1. 1.

Implement a Simple Zero-Knowledge Proof (ZKP) 3

2. 2. Implement a Ring Signature Scheme 4
3. 3. Simulate a Coin Mixing Service 4
4. 4. Generate Stealth Addresses for Private Transactions 4
5. 5. Implement zk-SNARKs for a Simple Arithmetic Circuit 5
6. 6. Implement Homomorphic Encryption for Private Computations on Blockchain 5
7. 7. Simulate Confidential Transactions Using Pedersen Commitments 5
8. 8. Perform Multi-Party Computation (MPC) on Blockchain Data 6
9. 9. Implement Bulletproofs for Range Proofs in Transactions 6
10. 10. Simulate a MimbleWimble Transaction 6
11. 11. Study the Trade-offs of Different Privacy Mechanisms in Blockchain 7
12. 12. Implement Privacy-Preserving Smart Contracts 7
13. 13. Create a Privacy-Enhanced Cryptocurrency Using RingCT 7
14. 14. Explore the Privacy Implications of Quantum Computing on Blockchain 8
15. 15. Research the Role of Privacy Coins in Financial Privacy 8
16. 1. Implement Oblivious RAM (ORAM) for Blockchain Data Privacy 8
17. 2. Implement Differential Privacy for Blockchain Analytics 9
18. 3. Simulate Threshold Cryptography for Distributed Key Management 9
19. 4. Implement Private Information Retrieval (PIR) for Blockchain 9
20. 5. Secure Aggregation for Private Blockchain Voting 10
21. 6. Design Verifiable Delay Functions (VDFs) for Privacy-Enhanced Blockchain Timelocks 10
22. 7. Develop Decentralized Identity (DID) Management for Private Authentication 10
23. 8. Implement Mix Networks for Transaction Anonymity 11
24. 9. Simulate Privacy-Preserving Auditing with Zero-Knowledge Range Proofs 11
25. 10. Design Private NFTs Using Stealth Addresses 12
26. 11. Privacy-Preserving Cross-Chain Transfers Using Atomic Swaps 12
27. 12. Build a Privacy-Enhanced Decentralized Exchange (DEX) 12
28. 13. Create an Anonymous Blockchain Messaging System Using Chaumian Mixes 13
29. 14. Verifiable Computation for Privacy-Preserving Smart Contracts 13
30. 15. Private Supply Chain Tracking with Blockchain 13
31. 1. Implement Blind Signatures for Anonymous Transactions 14
32. 2. Secure Multi-Party Computation (SMPC) for Jointly Encrypted Contract Execution 14
33. 3. Private Blockchain Indexing with Encrypted Queries 15
34. 4. Implement Group Signatures for Private Blockchain Membership 15
35. 5. Simulate Blind Auctions for Private Bidding on Blockchain 15
36. 6. Implement Oblivious Transfer for Private Data Sharing 16
37. 7. Design Time-Lock Encryption for Delayed Access to Blockchain Data 16
38. 8. Implement Zero-Knowledge Accumulators for Private Blockchain Membership 17
39. 9. Multi-Party Threshold Decryption for Private Key Sharing 17
40. 10. Private Stablecoins with Zero-Knowledge Proofs for Transaction Amounts 17
41. 11. Privacy-Preserving Distributed Ledger for Supply Chain Tracking 18
42. 12. Design Private Multi-Party Token Issuance on a Blockchain 18
43. 13. Privacy-Preserving Access Control for Decentralized Applications (dApps) 19
44. 14. Private Blockchain Analytics Using Secure Multi-Party Computation 19
45. 15. Privacy-Preserving Multi-Party Computation for Decentralized Finance (DeFi) Protocols 19
46. 1. Integrate Tor for Anonymous Blockchain Node Communication 20
47. 2. Implement RandomX Mining for a Privacy-Centric Blockchain 20
48. 3. Build a Private Blockchain Using Tor for Transaction Broadcasting 21
49. 4. Simulate a Password-Protection Scheme for Wallets Using Scrypt 21
50. 5. Build a Private Mining Pool Using RandomX and Scrypt 22
51. 6. Use Tor for Decentralized Voting in a Blockchain Governance System 23
52. 7. Simulate a Privacy-Focused Cryptocurrency Wallet with Tor, RandomX, and Scrypt 23
53. 8. Create a Privacy-Preserving Blockchain-Based File Storage System Using Tor 24
54. 9. Secure Blockchain Messaging with Tor and RandomX-Based Proof-of-Work 24
55. 10. Combine Tor, RandomX, and Scrypt for Anonymous Smart Contract Execution 25
56. 11. Simulate a Private Proof-of-Stake (PoS) Blockchain with Tor and RandomX 25
NOTE: Write Python script that can be run in command prompt to demonstrate how these
algorithms are used to ensure the security and integrity of blockchain transactions.
Task includes hashing, digital signatures, and encryption algorithms.

Deliverables:

A Python script with:

A function to hash data using the algorithm.
A function to sign and verify a message using the algorithm.
A function to encrypt and decrypt a message using the encryption algorithm.
Provide screenshots of the script execution showing the hash, digital signature, and
encryption results.

1. Implement a Simple Zero-Knowledge Proof (ZKP)

Objective: Design a system where a prover can convince a verifier that they know a secret
(e.g., a private key) without actually revealing the secret itself. Use a basic protocol like the
Schnorr protocol to structure the proof. The system should allow the prover to demonstrate
knowledge of the private key without sharing any sensitive information, ensuring privacy.
Exercise:
● Extend the protocol to handle multiple rounds of proof, making it more secure.
● Experiment with using different cryptographic hash functions or random challenges to
increase security.

