Blockchain Based Cryptocurrency Transaction Data and Balance Anonymity Improvement

Abstract

In recent time many investigations in blockchain based cryptocurrencies are directed toward improving users anonymity, untraceability and transferred sums anonymity. The solution to improve transaction balance anonymity of blockchain cryptocurrencies based on Unspent Transaction Output (UTXO) paradigm is presented. Transferred money sums are hidden by discrete exponent function (DEF). Then due to isomorphism property of DEF, hidden UTXO balance is computed and this balance can be approved by the validators in this hidden form. The security is based on the discrete logarithm problem (DLP) complexity.

Cryptocurrencies are circulating in the peer-to-peer network and data can be represented by the vectors in certain linear space as it is in the general peer-to-peer network of nodes. To avoid pollution attacks and improve robustness of these general networks the signature based on idea to sign a linear subspace of transferred data for general content distribution among the nodes is created. The same idea is used in our proposed UTXO transactions anonymity improvement. Since transaction data composing a balance is represented by the vectors spanning certain linear subspace of some linear space, then this subspace is digitally signed by one-time (session) signature based on one-time (session) private and public keys generation. According to the original literature source the security of this signature relies on the DLP complexity.