Privacy Analysis and Evaluation Policy of Blockchain-based Anonymous Cryptocurrencies

Abstract: In blockchain-based anonymous cryptocurrencies, due to their tamper-resistance and transparency characteristics, transaction data are initially required to be anonymous, with the help of various cryptographic techniques, e.g., commitment schemes and zero-knowledge proofs. Also, cryptocurrencies are different from existing anonymous messaging protocols regarding the software architecture and the underlying security model. Due to these differences, the sense of anonymity must be specifically defined for anonymous cryptocurrencies, and the anonymity in each anonymous cryptocurrency must be analyzed and evaluated based on the specific architecture model. In this paper, we first propose a specific architecture model with three software layers to anonymous cryptocurrencies. Next, we introduce definitions of fundamental privacy properties (Pfitzmann's anonymity, unlinkability, and pseudonymity) and comprehensively analyze each privacy property for each architecture layer of anonymous cryptocurrencies to establish a privacy evaluation policy for anonymous cryptocurrencies. Finally, we fairly compare the privacy of current leading anonymous cryptocurrencies (e.g., Zerocash, CryptoNote, and Mimblewimble) using the privacy evaluation policy.