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In the sidechain-based cross-chain system, the receiver in one underlying blockchain is identical to the sender in another side, and the time when the cross-chain exchange transactions are published in two interactive blockchains is close enough to link up. Such an inherent security disadvantage of linkability makes the violation of a chain’s privacy to compromise the privacy of another interacting chain, such as obtaining the exchange value of the transaction in chain B based on that in chain A. Privacy leakage may cause malicious merchants obtaining customers’ identity and account information for illegal trading, while the linkability of cross-chain exchanges between various blockchain may give rise to tremendous chain reactions of privacy leakage.

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Balance of Privacy and Regulation for Cross-Chain Transactions

  • 章节

  • 发表日期：

    2025年

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  • Peng Jiang,
  • Liehuang Zhu

摘要

In the sidechain-based cross-chain system, the receiver in one underlying blockchain is identical to the sender in another side, and the time when the cross-chain exchange transactions are published in two interactive blockchains is close enough to link up. Such an inherent security disadvantage of linkability makes the violation of a chain’s privacy to compromise the privacy of another interacting chain, such as obtaining the exchange value of the transaction in chain B based on that in chain A. Privacy leakage may cause malicious merchants obtaining customers’ identity and account information for illegal trading, while the linkability of cross-chain exchanges between various blockchain may give rise to tremendous chain reactions of privacy leakage.