Blockchain Smart Contract Asset Segmentation for Privacy
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Solution Overview
Problem
Conventional blockchain-based transfer schemes expose users' account balances and transfer amounts to all nodes in the network, compromising user privacy.
Innovation Solution
A blockchain smart contract manages assets and implements transfers using encrypted amounts, where assets are split into transfer and change assets, with homomorphic encryption ensuring verification without revealing specific amounts, thus concealing user balances and transfer details from network nodes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional blockchain-based transfer schemes are used, then transfer transactions can be verified by each node, but user account balances and transfer amounts are exposed to all nodes in the network
Solution Approach 1:
The asset is segmented into multiple components: transfer asset (to be transferred), change asset (remaining balance), and expense asset (spent amount). Each component is represented separately with its own encrypted amount, allowing verification of the transfer transaction without exposing the actual values of account balances or transfer amounts to network nodes.
Solution Approach 2:
Homomorphic encryption serves as an intermediary mechanism that enables nodes to verify the validity of transfer transactions by checking the relationship between encrypted amounts (E(v1) + E(v2) = E(v3)) without being able to decrypt or view the actual plaintext values. This intermediary layer preserves privacy while maintaining verification capability.
2Object-affected harmful factors
If encrypted amounts are used in transfer transactions, then user privacy is protected, but nodes cannot directly read and verify the amounts
Solution Approach 1:
The patent changes the parameter representation from plaintext amounts to homomorphically encrypted amounts. Nodes verify transactions by operating on the encrypted parameters directly (adding encrypted values) rather than decrypting them, thus maintaining both privacy protection and verification reliability through mathematical properties of homomorphic encryption.
3Object-affected harmful factors
If assets are split into transfer asset and change asset, then transfer validity can be verified without exposing balances, but the system complexity increases
Solution Approach 1:
The asset structure is segmented into transfer asset and change asset components, each with encrypted amounts. This segmentation enables privacy protection through homomorphic verification while the complexity is managed by implementing a standardized asset data structure that nodes can process using consistent verification logic.
Data Source
AI summary
Implementations of this specification provide a system and method for performing transfer operations based on a blockchain smart contract. An example method includes: determining, by a transferor client device, a transferee account, a transfer amount, and at least one expense asset, and constructing and submitting a transfer transaction to a blockchain network. The transfer transaction is verified by the blockchain network through a smart contract, using a homomorphic encryption algorithm to determine that a sum of a transfer amount included in a transfer asset and a change amount included in a change asset is equal to a total expense amount corresponding to the at least one expense asset. Using the smart contract, the expense asset is deducted from a transferor account associated with the transferor client device, the change asset is added to the transferor account, and the transfer asset is added to the transferee account.