An Analysis of Privacy Issues and Solutions in Public Blockchain (Bitcoin)

Abstract

Blockchain is a new class of technology in computer science that combines cryptography and distributed computing. It provides a digitally timestamped database where the network of computers can communicate and collaborate without trusting each other. Blockchain can be used in an enormous number of applications in industries like supply chain management, identity verification, voting system, Real estate, and health care system, etc. Bitcoin is the first application of public blockchain, is used to exchange cryptocurrency by rolling out the involvement of a centralized third-party system or single consortium like government, bank, organization. etc. One of the major issues of blockchain is user privacy leaks. This paper focused to detail the underlying concepts of blockchain, identify the user privacy leaks in various phases of blockchain concerning bitcoin application, and finally discussed the available solutions like deterministic key generation, mixing services, ring signature, zero-knowledge proof, and quantum-resistant algorithms.