2. Implement a Ring Signature Scheme

Objective: Design a ring signature system where a user can sign a message anonymously on
behalf of a group. The signature must guarantee that anyone in the group could have signed
the message, but it should be impossible to identify which member did. This can be applied to
systems where anonymity in transactions is required, like in privacy-centric blockchains.
Exercise:
● Create a verification system to check the validity of the ring signature without
revealing the actual signer.
● Explore how increasing the size of the group impacts anonymity and verification
complexity.

3. Simulate a Coin Mixing Service

Objective: Design a coin mixing service that allows users to anonymously mix their
cryptocurrency. The system should take deposits from multiple users, mix the funds, and
return them to new addresses in such a way that tracing the origin of the coins becomes
difficult or impossible. This exercise focuses on obfuscating transaction trails to enhance
privacy.
Exercise:
● Add the concept of transaction fees and analyze how it impacts the amount users
receive after the mixing process.
● Implement randomized redistribution of the coins to further enhance privacy and
prevent pattern recognition.

4. Generate Stealth Addresses for Private Transactions

Objective: Develop a system to create stealth addresses for private transactions. In a
blockchain context, stealth addresses allow recipients to generate multiple unique addresses
for each transaction while keeping their main public address private. The goal is to hide
transaction details from third parties.
Exercise:
● Implement a recovery mechanism that allows recipients to retrieve funds from their
stealth addresses without revealing their primary address.
● Explore creating multiple stealth addresses for a single transaction and analyze how
this impacts the privacy of the sender and receiver.

5. Implement zk-SNARKs for a Simple Arithmetic Circuit

Objective: Design a zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of
Knowledge) protocol to prove knowledge of a solution to an arithmetic equation without
revealing the solution itself. The protocol should demonstrate how zero-knowledge proofs
can be applied to simple computations, like proving knowledge of a secret value without
exposing it.
Exercise:
● Extend the zk-SNARK proof system to work with more complex mathematical
equations.
● Implement multiple rounds of zk-SNARKs to demonstrate proof security and
correctness.

6. Implement Homomorphic Encryption for Private Computations on

Blockchain
Objective: Develop a system using homomorphic encryption, which allows computations
to be performed on encrypted data. In this exercise, encrypted values are added without
decrypting them, and the results can only be decrypted by the intended party. This allows
private computations on blockchain data without exposing the underlying values.
Exercise:
● Explore using homomorphic encryption for more advanced mathematical operations
(multiplication, subtraction, etc.) and analyze performance trade-offs.
● Study how homomorphic encryption could be applied in real-world blockchain
scenarios, such as private voting or privacy-preserving smart contracts.

7. Simulate Confidential Transactions Using Pedersen Commitments

Objective: Design a system that simulates confidential transactions using Pedersen
commitments. These commitments allow transaction amounts to remain hidden, while
ensuring that the sum of inputs equals the sum of outputs, preventing double-spending. This
is crucial for privacy in blockchain systems.
Exercise:
● Implement verification to ensure that the sum of inputs equals the sum of outputs
without revealing the individual transaction amounts.
● Extend the system to handle multiple commitments for more complex transactions
involving several parties.

8. Perform Multi-Party Computation (MPC) on Blockchain Data

Objective: Develop a system that simulates multi-party computation (MPC) where several
parties collaboratively compute a function over their private inputs without revealing those
inputs. This exercise involves securely summing private inputs from multiple parties and
outputting the total without any party learning the inputs of the others.
Exercise:
● Implement other operations besides summation (such as average or product) using
MPC.
● Design privacy-preserving protocols to ensure that individual inputs remain hidden,
even in complex computations.

9. Implement Bulletproofs for Range Proofs in Transactions

Objective: Design a system that uses Bulletproofs, a zero-knowledge proof scheme, to
demonstrate that a committed value lies within a certain range without revealing the value
itself. This concept is essential for ensuring privacy in confidential transactions while still
allowing validators to check that transaction values are valid.
Exercise:
● Extend the system to handle range proofs for multiple values, ensuring that all values
are within their respective valid ranges.
● Optimize the Bulletproof verification process for large ranges and multiple
transactions.

10. Simulate a MimbleWimble Transaction

Objective: Design a simulation of a MimbleWimble transaction, a blockchain protocol that
improves privacy by combining confidential transactions with a cut-through mechanism to
reduce the blockchain's size. In this exercise, demonstrate how transactions can be validated
without revealing individual inputs and outputs.
Exercise:
● Implement the concept of cut-through, which removes spent outputs from the
blockchain, keeping it lightweight and more private.
● Extend the simulation to handle more complex transaction structures with multiple
inputs and outputs while maintaining privacy.

11. Study the Trade-offs of Different Privacy Mechanisms in Blockchain

Objective: Research and compare various privacy-preserving techniques in blockchain (e.g.,
zk-SNARKs, ring signatures, CoinJoin, MimbleWimble, Bulletproofs). Evaluate the
trade-offs in terms of privacy, efficiency, scalability, and implementation complexity.
Exercise:
● Create a comparative chart that lists the advantages and disadvantages of each
technique in various blockchain applications (e.g., financial transactions, voting,
supply chain tracking).
● Analyze which privacy technique is best suited for different use cases, such as
high-frequency transactions versus low-latency smart contracts.

