The Trade-Off Between Anonymity and
Accountability in Blockchain: A Framework for
Secure and Compliant Systems
Dublin Core
Title
The Trade-Off Between Anonymity and
Accountability in Blockchain: A Framework for
Secure and Compliant Systems
Accountability in Blockchain: A Framework for
Secure and Compliant Systems
Subject
Blockchain, Anonymity, Accountability,
Privacy-Preserving Technologies, Regulatory Compliance,
Zero-Knowledge Proofs, Adaptive Privacy-Accountability
Control (APAC).
Privacy-Preserving Technologies, Regulatory Compliance,
Zero-Knowledge Proofs, Adaptive Privacy-Accountability
Control (APAC).
Description
Blockchain technology has revolutionized
digital transactions by offering decentralization,
transparency, and immutability. However, its inherent
transparency often conflicts with the need for user
privacy and anonymity, raising significant concerns
regarding accountability, especially in regulatory and
legal contexts. This study explores the delicate balance
between anonymity and accountability in blockchain
systems, proposing a framework that ensures both
privacy and compliance with regulatory requirements.
The research addresses key challenges in balancing these
two aspects, evaluates the effectiveness of existing
privacy-preserving technologies such as zero-knowledge
proofs and ring signatures, and introduces the PrivacyAccountability Balanced Blockchain (PABB)
Framework. This framework integrates Selective DeAnonymization, Self-Sovereign Identity (SSI), and the
Adaptive Privacy-Accountability Control (APAC)
Algorithm to dynamically adjust privacy levels based on
regulatory conditions. Through theoretical analysis,
mathematical modeling, and empirical validation,
preserving privacy for 92% of transactions while
enabling selective de-anonymization in high-risk cases,
the study demonstrates that the APAC Algorithm
effectively balances privacy and compliance needs. The
findings suggest that privacy-conscious blockchain
systems can coexist with accountability mechanisms,
paving the way for ethical and legally sound blockchain
applications. The study concludes that the PABB
Framework offers a practical and scalable approach to
achieving this balance, fostering trust among users and
regulators alike.
digital transactions by offering decentralization,
transparency, and immutability. However, its inherent
transparency often conflicts with the need for user
privacy and anonymity, raising significant concerns
regarding accountability, especially in regulatory and
legal contexts. This study explores the delicate balance
between anonymity and accountability in blockchain
systems, proposing a framework that ensures both
privacy and compliance with regulatory requirements.
The research addresses key challenges in balancing these
two aspects, evaluates the effectiveness of existing
privacy-preserving technologies such as zero-knowledge
proofs and ring signatures, and introduces the PrivacyAccountability Balanced Blockchain (PABB)
Framework. This framework integrates Selective DeAnonymization, Self-Sovereign Identity (SSI), and the
Adaptive Privacy-Accountability Control (APAC)
Algorithm to dynamically adjust privacy levels based on
regulatory conditions. Through theoretical analysis,
mathematical modeling, and empirical validation,
preserving privacy for 92% of transactions while
enabling selective de-anonymization in high-risk cases,
the study demonstrates that the APAC Algorithm
effectively balances privacy and compliance needs. The
findings suggest that privacy-conscious blockchain
systems can coexist with accountability mechanisms,
paving the way for ethical and legally sound blockchain
applications. The study concludes that the PABB
Framework offers a practical and scalable approach to
achieving this balance, fostering trust among users and
regulators alike.
Creator
Idris Olanrewaju Ibraheem
Source
https://ijcit.com/index.php/ijcit/article/view/503
Publisher
Department of Computer Science
Al-Hikmah University
Ilorin, Nigeria
Al-Hikmah University
Ilorin, Nigeria
Date
september 2025
Contributor
Fajar bagus W
Format
PDF
Language
English
Type
Text
Files
Collection
Citation
Idris Olanrewaju Ibraheem, “The Trade-Off Between Anonymity and
Accountability in Blockchain: A Framework for
Secure and Compliant Systems,” Repository Horizon University Indonesia, accessed January 1, 2026, https://repository.horizon.ac.id/items/show/9752.
Accountability in Blockchain: A Framework for
Secure and Compliant Systems,” Repository Horizon University Indonesia, accessed January 1, 2026, https://repository.horizon.ac.id/items/show/9752.