Blockchain State References Using ZK Proofs for Private UTXO Verification
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Solution Overview
Problem
Existing blockchain platforms expose sensitive information, such as serial numbers of unspent transaction outputs (UTXOs), which can be exploited by attackers for double spending, compromising privacy and security.
Innovation Solution
Implementing a zero-knowledge proof (ZKP) and a hash value for state references in blockchain transactions to verify the validity of UTXOs without revealing their serial numbers, ensuring privacy and preventing double spending.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain transactions include state references to UTXOs with serial numbers, then transaction verification is enabled, but privacy is compromised and double spending attacks become possible
Solution Approach 1:
The patent introduces a hash value as an intermediary between the UTXO serial number and the transaction verification process. Instead of directly exposing the serial number, the system uses a hash function to transform it into an irreversible representation that can be verified without revealing the original value, thus protecting privacy while maintaining verification capability
Solution Approach 2:
The patent replaces the traditional mechanical approach of direct serial number comparison with a cryptographic hash-based verification mechanism. This substitution allows the system to verify transaction validity without exposing sensitive information, as the hash value can be computed and verified without revealing the underlying serial number
2Reliability
If blockchain transactions include state references to UTXOs with serial numbers, then transaction verification is enabled, but security is compromised due to double spending attacks
Solution Approach 1:
The hash value acts as an intermediary that breaks the direct link between the UTXO serial number and the transaction record. This prevents attackers from using the exposed serial number to identify and reuse UTXOs for double spending, as the original serial number remains hidden while verification through hash comparison remains possible
Solution Approach 2:
The patent converts the potential harm of serial number exposure into a benefit by using the hash function's properties. The hash value provides verification capability while its one-way nature inherently prevents the harm of serial number theft and misuse, turning what could be a vulnerability into a security feature
3Object-affected harmful factors
If blockchain transactions include state references with ZK proofs and hash values, then privacy is preserved, but device complexity increases
Solution Approach 1:
The patent applies partial action by selectively including only the necessary privacy-preserving elements (hash value and ZK proof) in the transaction state reference, rather than completely obscuring all information. This provides sufficient privacy protection while minimizing the added complexity compared to fully exposed serial numbers
Data Source
AI summary
An example operation may include one or more of receiving a blockchain transaction that comprises a state reference to an unspent transaction output (UTXO), determining whether the UTXO is included within a first subset of transactions on a blockchain ledger based on a zero-knowledge (ZK) proof included in the state reference, determining whether the UTXO is included within a second subset of transactions on the blockchain ledger based on a hash value included in the state reference, and in response to a determination that the UTXO is not included in either of the first and second subsets of transactions, committing the blockchain transaction including the state reference to the blockchain ledger via a blockchain peer.