12. Implement Privacy-Preserving Smart Contracts

Objective: Design privacy-preserving smart contracts using techniques like zk-SNARKs or
homomorphic encryption. The goal is to ensure that smart contracts can perform private
operations (e.g., on private data or hidden transaction amounts) without revealing sensitive
information on the public blockchain.
Exercise:
 ● Explore how the design of privacy-preserving smart contracts could enhance
decentralized finance (DeFi) applications, such as private loans or anonymous trading.
● Investigate scalability challenges with privacy-preserving smart contracts and propose
optimizations.

13. Create a Privacy-Enhanced Cryptocurrency Using RingCT

Objective: Research and design a privacy-enhanced cryptocurrency using Ring Confidential
Transactions (RingCT), as used in Monero. This technique combines ring signatures with
confidential transactions, allowing users to hide both the sender’s identity and the transaction
amount.
Exercise:
● Propose enhancements to the basic RingCT scheme to further improve anonymity and
efficiency.
● Explore potential weaknesses or attacks on RingCT and suggest countermeasures.

14. Explore the Privacy Implications of Quantum Computing on

Blockchain
Objective: Investigate the potential impact of quantum computing on the privacy of current
blockchain protocols. Explore how quantum algorithms might break cryptographic schemes
like ECDSA or SHA-256 and propose quantum-resistant alternatives that maintain privacy in
a post-quantum world.
Exercise:
● Analyze which privacy mechanisms (e.g., zk-SNARKs, homomorphic encryption) are
most vulnerable to quantum attacks and propose quantum-safe replacements.
● Research ongoing developments in post-quantum cryptography and how they could
be integrated into blockchain protocols.

15. Research the Role of Privacy Coins in Financial Privacy

Objective: Research the role of privacy coins (e.g., Monero, Zcash) in enhancing financial
privacy for users. Analyze how these coins protect against surveillance and transaction
tracking by using privacy-preserving techniques like zk-SNARKs and RingCT.
Exercise:
● Compare the privacy models of different privacy coins and evaluate their
effectiveness in preventing transaction traceability.
 ● Explore potential regulations and challenges that privacy coins may face in the
context of legal and financial compliance.

1. Implement Oblivious RAM (ORAM) for Blockchain Data Privacy

Objective: Design an Oblivious RAM (ORAM) protocol that hides the access pattern of
data storage and retrieval on a blockchain. ORAM ensures that an adversary cannot infer
which data has been accessed by observing the interaction between the user and the
blockchain.
Exercise:
● Implement a client-server model where the server (blockchain) holds the data, and the
client interacts with it using ORAM. Ensure that the client’s access patterns
(reads/writes) are hidden.
● Extend the ORAM to handle complex queries on blockchain data without revealing
access patterns.
● Explore efficiency improvements by integrating batching techniques to minimize
round-trip interactions.

2. Implement Differential Privacy for Blockchain Analytics

Objective: Design a system that applies Differential Privacy to on-chain data analytics. This
system allows users to derive meaningful statistics from blockchain data while ensuring that
no single transaction or participant can be uniquely identified.
Exercise:
● Implement a basic differential privacy mechanism, such as the Laplace Mechanism
or the Gaussian Mechanism, to add noise to blockchain transaction datasets.
● Extend the system to support different levels of privacy guarantees (ε-differential
privacy) depending on the sensitivity of the query.
● Test the system with real-world blockchain transaction data, and explore the trade-offs
between privacy and the utility of the results.

3. Simulate Threshold Cryptography for Distributed Key Management

Objective: Design a system using Threshold Cryptography, where a private key is shared
among multiple parties (nodes), and a minimum number of them (threshold) must collaborate
to perform cryptographic operations like signing a transaction. This is crucial for
decentralized key management in blockchain.
Exercise:
 ● Implement a threshold signature scheme using Shamir’s Secret Sharing or
Threshold ECDSA, where the private key is divided among multiple parties.
● Simulate a distributed signing process where the minimum threshold of parties
collaborates to sign a blockchain transaction without reconstructing the full private
key.
● Extend the system to handle threshold decryption for sensitive data stored on the
blockchain.

4. Implement Private Information Retrieval (PIR) for Blockchain

Objective: Develop a Private Information Retrieval (PIR) system, allowing users to
retrieve data from a blockchain without revealing which data they are querying. This
technique is essential for protecting the privacy of users accessing specific blockchain
records.
Exercise:
● Implement a basic PIR scheme where a client queries the blockchain without
revealing which specific data is being requested.
● Extend the system to handle multiple clients and optimize for performance,
minimizing communication overhead between the client and the blockchain.
● Explore integrating FHE (Fully Homomorphic Encryption) to enable more
advanced query operations on encrypted data.

5. Secure Aggregation for Private Blockchain Voting

Objective: Design a system using Secure Aggregation, which allows multiple users to
submit votes or other sensitive data to the blockchain in a way that preserves the privacy of
each individual’s input while still enabling the computation of the aggregated result.
Exercise:
● Implement a basic secure aggregation protocol where users submit their encrypted
votes, and the blockchain can compute the sum or average of these votes without
revealing individual inputs.
● Extend the protocol to handle more complex voting schemes, such as ranked-choice
voting or multi-option voting, while maintaining privacy.
● Test the protocol’s scalability and efficiency with a large number of participants.
6. Design Verifiable Delay Functions (VDFs) for Privacy-Enhanced
Blockchain Timelocks
Objective: Create a system that uses Verifiable Delay Functions (VDFs) to implement
timelocks on blockchain data. VDFs are cryptographic primitives that take a guaranteed
amount of time to compute but can be efficiently verified. They can be used to create
time-delayed access to information on the blockchain.
Exercise:
● Implement a VDF using a simple sequential squaring algorithm, where the result of
the computation can only be revealed after a set amount of time.
● Use the VDF to lock access to sensitive blockchain data (e.g., smart contract details or
transaction amounts), ensuring privacy until the time delay elapses.
● Extend the system to allow dynamic adjustment of the time delay based on network
conditions or user-defined parameters.

