Optimization of Blockchain Digital Currency Privacy Protection Algorithm

This study presents a comprehensive investigation of an optimized privacy protection algorithm tailored for blockchain-based digital currencies. With a primary focus on addressing the privacy concerns inherent in Initial Coin Offerings (ICO) and the complexities arising from digital asset transactions, the study introduces a novel blockchain model. This model encompasses different blockchain types, emphasizing identity, performance, access rights, consensus mechanisms, and application scenarios. The consensus mechanism, specifically Practical Byzantine Fault Tolerance (PBFT), plays a key role in achieving secure and efficient decentralized transactions. In addition, cryptographic techniques, in particular the hash (Merkle) tree structure, are integrated to enhance security and integrity. The research concludes with experimental evaluations that demonstrate significant improvements in user anonymity and unlinkability, critical factors for preserving user privacy in blockchain networks. This work provides valuable insights into the optimization of privacy protection mechanisms in blockchain-based digital currencies, promoting improved security and efficiency in various applications.