Supervisable Transaction Algorithm with Identity Privacy Enabled on Blockchain

Abstract

Blockchain, as a new distributed technology, plays important roles in various areas. But due to unsupervised transaction model of blockchain, Decentralized Application (DAPP) mainly focus on limited Decentralized Finance (DEFI) areas such as lending or trading, leaving enterprise and government application untouched. This paper propose a supervised transaction algorithm with identity privacy enabled on blockchain to tackle this problem. In essence, we encrypt transaction before its submission onto the chain, and execute transaction after supervisor's approval. The paper satisfies the compliance of regulation in finance and social application, and ensures that identity privacy of trader can be protected. In this way, blockchain can be adapted to broader domains without technology compromise.