Chain-Based Covert Data Embedding Schemes in Blockchain

The quality of covert communications is determined by the choice of communication channels and the design of data embedding schemes. Recently, the Bitcoin system is prevalent as a covert communication channel. The consensus mechanism requires participants to spread their found valid blocks under an adjustable difficulty, which provides a stable periodic broadcast channel. Moreover, senders and receivers are difficult to be traced, because the Bitcoin system is pseudonymous. However, since the historical data in the ledger cannot be removed from the Bitcoin system, the openness and the persistent storage of the ledger in the Bitcoin system post new challenges when designing data embedding schemes. More concreteness, most traditional data embedding schemes either design by heuristic or empirical algorithms or use a fixed field to embed data in the transactions. Therefore, the covert data can be recognized once the algorithm is leaked or the pattern is explored. In this article, we first propose a hash chain-based covert data embedding (HC-CDE) scheme. The embedded transactions are difficult to be discovered. We further propose an elliptic curve Diffie–Hellman chain-based covert data embedding (ECDHC-CDE) scheme to enhance the security of the HC-CDE scheme. Experimental analysis on the Bitcoin Testnet verifies the security and the efficiency of the proposed schemes.