Balancing Privacy and Accountability for Industrial Mortgage Management

Abstract

Industrial mortgage enables companies to acquire loan for business venture or investment purposes by pledging their industrial assets to financial institutions. To prevent double-mortgage fraud of borrowers, information exchange among different financial institutions is necessary. On the other hand, it results in the privacy leakage of borrowers. In this article, we construct a blockchain-based accountable and privacy-preserving industrial mortgage scheme (BAPIM). BAPIM enables financial institutions to share the mortgage data of borrowers in an efficient and secure manner, that achieves the borrower identity privacy and accountability at the same time. Specifically, borrower identity is concealed on the blockchain by anonymous identity credential, while financial institutions can still uncover the identity of a misbehaving borrower if he pledges the same asset for multiple mortgages. We demonstrate that BAPIM achieves the desirable security properties and has high computational efficiency, so as to be suitable for the industrial mortgage management.