CBOL: Cross-Bank Over-Loan Prevention, Revisited

Abstract

With the development of credit businesses, privacy data leakage and data accuracy in loan transactions among different banks tend to be worrisome issues hindering the prosperity of the industry. To address the problem, we propose a blockchain-based cross-bank over-loan prevention (CBOL-ring) mechanism, which ensures that, on the one hand, the plaintext of loan transactions cannot be access to neither participants on the nodes except the bank that handles loan/repayment requests, so as to prevent the borrower from loaning without revealing their privacy data; on the other hand, the other participants are able to prove the effectiveness of the plaintexts through checking the ciphertexts on the blockchain. In addition, we propose a blockchain-based cross-bank over-loan prevention mechanism with low communication volume (CBOL-bullet), which reduces the size of the range proof generated by the BBCBOLP mechanism, thereby reducing the size of the communication volume and saving resources during the data transmission process. Finally, we analyze the security and performance of the two mechanisms, and compare the communication volume of the two mechanisms.