Papers tagged as Blockchains
  1. Pixel: Multi-signatures for Consensus 2020 Blockchains CryptocurrencyScaling ProofOfStake Signatures Usenix
    Manu Drijvers, Sergey Gorbunov, Gregory Neven, and Hoeteck Wee

    In Proof-of-Stake (PoS) and permissioned blockchains, a committee of verifiers agrees and sign every new block of transactions. These blocks are validated, propagated, and stored by all users in the network. However, posterior corruptions pose a common threat to these designs, because the adversary can corrupt committee verifiers after they certified a block and use their signing keys to certify a different block. Designing efficient and secure digital signatures for use in PoS blockchains can substantially reduce bandwidth, storage and computing requirements from nodes, thereby enabling more efficient applications.

    We present Pixel, a pairing-based forward-secure multi-signature scheme optimized for use in blockchains, that achieves substantial savings in bandwidth, storage requirements, and verification effort. Pixel signatures consist of two group elements, regardless of the number of signers, can be verified using three pairings and one exponentiation, and support non-interactive aggregation of individual signatures into a multi-signature. Pixel signatures are also forward-secure and let signers evolve their keys over time, such that new keys cannot be used to sign on old blocks, protecting against posterior corruptions attacks on blockchains. We show how to integrate Pixel into any PoS blockchain. Next, we evaluate Pixel in a real-world PoS blockchain implementation, showing that it yields notable savings in storage, bandwidth, and block verification time. In particular, Pixel signatures reduce the size of blocks with 1500 transactions by 35% and reduce block verification time by 38%.

  2. The Honey Badger of BFT Protocols 2016 BFT Blockchains CCS
    Andrew Miller, Yu Xia, Kyle Croman, Elaine Shi, Dawn Song

    The surprising success of cryptocurrencies has led to a surge of interest in deploying large scale, highly robust, Byzantine fault tolerant (BFT) proto- cols for mission-critical applications, such as finan- cial transactions. Although the conventional wisdom is to build atop a (weakly) synchronous protocol such as PBFT (or a variation thereof), such protocols rely critically on network timing assumptions, and only guarantee liveness when the network behaves as ex- pected. We argue these protocols are ill-suited for this deployment scenario.

    We present an alternative, HoneyBadgerBFT, the first practical asynchronous BFT protocol, which guarantees liveness without making any timing as- sumptions. We base our solution on a novel atomic broadcast protocol that achieves optimal asymptotic efficiency. We present an implementation and ex- perimental results to show our system can achieve throughput of tens of thousands of transactions per second, and scales to over a hundred nodes on a wide area network. We even conduct BFT experi- ments over Tor, without needing to tune any parame- ters. Unlike the alternatives, HoneyBadgerBFT sim- ply does not care about the underlying network.

  3. A Secure Sharding Protocol For Open Blockchains 2016 Blockchains CCS CryptocurrencyScaling
    Loi Luu, Viswesh Narayanan, Chaodong Zheng, Kunal Baweja, Seth Gilbert, Prateek Saxena

    Cryptocurrencies, such as Bitcoin and 250 similar alt-coins, embody at their core a blockchain protocol — a mechanism for a distributed network of computational nodes to periodically agree on a set of new transactions. Designing a secure blockchain protocol relies on an open challenge in security, that of designing a highly-scalableagreement protocol open to manipulation by byzantine or arbitrarily malicious nodes. Bitcoin’s blockchain agreement protocol exhibits security, but does not scale: it processes 3–7 transactions per second at present, irrespective of the available computation capacity at hand.

    In this paper, we propose a new distributed agreement protocol for permission-less blockchains called ELASTICO. ELASTICO scales transaction rates almost linearly with available computation for mining: the more the computation power in the network, the higher the number of transaction blocks selected per unit time. ELASTICO is efficient in its network messages and tolerates byzantine adversaries of up to one-fourth of the total computational power. Technically, ELASTICO uniformly partitions or parallelizes the mining network (securely) into smaller committees, each of which processes a disjoint set of transactions (or “shards”). While sharding is common in non-byzantine settings, ELASTICO is the first candidate for a secure sharding protocol with presence of byzantine adversaries. Our scalability experiments on Amazon EC2 with up to $1, 600$ nodes confirm ELASTICO’s theoretical scaling properties.

