Methods and systems for preventing transaction tracing on distributed ledger-based networks

A method, comprising:

• receiving, at a processor, a request associated with a transaction on a distributed ledger-based network (DLN), the request including a representation of a first asset token, a representation of a payor account on the DLN, and a representation of a payee account on the DLN, the first asset token represented on the DLN by a payor token commitment generated by a payor computing node of the DLN and by an application of a cryptographic hashing function to a first random nonce,
• commiting a payment, in response to the request associated with the transaction, la generating, via the processor, a payee token commitment via an application of a cryptographic hashing function to:
• (i) a second asset token, (ii) a public identifier on the DLN of the payee, and (iii) a second random nonce;
• invalidating the payor token commitment, after comitting the payment, by generating, via the processor and in response to the request, a nullifier in a nullifiers data structure on the DLN via an application of a cryptographic hashing function to a concatenation of:
• (i) the first random nonce and (ii) a private identifier of the payor, the nullifiers data structure including a Merkle Tree;
• transmitting, via the processor and to a relayer computing device, a representation of a zero-knowledge proof (ZKP) generated using a DLN address of the relayer computing device as a public input of the ZKP, to cause the relayer computing device to verify that:
• (1) the payee token commitment includes the second asset token, the public identifier on the DLN of the payee, and the second random nonce;
• and
• (2) the nullifier includes the first random nonce and the private identifier of the payor,
• the relayer computing device being a third-party participant of the DLN that has no information about an identity of the first random nonce, an identity of the second asset token, an identity of the public identifier on the DLN, and an identity of the second random nonce, and
• receiving, at the processor, a confirmation confirming the transfer of the first asset token from the payor account to the payee account, the confirmation being generated in response to verification of the ZKP by a smart contract.