What is it about?
This research examines how user privacy can be better protected in blockchain transactions using the Web of Trust concept. While blockchain is often described as secure and decentralized, it is also transparent by design—meaning that transaction data is publicly visible across the network. Although users are typically represented by cryptographic addresses rather than real names, ensuring true privacy remains a significant challenge, especially in sectors like banking and financial services. The study reviews current approaches to transaction privacy in blockchain systems and explores how the Web of Trust model can support secure and decentralized identity verification. In addition, the paper proposes a novel method that combines Public Key Infrastructure (PKI) with an optional encrypted field embedded in blockchain transactions. This approach aims to strengthen privacy while maintaining the transparency and integrity of the ledger. To test the concept, the implementation was carried out using Bithomp and the Ripple Testnet platform, demonstrating how enhanced privacy mechanisms can function in a real-world payment environment. The paper concludes by evaluating the strengths and limitations of the proposed solution.
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Why is it important?
Blockchain technology is increasingly used in financial systems, payment platforms, and digital services. However, its transparency can conflict with the need for confidentiality in sensitive transactions. In financial contexts, protecting user identity and transaction details is critical for regulatory compliance, trust, and security. This research is important because it addresses one of the core tensions in blockchain systems: balancing transparency with privacy. By integrating Web of Trust principles and PKI-based encryption mechanisms, the proposed framework offers a way to enhance privacy without undermining decentralization. As blockchain adoption grows in banking and digital finance, developing robust privacy solutions becomes essential for responsible and scalable implementation. The study contributes to this effort by offering both conceptual and practical insights into privacy-enhancing mechanisms.
Perspectives
From my perspective, transaction privacy remains one of the most complex and evolving challenges in blockchain ecosystems. While decentralization increases trust in the system, it also exposes transaction data in ways that require careful privacy engineering. The proposed integration of Web of Trust concepts with PKI-based encryption represents a pragmatic step toward reconciling transparency with confidentiality. However, privacy solutions must also consider regulatory frameworks, scalability, and usability. Future research should explore advanced cryptographic techniques such as zero-knowledge proofs and privacy-preserving smart contracts, alongside governance models that ensure both accountability and confidentiality. Strengthening privacy in blockchain systems will be key to expanding their use in financial and enterprise environments.
Dr.Sc. Vehbi Neziri
University for Business and Technology
Read the Original
This page is a summary of: Transactions privacy on blockchain using web of trust concept, Information Security Journal A Global Perspective, July 2022, Taylor & Francis,
DOI: 10.1080/19393555.2022.2100844.
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