Toward Privacy and Regulation in Blockchain-Based Cryptocurrencies

@article{Li2019TowardPA,
  title={Toward Privacy and Regulation in Blockchain-Based Cryptocurrencies},
  author={Yannan Li and Willy Susilo and Guomin Yang and Yong Yu and Xiaojiang Du and Dongxi Liu and Nadra Guizani},
  journal={IEEE Network},
  year={2019},
  volume={33},
  pages={111-117}
}
Privacy is supreme in cryptocurrencies since most users do not want to reveal their identities or the transaction amount in financial transactions. Nevertheless, achieving privacy in blockchain-based cryptocurrencies remains challenging since blockchain is by default a public ledger. For instance, Bitcoin provides builtin pseudonymity rather than true anonymity, which can be compromised by analyzing the transactions. Several solutions have been proposed to enhance the transaction privacy of… 

Figures and Tables from this paper

A Regulatory System for Optimal Legal Transaction Throughput in Cryptocurrency Blockchains
TLDR
This work motivates the need for regulated blockchain consensus protocols with a case study of the illegal, cryptocurrency based, Silk Road darknet market, and presents a novel regulatory framework for blockchain protocols, for ensuring legal transaction confirmation as part of the blockchain distributed consensus.
Supervisory Scheme for Blockchain Privacy Protection Technique Based on Group Signature
TLDR
The overall supervisory scheme based on LSAG is proposed to achieve effective tracing of blockchain users and to prevent tracing power abuses, and the key generation algorithm and its corresponding negotiative decryption algorithm are redesigned to allow decentralized traceability.
ExamChain: A Privacy-Preserving Onscreen Marking System based on Consortium Blockchain
TLDR
This paper has implemented a proof-of-concept for a consortium blockchain-based OSM in a privacy-preserving and auditable manner, enabling markers to anonymously mark to the distributed ledger.
Traceable Monero: Anonymous Cryptocurrency with Enhanced Accountability
TLDR
The framework relies on a tracing authority, but is optimistic, in that it is only involved when investigations in certain transactions are required, and demonstrates that Traceable Monero incurs merely a very small overhead in generating and verifying a transaction compared to Monero transactions.
Detecting Anomalous Cryptocurrency Transactions: an AML/CFT Application of Machine Learning-based Forensics
TLDR
It is claimed that the AML/CFT domain could benefit from novel graph analysis methods in machine learning, and the findings show that the Graph Convolutional Networks (GCN) and Graph Attention Networks (GAT) neural network types represent a promising solution for AML /CFT compliance.
A Review of Applying Blockchain Technology for Privacy Protection
TLDR
This paper summarizes several relatively new privacy Protection technologies based on blockchain in various application fields, which provides an important basis for choosing appropriate privacy protection technologies of blockchain in different situations.
Efficient Algorithms For Storage Load Balancing Of Outsourced Data In Blockchain Network
TLDR
Experimental results demonstrate that HMA achieves better performance in terms of accuracy, computation overhead and storage overhead, whereas the storage overhead of HMA is lower than that of FMA by 32.26% on average.
Blockchain-Empowered Space-Air-Ground Integrated Networks: Opportunities, Challenges, and Solutions
TLDR
This article presents a comprehensive survey of the integration of blockchain technologies for securing SAG-IoT applications, and discusses the architecture, characteristics, and security threats of SAG,air-ground IoT systems, as well as focusing on the promising blockchain-based solutions for S AG-IioT security.
“Will Central Bank Digital Currencies (CBDC’s) Eliminate the Need for Cryptocurrencies?”
As of February 2021 there were 4,501 crypto coins on the market (Best 2021). In response to the explosion of blockchain development, The Bank of England are considering the introduction of a Central
...
...

References

SHOWING 1-10 OF 16 REFERENCES
ValueShuffle: Mixing Confidential Transactions for Comprehensive Transaction Privacy in Bitcoin
The public nature of the blockchain has been shown to be a severe threat for the privacy of Bitcoin users. Even worse, since funds can be tracked and tainted, no two coins are equal, and fungibility,
Solidus: Confidential Distributed Ledger Transactions via PVORM
TLDR
This paper presents Solidus, a protocol for confidential transactions on public blockchains, such as those required for asset transfers with on-chain settlement, and introduces the concept of a Publicly-Verifiable Oblivious RAM Machine (PVORM) to achieve strong confidentiality of this kind.
Zerocash: Decentralized Anonymous Payments from Bitcoin
TLDR
This paper formulate and construct decentralized anonymous payment schemes (DAP schemes) and builds Zero cash, a practical instantiation of the DAP scheme construction that is orders of magnitude more efficient than the less-anonymous Zero coin and competitive with plain Bit coin.
Stealth Address and Key Management Techniques in Blockchain Systems
TLDR
This paper overviews the historical development of Stealth Address techniques, specifies and compares all major variants proposed or used in practical systems, and shows that such techniques can be designed based on 2 distinct ECC arithmetic properties and how to combine both.
Ring Confidential Transactions
TLDR
A new type of ring signature, A Multilayered Linkable Spontaneous Anonymous Group signature is described which allows one to include a Pedersen Commitment in a ring signature and results in a digital currency with hidden amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation.
CoinShuffle: Practical Decentralized Coin Mixing for Bitcoin
TLDR
CoinShuffle is a completely decentralized Bitcoin mixing protocol that allows users to utilize Bitcoin in a truly anonymous manner and it does not require any trusted, accountable or untrusted third party and it is perfectly compatible with the current Bitcoin system.
RingCT 2.0: A Compact Accumulator-Based (Linkable Ring Signature) Protocol for Blockchain Cryptocurrency Monero
TLDR
A new efficient RingCT protocol is put forward, built upon the well-known Pedersen commitment, accumulator with one-way domain and signature of knowledge (which altogether perform the functions of a linkable ring signature), which satisfies the security requirements if the underlying building blocks are secure in the random oracle model.
Zerocoin: Anonymous Distributed E-Cash from Bitcoin
TLDR
Zerocoin is proposed, a cryptographic extension to Bitcoin that augments the protocol to allow for fully anonymous currency transactions and uses standard cryptographic assumptions and does not introduce new trusted parties or otherwise change the security model of Bitcoin.
Mixcoin: Anonymity for Bitcoin with Accountable Mixes
TLDR
It is demonstrated that incentives of mixes and clients can be aligned to ensure that rational mixes will not steal, and the scheme offers similar anonymity to traditional communication mixes against active attackers.
Linkable Spontaneous Anonymous Group Signature for Ad Hoc Groups (Extended Abstract)
TLDR
A linkable spontaneously anonymous group (LSAG) signature scheme (alternatively known as linkable ring signature scheme) satisfying the following three properties, and constructing a new efficient one-round e-voting system which does not have a registration phase.
...
...