A Look into Privacy-Preserving Blockchains

Abstract

Blockchain is a revolutionary technology promising a new generation of decentralized, transparent and tamper-proof database systems. However, one of the main challenges of the emerging blockchain systems remains to address data privacy. In Bitcoin and similar e-cash systems, privacy is limited to anonymity and addressed by using cryptographic pseudonyms for identification and authentication of parties. Privacy has more breadth in systems maintaining actual data such as medical records or energy meters. In this paper, we look into recently proposed privacy-preserving blockchains, analyze their strengths and weaknesses, and highlight research questions requiring future investigation. We conclude that privacy-preserving blockchains are still in their infancy and more research is definitely needed in this area.