The problem CloakFund solves

CloakFund — Private Crypto Payments

Problem

Blockchains are fully transparent.
If someone sends crypto to your wallet, they can see:

• your wallet balance
• your transaction history
• who you interact with

One payment can expose your entire financial activity.

Simple Example

A → Sender
B → Receiver

A sends ETH to B’s wallet.

Now A can open a blockchain explorer and see:

• B’s total balance
• B’s past transactions

So a simple payment reveals B’s entire financial history.

Solution — CloakFund

CloakFund lets users receive crypto without revealing their real wallet.

Flow:

1. Generate a temporary stealth address
2. Sender sends ETH to that address
3. Funds go into a privacy pool
4. Receiver withdraws anonymously

Result: Sender and receiver cannot be linked on-chain.

Challenges we ran into

As beginners in Web3, it was challenging to understand and design a privacy system on-chain. We initially planned to integrate BitGo for wallet infrastructure, but the service was not working as expected during development.

Because of this, we had to rethink and redesign our entire architecture multiple times. We then shifted to building a fully decentralized privacy solution.

Implementing full Zero-Knowledge privacy is very complex, so for the MVP we built a simplified commit–reveal privacy pool, which demonstrates the core privacy idea while keeping the system practical for a hackathon.