The rapid evolution of digital currency systems has consistently faced the fundamental challenge of achieving an optimal balance between transaction privacy, computational efficiency, and cryptographic security. This comprehensive research paper introduces the Elliptic Homomorphic Token (EHT), a groundbreaking cryptographic protocol that revolutionizes privacy-preserving peer-to-peer transactions through the innovative integration of elliptic curve-based partially homomorphic encryption mechanisms and advanced digital signature schemes. Unlike conventional zero-knowledge proof systems that have dominated the privacy-focused cryptocurrency landscape, EHT takes a fundamentally different approach by directly leveraging the underlying cryptographic primitives that form the mathematical foundation of these complex systems. The protocol implements a sophisticated pre-transaction mechanism followed by distributed block recording, achieving remarkable performance metrics of 1000 transactions per second (TPS) with consistently low latency ranging from 50 to 100 milliseconds. Our comprehensive approach systematically addresses the significant computational overhead challenges that were extensively documented during Central Bank Digital Currency (CBDC) implementation projects, while simultaneously providing a robust and practical framework for privacy-preserving digital transactions that maintains the highest standards of cryptographic security. The EHT protocol represents a paradigm shift in how we conceptualize and implement privacy-preserving digital currency systems, offering a more direct, efficient, and mathematically elegant solution compared to existing approaches. Through extensive theoretical analysis, rigorous security proofs, and comprehensive performance evaluations, this paper demonstrates that EHT not only meets but exceeds the requirements for next-generation digital currency systems in terms of privacy, efficiency, scalability, and security.
Lee et al. (2026) studied this question.