Confidential Briefing Open Technical Standard · RFC v1.0

ZTDS AI Consortium / Enterprise Suite

Deterministic Client-Side Computational Standard

Zero-Trust Data Sanitization (ZTDS) in Enterprise GenAI

How Fortune 500 CISOs deploy Large Language Models, Multi-Agent Loops, and RAG Pipelines with Mathematically Provable Zero Data Egress and Zero SaaS Subprocessor Liability.

Data Egress

0.00 Bytes

Client volatile RAM only

Sanitization Latency

< 1.8 ms

100x faster than cloud DLP

GDPR Compliance

Art. 32 Safe Harbor

Zero subprocessor chain

Offline Attestation

Ed25519 Token

Zero telemetry heartbeats

Presenter: Ilya Sibiryakov (ORCID: 0009-0002-0642-5985) · Chief Architect

Ecosystem: BrandMeWeb · ZTDS.ai

Statutory Risk Analysis The Conflict Between Business Velocity & CISO Fines

Slide 02 / 10

The 4 Regulatory & Architectural Chokepoints

Connecting enterprise workflows to cloud AI or local RAG without deterministic pre-egress sanitization triggers severe statutory liabilities:

Chokepoint 01 EU Regulation 2016/679

Routing cleartext prompts through cloud AI vendors or proxies legally classifies them as data processors. Requires 30-day customer notification windows, complex DPA redlines, and unlimited cross-border transfer risk.

Chokepoint 02 GDPR Art. 17 / Data Erasure

Vector Database Poisoning

Cleartext PII converted into high-dimensional vector embeddings cannot be deleted upon user "Right to Erasure" request without destroying and re-indexing the entire multi-million vector index.

Chokepoint 03 EU AI Act (2024/1689)

Article 50: Synthetic Provenance

Mandates verifiable provenance and transparency for high-risk generative AI pipelines. Penalties for unverified sensitive data ingestion reach up to €35,000,000 or 7% of global annual turnover.

Chokepoint 04 US HIPAA & FRE Rule 502

Loss of Clinical & Legal Privilege

Transmitting unmasked PHI violates HIPAA Safe Harbor (45 CFR § 164.514) triggering mandatory BAA audits. Sending unredacted M&A contracts or litigation notes waives Attorney-Client Work Product Privilege.

ZTDS Resolution: Eliminates cleartext data transmission entirely. Result: 0 Subprocessors Added

Comparative Architecture Legacy Cloud DLP vs. Zero-Trust In-Memory Engine

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Why Legacy Cloud DLP Proxies Break Generative AI

Cloud DLP solutions (Netskope, Nightfall, AWS Macie) were engineered for asynchronous email archiving, not sub-second multi-agent LLM reasoning chains:

Architectural Vector	Legacy Cloud DLP Proxy (SaaS)	ZTDS RFC v1.0 Local Engine
Execution Latency	250 ms – 800 ms (Network roundtrip)	< 1.8 ms (Local CPU/RAM)
Data Egress Boundary	Transmits cleartext to 3rd-party cloud	0.00 Bytes (Stays in local host memory)
Subprocessor Chain	Adds another SaaS vendor (+ DPA & SOC2)	Exempt (Self-contained computational utility)
LLM Context Preservation	Destructive masking (`[REDACTED]` breaks syntax)	Deterministic surrogate tokens (`[EMAIL_1]`)
Air-Gapped / SCIF Support	Impossible (Requires active internet connection)	100% Offline (Ed25519 cryptographic token)

The 10-Agent Latency Tax: A multi-agent loop with 12 sequential LLM steps wastes 6,000 ms with cloud proxies vs. 21 ms with ZTDS.

Zero cloud proxies. Zero SaaS middleman. Zero data custody. 100x Faster Performance

Formal Standard Open Technical Consortium & Mathematical Proofs

Slide 04 / 10

The 4 Fundamental Invariants (RFC v1.0)

DOI: 10.5281/zenodo.22058770 · OSF: 10.17605/OSF.IO/5BYJF · RS: 10.21203/rs.3.rs-11117457/v1 · SSRN: 7335581

1

Zero External Egress

Raw PII, PHI, or intellectual property never crosses the local execution boundary in cleartext. Sanitization occurs strictly prior to socket write.

Formula: Δ_Egress(Cleartext) ≡ 0.00 Bytes

2

Deterministic Tokenization

Masked entities are replaced with bijective surrogate tokens preserving grammatical syntax, entity classes, and token distance for optimal LLM attention weights.

