BlaNC: Blockchain-based anonymous and decentralized credit networks

Abstract

Distributed credit networks, such as Ripple [19] and Stellar [23], are becoming popular as an alternative means for financial transactions. However, the current designs do not preserve user privacy or are not truly decentralized. In this paper, we explore the creation of a distributed credit network that preserves user and transaction privacy and unlinkability. We propose BlAnC, a novel, fully decentralized blockchain-based credit network where credit transfer between a sender-receiver pair happens on demand. In BlAnC, multiple concurrent transactions can occur seamlessly, and malicious network actors that do not follow the protocols and/or disrupt operations can be identified efficiently. We perform security analysis of our proposed protocols in the universal composability framework to demonstrate its strength, and discuss how our network handles operational dynamics. We also present preliminary experiments and scalability analyses.