Regulatory Terminal Key Management for Blockchain Privacy
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Solution Overview
Problem
Conventional blockchain systems lack comprehensive regulation and privacy protection, leading to security risks and losses due to the lack of an update mechanism for user keys and transparent account information, making it difficult to prevent illegal transactions and protect user privacy.
Innovation Solution
A blockchain system with a regulatory terminal that issues and manages ID keys for transaction terminals, using secret sharing and homomorphic encryption to protect privacy data, enabling secure key updates and transaction verification, while maintaining user privacy and preventing illicit activities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If user keys are updated to improve security, then security is improved, but the user address changes requiring notification of transaction parties, increasing operational complexity
Solution Approach 1:
The patent introduces a regulatory terminal as an intermediary that manages key updates and address mappings. When a user updates their key, the regulatory terminal automatically updates the mapping between the old address and new key, eliminating the need for users to manually notify transaction parties. This resolves the contradiction by maintaining security through key updates while reducing operational complexity through automated address management.
2Adaptability or versatility
If privacy data is made transparent for regulation, then regulatory capability is improved, but user privacy protection deteriorates
Solution Approach 1:
The patent segments data into different types: public information (addresses, transaction amounts) that can be transparent for regulatory purposes, and private information (user identities, sensitive personal data) that remains protected. The regulatory terminal can access and regulate public information while user privacy is preserved through selective disclosure and encryption of sensitive data. This resolves the contradiction by enabling regulatory capability through transparent public data while maintaining privacy protection for sensitive information.
3Adaptability or versatility
If comprehensive regulation is implemented to prevent illegal transactions, then regulatory capability is improved, but system complexity increases
Solution Approach 1:
The regulatory terminal is designed as a multi-functional system that combines key management, address mapping, transaction verification, and regulatory oversight into a single platform. This universal system handles multiple regulatory functions through standardized processes, reducing the need for separate complex systems for each regulatory function. The terminal can regulate different types of transactions using the same underlying infrastructure, thereby improving regulatory capability while controlling system complexity through functional integration.
Data Source
AI summary
A blockchain system and a data processing method for a blockchain system are disclosed. The blockchain system includes: a regulatory terminal and a transaction terminal. The regulatory terminal is configured to issue an ID key of the transaction terminal according to an ID of the transaction terminal, and operate on privacy data of the transaction terminal based on the ID key of the transaction terminal. The ID of the transaction terminal is an account address. The transaction terminal is configured to operate on local privacy data according to the ID key of the transaction terminal issued by the regulatory terminal. As such, the privacy protection over the blockchain system is effectively realized and the security is improved.


