An Optimal Algorithm for Secure Transactions in Bitcoin Based on Blockchain

Abstract

Technological advancement has made a significant contribution to the change of the economy and the advancement of humanity. Because it is changing how economic transactions are carried out, the blockchain is one of the technical developments that has a lot of promise for this progress. The public record of the Bitcoin blockchain provides dispersed users with evidence of transaction ownership by publishing all transaction data from block reward transactions to unspent transaction outputs. Attacks on the public ledger, on the other hand, are a result of the fact that all transaction information are exposed. De-anonymization attacks allow users to link transaction entities and acquire user privacy through specified transaction amounts. As a result, in light of the Bitcoin blockchain system’s privacy issues, this scheme combines the concept of coin mixing with encrypted transaction technology to create a truly anonymous blockchain system that preserves the payer identity and transaction amount privacy. The one-way aggregated signature technique of Boneh, Gentry, and Lynn systematically embeds the notion of mixing into the whole block. The homomorphic encryption approach of Boneh, Goh, and Nissim allows miners to check the legality of encrypted transactions. Miners will validate transactions, conceal transactions, and package transactions as entities in the scheme. Finally, this technique was chosen after a comparison of several privacy-preserving blockchain schemes. It not only ensures complete anonymity, but also keeps transaction storage overhead to a minimum.