Informatica

The article presents the tax declaration scheme using blockchain confidential transactions based on the modified ElGamal encryption providing additively-homomorphic property. Transactions are based on the unspent transactions output (UTxO) paradigm allowing to effectively represent digital asset of cryptocurrencies in e-wallets and to perform financial operations. The main actors around transaction are specified, include money senders, receivers, transaction creator, Audit Authority (AA) and Net of users. A general transaction model with M inputs and N outputs is created, providing transaction amount confidentiality and verifiability for all actors with different levels of available information.

The vulnerable part of communications between user and server is the poor authentication level at the user’s side. For example, in e-banking systems for user authentication are used passwords that can be lost or swindled by a person maliciously impersonating bank.