Blockchain and Homomorphic Encryption for Data Security and Statistical Privacy

Abstract

This study proposes a blockchain-based system that utilizes fully homomorphic encryption to provide data security and statistical privacy when data are shared with third parties for analysis or research purposes. The proposed system not only provides security of data in transit, at rest, and in use but also assures privacy and computational integrity for simple statistical computations. This is achieved by leveraging the attributes of the blockchain technology, which provides availability and data integrity, combined with homomorphic encryption, which provides confidentiality of data in use. The computations are performed on smart contracts residing on the blockchain, providing computational integrity. The proposed system is implemented on the Zama blockchain and performs statistical operations including mean, median, and variance on encrypted data. The results indicate that it is possible to perform fully homomorphic computations on the blockchain. Even though current computing limitations on the blockchain do not allow running the system for large data sets, the technology is available, and with advancements toward more efficient homomorphic operations on blockchains, the proposed system will provide an ultimate solution for providing the much-desired security properties in applications, including data and statistical privacy, confidentiality, and integrity at rest, in transit, and in use.