Hybrid-chain-based supervision scheme for privacypreserving trading system

Abstract

Due to its characteristics of decentralization, transparency, and security, blockchain technology is widely used in finance, the Internet of Things, and supply chain.However, along with the opportunities it brings, the application of blockchain technology also presents new challenges.On one hand, traditional centralized regulatory methods can undermine the decentralized and autonomous nature of blockchain, creating regulatory dilemmas.On the other hand, blockchain-based systems require privacy protection as transactions often contain sensitive information beyond currency amounts.Failure to protect privacy can result in information leakage and make it difficult for authorities to monitor transactions.To address these challenges and enable regulation in privacy-preserving blockchain-based trading systems, a hybrid chain framework was proposed.This framework incorporated a multiple committee-based approach for general cross-chain regulation.Separate committees were established for the supervision chain and service chain.The service chain committee handled service chain data, generating and sending proofs to the supervision chain to achieve private supervision.In addition to single-chain regulation, cross-chain communication committees and supervision committees collaborated to achieve cross-chain transaction supervision among different service chains.Through a security analysis, it is proven that the proposed scheme is secure when each module meets its security requirements.Experimental evaluations have been conducted to demonstrate the feasibility of the proposed scheme, showing that it achieves cross-chain supervision at a low cost and is scalable.

Keywords

• blockchain
• supervision
• cross-chain
• privacy