SONIC protocol implements optimized zero-knowledge proof systems for privacy-preserving cryptocurrency transfers. Using lightweight cryptographic commitments and efficient proof generation, SONIC enables encrypted transaction execution with minimal computational overhead while maintaining foundational privacy guarantees. All transactions are encrypted end-to-end using zero-knowledge proof systems. Transaction details remain hidden during execution: // ZK proof generation for encrypted transfer function generateTransferProof(amount, sender, receiver): // Create cryptographic commitment commitment = hash(amount, sender, receiver, nonce) // Generate zero-knowledge proof proof = { publicInputs: [commitment], privateInputs: [amount, sender, receiver, nonce] } // Prove validity without revealing details zkProof = proveStatement( "I know values that hash to commitment", proof.publicInputs, proof.privateInputs ) return {commitment, zkProof} Validators can verify transaction validity without learning sender, receiver, or amount.