SeDe: Balancing Blockchain Privacy and Regulatory Compliance by Selective De-Anonymization

arXiv:2311.08167v3 Announce Type: replace
Abstract: Privacy is one of the essential pillars for the widespread adoption of blockchains, but public blockchains are transparent by nature. Modern analytics techniques can easily subdue the pseudonymity feature of a blockchain user. Some applications have been able to provide practical privacy protections using privacy-preserving cryptography techniques. However, malicious actors have abused them illicitly, discouraging honest actors from using privacy-preserving applications as "mixing" user interactions and funds with anonymous bad actors, causing compliance and regulatory …

adoption analytics anonymization applications arxiv blockchain blockchains can compliance cs.cr de-anonymization feature nature practical privacy privacy privacy protections public regulatory regulatory compliance techniques