CR-DAP: A Comprehensive and Regulatory Decentralized Anonymous Payment System

Weiqi Dai, Yang Zhou, Xiaohai Dai, Kim-Kwang Raymond Choo, Xia Xie, Deqing Zou, Hai Jin

Abstract: Among various blockchain applications, decentralized anonymous payment (DAP) systems stand out for their enhanced privacy protection compared to traditional payment methods. However, DAPs face challenges such as the lack of asset recovery and identity verification features. To ensure the long-term healthy development of DAP systems, adherence to legal regulations and privacy protection is equally critical. In response to these requirements, we propose a $\textsf {CR}$ - $\textsf {DAP}$ system that offers a secure and efficient solution without compromising on practicality. Our innovation lies in introducing an identity-based traceable anonymous signature scheme, which skillfully balances anonymity with traceability. This scheme supports private key retrieval and allows for identity tracking when necessary, addressing key pain points in existing anonymous payment systems and enhancing user trust. We have implemented the prototype of this signature scheme and the $\textsf {CR}$ - $\textsf {DAP}$ system, evaluating its performance to demonstrate its practicality.