Blockchain Smart Contract Data Privacy via Encryption
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Solution Overview
Problem
Current blockchain and smart contract technologies lack transactional privacy, with all actions in smart contracts being publicly visible on the network, and there is a need for data privacy and anonymity, especially when sharing data with specific parties without revealing identities to the rest of the network.
Innovation Solution
A method using symmetric and asymmetric encryption techniques to encrypt data within smart contracts, where each party generates a public/private key pair, and shared secrets are encrypted using the recipient's public key, allowing only authorized parties to decrypt the data, with no need for an off-chain solution or central authority, enabling fast data retrieval and maintaining decentralized privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If data is stored in smart contracts on blockchain, then data sharing and transparency are improved, but data privacy and anonymity deteriorate as all actions become publicly visible
Solution Approach 1:
The patent segments data into public and private components, storing only public data on the blockchain while keeping private data encrypted and accessible only to authorized parties through private key decryption
Solution Approach 2:
The patent introduces encryption as an intermediary layer between data storage and access, using public-private key pairs to mediate between the transparent blockchain ledger and private data protection requirements
2Reliability
If encryption is implemented for data privacy, then data security is improved, but system complexity increases due to key management requirements
Solution Approach 1:
The patent implements self-service key management where each user autonomously generates and manages their own private keys, eliminating the need for centralized key management infrastructure while maintaining security
Solution Approach 2:
The patent changes the state of data from plaintext to encrypted form using cryptographic parameters (public-private key pairs), transforming the security model from centralized trust to decentralized cryptographic verification
3Loss of information
If all transaction details are recorded on blockchain, then transparency and auditability are improved, but anonymity and privacy protection deteriorate
Solution Approach 1:
The patent applies different quality levels of data visibility to different data elements, making some data publicly visible on the blockchain while keeping other data privately encrypted and accessible only to specific parties
Solution Approach 2:
The patent uses asymmetric cryptography where public keys are visible on the blockchain for verification purposes while private keys remain hidden, creating an asymmetric information structure that provides both transparency and anonymity
Data Source
AI summary
System and method for executing cryptographically secure transactions in a network comprising a public ledger, comprising associating a first proposed transaction with a public keys smart contract and associating at least a second transaction including private data and public data in said network with a cryptographically secure transaction.