Blockchain Privacy and Traceability via Onion Routing
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Solution Overview
Problem
Blockchain-based systems face challenges in maintaining both privacy and traceability, as existing solutions often prioritize one over the other, which hinders their deployment in scenarios like crowd-sourcing and VANETs, where accountability is crucial.
Innovation Solution
A method and system that utilizes onion routing and Blockchain technology to ensure privacy by encrypting messages through multiple nodes, generating and verifying evidence, and performing identity disclosure only when malicious behavior is detected, allowing for traceability while preserving privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If encrypted transactions are stored to guarantee transactional privacy, then privacy is improved, but traceability deteriorates
Solution Approach 1:
The system segments the transaction data into two parts: encrypted transaction content stored on blockchain for privacy, and separate proof-of-payment evidence stored in a secure database for traceability. This segmentation allows both privacy and traceability to coexist by storing different types of information in different locations with different access controls.
Solution Approach 2:
The patent introduces an intermediary verification mechanism where third-party providers (TPPs) act as mediators between the transaction parties and the blockchain system. TPPs generate and verify proof-of-payment evidence, serving as an intermediary layer that enables traceability without compromising the encrypted nature of the transaction data on the blockchain.
2Loss of information
If anonymity is provided in Blockchain, then privacy is improved, but accountability deteriorates
Solution Approach 1:
The system dynamically adjusts the level of anonymity based on the transaction type and regulatory requirements. For certain transactions requiring enhanced accountability, the system can reveal additional information such as proof-of-payment evidence or involve TPPs for verification, while maintaining anonymity for other transactions. This dynamic approach allows the system to adapt between privacy and accountability as needed.
Solution Approach 2:
The system performs preliminary actions by requiring users to register and obtain digital identifiers before conducting transactions. This preliminary registration creates an accountable framework while still allowing anonymous transactions within that framework. The proof-of-payment evidence is also prepared in advance, enabling quick accountability verification when needed without compromising ongoing anonymity.
3Reliability
If public transaction history is analyzed, then traceability is improved, but privacy deteriorates
Solution Approach 1:
The patent applies local quality by making different types of information accessible at different levels. The blockchain contains encrypted transaction data that is publicly visible but unintelligible without decryption keys. Proof-of-payment evidence is stored separately in a secure database with controlled access. This local differentiation allows traceability through the encrypted data structure while protecting the actual transaction content and identities.
Data Source
AI summary
With the popularity of Blockchain comes grave security-related concerns. Achieving privacy and traceability simultaneously remains an open question. Efforts have been made to address the issues, while they may subject to specific scenarios. The present disclosure proposes a method, a system, and a device for maintaining privacy and traceability of a Blockchain-based system. The method includes: registering in a Blockchain-based system; transmitting a message from a transmitter T to a receiver R via an anonymous network, after a registration request of the transmitter T has been approved and storing message transmission data generated during a message transmission process in a Blockchain; and performing an identity disclosure by using the message transmission data when the message is detected to be false. The anonymous network may transmit the message by onion routing. The solution proposed by the present disclosure can achieve traceability and privacy for a Blockchain-based system simultaneously.