7. Develop Decentralized Identity (DID) Management for Private

Authentication
Objective: Design a Decentralized Identity (DID) system that allows users to authenticate
themselves privately on a blockchain without revealing their personal information. The
system should support self-sovereign identity, where users control their own identifiers and
credentials.
Exercise:
● Implement a DID management system where users can create and manage their
decentralized identifiers on a blockchain.
● Use Selective Disclosure to allow users to share only the necessary credentials for a
particular transaction, preserving the privacy of other personal data.
● Extend the system to include verifiable credentials, where third parties can issue
cryptographic proofs of the user’s attributes (e.g., age, citizenship) without revealing
sensitive information.

8. Implement Mix Networks for Transaction Anonymity

Objective: Simulate a Mix Network (or MixNet) for enhancing transaction anonymity on a
blockchain. In a MixNet, transactions are shuffled and forwarded through multiple
intermediary nodes to obfuscate the link between the sender and receiver.
Exercise:
 ● Implement a MixNet where blockchain transactions are anonymized by passing them
through a series of intermediate nodes. Each node re-encrypts and shuffles the
transactions before forwarding them to the next node.
● Extend the MixNet to handle multi-party transactions and analyze the impact on
transaction latency and anonymity.
● Simulate different adversarial scenarios (e.g., compromised nodes) and test the
robustness of the MixNet in maintaining transaction privacy.

9. Simulate Privacy-Preserving Auditing with Zero-Knowledge Range

Proofs
Objective: Design a system for privacy-preserving auditing of financial transactions on a
blockchain using Zero-Knowledge Range Proofs. These proofs allow auditors to verify that
a transaction amount lies within a certain range without revealing the exact amount.
Exercise:
● Implement a Zero-Knowledge Range Proof protocol to prove that a blockchain
transaction amount lies within a specific range (e.g., between 10 and 100 BTC)
without revealing the exact amount.
● Extend the system to allow auditors to verify multiple transactions simultaneously
while preserving the privacy of each transaction’s amount.
● Test the performance of range proofs with increasingly large ranges and analyze the
trade-off between privacy and computational efficiency.

10. Design Private NFTs Using Stealth Addresses

Objective: Develop a system for creating private non-fungible tokens (NFTs) using stealth
addresses. This ensures that the ownership and transfer history of the NFT remain private,
even on a public blockchain.
Exercise:
● Implement a stealth address mechanism for NFTs, where each transfer of the NFT
generates a new address, hiding the ownership history from the public blockchain.
● Extend the system to handle blind auctions for NFTs, where bidders can submit
anonymous bids without revealing their identities.
● Analyze the potential for scalability and privacy improvements in NFT marketplaces
using stealth addresses.
11. Privacy-Preserving Cross-Chain Transfers Using Atomic Swaps
Objective: Simulate a privacy-preserving atomic swap mechanism for cross-chain transfers
between different blockchains. Atomic swaps allow two parties to exchange assets on
different blockchains without trusting a third party, and this exercise adds privacy features to
prevent onlookers from learning the transaction details.
Exercise:
● Implement an atomic swap protocol where two parties exchange tokens between two
blockchains (e.g., Bitcoin and Ethereum) without revealing the transaction details to
external observers.
● Use Hash Time-Locked Contracts (HTLCs) in combination with Zero-Knowledge
Proofs to ensure that the swap occurs securely and privately.
● Extend the protocol to handle multi-party atomic swaps, where multiple users can
participate in cross-chain exchanges simultaneously.

12. Build a Privacy-Enhanced Decentralized Exchange (DEX)

Objective: Design a privacy-enhanced decentralized exchange (DEX) where users can
trade assets without revealing their identities or transaction details. The DEX should use
privacy-preserving techniques like Ring Signatures, Confidential Transactions, or
ZK-SNARKs to ensure that the trades are anonymous.
Exercise:
● Implement a simple DEX that uses RingCT (Ring Confidential Transactions) to hide
the identity of traders and the amounts being traded.
● Extend the DEX to support anonymous order books, where users can place bids and
asks without revealing their identities or the amounts being traded.
● Test the DEX’s scalability and analyze the trade-offs between privacy and trading
efficiency.

13. Create an Anonymous Blockchain Messaging System Using Chaumian

Mixes
Objective: Design an anonymous messaging system on a blockchain using Chaumian Mixes
to ensure that messages cannot be linked to their senders. Chaumian Mixes are a type of mix
network that adds cryptographic blinding to messages, making it impossible to trace
messages back to their original senders.
Exercise:
● Implement a Chaumian Mix system where users can send anonymous messages on
the blockchain. Each message is blinded using a cryptographic protocol before being
mixed and forwarded to the recipient.
 ● Extend the system to allow group messaging, where multiple users can send and
receive messages anonymously within a group.
● Analyze the system’s resistance to attacks, such as timing attacks or traffic analysis,
and propose improvements for enhanced anonymity.

