Secure digital asset trading technology based on MPC and blockchain

Abstract

With the rapid expansion of digital asset trading, the contradiction between data sharing and privacy protection has increasingly become a significant challenge in the Internet environment. To address this issue, this paper proposes a secure multi-party computation scheme based on blockchain technology. Firstly, in response to the risk of data leakage in distributed storage scenarios, a threshold-based encryption algorithm is designed, utilizing a distributed key protection mechanism to effectively prevent single-point failures and data breaches. Secondly, a smart contract system is developed: the ERC721 contract is used to confirm the ownership of data assets, the ERC20 contract facilitates the transfer of usage rights, and the threshold decryption contract ensures secure multi-party computation and compliant incentive distribution. The collaboration of these three types of contracts enables comprehensive on-chain management of data assets, covering the entire process from ownership confirmation and circulation to compliant usage. In addition, this paper integrates non-interactive zero-knowledge proofs into the multi-party interaction process, allowing public verification of data consistency and computational validity on the blockchain. Finally, experiments are conducted to evaluate the impact of computation latency, communication overhead, and encryption parameters on system performance. The proposed scheme demonstrates significant performance improvements over mainstream SMPC protocols, with a 95.4 % reduction in key generation time and a 19.5 % reduction in ciphertext decryption time. Meanwhile, the scheme effectively resists various semi-malicious attacks, ensuring data security and privacy. • A t-out-of-N threshold ElGamal-based MPC scheme is proposed for secure computation in synchronous environments. • A blockchain smart contract framework manages data assets' lifecycle by combining ERC721/ERC20 and threshold decryption. • A method verifies on-chain data consistency and computation validity using non-interactive zero-knowledge proofs.