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What are the key privacy-preserving techniques mentioned in the chapter that help address challenges in blockchain forensics?

The key privacy-preserving techniques mentioned are Zero-Knowledge Proofs (ZKPs), Homomorphic Encryption, Secure Multi-Party Computation (SMPC), and Differential Privacy. These techniques help mitigate risks in blockchain forensics while allowing effective analysis without compromising individual privacy.

Zero-Knowledge Proofs (ZKPs) allow one party to prove the truth of a statement without revealing additional information, which can be used to verify transactions without disclosing sensitive details. Homomorphic Encryption enables computations on encrypted data without needing to decrypt it, allowing forensic investigators to analyze blockchain data while maintaining privacy. Secure Multi-Party Computation (SMPC) allows multiple parties to compute functions over their inputs while keeping those inputs private, which is useful in collaborative investigations. Differential Privacy adds noise to data to protect individual data points while still providing useful insights at the aggregate level, thus preserving privacy in blockchain analytics.

Key points

  • Zero-Knowledge Proofs (ZKPs) verify transactions without revealing details.
  • Homomorphic Encryption allows analysis of encrypted data without decryption.
  • Secure Multi-Party Computation (SMPC) keeps inputs private during joint computations.
  • Differential Privacy protects individual data while providing aggregate insights.
Source:AI-Driven Finance in the VUCA World· Securing the Future: Integrating Attack Detection in IoT with Privacy in Financial AI· p. 255–260

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Cover of AI-Driven Finance in the VUCA World

AI-Driven Finance in the VUCA World

Ashutosh Yadav, Mansaf Alam etc.

First · CRC Press

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