BLOCKCHAIN-BASED ENCRYPTION MECHANISMS FOR BIG DATA CONFIDENTIALITY

DOI: 10.31673/2786-8362.2025.029079

Abstract

This paper provides a comprehensive analysis of the potential of blockchain technology
to ensure the confidentiality of big data in modern information systems. Blockchain is examined as an
innovative decentralized technology that, due to its architecture and built-in cryptographic mechanisms,
provides a high level of data security, resilience to cyberattacks, and transparency of information
processing. The study explores the main encryption methods used in blockchain — symmetric,
asymmetric, and hashing — providing a comparative analysis of their advantages and limitations and
their roles in secure storage and transmission. Special attention is paid to anonymization and
pseudonymization techniques. The paper further examines confidential blockchains (Monero, ZCash) that
leverage ring signatures and Confidential Transactions, as well as Zero-Knowledge Proofs (ZKP), which
enable verification without disclosure. Real-world applications are presented across healthcare
(Guardtime, MedRec), finance (privacy-oriented cryptocurrencies), e-government (Estonian registries),
and IoT (smart-home scenarios). The discussion highlights the key challenges of blockchain adoption –
scalability, computational and energy costs, and regulatory constraints, including tensions between
immutability and data erasure requirements. The article outlines future directions: enhanced consensus
algorithms, second-layer protocols, advanced smart contracts, and hybrid models.
Keywords: blockchain, big data, encryption, confidentiality, anonymization, pseudonymization,
zero‑knowledge proofs, Monero, ZCash

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