BPA: A decentralized payment system that balances privacy and auditability

Le Gao; Junzhe Zhang; Jiaxin Yu; Yin Tang; Zhiqiang Zeng; Le Gao; Junzhe Zhang; Jiaxin Yu; Yin Tang; Zhiqiang Zeng

doi:10.3934/math.2024302

AIMS Mathematics

2024, Volume 9, Issue 3: 6183-6206. doi: 10.3934/math.2024302

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Research article Special Issues

BPA: A decentralized payment system that balances privacy and auditability

School of Electronic and Information Engineering, Jiangmen, 529020, China

Received: 09 November 2023 Revised: 03 January 2024 Accepted: 12 January 2024 Published: 02 February 2024
MSC : 94A62, 91B99

The rapid development of blockchain transactions highlights the importance of privacy protection (including anonymity and confidentiality) and underscores the necessity for auditability. Some schemes, such as PGC and Miniledger, support privacy protection and auditability. However, they only offer incomplete privacy protection (i.e., supporting anonymity or confidentiality exclusively). In response to these issues, we propose a scheme that achieves partial anonymity, confidentiality, auditability, and traceability. By integrating a variant of Pedersen commitments and randomizable signatures, we achieve partial anonymity for users and the auditability of transactions, thereby protecting user privacy under audit conditions. Based on the twisted ElGamal encryption algorithm and specially constructed zero-knowledge proofs, we achieve confidentiality of transaction amounts under legal and regulatory conditions. System test results indicate that this scheme effectively meets the above requirements. The feasibility of this scheme is confirmed through system testing, comparative analysis, and security analysis.
- blockchain,
- cryptocurrencies,
- auditable,
- confidential transactions,
- privacy protection
Citation: Le Gao, Junzhe Zhang, Jiaxin Yu, Yin Tang, Zhiqiang Zeng. BPA: A decentralized payment system that balances privacy and auditability[J]. AIMS Mathematics, 2024, 9(3): 6183-6206. doi: 10.3934/math.2024302

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Abstract

The rapid development of blockchain transactions highlights the importance of privacy protection (including anonymity and confidentiality) and underscores the necessity for auditability. Some schemes, such as PGC and Miniledger, support privacy protection and auditability. However, they only offer incomplete privacy protection (i.e., supporting anonymity or confidentiality exclusively). In response to these issues, we propose a scheme that achieves partial anonymity, confidentiality, auditability, and traceability. By integrating a variant of Pedersen commitments and randomizable signatures, we achieve partial anonymity for users and the auditability of transactions, thereby protecting user privacy under audit conditions. Based on the twisted ElGamal encryption algorithm and specially constructed zero-knowledge proofs, we achieve confidentiality of transaction amounts under legal and regulatory conditions. System test results indicate that this scheme effectively meets the above requirements. The feasibility of this scheme is confirmed through system testing, comparative analysis, and security analysis.

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