  4. On the Security and Performance of Proof of Work Blockchains 2016 Blockchains CCS ProofOfWork
    Arthur Gervais, Ghassan O. Karame, Karl Wüst, Vasileios Glykantzis, Hubert Ritzdorf, Srdjan Capkun

    Proof of Work (PoW) powered blockchains currently account for more than 90% of the total market capitalization of existing digital currencies. Although the security provisions of Bitcoin have been thoroughly analysed, the security guarantees of variant (forked) PoW blockchains (which were instantiated with different parameters) have not received much attention in the literature.

    In this paper, we introduce a novel quantitative framework to analyse the security and performance implications of various consensus and network parameters of PoW blockchains. Based on our framework, we devise optimal adversarial strategies for double-spending and selfish mining while taking into account real world constraints such as network propagation, different block sizes, block generation intervals, information propagation mechanism, and the impact of eclipse attacks. Our framework therefore allows us to capture existing PoW-based deployments as well as PoW blockchain variants that are instantiated with different parameters, and to objectively compare the tradeoffs between their performance and security provisions.

  5. Ouroboros Genesis: Composable Proof-of-Stake Blockchains with Dynamic Availability 2018 Blockchains CCS
    Christian Badertscher, Peter Gazi, Aggelos Kiayias, Alexander Russell, and Vassilis Zikas

    Proof-of-stake-based (in short, PoS-based) blockchains aim to overcome scalability, effi- ciency, and composability limitations of the proof-of-work paradigm, which underlies the security of several mainstream cryptocurrencies including Bitcoin. Our work puts forth the first (global universally) composable (GUC) treatment of PoS-based blockchains in a setting that captures—for the first time in GUC—arbitrary numbers of parties that may not be fully operational, e.g., due to network problems, reboots, or updates of their OS that affect all or just some of their local resources including their network interface and clock. This setting, which we refer to as dynamic availability, naturally captures decentralized environments within which real-world deployed blockchain protocols are assumed to operate. We observe that none of the existing PoS-based blockchain protocols can realize the ledger functionality under dynamic availability in the same way that bitcoin does (using only the information available in the genesis block). To address this we propose a new PoS-based protocol, “Ouroboros Genesis”, that adapts one of the latest cryptographically-secure PoS-based blockchain protocols with a novel chain selection rule. The rule enables new or offline parties to safely (re-)join and bootstrap their blockchain from the genesis block without any trusted advice—such as checkpoints—or assumptions regarding past availability. We say that such a blockchain protocol can “bootstrap from genesis.” We prove the GUC security of Ouroboros Genesis against a fully adaptive adversary controlling less than half of the total stake. Our model allows adversarial scheduling of messages in a network with delays and captures the dynamic availability of participants in the worst case. Importantly, our protocol is effectively independent of both the maximum network delay and the minimum level of availability— both of which are run-time parameters. Proving the security of our construction against an adaptive adversary requires a novel martingale technique that may be of independent interest in the analysis of blockchain protocols.

  6. Improving Authenticated Dynamic Dictionaries, with Applications to Cryptocurrencies 2017 Blockchains FinancialCryptography
    Leonid Reyzin, Dmitry Meshkov, Alexander Chepurnoy, Sasha Ivanov

    We improve the design and implementation of two-party and three-party authenticated dynamic dictionaries and apply these dictionaries to cryptocurrency ledgers.

    A public ledger (blockchain) in a cryptocurrency needs to be easily verifiable. However, maintaining a data structure of all account balances, in order to verify whether a transaction is valid, can be quite burdensome: a verifier who does not have the large amount of RAM required for the data structure will perform slowly because of the need to continually access secondary storage. We demonstrate experimentally that authenticated dynamic dictionaries can considerably reduce verifier load. On the other hand, per-transaction proofs generated by authenticated dictionaries increase the size of the blockchain, which motivates us to find a solution with most compact proofs.

    Our improvements to the design of authenticated dictionaries reduce proof size and speed up verification by 1.4-2.5 times, making them better suited for the cryptocurrency application. We further show that proofs for multiple transactions in a single block can compressed together, reducing their total length by approximately an additional factor of 2.

    We simulate blockchain verification, and show that our verifier can be about 20 times faster than a disk-bound verifier under a realistic transaction load.

