New research article identifies six open issues in blockchain privacy technology

Source: Yellow Original Title: New research article identifies six open problems in blockchain privacy technology

Original Link: Researchers from Mysten Labs, Yale University, and George Mason University published an updated version of a comprehensive academic study examining privacy-preserving techniques in blockchain systems.

The article titled “SoK: Privacy-Preserving Transactions in Blockchains” was initially presented in December 2024 and revised on January 3, 2026.

Among the authors are Foteini Baldimtsi from George Mason University and Mysten Labs, Kostas Kryptos Chalkias from Mysten Labs, Varun Madathil from Yale University, and Arnab Roy from Mysten Labs.

The knowledge systematization article analyzes privacy techniques in blockchain architectures based on both UTxO and account models.

What happened

The 32-page research paper classifies privacy levels, including confidentiality, k-anonymity, full anonymity, and unlinkability between sender and receiver.

The researchers analyzed deployed systems such as Zcash, Monero, Dash, and Firo, along with academic proposals.

The study identified six open problems in blockchain privacy, including stateless verification, support for lightweight clients, and efficient anonymous account-based systems.

The researchers evaluated the usability of major privacy-focused cryptocurrencies, including transaction speed, ease of use, and unique features.

The article reviews cryptographic techniques such as zero-knowledge proofs, ring signatures, stealth addresses, and mixing protocols.

Why it matters

The research provides a framework for comparing privacy solutions as blockchain developers face increasing regulatory scrutiny.

According to the conclusions, no existing system simultaneously offers strong anonymity, sublinear on-chain data growth, and verification for lightweight clients.

The article notes that achieving full anonymity in account-based systems requires validation work proportional to the total number of users, making it impractical.

The researchers conclude that designing privacy-preserving blockchains involves fundamental trade-offs among privacy guarantees, scalability, and regulatory compliance.

The study serves as a technical reference for protocol designers choosing privacy mechanisms based on specific constraints and requirements.