Public Report – Penumbra Labs R1CS Implementation Review

In July 2023 Penumbra Labs engaged NCC Group’s Cryptography Services team to perform an implementation review of their Rank-1 Constraint System (R1CS) code and the associated zero-knowledge proofs within the Penumbra system. These proofs are built upon decaf377 and poseidon377, which have been previously audited by NCC Group, with a corresponding public report. The review was performed remotely with three consultants contributing 20 person-days over a period of two weeks, along with one additional consultant shadowing.

The review was scoped to R1CS-related functionality within the Penumbra codebase, including fixed-point arithmetic and proofs for Spend, Output, Swap, Swap Claim, Delegator Vote, and Undelegate Claim, alongside modifications to made to Zcash Sapling relating to key hierarchy, asset-specific generators, note format, tiered commitment tree, nullifier derivation, balance commitment, and usage of payload keys. R1CS gadgets in decaf377 and poseidon377 were also reviewed.

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