Anonymous proof-of-asset transactions using designated blind signatures

TL;DR

This paper introduces a privacy-preserving scheme for proof-of-asset transactions in cryptocurrency systems, utilizing designated blind signatures to ensure user anonymity while allowing authorized verification.

Contribution

It presents a novel designated verifier signature scheme tailored for proof-of-asset transactions, enhancing privacy and security in cryptocurrency systems.

Findings

Scheme maintains user anonymity during transactions

Ensures only authorized parties can verify transaction correctness

Applicable to bitcoin-like cryptocurrencies

Abstract

We propose a scheme to preserve the anonymity of users in proof-of-asset transactions. We assume bitcoin-like cryptocurrency systems in which a user must prove the strength of its assets (i.e., solvency), prior conducting further transactions. The traditional way of addressing such a problem is the use of blind signatures, i.e., a kind of digital signature whose properties satisfy the anonymity of the signer. Our work focuses on the use of a designated verifier signature scheme that limits to only a single authorized party (within a group of signature requesters) to verify the correctness of the transaction.