2022/11/29 by Zhuangtong Huang, Huang, Zhuangtong, Jiawei Zhu +8
Business, Management and Accounting · Computer Science · Social Sciences · #Blockchain Technology Applications and Security #Cryptography and Security (cs.CR) #Distributed #FOS: Computer and information sciences #FinTech, Crowdfunding, Digital Finance #Parallel #Privacy, Security, and Data Protection #and Cluster Computing (cs.DC)
paper · pdf · doi:10.48550/arxiv.2211.16082
openalex publication_date 2022/11/29 · openalex created_date 2022/12/11 · openalex updated_date 2026/07/28
The financial sector's adoption of technology-driven data analysis has enhanced operational efficiency and revenue generation by leveraging personal sensitive data. However, the inherent characteristics of blockchain hinder decentralized finance (DeFi) from accessing necessary sensitive user data. To address this challenge, we introduce a protocol that both safeguards user privacy and ensures data availability through the incorporation of homomorphic encryption and zero-knowledge-proof techniques in blockchain technology. This novel protocol helps mitigate privacy risks caused by sensitive data leaks while improving the capital efficiency of the DeFi market. Furthermore, we explore the applicability of these privacy-preserving methods in on-chain ecosystems and cross-border financial applications. Our solution contributes to secure, user-centric solutions for DeFi while upholding principles of decentralization and privacy protection.