Integrating Privacy Enhancing Techniques into Blockchains Using Sidechains

TL;DR

This paper proposes a novel privacy-enhancing framework called Garlic Onion Routing (GOR) that integrates Garlic Routing and Onion Routing into blockchain sidechains to improve transaction privacy.

Contribution

It introduces PETES, a new sidechain-based framework combining Garlic and Onion Routing techniques tailored for blockchain privacy enhancement.

Findings

Preliminary GOR framework shows potential for improved transaction privacy.

Integration of PETs into sidechains offers a scalable privacy solution.

The approach addresses existing controversies in PET resistance to attacks.

Abstract

Blockchains are turning into decentralized computing platforms and are getting worldwide recognition for their unique advantages. There is an emerging trend beyond payments that blockchains could enable a new breed of decentralized applications, and serve as the foundation for Internet's security infrastructure. The immutable nature of the blockchain makes it a winner on security and transparency; it is nearly inconceivable for ledgers to be altered in a way not instantly clear to every single user involved. However, most blockchains fall short in privacy aspects, particularly in data protection. Garlic Routing and Onion Routing are two of major Privacy Enhancing Techniques (PETs) which are popular for anonymization and security. Garlic Routing is a methodology using by I2P Anonymous Network to hide the identity of sender and receiver of data packets by bundling multiple messages into a layered encryption structure. The Onion Routing attempts to provide lowlatency Internet-based connections that resist traffic analysis, deanonymization attack, eavesdropping, and other attacks both by outsiders (e.g. Internet routers) and insiders (Onion Routing servers themselves). As there are a few controversies over the rate of resistance of these two techniques to privacy attacks, we propose a PET-Enabled Sidechain (PETES) as a new privacy enhancing technique by integrating Garlic Routing and Onion Routing into a Garlic Onion Routing (GOR) framework suitable to the structure of blockchains. The preliminary proposed GOR aims to improve the privacy of transactions in blockchains via PETES structure.