Blockchain Transaction Privacy via Homomorphic Encryption Commitments
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Solution Overview
Problem
Current blockchain transaction methods lack privacy and security, as they expose transaction amounts and balances publicly, and do not effectively prevent double-spending or replay attacks.
Innovation Solution
Implementing a method that uses homomorphic encryption to calculate and manage commitments of balances and transaction amounts, allowing transactions to be processed without revealing private data, and incorporating signature verification and range proofs to ensure transaction validity and security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If blockchain transactions use public ledger recording, then transaction transparency and verification are improved, but transaction privacy and security deteriorate
Solution Approach 1:
The patent segments transaction information into two parts: public commitments (hashes) that are recorded on the blockchain for transparency, and private plaintext information (actual transaction amounts and balances) that remains confidential. This segmentation allows the system to maintain both transparency through verifiable commitments and privacy through encrypted storage of sensitive data.
Solution Approach 2:
The patent introduces homomorphic encryption as an intermediary mechanism that enables verification of transaction validity without exposing private information. The encryption scheme acts as a mediator between the need for public verification and the requirement for private data protection, allowing nodes to verify transactions while commitments remain confidential.
2Reliability
If blockchain nodes verify all transaction details publicly, then transaction validity is ensured, but computational overhead and network bandwidth consumption increase
Solution Approach 1:
The patent extracts the verification-critical information (commitments and their hashes) from the full transaction details and places only these essential elements on the blockchain. This extraction allows nodes to verify transaction validity through commitment checks without processing or storing the complete transaction data, significantly reducing computational overhead and energy consumption.
Solution Approach 2:
The patent implements partial verification where nodes only verify the commitment hashes and essential transaction metadata rather than fully processing all transaction details. This partial action approach maintains transaction validity assurance while minimizing the computational resources required for verification.
3Ease of operation
If transaction amounts and balances are recorded in plaintext, then transaction processing simplicity is maintained, but vulnerability to double-spending and replay attacks increases
Solution Approach 1:
The patent changes the parameter representation from plaintext transaction amounts to homomorphically encrypted commitments. This parameter transformation maintains the mathematical properties needed for transaction processing (addition, subtraction, verification) while fundamentally altering the data format to provide security against double-spending and replay attacks through the cryptographic properties of commitment schemes.
Data Source
AI summary
Embodiments of the application provide a method, apparatus, and electronic device for implementing blockchain-based transactions. The method comprises: determining a transaction amount to be remitted from a remitter's blockchain account into a receiver's blockchain account, wherein a commitment of the remitter's balance is recorded with the remitter's blockchain account in a blockchain, a commitment of the receiver's balance is recorded with the receiver's blockchain account in the blockchain; obtaining a commitment of the transaction amount by using the homomorphic encryption algorithm according to the transaction amount; and submitting to the blockchain a transaction comprising information of the remitter's and the receiver's blockchain accounts, and the commitment of the transaction amount, for the commitment of the transaction amount to be deducted from the commitment of the remitter's balance and the commitment of the transaction amount to be added to the commitment of the receiver's balance.