International Association
for Cryptologic Research

Decentralized payment system gradually get more attention in recent years. By removing the trusted third party used for accounting ledgers, it fundamentally empowers users to control their own assets. As the privacy concerns grow, some cryptocurrencies is proposed to preserve the privacy of users. However, those cryptocurrencies cause illegal transactions such as money laundering, fraudulent trading and so on. So it is necessary to design a auditing scheme. To solve this problem, many privacy-preserving and audit scheme was proposed. But there exists no scheme that effectively solve the issue of privacy-preserving and auditing on both user identity and transaction content. In this paper, we propose a design for a decentralized payment system with privacy preserving and auditing. We use cryptographic accumulators based on Merkle trees for accounting and use a combination of Twist ElGamal, NIZK (Non-Interactive Zero-Knowledge), Bulletproofs, and zk-SNARKs for privacy preserving and auditing.