

API Security:

JWT with short expiration
API key rotation
Request signing
Rate limiting per user

Database Security

PostgreSQL Hardening:

Row-level security
Encrypted connections
Regular backups
Point-in-time recovery

Redis Security:

Authentication required
TLS encryption
Memory encryption
No persistent storage of sensitive data

Incident Response

Security Incident Protocol

Phase 1: Detection

Automated monitoring alerts
User reports
Security researcher submissions
Anomaly detection

Phase 2: Containment

Isolate affected systems
Activate circuit breakers
Pause affected contracts
Preserve evidence

Phase 3: Investigation

Root cause analysis
Impact assessment
Evidence collection
Timeline reconstruction

Phase 4: Resolution

Deploy fixes
Restore services
User communication
Post-mortem report

Phase 5: Prevention

Update security controls
Enhance monitoring
Staff training
Process improvements

Bug Bounty Program

Reward Structure:

Severity	Bounty Range	Examples
Critical	$50,000 - $250,000	Private key exposure, fund theft
High	$10,000 - $50,000	Unauthorized fund access
Medium	$2,500 - $10,000	Data leak, DOS attack
Low	$500 - $2,500	Information disclosure

Scope:

Smart contracts
Mobile applications
Web applications
API endpoints
Infrastructure

How to Report:

Email: security@safebank.ai
HackerOne program
Encrypted communication available
Responsible disclosure policy

Threat Model

External Threats

Phishing Attacks:

Mitigation: Address verification, warning messages, user education

Man-in-the-Middle:

Mitigation: Certificate pinning, TLS 1.3, HSTS

Smart Contract Exploits:

Mitigation: Formal verification, audits, bug bounties, circuit breakers

Private Key Theft:

Mitigation: Secure enclaves, biometric auth, social recovery

Internal Threats

Rogue Employee:

Mitigation: Least privilege access, audit logs, separation of duties

Supply Chain Attack:

Mitigation: Dependency scanning, code signing, reproducible builds

Compromised Infrastructure:

Mitigation: Zero-trust architecture, encryption, monitoring

Regulatory Compliance

Right to access data
Right to erasure (where possible)
Data portability
Privacy by design
DPO appointed

CCPA Compliance

Consumer right to know
Right to delete
Right to opt-out
Non-discrimination

Financial Regulations

FinCEN:

AML program
SAR filing
CTR reporting
Record keeping

Know Your Customer (KYC):

Identity verification
Beneficial ownership
PEP screening
Ongoing due diligence

Security Best Practices for Users

For Individuals

✅ DO:

Enable biometric authentication
Keep recovery phrase offline
Use strong PIN
Verify transaction details
Keep app updated
Enable all security features

❌ DON'T:

Share recovery phrase
Use public WiFi for large transactions
Disable security features
Install unofficial apps
Ignore security alerts
Reuse passwords

For Merchants

✅ DO:

Enable 2FA on all accounts
Separate business and personal wallets
Regular security training for staff
Monitor transaction reports
Use hardware wallets for large holdings
Have incident response plan

❌ DON'T:

Share API keys
Use production keys in development
Ignore compliance requirements
Store sensitive data unencrypted
Skip security updates

Conclusion

SafeBank's security model represents the next generation of financial security:

Zero-knowledge cryptography ensures privacy
Multi-layer defense protects against threats
Autonomous monitoring detects anomalies
Regulatory compliance without compromising privacy
User sovereignty maintains control

SafeBank: Where cutting-edge cryptography meets bank-grade security.

Architecture | Tokenomics

Security Principles​

Zero-Knowledge Proof System​

CredZK Integration​

How ZK Proofs Work​

Technical Implementation​

Benefits of ZK Lending​

Smart Contract Security​

Audit Process​

Contract Safeguards​

Wallet Security​

Multi-Factor Authentication​

Key Management​

Transaction Signing​

Privacy Architecture​

Data Minimization​

Encryption​

Compliance & Monitoring​

AML/KYC Integration​

Transaction Monitoring​

Infrastructure Security​

Network Security​

Application Security​

Database Security​

Incident Response​

Security Incident Protocol​

Bug Bounty Program​

Threat Model​

External Threats​

Internal Threats​

Regulatory Compliance​

GDPR Compliance​

CCPA Compliance​

Financial Regulations​

Security Best Practices for Users​

For Individuals​

For Merchants​

Conclusion​