Analysis on anonymity and regulation of digital currency transactions based on game theory

By using technologies such as blockchain, digital currency, as a new type of monetary asset, has been promoting the development of digital economy.Digital currency trading platform plays an important role in the use of private digital currency by digital currency users.Existing digital currency trad...

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Main Authors: Xian ZHANG, Jianming ZHU, Zhiyuan SUI, Shengzhi MING
Format: Article
Language:English
Published: POSTS&TELECOM PRESS Co., LTD 2022-10-01
Series:网络与信息安全学报
Subjects:
Online Access:http://www.cjnis.com.cn/thesisDetails#10.11959/j.issn.2096-109x.2022068
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author Xian ZHANG
Jianming ZHU
Zhiyuan SUI
Shengzhi MING
author_facet Xian ZHANG
Jianming ZHU
Zhiyuan SUI
Shengzhi MING
author_sort Xian ZHANG
collection DOAJ
description By using technologies such as blockchain, digital currency, as a new type of monetary asset, has been promoting the development of digital economy.Digital currency trading platform plays an important role in the use of private digital currency by digital currency users.Existing digital currency trading platforms may expose users’ privacy and provide illegal elements with the conditions to participate in various abnormal trading behaviors such as“air dropping” events, extortion, fraud, etc.The strong anonymity protection of users by digital currency trading platforms also make it more difficult for regulatory authorities to supervise digital currency transactions.Therefore, the strength of the anonymity protection of users by digital currency trading platforms need to consider not only the privacy protection of users, but also meet the regulatory requirements.For this reason, based on the analysis of the relationship between the digital currency trading platforms and the supervisory departments, an evolutionary game model was established, the digital currency trading platform and the supervisory game model were defined and constructed, and the replication dynamic equation was solved and the balanced solution was obtained according to the income matrix between the digital currency trading platform and the supervisory department.By building a Jacobian matrix, the stability of the evolutionary system under different parameters was analyzed.Besides, the evolutionary stable selection and strategy of the digital currency trading platform and the regulatory authority under different conditions were also analyzed.With Matlab, different strategies of anonymity protection of the digital currency trading platform and different strategies of supervision strategy of the regulatory department were simulated to verify the accuracy of the game model.Based on the results of the simulations, some suggestions on the supervision of digital currency trading platforms are put forward, which provides a theoretical basis for the future supervision of digital currency trading platforms in China.
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institution Kabale University
issn 2096-109X
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record_format Article
series 网络与信息安全学报
spelling doaj-art-099797a1688f4a159430131ca35701882025-01-15T03:16:14ZengPOSTS&TELECOM PRESS Co., LTD网络与信息安全学报2096-109X2022-10-01815015759575684Analysis on anonymity and regulation of digital currency transactions based on game theoryXian ZHANGJianming ZHUZhiyuan SUIShengzhi MINGBy using technologies such as blockchain, digital currency, as a new type of monetary asset, has been promoting the development of digital economy.Digital currency trading platform plays an important role in the use of private digital currency by digital currency users.Existing digital currency trading platforms may expose users’ privacy and provide illegal elements with the conditions to participate in various abnormal trading behaviors such as“air dropping” events, extortion, fraud, etc.The strong anonymity protection of users by digital currency trading platforms also make it more difficult for regulatory authorities to supervise digital currency transactions.Therefore, the strength of the anonymity protection of users by digital currency trading platforms need to consider not only the privacy protection of users, but also meet the regulatory requirements.For this reason, based on the analysis of the relationship between the digital currency trading platforms and the supervisory departments, an evolutionary game model was established, the digital currency trading platform and the supervisory game model were defined and constructed, and the replication dynamic equation was solved and the balanced solution was obtained according to the income matrix between the digital currency trading platform and the supervisory department.By building a Jacobian matrix, the stability of the evolutionary system under different parameters was analyzed.Besides, the evolutionary stable selection and strategy of the digital currency trading platform and the regulatory authority under different conditions were also analyzed.With Matlab, different strategies of anonymity protection of the digital currency trading platform and different strategies of supervision strategy of the regulatory department were simulated to verify the accuracy of the game model.Based on the results of the simulations, some suggestions on the supervision of digital currency trading platforms are put forward, which provides a theoretical basis for the future supervision of digital currency trading platforms in China.http://www.cjnis.com.cn/thesisDetails#10.11959/j.issn.2096-109x.2022068evolutionary gamedigital currency trading platformprivacy protectionanonymityregulatory
spellingShingle Xian ZHANG
Jianming ZHU
Zhiyuan SUI
Shengzhi MING
Analysis on anonymity and regulation of digital currency transactions based on game theory
网络与信息安全学报
evolutionary game
digital currency trading platform
privacy protection
anonymity
regulatory
title Analysis on anonymity and regulation of digital currency transactions based on game theory
title_full Analysis on anonymity and regulation of digital currency transactions based on game theory
title_fullStr Analysis on anonymity and regulation of digital currency transactions based on game theory
title_full_unstemmed Analysis on anonymity and regulation of digital currency transactions based on game theory
title_short Analysis on anonymity and regulation of digital currency transactions based on game theory
title_sort analysis on anonymity and regulation of digital currency transactions based on game theory
topic evolutionary game
digital currency trading platform
privacy protection
anonymity
regulatory
url http://www.cjnis.com.cn/thesisDetails#10.11959/j.issn.2096-109x.2022068
work_keys_str_mv AT xianzhang analysisonanonymityandregulationofdigitalcurrencytransactionsbasedongametheory
AT jianmingzhu analysisonanonymityandregulationofdigitalcurrencytransactionsbasedongametheory
AT zhiyuansui analysisonanonymityandregulationofdigitalcurrencytransactionsbasedongametheory
AT shengzhiming analysisonanonymityandregulationofdigitalcurrencytransactionsbasedongametheory