14. Verifiable Computation for Privacy-Preserving Smart Contracts

Objective: Develop a system that uses verifiable computation to ensure that computations
performed by smart contracts on a blockchain are correct without revealing the underlying
data. Verifiable computation allows users to outsource computations to a smart contract while
ensuring that the results are correct and privacy-preserving.
Exercise:
● Implement a verifiable computation system using zk-SNARKs or zk-STARKs for a
privacy-preserving smart contract. The smart contract should be able to compute a
result without revealing the input data.
● Extend the system to support more complex smart contracts that handle multiple
inputs and outputs, while maintaining privacy and correctness guarantees.
● Analyze the performance of the verifiable computation system and explore
optimizations for large-scale smart contract computations.

15. Private Supply Chain Tracking with Blockchain

Objective: Design a privacy-preserving system for tracking assets in a supply chain on a
blockchain. The system should ensure that sensitive information, such as the origin and
movement of goods, is hidden from unauthorized parties while still allowing authorized
participants to verify the integrity of the supply chain.
Exercise:
● Implement a private supply chain tracking system where each asset’s movement is
recorded on the blockchain using Zero-Knowledge Proofs to hide the details of each
transaction.
● Extend the system to handle multiple participants in the supply chain, with selective
disclosure of information based on participants’ roles and permissions.
● Analyze the scalability of the system and explore how privacy-preserving techniques
can be applied to global supply chain networks.
1. Implement Blind Signatures for Anonymous Transactions
Objective: Design a system using Blind Signatures, where a signer can sign a message
without seeing the content. This technique is crucial for enabling anonymous credentials and
voting in blockchain systems.
Exercise:
● Implement a blind signature scheme where a user can blind a message, have it signed
by a third party, and later verify the signature without the third party knowing the
content of the message.
● Extend the system to allow anonymous token issuance where a central authority signs
tokens without knowing who received them.
● Explore how blind signatures can be integrated into a blockchain-based anonymous
voting system.

2. Secure Multi-Party Computation (SMPC) for Jointly Encrypted

Contract Execution
Objective: Create a system where multiple parties can jointly execute a smart contract using
Secure Multi-Party Computation (SMPC) without revealing their inputs to one another.
The goal is to allow private computations on shared data without disclosing the data itself.
Exercise:
● Implement an SMPC protocol that allows multiple users to input private data into a
smart contract, which computes the result (e.g., a joint investment or decision-making
outcome) without revealing individual inputs.
● Extend the system to support more complex contract logic (e.g., conditional execution
or multi-step workflows) while maintaining privacy.
● Explore how to optimize the protocol for performance and reduce communication
overhead between participants.

3. Private Blockchain Indexing with Encrypted Queries

Objective: Design a system for Private Blockchain Indexing, allowing users to query
blockchain data (e.g., transaction history, account balances) without revealing the content of
their queries. This is useful for building private analytics tools on public blockchains.
Exercise:
● Implement a system where users can submit encrypted queries to a blockchain
indexer, and the indexer returns encrypted results that only the querying user can
decrypt.
 ● Extend the system to handle complex queries (e.g., range queries or multiple
conditions) without revealing any details of the query or result to the indexer.
● Explore integrating homomorphic encryption or private information retrieval (PIR)
techniques to enhance query privacy.

4. Implement Group Signatures for Private Blockchain Membership

Objective: Design a system that uses Group Signatures to allow users to sign messages on
behalf of a group. The identity of the signer remains hidden within the group, providing
anonymity while still proving group membership.
Exercise:
● Implement a group signature scheme where users can sign a blockchain transaction
anonymously, and verifiers can confirm that the signature belongs to a valid group
member without knowing the exact identity.
● Extend the system to support revocation, where specific group members can be
revoked from the group, and their signatures become invalid.
● Explore how group signatures could be used in decentralized autonomous
organizations (DAOs) to allow private voting or decision-making.

5. Simulate Blind Auctions for Private Bidding on Blockchain

Objective: Create a Blind Auction system where users can submit private bids for an item
on the blockchain without revealing their bid amounts until the auction is over. The
auctioneer should not know the bid values during the auction.
Exercise:
● Implement a blind auction protocol where users encrypt their bids and submit them to
the blockchain. After the bidding phase ends, the encrypted bids are revealed and
compared to determine the winner.
● Extend the system to handle multiple auction items, ensuring privacy for all bidders
across different auctions.
● Explore integrating zero-knowledge proofs to verify that all bids meet certain
conditions (e.g., valid bid range) without revealing the actual bid values.

6. Implement Oblivious Transfer for Private Data Sharing

Objective: Design a system using Oblivious Transfer (OT), where a sender has multiple
pieces of data, and a receiver can choose one piece to receive without the sender knowing
which piece was chosen. This is useful for private data sharing in blockchain environments.
Exercise:
● Implement a 1-out-of-2 oblivious transfer protocol where a sender has two pieces of
data, and the receiver can retrieve one piece without the sender knowing which one
was retrieved.
● Extend the system to support 1-out-of-N oblivious transfer, where the sender holds N
pieces of data, and the receiver can privately choose one.
● Explore how oblivious transfer could be used in blockchain-based private data
marketplaces, where buyers can purchase data without revealing which specific data
they are interested in.

7. Design Time-Lock Encryption for Delayed Access to Blockchain Data

Objective: Create a system using Time-Lock Encryption, where data is encrypted in such a
way that it can only be decrypted after a specific amount of time has passed. This can be used
for delayed transactions or smart contract execution.
Exercise:
● Implement a time-lock encryption scheme where a piece of data (e.g., a transaction or
smart contract output) is encrypted and can only be decrypted after a certain time
delay, using a cryptographic puzzle (e.g., repeated squaring).
● Extend the system to allow users to create smart contracts with time-locked execution,
where certain conditions or payments are only revealed after the time delay elapses.
● Explore how time-lock encryption can be applied to secure voting systems or auctions
where results are hidden until the voting or bidding period ends.

