Abstract:
Communication channels and data embedding schemes determine covert communication quality. Bitcoin is popular for covert communication. The consensus mechanism requires participants to spread their valid blocks under an adjustable difficulty, creating a stable periodic broadcast channel. Because Bitcoin is pseudonymous, senders and receivers are hard to track. Since the ledger’s historical data cannot be removed from the Bitcoin system, data embedding schemes must account for its openness and persistent storage. Most traditional data embedding schemes use heuristic or empirical algorithms or a fixed field to embed data in transactions. Leaking the algorithm or exploring the pattern reveals the covert data. We propose HC-CDE in this article. Discovering embedded transactions is difficult. To improve HC-CDE security, we propose an elliptic curve Diffie–Hellman chain-based covert data embedding (ECDHC-CDE) scheme. The Bitcoin Testnet proves the schemes’ security and efficiency.
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