Methods and systems for verifying token-based actions on distributed ledger-based networks through the use of zero-knowledge proofs

Abstract

In an embodiment, a method comprises receiving a request that is configured to cause a transfer of a combined asset from a sender to a recipient, the combined asset including a first asset and a second asset. The method includes generating and sending to a self-executing code segment on a distributed ledger-based network (DLN) a zero-knowledge proof (ZKP) that a plurality of leaf nodes of a hierarchical tree structure representing the combined asset includes the plurality of leaf nodes of the hierarchical tree structure representing the first asset and the plurality of leaf nodes of the hierarchical tree structure representing the second asset. The method also includes receiving, in response to verification of the ZKP by the self-executing code segment, a confirmation confirming a representation of the combined asset on the DLN by a third token associated with the root node of the third hierarchical tree structure.