8. Implement Zero-Knowledge Accumulators for Private Blockchain

Membership
Objective: Design a system using Zero-Knowledge Accumulators to allow blockchain
users to prove membership in a set (e.g., being a valid token holder or group member)
without revealing their identity or specific membership details.
Exercise:
● Implement a zero-knowledge accumulator that allows users to prove they are part of a
set (e.g., token holders) without revealing their individual identities.
● Extend the system to support dynamic membership, where users can be added or
removed from the set without affecting existing proofs of membership.
● Explore how zero-knowledge accumulators could be used to enhance privacy in
decentralized finance (DeFi) platforms, allowing private verification of token
ownership or staking participation.
9. Multi-Party Threshold Decryption for Private Key Sharing
Objective: Develop a system using Multi-Party Threshold Decryption, where a secret
(e.g., a private key or encrypted message) is shared among multiple parties, and a minimum
number of them (threshold) must collaborate to decrypt the secret. This is useful for
managing private keys in decentralized settings.
Exercise:
● Implement a threshold decryption scheme where a private key or encrypted message
is split among multiple parties, and only when the threshold number of parties agrees
can the secret be reconstructed.
● Extend the system to support dynamic thresholds, where the number of required
parties can change over time based on the network or governance decisions.
● Explore how multi-party threshold decryption could be used for managing
multi-signature wallets or shared access to sensitive data in a decentralized
environment.

10. Private Stablecoins with Zero-Knowledge Proofs for Transaction

Amounts
Objective: Design a Private Stablecoin system where transaction amounts are hidden using
Zero-Knowledge Proofs, but the stability of the coin's value is maintained. This system
should ensure both privacy and the ability to audit the supply of the stablecoin.
Exercise:
● Implement a private stablecoin where transaction amounts are hidden using
zero-knowledge range proofs, but users can still verify that the total supply of
stablecoins remains stable and correctly pegged to an external asset.
● Extend the system to allow private minting and burning of stablecoins, ensuring that
the amount of stablecoins in circulation can be verified without revealing individual
transaction amounts.
● Explore how this private stablecoin system could be integrated with DeFi protocols,
allowing private lending, borrowing, or trading of stablecoins while maintaining
privacy and stability guarantees.

11. Privacy-Preserving Distributed Ledger for Supply Chain Tracking

Objective: Design a privacy-preserving distributed ledger for supply chain tracking,
where multiple parties can share data about goods (e.g., origin, movement, and ownership)
without revealing sensitive business information.
Exercise:
● Implement a distributed ledger that allows supply chain participants to track goods
privately, using zero-knowledge proofs or homomorphic encryption to ensure that
only authorized parties can verify the provenance and movement of goods.
● Extend the system to handle complex supply chains with multiple tiers of suppliers,
manufacturers, and distributors, while ensuring privacy for each party's data.
● Explore how privacy-preserving supply chain tracking can be integrated with Internet
of Things (IoT) devices to automate the verification of goods without revealing
sensitive data.

12. Design Private Multi-Party Token Issuance on a Blockchain

Objective: Create a system that allows multiple parties to collaboratively issue tokens on a
blockchain while keeping certain aspects of the issuance (e.g., individual contributions)
private. This is useful for privacy-preserving fundraising or token sales.
Exercise:
● Implement a token issuance protocol where multiple parties contribute funds to issue
tokens, but their individual contributions remain private. The total supply of tokens is
publicly verifiable.
● Extend the system to support private token transfers, where the transaction amounts
are hidden but the total supply of tokens remains consistent and verifiable.
● Explore how this protocol could be used for decentralized fundraising or Initial Coin
Offerings (ICOs) where contributors wish to remain anonymous.

13. Privacy-Preserving Access Control for Decentralized Applications

(dApps)
Objective: Develop a privacy-preserving access control system for decentralized
applications (dApps), where users can prove they have access rights (e.g., ownership of a
token or membership in a group) without revealing their identities.
Exercise:
● Implement an access control system using zero-knowledge proofs, where users can
prove they have the right to access a dApp or service without revealing their identity
or membership details.
● Extend the system to support multiple levels of access, allowing users to prove
different levels of privilege (e.g., basic access vs. admin access) while maintaining
privacy.
● Explore how this system could be integrated with decentralized identity (DID)
systems to allow private authentication across multiple dApps.
14. Private Blockchain Analytics Using Secure Multi-Party Computation
Objective: Design a system for performing private blockchain analytics using Secure
Multi-Party Computation (SMPC), allowing multiple participants to jointly analyze
blockchain data without revealing their individual inputs.
Exercise:
● Implement an SMPC protocol where multiple analysts can collaboratively compute
analytics (e.g., transaction trends, token flows) on blockchain data without revealing
the underlying data to each other.
● Extend the system to support more complex analytics operations, such as predictive
modeling or anomaly detection, while maintaining privacy for the data inputs.
● Explore how SMPC-based blockchain analytics can be applied to decentralized
finance (DeFi) platforms, allowing private analysis of market trends without revealing
individual positions or trades.

