Network-Coded Relay Diffusion for Anonymous Transaction Propagation

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Solution Overview

Problem

Existing blockchain networks face challenges in maintaining user privacy and security in transactions, as IP traffic analysis can link user identities to their transactions.

Innovation Solution

Implementing a Diffusion Mixer Protocol (DMP) that uses network coding to combine data packets and randomize their transmission, making it difficult for attackers to trace the source or destination of transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If nodes propagate transactions directly to peer nodes using standard diffusion protocol, then transaction propagation speed is improved, but user anonymity is compromised due to IP traffic analysis attacks

Engineering Contradiction:
Improvetransaction propagation speedVSAvoidde-anonymization attacks
Core Design Contradiction:
SpeedVSObject-affected harmful factors

Solution Approach 1:

The patent introduces intermediary nodes (relaying nodes) between transaction sources and destination nodes. These intermediaries forward transactions without revealing the relationship between senders and receivers, thereby protecting user anonymity while maintaining propagation efficiency. The intermediary nodes act as mediators that decouple the direct connection between transaction participants.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent segments the transaction propagation process into multiple hops through different nodes rather than direct peer-to-peer transmission. By dividing the propagation path into segments passed through multiple intermediaries, the system maintains speed while obscuring the direct relationship between transaction parties from attackers.

Inventive Principle:
Principle #1Segmentation

2Reliability

If nodes collect and validate transactions before propagation, then transaction security is improved, but propagation delay increases

Engineering Contradiction:
Improvetransaction securityVSAvoidpropagation delay
Core Design Contradiction:
ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary validation and collection of transactions at relaying nodes before they are propagated further through the network. Nodes perform validation checks in advance, ensuring transaction security and integrity before committing resources to propagation, which prevents invalid transactions from consuming network bandwidth.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The patent applies partial validation at intermediate relaying nodes rather than complete validation at every node. This partial action approach maintains security by performing essential checks while avoiding the full overhead of complete validation at each hop, thus reducing propagation delay while preserving transaction security.

Inventive Principle:
Principle #16Partial or excessive action

Data Source

PatentEP4668678A1Systems and methods for random differential relay and network coding
Publication Date: 2025.12.24 NCHAIN LICENSING AG
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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.