Coloured Ring Confidential Transactions

Abstract

Privacy in block-chains is considered second to functionality, but a vital requirement for many new applications, e.g., in the industrial environment. We propose a novel transaction type, which enables privacy preserving trading of independent assets on a common block-chain. This is achieved by extending the ring confidential transaction with an additional commitment to a colour and a publicly verifiable proof of conservation. With our coloured confidential ring signatures, new token types can be introduced and transferred by any participant using the same sized anonymity set as single-token privacy aware block-chains. Thereby, our system facilitates tracking assets on an immutable ledger without compromising the confidentiality of transactions.