In this literature review, we critically examine the evolving landscape of privacy in blockchain systems, with a particular focus on the differentiation of privacy attacks and protective measures across three distinct layers: the on-chain layer; the off-chain layer; and on the infrastructure, i.e., peer-to-peer network layer. In this review, we categorize prevalent privacy attacks, such as transaction tracing, data leakage, and network surveillance, highlighting their implications at each layer. In addition, we evaluate a range of protective techniques, including cryptographic methods, zero-knowledge proofs, and other privacy-preserving protocols. We explore the compatibility of these privacy techniques with existing blockchain systems. By synthesizing current research and practical implementations, our aims are to provide a comprehensive understanding of privacy challenges and solutions in blockchain environments, identify gaps, and guide future developments in privacy-enhancing technologies within the blockchain ecosystem.
Ziegler et al. (Wed,) studied this question.