ARTeX: Anonymity Real-world-assets Token eXchange

2025-10-10

AI Summary

Balancing privacy preservation and regulatory compliance remains challenging in real-world asset (RWA) token trading. Method: This paper proposes ARTeX—the first anonymous RWA trading platform—integrating zero-knowledge proofs, on-chain/off-chain collaborative verification, decentralized identity (DID) authentication, and an enhanced coin-mixing mechanism to jointly achieve transaction anonymity and auditability. Contribution/Results: We design a novel RWA-specific compliant anonymous protocol enabling targeted regulatory audits of suspicious transactions while preserving user identity privacy. Our DID-based real-name verification achieves >99% accuracy—substantially outperforming existing NFT privacy solutions and generic mixers. Experimental evaluation demonstrates that ARTeX effectively mitigates illicit risks (e.g., money laundering) without compromising decentralization, thereby significantly enhancing privacy protection for RWA transactions.

Technology Category

• Machine Learning: Privacy
• Natural Language Processing: Ethics — Bias, Fairness, Transparency & Privacy
• Philosophy and Ethics of AI: Privacy & Security

Application Category

• Responsible Web: Data and user privacy-enhancing technologies for the Web
• Security and Privacy: Cryptocurrency and smart contracts
• Economics, Online Markets and Human Computation: Fairness, privacy, and diversity in economic environments

Abstract

This paper addresses one of the most noteworthy issues in the recent virtual asset market, the privacy concerns related to token transactions of Real-World Assets tokens, known as RWA tokens. Following the advent of Bitcoin, the virtual asset market has experienced explosive growth, spawning movements to link real-world assets with virtual assets. However, due to the transparency principle of blockchain technology, the anonymity of traders cannot be guaranteed. In the existing blockchain environment, there have been instances of protecting the privacy of fungible tokens (FTs) using mixer services. Moreover, numerous studies have been conducted to secure the privacy of non-fungible tokens (NFTs). However, due to the unique characteristics of RWA tokens and the limitations of each study, it has been challenging to achieve the goal of anonymity protection effectively. This paper proposes a new token trading platform, the ARTeX, designed to resolve these issues. This platform not only addresses the shortcomings of existing methods but also ensures the anonymity of traders while enhancing safeguards against illegal activities.

Problem

• Addresses privacy concerns in RWA token transactions on blockchain
• Ensures trader anonymity while preventing illegal financial activities
• Overcomes limitations of existing privacy protection methods for tokens

Innovation

• Proposes ARTeX platform for anonymous RWA token trading
• Ensures trader anonymity while preventing illegal activities
• Addresses limitations of existing blockchain privacy solutions