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ADR-003: Ghost Features as Core Differentiator

Status: Accepted Date: 2026-03-14

Context

Knight Shield needs a clear differentiator from generic wallets. Most wallets focus on UX or multi-chain support. None focus on active privacy features that protect users against on-chain analysis attacks.

Decision

Implement 3 Ghost Features as the product differentiator:

GhostCloak — Address Obfuscation

  • Uses ZK proofs to generate one-time addresses per transaction
  • Receiver verifies ownership without revealing the real address
  • Makes transactions unlinkable even with blockchain analysis

GhostTracking — Tracking Detection and Defense

  • Timing randomizer breaks temporal correlation between sender and receiver
  • Fee normalization defeats fee-based fingerprinting
  • Alerts users when tracking patterns are detected on their address

GhostShard — Seed Fragmentation

  • Splits wallet seed into multiple shards via Shamir Secret Sharing (5 shares, threshold 3)
  • Each shard stored in a different location (DID, USB, password manager, email, cloud, device)
  • On-chain hash registry for verification without revealing shard data
  • Emergency lock mechanism for compromised wallets

Rationale

  1. Underserved market: No mobile wallet offers active privacy features
  2. ZK enabler: Midnight Network allows implementing these features natively
  3. Strong narrative: "Ghost" branding unifies all three features
  4. Defense in depth: Each feature protects against a different analysis vector

Consequences

  • Positive: Clear differentiator, strong marketing narrative, real defense against surveillance
  • Negative: Implementation complexity, UX must remain simple despite underlying complexity
  • Mitigation: Incremental rollout (Cloak → Tracking → Shard), safe defaults enabled out of the box