An Oracle-Based On-Chain Privacy

Abstract

In this work, we demonstrate how the blockchain and the off-chain storage interact via Oracle-based mechanisms, which build an effective connection between a distributed database and real assets. For demonstration purposes, smart contracts were drawn up to deal with two different applications. Due to the characteristics of the blockchain, we may still encounter severe privacy issues, since the data stored on the blockchain are exposed to the public. The proposed scheme provides a general solution for resolving the above-mentioned privacy issue; that is, we try to protect the on-chain privacy of the sensitive data by using homomorphic encryption techniques. Specifically, we constructed a secure comparison protocol that can check the correctness of a logic function directly in the encrypted domain. By using the proposed access control contract and the secure comparison protocol, one can carry out sensitive data-dependent smart contract operations without revealing the data themselves.

Keywords

• blockchain
• smart contract
• privacy
• homomorphic encryption