A Group Signature Based Digital Currency System

Abstract

Digital currency regulation is a hot topic. Traditional privacy-enhanced digital currency system, like the CryptoNote, seeks to protect the privacy of senders and receivers. This paper presents a digital currency system based on the group signature scheme of Boneh et al. The system can protect users’ privacy and enable regulations. The system uses the one-time address technology of the CryptoNote to achieve unlinkability. It uses the group signature in a ring style to achieve untraceability. The group manager in a group signature can open a problematic transaction, restore the real identity of the sender, and revoke the private key of the sender if needed, which makes the digital currency regulatable.