15. Privacy-Preserving Multi-Party Computation for Decentralized

Finance (DeFi) Protocols
Objective: Design a privacy-preserving multi-party computation (MPC) system for DeFi
protocols, allowing users to collaborate in performing complex financial operations (e.g.,
liquidity provision, collateral management) without revealing individual contributions or
positions.
Exercise:
● Implement an MPC protocol that allows multiple users to pool funds into a DeFi
protocol (e.g., a liquidity pool or lending platform) without revealing their individual
contributions or positions.
● Extend the system to handle more complex financial operations, such as automated
market-making or collateralized debt positions, while ensuring that user positions
remain private.
● Explore how privacy-preserving MPC could enhance the security and privacy of
decentralized exchanges (DEXs) or lending platforms, preventing frontrunning and
data leakage.

1. Integrate Tor for Anonymous Blockchain Node Communication

Objective: Set up a Tor-based communication network for blockchain nodes, ensuring that
the IP addresses of nodes remain hidden. This exercise is aimed at building an anonymous
peer-to-peer network for decentralized blockchains.
Exercise:
● Set up a blockchain node that routes its communications through Tor. Use the stem or
torpy Python libraries to control Tor and ensure the blockchain node communicates
anonymously.
● Extend the system to allow multiple blockchain nodes to communicate over the Tor
network while hiding their identities and locations.
● Test the impact of routing through Tor on network performance, including latency and
throughput, and analyze the trade-offs between privacy and efficiency.
Bonus:
● Explore setting up hidden services (onion addresses) for blockchain nodes to enhance
privacy further.
● Implement a mechanism where blockchain transactions can be broadcast over the Tor
network to avoid linking transaction origin to an IP address.

2. Implement RandomX Mining for a Privacy-Centric Blockchain

Objective: Integrate RandomX, a proof-of-work (PoW) algorithm designed for CPU mining,
into a privacy-focused blockchain. RandomX is used by Monero to enhance decentralization
by making CPU mining more efficient and ASIC-resistant.
Exercise:
● Implement the RandomX PoW algorithm using Python bindings for C libraries (like
ctypes or cffi). Ensure that miners can solve cryptographic puzzles to mine new
blocks.
● Simulate a small blockchain network where miners use RandomX to verify
transactions and add blocks. Test the mining difficulty and block time adjustments as
new miners join the network.
● Extend the system to benchmark the performance of RandomX mining on different
CPUs and analyze how it affects decentralization and security in the network.
Bonus:
● Explore integrating privacy features like Ring Signatures or Confidential
Transactions to make the mining process and transaction verification more
privacy-friendly.
● Create an analysis tool that tracks how different hardware performs under RandomX
mining conditions and compare results for CPU mining vs. GPU mining.
3. Build a Private Blockchain Using Tor for Transaction Broadcasting
Objective: Design a private blockchain where transactions are broadcasted using the Tor
network to ensure anonymity. This exercise focuses on hiding the IP addresses of participants
involved in the transaction and validation process.
Exercise:
● Set up a private blockchain where users can submit transactions over the Tor network.
Ensure that both the transaction submission and validation processes are anonymized
by routing traffic through Tor.
● Implement a monitoring system that tracks the number of transaction broadcasts and
relays through Tor to analyze anonymity levels in the network.
● Extend the system to allow anonymous validators/miners who also use Tor to connect
to the blockchain and verify transactions.
Bonus:
● Use Tor hidden services to set up a private blockchain explorer accessible only
through the Tor network. This explorer should allow users to view transactions and
block data anonymously.
● Implement Tor circuit building for complex multi-hop relay networks to further
improve the anonymity of nodes and transaction broadcasters.

4. Simulate a Password-Protection Scheme for Wallets Using Scrypt

Objective: Implement a password-protection scheme for a blockchain wallet using Scrypt,
a key derivation function that makes brute-force attacks computationally expensive. This will
ensure that wallet files are securely encrypted with strong password protection.
Exercise:
● Implement wallet encryption where a password is hashed using Scrypt before being
used to encrypt the private key stored in the wallet. Use Python’s hashlib or pyscrypt
library to perform the Scrypt hashing.
● Test the password protection scheme by simulating brute-force attacks with and
without Scrypt. Measure how Scrypt’s memory-hard properties slow down attack
attempts.
● Extend the system to handle password recovery using Scrypt, ensuring that the
hashing mechanism remains secure but allowing for secure retrieval of lost
passwords.
Bonus:
● Compare Scrypt with other key derivation functions like PBKDF2 and Argon2 to
analyze their performance and security in protecting blockchain wallets.
 ● Implement a feature that detects excessive failed login attempts and temporarily locks
the wallet to prevent brute-force attacks.

5. Build a Private Mining Pool Using RandomX and Scrypt

Objective: Create a private mining pool for a RandomX-based cryptocurrency that uses
Scrypt for password protection of mining pool accounts. This exercise combines both PoW
algorithms to build a secure and private mining infrastructure.
Exercise:
● Set up a mining pool where users contribute their CPU power to mine
RandomX-based blocks. The mining pool should use Scrypt to hash and securely
store user credentials.
● Implement a reward distribution mechanism where the mined blocks are shared
among the pool participants based on their contribution, and user accounts are
protected using Scrypt.
● Extend the system to allow anonymous participation in the mining pool using Tor,
ensuring that miners' IP addresses are hidden when contributing to the pool.
Bonus:
● Implement a leader election mechanism within the mining pool where the pool leader
(the one who submits the block) is chosen using privacy-preserving techniques like
Verifiable Random Functions (VRFs).
● Test how scaling the mining pool affects the network's anonymity and performance,
particularly focusing on the relationship between the number of participants and the
efficiency of RandomX mining.

