Pedersen Commitment Scheme for Blockchain Transaction Privacy
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Solution Overview
Problem
Existing technologies lack robust privacy protection for transaction amounts in blockchain transactions, particularly under the Account/Balance Model, where transaction amounts remain unprotected, and existing solutions face challenges in secure storage and management of blinding factors and plaintext balances.
Innovation Solution
The implementation of a computer-implemented method using Pedersen commitment schemes with blinding factors and cryptographic protocols for encrypting and decrypting transaction amounts, storing encrypted information on the blockchain to ensure secure and efficient management and protection of transaction privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction amounts are stored in plaintext on the blockchain for verification purposes, then transaction verification is enabled, but transaction privacy is compromised
Solution Approach 1:
The patent introduces Pedersen commitment values as an intermediary representation of transaction amounts. These commitment values allow blockchain nodes to verify transactions cryptographically without exposing the actual transaction amounts, thus mediating between verification needs and privacy protection
Solution Approach 2:
The patent transforms transaction amounts from plaintext parameters to cryptographic commitment values through the Pedersen commitment function. This parameter change enables verification while hiding the original amount information, resolving the contradiction between visibility for verification and hidden for privacy
2Loss of information
If blinding factors are stored securely offline, then transaction privacy is protected, but access and management become difficult
Solution Approach 1:
The patent extracts the blinding factor management problem from the main transaction flow by storing blinding factors in a separate secure offline storage mechanism. This extraction allows blinding factors to be kept secure while still being accessible when needed for transaction creation
Solution Approach 2:
The patent performs preliminary generation and secure storage of blinding factors before transactions are created. By preparing blinding factors in advance and storing them securely, the system enables easy access during transaction creation without compromising security
3Device complexity
If existing commitment schemes are used without encryption, then transaction verification is simplified, but blinding factors and plaintext balances are vulnerable to attacks
Solution Approach 1:
The patent combines Pedersen commitment schemes with cryptographic encryption to create a composite security mechanism. This composite approach maintains the verification simplicity of commitment schemes while adding the security protection of encryption against attacks
Solution Approach 2:
The patent applies encryption as a protective layer beforehand to shield blinding factors and plaintext balances from potential attacks. This prior cushioning ensures that even if the commitment structure is exposed, the sensitive information remains protected
Data Source
AI summary
A computer-implemented method for information protection comprises: committing a transaction amount of a transaction with a first commitment scheme to obtain a transaction commitment value, committing a change of the transaction with a second commitment scheme to obtain a change commitment value, the first commitment scheme comprising a transaction blinding factor, and the second commitment scheme comprising a change blinding factor; encrypting a first combination of the change blinding factor and the change with a first key; transmitting the transaction blinding factor, the transaction amount, and the transaction commitment value to a recipient node associated with a recipient for the recipient node to verify the transaction; in response to that the recipient successfully verifies the transaction, obtaining an encrypted second combination of the transaction blinding factor and the transaction amount encrypted with a second key.