A Privacy-Enhanced Traceable Anonymous Transaction Scheme for Blockchain

Abstract

Blockchain transaction privacy is a highly researched topic across various application scenarios. Current privacy-preserving schemes in blockchain employ advanced cryptographic techniques, such as homomorphic encryption and zero-knowledge proofs, to balance transaction privacy with regulatory requirements. However, these schemes encounter challenges, including computational inefficiency, data expansion, and overlooked metadata privacy, such as timestamp protection. In this paper, we first propose a privacy-enhanced traceable anonymous transaction scheme based on data transaction scenarios. This scheme integrates ring signature and Merkle hash tree techniques, effectively shortening the signature size and optimizing the verification process compared to existing combinations of ring signatures and zero-knowledge proofs. A novel verifiable timestamp privacy protection method is introduced, which obfuscates timestamps to prevent tampering without compromising integrity. To enhance scalability, this method extends to multiple transaction processing scenarios and implements a timestamp-sharing strategy to reduce the computational burden. It also allows tracking authorities to monitor the long-term addresses of both transaction parties if necessary. Rigorous security analysis and extensive experimental evaluations demonstrate that this scheme achieves superior privacy, traceability, and scalability compared to existing approaches.