VeilAudit: Breaking the Deadlock Between Privacy and Accountability Across Blockchains

Fuente: arXiv
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Hauptverfasser: Qiao, Minhao, Dong, Hai, Gondal, Iqbal
Format: Preprint
Veröffentlicht: 2025
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author Qiao, Minhao
Dong, Hai
Gondal, Iqbal
author_facet Qiao, Minhao
Dong, Hai
Gondal, Iqbal
contents Cross chain interoperability in blockchain systems exposes a fundamental tension between user privacy and regulatory accountability. Existing solutions enforce an all or nothing choice between full anonymity and mandatory identity disclosure, which limits adoption in regulated financial settings. We present VeilAudit, a cross chain auditing framework that introduces Auditor Only Linkability, which allows auditors to link transaction behaviors that originate from the same anonymous entity without learning its identity. VeilAudit achieves this with a user generated Linkable Audit Tag that embeds a zero knowledge proof to attest to its validity without exposing the user master wallet address, and with a special ciphertext that only designated auditors can test for linkage. To balance privacy and compliance, VeilAudit also supports threshold gated identity revelation under due process. VeilAudit further provides a mechanism for building reputation in pseudonymous environments, which enables applications such as cross chain credit scoring based on verifiable behavioral history. We formalize the security guarantees and develop a prototype that spans multiple EVM chains. Our evaluation shows that the framework is practical for today multichain environments.
format Preprint
id arxiv_https___arxiv_org_abs_2510_12153
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle VeilAudit: Breaking the Deadlock Between Privacy and Accountability Across Blockchains
Qiao, Minhao
Dong, Hai
Gondal, Iqbal
Cryptography and Security
Cross chain interoperability in blockchain systems exposes a fundamental tension between user privacy and regulatory accountability. Existing solutions enforce an all or nothing choice between full anonymity and mandatory identity disclosure, which limits adoption in regulated financial settings. We present VeilAudit, a cross chain auditing framework that introduces Auditor Only Linkability, which allows auditors to link transaction behaviors that originate from the same anonymous entity without learning its identity. VeilAudit achieves this with a user generated Linkable Audit Tag that embeds a zero knowledge proof to attest to its validity without exposing the user master wallet address, and with a special ciphertext that only designated auditors can test for linkage. To balance privacy and compliance, VeilAudit also supports threshold gated identity revelation under due process. VeilAudit further provides a mechanism for building reputation in pseudonymous environments, which enables applications such as cross chain credit scoring based on verifiable behavioral history. We formalize the security guarantees and develop a prototype that spans multiple EVM chains. Our evaluation shows that the framework is practical for today multichain environments.
title VeilAudit: Breaking the Deadlock Between Privacy and Accountability Across Blockchains
topic Cryptography and Security
url https://arxiv.org/abs/2510.12153