Map: T = M(V, C) | Scoped strictly to Thread RAM

3

Cryptographic Isolation

Execution is verified inside volatile RAM or hardware-attested enclaves (AWS Nitro, Apple Secure Enclave, WASM sandbox) with zero disk swapping.

Memory: Zero Persistence, Instant Auto-Zeroization

4

Continuous Compliance

Software operates as an endpoint utility. Completely eliminates third-party subprocessor status under GDPR Article 28 and HIPAA Business Associate rules.

Legal Status: 100% DPA & BAA Exemption

Published openly at ztds.ai/standard/ · License: Apache 2.0 / CC BY 4.0 Verifiable Codebase Audit

Runtime Pipeline End-to-End In-Memory Data Flow Sequence

Slide 05 / 10

Sub-Millisecond Bijective In-Memory Architecture

Zero cleartext entities reach the upstream network. All de-identification and re-hydration occur within host process RAM:

1. Client Ingest

Raw User Prompt / RAG Document

Contains PII / Secrets

→

2. ZTDS Tokenizer

In-RAM Scan & Mask

< 1.8 ms Latency

→

3. Upstream LLM

OpenAI / Bedrock / Claude

Zero Sensitive Entities

→

4. Re-hydration

Bijective In-RAM Swap

Cleartext Output to User

Airplane Mode Audit

5-Minute Live Terminal Test

Turn off Wi-Fi; run audit; 100% passes.

Throughput Capacity

25,000+ Tokens / Sec

Single-core WebAssembly runtime.

Pre-Built Integrations

LangChain, LlamaIndex, MCP

Drop-in middleware for existing code.

Package: @privacyscrubber/sdk · Zero runtime dependencies WASM / Node / Python stdio

CISO Legal Shield Bypassing the 6-Month Enterprise Procurement Freeze

Slide 06 / 10

Why Enterprise Legal Clears ZTDS in 48 Hours

Traditional software procurement stalls over Data Processing Agreements (DPAs) and liability caps. ZTDS is legally exempt by architectural design:

EDPB Doctrine & GDPR

Article 28 Exemption

Under European Data Protection Board doctrine, local computational utilities executing in client volatile memory do not constitute "data processors". No DPA or Standard Contractual Clauses (SCCs) are legally required.

US HHS / HIPAA

Safe Harbor De-identification

Under 45 CFR § 164.514, clinical text stripped of the 18 designated identifiers ceases to be PHI. Because masking occurs prior to network dispatch, neither ZTDS nor the LLM handles PHI. No BAA required.

AICPA SOC 2 Type II

Automated Evidence Binder

Direct export of ztds-evidence-binder.json mapped to Common Criteria CC6.1 (Access), CC6.6 (Perimeter), and CC6.8 (Malicious Code) ready for Drata, Vanta, and AuditBoard ingestion.

Turnkey Deliverable: Official 1-Page CISO Exemption Memorandum ready for your General Counsel and DPO sign-off.

Zero DPA Overhead

Reference: docs/legal/README_LEGAL_PROCUREMENT_GUIDE.md Zero Custody · Zero Liability

Air-Gapped Architecture Zero-Telemetry Asymmetric Cryptographic Enforcement

Slide 07 / 10

Offline Ed25519 Licensing & True Air-Gapped Enclaves

Regulated SCIF environments, defense systems, and sovereign cloud VPCs strictly prohibit software that "phones home". ZTDS enforces offline cryptographic licensing:

Cryptographic Token Spec (Ed25519)

ZTDS-LIC-v1.eyJjdXN0b21lcklkIjoiQUNNRS1DT1JQIiwidGllciI6IkVOVEVSUFJJU0VfQUlSIiwibm9kZXMiOjUsInByb2ZpbGVzIjpbIioiXX0.k9F...b9a

• In-Memory Verification: 111.8 microseconds (~0.1ms)
• Network Egress / Heartbeats: Exactly 0.00 Bytes
• Native Node.js & WebAssembly crypto engine

Enterprise Operational Guarantees

✓ Zero Pipeline Disruption: Built-in 60-day automatic grace period ensures mission-critical workflows never halt if annual renewal PO is in processing.
✓ Tamper-Proof Integrity: Any modification to customer ID, node count, or profiles mathematically invalidates the signature.
✓ Hardware Enclave Compatible: Deploys natively in AWS Nitro Enclaves, Azure Confidential Computing, and Kubernetes VPCs.