6. Use Tor for Decentralized Voting in a Blockchain Governance System

Objective: Design a decentralized voting system for blockchain governance where votes
are submitted anonymously over the Tor network, ensuring that the identity of voters remains
private.
Exercise:
● Implement a decentralized voting system where blockchain governance decisions
(e.g., protocol changes, treasury allocations) are made by anonymous voters. All votes
are submitted through the Tor network to prevent linking the vote to any specific
participant.
● Extend the system to handle different voting schemes, such as quadratic voting or
ranked-choice voting, while maintaining voter anonymity through Tor.
● Analyze how voting performance is affected by the use of Tor, particularly focusing
on the latency of vote submission and tallying.
Bonus:
● Use zk-SNARKs to ensure that the votes are counted correctly while maintaining the
privacy of individual votes.
● Implement a transparent audit mechanism where any user can verify the election's
integrity without revealing the votes themselves.

7. Simulate a Privacy-Focused Cryptocurrency Wallet with Tor, RandomX,

and Scrypt
Objective: Build a privacy-focused cryptocurrency wallet that integrates Tor for
anonymous communication, RandomX for mining, and Scrypt for secure password
protection. This exercise combines multiple privacy-enhancing techniques in a single wallet
application.
Exercise:
● Implement a cryptocurrency wallet that uses Tor to connect to the blockchain
network, ensuring that all transactions and communications are anonymous.
● Allow users to participate in RandomX-based mining from within the wallet,
contributing CPU resources to mine blocks directly.
● Use Scrypt to secure the wallet’s private keys with password protection, ensuring that
only the owner of the wallet can access the keys.
Bonus:
● Add an optional stealth address feature to the wallet, allowing users to generate new
anonymous addresses for each transaction.
● Integrate a feature that allows users to broadcast their transactions through Tor
hidden services, further enhancing the privacy of transaction broadcasts.

8. Create a Privacy-Preserving Blockchain-Based File Storage System

Using Tor
Objective: Design a decentralized file storage system that uses blockchain for verification
and Tor for privacy-preserving file transfers. The system should ensure that file uploads and
downloads remain anonymous.
Exercise:
● Implement a file storage system where users can upload and store files using
blockchain smart contracts for verification (e.g., to ensure file integrity) and Tor to
anonymize the file transfer process.
 ● Extend the system to support sharded file storage, where files are split into multiple
pieces and distributed across different nodes, ensuring that no single node can access
the entire file.
● Implement a reward mechanism where storage providers are compensated for hosting
file shards, and users can pay for storage services while maintaining privacy.
Bonus:
● Use Scrypt to encrypt files before upload, ensuring that only authorized users with
the correct password can decrypt the stored files.
● Test the system with large files and analyze the impact of using Tor on
upload/download speeds and storage provider reliability.

9. Secure Blockchain Messaging with Tor and RandomX-Based

Proof-of-Work
Objective: Create a secure messaging system on top of a blockchain, where messages are
routed through Tor for anonymity, and RandomX is used as a PoW system to prevent spam.
Exercise:
● Implement a blockchain-based messaging platform where users can send messages to
one another. All messages are routed through Tor to ensure that the sender and
recipient remain anonymous.
● Use RandomX as a proof-of-work system to require senders to solve a computational
puzzle before sending a message, preventing spam and denial-of-service (DoS)
attacks.
● Extend the system to handle group messaging, where multiple participants can
securely and anonymously exchange messages within a group chat.
Bonus:
● Add an encryption layer to the messaging system using Scrypt to derive encryption
keys from passwords, ensuring that only the intended recipient can read the message.
● Explore implementing message expiration by using a time-lock encryption system,
where messages can only be decrypted after a certain time has passed.

10. Combine Tor, RandomX, and Scrypt for Anonymous Smart Contract
Execution
Objective: Design a system where smart contracts are executed anonymously using Tor for
private communication, RandomX for miner verification, and Scrypt for secure access
control.
Exercise:
 ● Implement a blockchain-based platform where users can create and execute smart
contracts anonymously. All interactions with the smart contracts are routed through
Tor to ensure that the identities of participants are hidden.
● Use RandomX as a PoW system to verify the execution of smart contracts, ensuring
that only valid computations are accepted by the network.
● Protect access to certain smart contracts with Scrypt-based password authentication,
ensuring that only authorized users can interact with restricted contracts.
Bonus:
● Extend the system to allow multiple users to jointly execute complex smart contracts
(e.g., multi-signature wallets or decentralized exchanges) while maintaining full
anonymity.
● Analyze the scalability of the system, particularly focusing on how the use of Tor and
RandomX affects the speed and cost of smart contract execution.

11. Simulate a Private Proof-of-Stake (PoS) Blockchain with Tor and

RandomX
Objective: Create a private Proof-of-Stake (PoS) blockchain where validators use Tor for
anonymous communication, and RandomX is used to create PoW challenges that prevent
Sybil attacks. The system should ensure that the identities of validators are hidden.
Exercise:
● Implement a PoS blockchain where validators use Tor to communicate with the
network anonymously. The PoS algorithm should ensure that validators are chosen
based on their stake, but their identities are hidden.
● Use RandomX to create PoW challenges that validators must solve in addition to
providing proof of stake, ensuring that malicious actors cannot create multiple
identities (Sybil attacks) to manipulate the network.
● Extend the system to support anonymous delegation, where users can delegate their
stake to anonymous validators without revealing their identity.
Bonus:
● Test how using Tor for validator communication affects the overall performance of
the PoS blockchain (e.g., block times and network latency).
● Implement a privacy-preserving reward distribution system, where validator
rewards are distributed anonymously to avoid linking validators to specific addresses.