Computational Cost Reduction of Transaction Signing in Blockchain

Abstract

Nowadays, Blockchain is a disruptive technology, particularly in the financial context. Moreover, Blockchain is behind the success of cryptocurrencies, e.g., Bitcoin and Ethereum. Unlike traditional currencies, cryptocurrencies are entirely virtual. There is no physical money, but it can directly make payments in digital currency from one person to another without intermediaries. Moreover, Hashing's cryptographic algorithm makes Blockchain resist tampering from any transacting participants because the submitted block cannot be altered or re-engineered. However, another big problem is how users of cryptocurrencies stop somebody from adding or editing a transaction that spends someone else's money to them. To do this, Blockchain needs another cryptosystem called Public/Private Keys, a primitive asymmetric cryptosystem, e.g., the RSA encryption, to sign the transactions for proving the authenticity of the ownership without revealing the signed secret information. The generated public key is regarded as a ledger account number or digital wallet of the sender and the recipient. Simultaneously, the paired private keys are used to identify whether the digital wallets' owners are authentic. As growing network entities and propagated Blockchain transactions, computing millions of replicated tokens in the blocks to sign and verify the digital wallet's ownership is computationally expensive. However, a certain of chosen arithmetical transformations that can simplify mathematical cost can significantly reduce computational complexity. This research's main contribution is developing a protocol that can reduce the complexity and mathematical cost in generating the digital wallet and verifying its authenticity of ownership. Finally, performance analyses of the RSA algorithm for the protocol have been measured and visualized using Python.