CLI: npx ztds-audit --check-license

Validated: test/license.test.js · 1,000 runs in 111.76 ms 100% Air-Gapped

Enterprise Entities Algorithmic Heuristics Beyond Generic Regex

Slide 08 / 10

The 30 enterprise-grade Specialized Industry Profiles

Generic regex produces unacceptable false positives. ZTDS combines context heuristics with algorithmic checksum validation (deterministic financial & national ID checksum verification):

HEALTHCARE / PHI

• 18 HIPAA Identifiers
• ICD-10 / ICD-11 Codes
• Physician NPI Numbers
• Clinical Trial Hashes
• Genomic Identifiers

FINANCIAL & BANKING

• PCI DSS PAN (Checksum Verified)
• SWIFT / BIC Codes
• IBAN Numbers (ISO 7064)
• CUSIP / Bloomberg ID
• SEC 13F Holding Data

LEGAL & M&A SECRECY

• Acquisition Target Entities
• Attorney Work Product (FRE 502)
• Executive Comp Plans
• Board Resolution Drafts
• Subpoena Docket Hashes

CLOUD & INFRA SECRETS

• AWS IAM & Secret Keys
• GitHub Personal Tokens
• Kubernetes JWT Tokens
• Private RSA/Ed25519 Keys
• Database Connection URIs

Two-Tier Domain Isolation Model: Free standard handles basic consumer PII. The 30 specialized enterprise profiles require signed Enterprise tokens. Quarterly Regulatory Taxonomy Updates

Specification: docs/ZTDS_Entity_Taxonomy_and_25_Profiles_SSOT.md Enterprise Exclusive

Commercial Packaging Turnkey B2B Investment & TCO ROI Comparison

Slide 09 / 10

Enterprise Deployment Tiers & TCO Economics

Predictable annual flat-rate licensing via certified commercial implementations without consumption-based per-token penalties:

Developer Pro SDK

Departmental SDK

• Up to 5 Developer Seats & Nodes
• Baseline universal consumer PII
• LangChain, LlamaIndex, MCP connectors
• Standard engineering support (48h SLA)

AI Engineering Teams

Recommended

Enterprise Air-Gapped

Enterprise Enclave

• Up to 5 Production Nodes / Enclaves
• Full 30 Specialized Industry Profiles
• 100% Disconnected Ed25519 Token
• SOC 2 Type II Evidence Binder
• Priority support (4h response SLA)

Core Enterprise VPCs

Global Site License

• Unlimited global nodes & enclaves
• Custom ERP/CRM profile engineering
• Direct advisory with Chief Architect
• Air-gapped source code escrow rights
• 24/7 critical incident response (1h SLA)

Fortune 500 Enterprise

TCO Comparison: In-house custom build: $350k+ in salaries. Cloud DLP SaaS: $120k+/yr + 400ms latency. ZTDS: turnkey local RAM deployment. Net 30 · Schedule A

Two-Brand Isolation: ZTDS RFC v1.0 is an open standard. Commercial licensing is powered by reference engine PrivacyScrubber (@privacyscrubber/sdk). privacyscrubber.com →

Standard Form: docs/legal/ENTERPRISE_ORDER_FORM_TEMPLATE.md Fixed Annual Price

Evaluation Protocol Frictionless 14-Day Sandbox Pilot to Production

Slide 10 / 10

The 14-Day Turnkey Evaluation Roadmap

Zero technical friction and zero upfront commitment. Prove compliance inside your private network before signing:

DAY 1

5-Min Verification

Run npx ztds-audit on your workstation. Inspect network traffic with Wireshark/DevTools. Confirm 0 bytes egress.

DAYS 2 – 10

Air-Gapped Sandbox

Deploy 14-day evaluation license token into your staging VPC or Nitro Enclave. Benchmark 30 profiles against real payloads.

DAYS 11 – 12

Fast-Track Clearance

Deliver 1-Page DPA Exemption Memo to Legal. Ingest SOC 2 Type II Evidence Binder into Drata / Vanta.

DAY 14

Production Token

Execute Schedule A Order Form (Net 30 terms). Production Ed25519 token delivered via PGP within 2 business hours.

Initiate 14-Day Enterprise Sandbox Pilot Today

Direct contact with Chief Architect Ilya Sibiryakov · BrandMeWeb Ecosystem

Request Sandbox Token →

Portal: https://ztds.ai · Patents Pending · TM #182655957 · npx ztds-audit Zero-Trust Data Sanitization