Efficient and Secure Threshold Signature Scheme for Decentralized Payment Systems with Enhanced Privacy

EasyChair Preprint 15703

Abstract

This paper introduces a novel threshold signature scheme
tailored for decentralized payment systems, focusing on privacy, security, and scalability. The proposed system enables a group of users to
collectively generate cryptographic keys and produce signatures without
relying on a single trusted entity. By leveraging parallel one-out-of-many
proofs, modified Chaum-Pedersen proofs, and Bulletproofs+, the system achieves efficient transaction verification and reduced proof sizes,
suitable for blockchain-based applications. Additionally, we propose key
generation and spend processes that mitigate malicious behaviors, ensuring participants can reliably compute private spend keys and perform
secure multisignature operations. We also introduce view keys and payment proofs, offering flexible mechanisms for transaction scanning, auditing, and secure third-party oversight without compromising privacy.
These features make the system particularly useful for privacy-conscious
users, public charities, and businesses requiring transparency. Precomputed nonces reduce communication complexity during transaction signing, further optimizing performance. The design ensures efficient transaction batch verification, scaling securely across large groups of users
while maintaining high cryptographic security standards.

Keyphrases: Blockchain, Coin Creation, Cryptocurrencies, Payment Proofs, Scalable Decentralized Finance (DeFi) Solutions

@booklet{EasyChair:15703,
  author    = {Laxman Doddipatla},
  title     = {Efficient and Secure Threshold Signature Scheme for Decentralized Payment Systems with Enhanced Privacy},
  howpublished = {EasyChair Preprint 15703},
  year      = {EasyChair, 2025}}