Merces: Confidential Token Transfers via MPC and CoSNARKs

Fungible tokens on public blockchains expose all balances and transfer amounts in the clear, which is incompatible with the financial privacy required by many real-world applications. We present Merces a confidential token contract that hides user balances and transaction amounts while preserving on-chain verifiability. The core idea is to store secret shares of balances within a decentralized MPC network, while only commitments are published to a smart contract. Thereby, Merces is capable of tr