# ArcNano (ArcShield-X402)
> Shielded Nanopayments For The Autonomous AI Agent Era on the Arc Network.

ArcNano is an open-source Zero-Knowledge X402 micropayment protocol engineered specifically for autonomous AI agent-to-agent (A2A) and machine-to-machine (M2M) commerce on the Arc blockchain. It eliminates on-chain signer leakage (`msg.sender` surveillance), enforces Association Set Provider (ASP) non-membership proofs for regulatory compliance (Privacy Pools), and achieves sub-8 millisecond off-chain verification with batched zero-gas on-chain settlement via Arc's native Circle Gas Station.

## Core Capabilities
- **Decoupled Identity:** The paying agent never signs or broadcasts the spending transaction on-chain. Groth16 zero-knowledge proofs are delivered off-chain via standard `X-PAYMENT` headers, completely severing the `msg.sender` link.
- **Privacy Pools Compliance:** Inherent Association Set Provider (ASP) exclusion checks in Circom prove non-membership in illicit or sanctioned addresses without doxxing clean agents.
- **Two-Stage X402 Verification:**
  - Stage 1 (Off-Chain / Instant): API servers verify Groth16 proofs locally in memory in <8ms with zero gas cost, serving responses immediately.
  - Stage 2 (On-Chain / Batch): API receivers batch-settle accumulated nullifiers on Arc, amortizing gas costs.
- **Circle Gas Station Paymaster:** Arc's native account abstraction and paymaster sponsor gas fees for settlement, requiring zero native gas tokens from agents.
- **Denominated Vaults:** Fixed note denominations in native USDC ($0.01, $0.10, $1.00) eliminate exchange rate volatility for agent operational wallets.

## Key Resources
- [Full Technical Specification](https://arcnano.dev/llms-full.txt): Complete architectural mechanics, Circom circuits, sequence diagrams, and cryptographic proofs.
- [Official Website](https://arcnano.dev): Protocol overview, interactive simulator, and development roadmap.
- [GitHub Repository](https://github.com/Trymbakmahant/arcnano): Smart contracts, Circom circuits, Python agent SDK, and gateway middleware.
- [X / Twitter](https://x.com/0xarcnano): Official project updates (@0xarcnano).

## Technical Stack
- **Cryptography:** Circom 2.1, Groth16, SnarkJS, Poseidon Merkle Trees (20-level).
- **Smart Contracts:** Solidity, Arc Network, Circle Gas Station (ERC-4337 Paymaster).
- **Application Layer:** X402 Payment Required (`x402`), Next.js 16, TypeScript, Tailwind CSS.
- **SDKs:** Python (`arczk-agent`), Node.js/Express (`@arczk/x402-express`).

## Author & Community
- **Author:** Trymbak Mahant ([@trymbakmahant](https://github.com/Trymbakmahant))
- **Official X:** [@0xarcnano](https://x.com/0xarcnano)
- **License:** MIT License