Adding Confidential Transactions to Cryptocurrency IOTA with Bulletproofs

  • Peter InceEmail author
  • Joseph K. LiuEmail author
  • Peng ZhangEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 11058)


IOTA, one of the largest cryptocurrencies in the world, is a platform that links together Internet of Things (IoT) devices and is specifically built for fee-free machine-to-machine micropayments and messaging. One of IOTA’s core features is the Tangle - which is a new distributed ledger concept that tracks all payments and interactions. Despite its new features, there are some potential privacy issues associated when users combine the ubiquity and integration of the IoT and machine-to-machine transactions in our foreseeable future. In this paper, we describe an implementation that Bulletproof technique [9] with the IOTA platform to allow the hiding of transaction values and user balances.


IOTA Bulletproofs Blockchain 



This work was supported by the National Natural Science Foundation of China (61702342), the Science and Technology Innovation Projects of Shenzhen (GJHZ 20160226202520268, JCYJ 20170302151321095, JCYJ 20170302145623566) and Tencent “Rhinoceros Birds” - Scientific Research Foundation for Young Teachers of Shenzhen University.


  1. 1.
    Androulaki, E., Karame, G.O., Roeschlin, M., Scherer, T., Capkun, S.: Evaluating user privacy in bitcoin. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 34–51. Springer, Heidelberg (2013). Scholar
  2. 2.
    Ashton, K.: That ‘Internet of Things’ Thing - 2009-06-22 - Page 1 - RFID Journal (2009).
  3. 3.
    Back, A.: Hashcash - a denial of service counter-measure, pp. 1–10, August 2002. http://www.Hashcash.Org/Papers/Hashcash.Pdf
  4. 4.
    Ben-Sasson, E., Chiesa, A., Genkin, D., Tromer, E., Virza, M.: SNARKs for C: verifying program executions succinctly and in zero knowledge. In: Canetti, R., Garay, J.A. (eds.) CRYPTO 2013. LNCS, vol. 8043, pp. 90–108. Springer, Heidelberg (2013). Scholar
  5. 5.
    Biryukov, A., Khovratovich, D., Pustogarov, I.: Deanonymisation of clients in Bitcoin P2P network (2014).
  6. 6.
    Bitansky, N., Chiesa, A., Ishai, Y., Paneth, O., Ostrovsky, R.: Succinct non-interactive arguments via linear interactive proofs. In: Sahai, A. (ed.) TCC 2013. LNCS, vol. 7785, pp. 315–333. Springer, Heidelberg (2013). Scholar
  7. 7.
    Blakley, G.: Safeguarding cryptographic keys. In: AFIPS, p. 313 (1979)Google Scholar
  8. 8.
    Buntix, J.: IOTA Network Struggles Due to Lack of Full Nodes - The Merkle (2017).
  9. 9.
    Bünz, B., Bootle, J., Boneh, D., Poelstra, A., Wuille, P., Maxwell, G.:Bulletproofs: Efficient Range Proofs for Confidential Transactions. Cryptology ePrint Archive (2017).,
  10. 10.
    Buterin, V.: Ethereum Whitepaper (2015).
  11. 11.
    Koshy, P., Koshy, D., McDaniel, P.: An analysis of anonymity in bitcoin using P2P network traffic. In: Christin, N., Safavi-Naini, R. (eds.) FC 2014. LNCS, vol. 8437, pp. 469–485. Springer, Heidelberg (2014). Scholar
  12. 12.
    Maxwell, G.: Confidential Transactions, Content Privacy for Bitcoin Transactions (2015).
  13. 13.
    Molina-Markham, A., Shenoy, P., Fu, K., Cecchet, E., Irwin, D.: Private memoirs of a smart meter. In: Proceedings of the 2nd ACM Workshop on Embedded Sensing Systems for Energy-Efficiency in Building, pp. 61–66. ACM (2010)Google Scholar
  14. 14.
    Najera, J.: Cryptos In 3 Mins – IOTA – SetOcean – Medium (2017).
  15. 15.
    Nakamoto, S.: Bitcoin: A Peer-to-Peer Electronic Cash System (2008).
  16. 16.
    Pedersen, T.P.: Distributed provers with applications to undeniable signatures. In: Davies, D.W. (ed.) EUROCRYPT 1991. LNCS, vol. 547, pp. 221–242. Springer, Heidelberg (1991). Scholar
  17. 17.
    Pedersen, T.P.: Non-interactive and information-theoretic secure verifiable secret sharing. In: Feigenbaum, J. (ed.) CRYPTO 1991. LNCS, vol. 576, pp. 129–140. Springer, Heidelberg (1992). Scholar
  18. 18.
    Poelstra, A.: Mimblewimble, 1–19 June 2016.
  19. 19.
    Poelstra, A., Back, A., Friedenbach, M., Maxwell, G., Blockstream, P.W.: Confidential Assets.
  20. 20.
    Popov, S.: The Tangle (2016).
  21. 21.
    Reid, F., Harrigan, M.: An analysis of anonymity in the bitcoin system BT - security and privacy in social networks. In: Altshuler, Y., Elovici, Y., Cremers, A., Aharony, N., Pentland, A. (eds.) Security and Privacy in Social Networks, pp. 197–223. Springer, New York (2013). Scholar
  22. 22.
    Ron, D., Shamir, A.: Quantitative analysis of the full bitcoin transaction graph. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 6–24. Springer, Heidelberg (2013). Scholar
  23. 23.
    Shamir, A., Shamir, A.: How to share a secret. Commun. ACM (CACM) 22(1), 612–613 (1979)MathSciNetCrossRefGoogle Scholar
  24. 24.
    Tennant, L.: Improving the Anonymity of the IOTA Cryptocurrency (2017).
  25. 25.
    Tennant, L.: Privacy in IOTA – IOTA @ UCL– Medium - 05/08/2017 (2017).

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Faculty of Information TechnologyMonash UniversityClaytonAustralia
  2. 2.College of Information EngineeringShenzhen UniversityShenzhenChina

Personalised recommendations