Visible to the public Enhancing Anonymity of Bitcoin Based on Ring Signature Algorithm

TitleEnhancing Anonymity of Bitcoin Based on Ring Signature Algorithm
Publication TypeConference Paper
Year of Publication2017
AuthorsLiu, Y., Li, R., Liu, X., Wang, J., Tang, C., Kang, H.
Conference Name2017 13th International Conference on Computational Intelligence and Security (CIS)
Keywordsanonymity, bitcoin, Bitcoin protocol, Bitcoin users, central authority, coin mixing, coin mixing scheme, coin mixing service, complete transaction history, cryptographic protocols, decentralized digital currency, digital signatures, double-spending attack, electronic money, financial data processing, input addresses, mixing server, mixing service provider, output addresses, perceived anonymity property, Protocols, pubcrawl, Public key, resilience, Resiliency, ring signature, ring signature algorithm, Scalability, Servers, signature based defense

Bitcoin is a decentralized digital currency, widely used for its perceived anonymity property, and has surged in popularity in recent years. Bitcoin publishes the complete transaction history in a public ledger, under pseudonyms of users. This is an alternative way to prevent double-spending attack instead of central authority. Therefore, if pseudonyms of users are attached to their identities in real world, the anonymity of Bitcoin will be a serious vulnerability. It is necessary to enhance anonymity of Bitcoin by a coin mixing service or other modifications in Bitcoin protocol. But in a coin mixing service, the relationship among input and output addresses is not hidden from the mixing service provider. So the mixing server still has the ability to track the transaction records of Bitcoin users. To solve this problem, We present a new coin mixing scheme to ensure that the relationship between input and output addresses of any users is invisible for the mixing server. We make use of a ring signature algorithm to ensure that the mixing server can't distinguish specific transaction from all these addresses. The ring signature ensures that a signature is signed by one of its users in the ring and doesn't leak any information about who signed it. Furthermore, the scheme is fully compatible with existing Bitcoin protocol and easily to scale for large amount of users.

Citation Keyliu_enhancing_2017