Blockchain confidential transaction supervision learning

Blockchain confidential transaction supervision learning

Glossary

Term definitionDistributed ledger system (DLS)A system that allows multiple participants to record transactions and share data securely and transparently. Also known as a consensus network or blockchain network. BlockchainA tamper-proof digital ledger that records transaction data in chronological order and is distributed across all nodes in the network. Consensus networkA network of peer nodes that reach agreement through a consensus mechanism.Open blockchainA blockchain network that anyone can join and participate in the consensus process.Closed blockchainA blockchain network that is limited to the use and participation of a specific entity, which centrally manages read and write permissions.Consortium blockchainA blockchain network that is managed and participated by a selected group of entities with a certain degree of access control.Consensus mechanismAn algorithm used in a blockchain network to ensure that all nodes agree on transaction data.Proof of Work (POW)A consensus mechanism that requires nodes to perform complex calculations to obtain the right to add new blocks.Confidential transactionA type of transaction in which only the transaction participants can view the content of the transaction.Regulatory nodeA node in a blockchain network that is responsible for regulating and auditing transactions.Client nodeA node in a blockchain network that initiates and receives transactions on behalf of a user or entity. Commitment scheme A cryptographic technique that allows a party to commit to a value without revealing that value until it is revealed later. Pedersen commitment A commonly used commitment scheme with the property that the sum of multiple commitment values ​​equals the sum of the corresponding commitment values. Zero-knowledge proof A cryptographic technique that allows a party to prove that it knows a secret without revealing any other information. Range proof A zero-knowledge proof used to prove that a value is within a certain range. Digital signature An electronic signature used to verify the authenticity and integrity of a message or document. Short answer questions

Please answer the following questions in 2-3 sentences:

What is a distributed ledger system (DLS)? How does it relate to blockchain networks?

What is the difference between open blockchains, closed blockchains, and consortium blockchains?

What is a confidential transaction? What are the advantages over traditional blockchain transactions?

Why does implementing confidential transactions in a blockchain network pose a regulatory challenge?

What role does Pedersen commitment play in blockchain confidential transaction regulation?

What is a zero-knowledge proof? What can it be used for in blockchain confidential transaction regulation?

Why are range proofs important in blockchain confidential transaction regulation?

How do regulatory nodes use encryption technology to regulate confidential transactions in blockchain networks?

How do client nodes use encryption technology to protect the privacy of confidential transactions?

What is the future development trend of blockchain confidential transaction supervision?

Short answer questions

Distributed ledger system (DLS) is a system that allows multiple parties to securely and transparently record transactions and share data. Blockchain network is a specific implementation form of DLS, using cryptography technology to ensure the security and immutability of data.

Open blockchain allows anyone to join the network and participate in the consensus process, while closed blockchain is limited to specific entities and centrally managed by that entity. Consortium blockchains are managed by a group of selected entities and have a certain degree of access control.

Confidential transactions are a type of transaction in which only transaction participants can view the transaction content, which can better protect the privacy of transactions compared to traditional blockchain transactions.

Implementing confidential transactions in blockchain networks will bring challenges to supervision because regulators cannot directly view the transaction content, making it difficult to audit and supervise.

Pedersen commitment is a homomorphic encryption scheme that can prove the validity of transactions without revealing the transaction amount, thereby helping regulators to supervise.

Zero-knowledge proof is a cryptographic technique that allows a party to prove that it knows a secret without revealing any other information. It can be used to prove the legitimacy of a transaction in blockchain confidential transaction supervision without revealing the specific content of the transaction.

Range proof can be used to prove that the transaction amount is within a reasonable range, such as not exceeding the account balance, which is essential to prevent illegal activities such as fraud and money laundering.

Regulatory nodes can supervise confidential transactions in blockchain networks by requiring client nodes to encrypt transaction information with their public keys, allowing regulators to decrypt and view transaction information.

Client nodes can use encryption techniques such as Pedersen commitments and zero-knowledge proofs to protect the privacy of confidential transactions while still allowing regulators to supervise.

Future development trends in blockchain confidential transaction supervision include: more advanced privacy protection technology, more complete regulatory framework, and more efficient regulatory tools.

Essay questions

Based on the learning materials, please write an article of more than 500 words to explore the following questions:

How does blockchain technology change the traditional financial industry?

In which application scenarios does confidential transaction have advantages?

How to balance privacy protection and regulatory needs in blockchain networks?

What technical challenges does blockchain confidential transaction supervision face?

How do you think blockchain technology will develop in the future?