CONFIDENTIAL TRANSACTIONS AND USER PRIVACY: ASSESSING THE IMPACT ON BLOCKCHAIN NETWORK

Abstract

Though privacy is still a major worry, blockchain
technology offers a decentralized and transparent
ledger system. This study examines the
effectiveness and consequences of introducing
private transactions in blockchain networks, with a
particular emphasis on how these transactions affect
user privacy. This research explores the workings,
advantages, drawbacks, and practical
implementations of several privacy-improving
strategies—especially those pertaining to private
transactions—in blockchain environments.
Confidential transactions are evaluated based on
how well they can hide transaction values without
compromising the ledger's validity and integrity.
The principles of cryptography and the
computational overhead involved in putting such
techniques into practice are critically examined in
this work. It also examines the trade-offs that these
improved blockchain networks have between
scalability, privacy, and regulatory compliance.
Empirical data and real-world case studies are used
to highlight the practical effects of implementing
confidential transactions and to address issues with
user adoption, network performance, and regulatory
alignment. This study also looks into how users
accept and perceive the trade-offs between
blockchain transactions' transparency and privacy.
This research attempts to provide insights into the
development of privacy-centric blockchain
solutions by critically analyzing the effects of
private transactions on blockchain networks.