Blockchain Data Privacy via Off-Chain Hash Segmentation
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Solution Overview
Problem
In blockchain networks, private transaction data between participant nodes is shared with all nodes, leading to data privacy issues despite encryption.
Innovation Solution
A system and method that utilize an off-chain database to store transaction details, encrypt them, generate a unique identifier (HASH), and share only this identifier on the blockchain, allowing only involved nodes to access complete transaction details.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction details are broadcasted to all participant nodes in the blockchain network, then network transparency and verification are improved, but data privacy is compromised
Solution Approach 1:
The patent segments transaction data into two parts: a public hash that is broadcast to all nodes for verification, and private details that are stored only in the sender's off-chain database. This segmentation allows the network to verify transaction existence and validity through the public hash while keeping sensitive information confidential, thus resolving the contradiction between transparency and privacy.
Solution Approach 2:
The patent introduces a hash function as an intermediary mechanism that transforms private transaction details into a public hash. This hash serves as a mediator that enables network-wide verification without exposing the underlying private data, effectively bridging the gap between transparency requirements and privacy protection.
2Reliability
If complete transaction details are shared with all participant nodes, then transaction verification is improved, but network security is compromised
Solution Approach 1:
The patent divides transaction information into a public component (hash) for verification and a private component (details) stored securely in the sender's off-chain database. This segmentation enables verification without exposing sensitive data to potential security threats in the network.
Solution Approach 2:
The patent creates a cryptographic copy (hash) of the transaction details that preserves verification capability while eliminating sensitive information. This hash copy can be freely shared for verification purposes without compromising the security of the original private data.
3Loss of information
If encrypted transaction data is broadcasted to all nodes, then data confidentiality is improved, but access efficiency deteriorates
Solution Approach 1:
The patent extracts only the essential verification element (hash) from the complete transaction data and broadcasts it to the network. The full encrypted details remain in the sender's off-chain database, allowing efficient verification without the overhead of transmitting and processing large encrypted data sets across the network.
Solution Approach 2:
Instead of broadcasting encrypted data and requiring nodes to decrypt it for verification, the patent inverts the approach by broadcasting a pre-computed hash that can be verified without decryption. This inversion eliminates the computational burden of decryption while maintaining confidentiality.
Data Source
AI summary
The present invention discloses a system (100) for providing data privacy in a blockchain network (20). The network (20) comprises a plurality of participating nodes and a clear-ing-house node. A data logging module (102) of a source node receives a request to conduct a transaction with a destination node, the request comprising transaction details. The data logging module (102) stores the transaction details in an off-chain database (30). An encryptor module (104) receives and encrypts the transaction details to generate a unique identifier. A broadcasting module (106) stores the unique identifier in a ledger and broadcasts the identifier to all the participating nodes in the network (100). A data sharing module (108) receives a private call from the destination node to request access to the transaction details. The data sharing module (108) shares the transaction details with the destination node upon successful validation of the identity of the destination node.