BPA: A decentralized payment system that balances privacy and auditability

The rapid development of blockchain transactions highlights the importance of privacy protection (including anonymity and confidentiality) and underscores the necessity for auditability. Some schemes, such as PGC and Miniledger, support privacy protection and auditability. However, they only offer incomplete privacy protection (i.e., supporting anonymity or confidentiality exclusively). In response to these issues, we propose a scheme that achieves partial anonymity, confidentiality, auditability, and traceability. By integrating a variant of Pedersen commitments and randomizable signatures, we achieve partial anonymity for users and the auditability of transactions, thereby protecting user privacy under audit conditions. Based on the twisted ElGamal encryption algorithm and specially constructed zero-knowledge proofs, we achieve confidentiality of transaction amounts under legal and regulatory conditions. System test results indicate that this scheme effectively meets the above requirements. The feasibility of this scheme is confirmed through system testing, comparative analysis, and security analysis.