Network-Coded Relay Diffusion for Blockchain Anonymity

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Solution Overview

Problem

Blockchain networks are vulnerable to de-anonymization attacks through traffic analysis, compromising the anonymity of transactions by linking user IP addresses with network activity.

Innovation Solution

Implementing a Diffusion Mixer Protocol (DMP) that uses network coding to combine and obfuscate data packets, incorporating a random differential relay (RDR) stage to randomly select relay nodes and a standard diffusion stage for timely propagation, thereby disguising the source of data packets and enhancing network anonymity.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If nodes propagate transactions directly to peer nodes using standard diffusion protocol, then data transmission speed is improved, but network anonymity deteriorates due to traffic analysis attacks

Engineering Contradiction:
Improvedata transmission speedVSAvoidde-anonymization attacks
Core Design Contradiction:
SpeedVSObject-affected harmful factors

Solution Approach 1:

The patent introduces a Diffusion Mixer Protocol that acts as an intermediary layer between transaction sources and destination nodes. The protocol uses mix nodes to receive, buffer, and re-transmit transactions, thereby obscuring the direct connection between senders and receivers and preventing traffic analysis attacks while maintaining propagation efficiency

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent segments the transaction propagation process into distinct phases: a Random Differential Relay (RDR) stage where transactions are routed through randomly selected mix nodes, and a standard diffusion stage for final distribution. This segmentation allows the system to balance anonymity requirements with transmission speed by applying different propagation strategies at different stages

Inventive Principle:
Principle #1Segmentation

2Object-affected harmful factors

If nodes collect and buffer multiple data packets before transmission, then network anonymity is improved by obscuring traffic patterns, but data transmission speed deteriorates

Engineering Contradiction:
Improvenetwork anonymityVSAvoiddata transmission speed
Core Design Contradiction:
Object-affected harmful factorsVSSpeed

Solution Approach 1:

The patent implements dynamic buffering strategies where mix nodes adjust their packet collection and transmission behavior based on network conditions and anonymity requirements. The RDR stage uses random differential relaying with variable buffering times, while the diffusion stage adapts transmission rates to maintain both anonymity and speed

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The protocol employs periodic transmission cycles where mix nodes collect packets over defined time periods, then transmit them in controlled batches. This periodic action obscures individual transaction timing patterns while maintaining overall propagation efficiency through structured transmission intervals

Inventive Principle:
Principle #19Periodic action

3Object-affected harmful factors

If the Diffusion Mixer Protocol uses random differential relay and network coding, then network anonymity is improved, but device complexity increases

Engineering Contradiction:
Improvenetwork anonymityVSAvoidprotocol complexity
Core Design Contradiction:
Object-affected harmful factorsVSDevice complexity

Solution Approach 1:

The patent divides the complex DMP into two distinct stages: RDR (Random Differential Relay) for anonymity-critical routing through mix nodes, and standard diffusion for efficient final propagation. This segmentation reduces overall system complexity by applying simple, well-understood diffusion protocols only where anonymity requirements are lower

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The protocol uses mix nodes as intermediaries that handle the complex network coding and random differential relaying operations, while standard nodes can participate with simpler client libraries. This intermediary architecture isolates complexity to specific components, making the overall system more manageable and easier to implement across the network

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentEP4376361B1Systems and methods for random differential relay and network coding
Publication Date: 2025.12.31 NCHAIN LICENSING AG
  • EP4376361B1 patent drawingFigure 1
  • EP4376361B1 patent drawingFigure 2
  • EP4376361B1 patent drawingFigure 3

AI summary

A method of propagating data packets in a network of nodes is disclosed. The method, implemented at one of the nodes, includes: collecting a set of first data packets during a first time period, the set including at least one data packet received from one or more first nodes in the network; obtaining a plurality of encoded data packets, each one of the plurality of encoded data packets being generated by combining two or more first data packets of the set using network coding; determining a mapping of the plurality of encoded data packets and the first data packets of the set to one or more neighbouring nodes connected to the node; and transmitting the plurality of encoded data packets and the first data packets of the set to the one or more neighbouring nodes according to the determined mapping.