  7. Fast Secure Multiparty ECDSA with Practical Distributed Key Generation and Applications to Cryptocurrency Custody 2018 Blockchains CCS EllipticCurves MPC Signatures
    Yehuda Lindell, Ariel Nof, and Samuel Ranellucci

    ECDSA is a standardized signing algorithm that is widely used in TLS, code signing, cryptocurrency and more. Due to its importance, the problem of securely computing ECDSA in a distributed manner (known as threshold signing) has received considerable interest. However, despite this interest, there is still no full threshold solution for more than 2 parties (meaning that any t-out-of-n parties can sign, security is preserved for any t−1 or fewer corrupted parties, and t≤n can be any value thus supporting an honest minority) that has practical key distribution. This is due to the fact that all previous solutions for this utilize Paillier homomorphic encryption, and efficient distributed Paillier key generation for more than two parties is not known.

    In this paper, we present the first truly practical full threshold ECDSA signing protocol that has both fast signing and fast key distribution. This solves a years-old open problem, and opens the door to practical uses of threshold ECDSA signing that are in demand today. One of these applications is the construction of secure cryptocurrency wallets (where key shares are spread over multiple devices and so are hard to steal) and cryptocurrency custody solutions (where large sums of invested cryptocurrency are strongly protected by splitting the key between a bank/financial institution, the customer who owns the currency, and possibly a third-party trustee, in multiple shares at each). There is growing practical interest in such solutions, but prior to our work these could not be deployed today due to the need for distributed key generation.

  8. A Smart Contract for Boardroom Voting with Maximum Voter Privacy 2017 Blockchains FinancialCryptography Privacy SmartContracts
    Patrick McCorry, Siamak Shahandashti, Feng Hao

    We present the first implementation of a decentralised and self-tallying internet voting protocol with maximum voter privacy using the Blockchain. The Open Vote Network is suitable for boardroom elec- tions and is written as a smart contract for Ethereum. Unlike previously proposed Blockchain e-voting protocols, this is the first implementation that does not rely on any trusted authority to compute the tally or to protect the voter’s privacy. Instead, the Open Vote Network is a self- tallying protocol, and each voter is in control of the privacy of their own vote such that it can only be breached by a full collusion involving all other voters. The execution of the protocol is enforced using the consensus mechanism that also secures the Ethereum blockchain. We tested the implementation on Ethereum’s official test network to demonstrate its feasibility. Also, we provide a financial and computational breakdown of its execution cost.

  9. Trust Is Risk: A Decentralized Financial Trust Platform 2017 Bitcoin Blockchains FinancialCryptography
    Orfeas Stefanos, Thyfronitis Litos, Dionysis Zindros

    Centralized reputation systems use stars and reviews and thus require algorithm secrecy to avoid manipulation. In autonomous open source decentralized systems this luxury is not available. We create a reputation network for decentralized marketplaces where the trust each user gives to the other users is quantifiable and expressed in monetary terms. We introduce a new model for bitcoin wallets in which user coins are split among trusted associates. Direct trust is defined using shared bitcoin accounts via bitcoin’s 1-of-2 multisig. Indirect trust is subsequently defined transitively. This enables formal game theoretic arguments pertaining to risk analysis. We prove that risk and maximum flows are equivalent in our model and that our system is Sybil-resilient. Our system allows for concrete financial decisions on the subjective monetary amount a pseudonymous party can be trusted with. Risk remains invariant under a direct trust redistribution operation followed by a purchase.

  10. Escrow protocols for cryptocurrencies: How to buy physical goods using Bitcoin 2017 Bitcoin Blockchains FinancialCryptography
    Steven Goldfeder, Joseph Bonneau, Rosario Gennaro, Arvind Narayanan

    We consider the problem of buying physical goods with cryptocurrencies. There is an inherent circular dependency: should be the buyer trust the seller and pay before receiving the goods or should the seller trust the buyer and ship the goods before receiving payment? This dilemma is addressed in practice using a third party escrow service. However, we show that naive escrow protocols introduce both privacy and security issues. We formalize the escrow problem and present a suite of schemes with improved security and privacy properties. Our schemes are compatible with Bitcoin and similar blockchain-based cryptocurrencies.

  11. Quisquis: A New Design for Anonymous Cryptocurrencies 2019 Asiacrypt Blockchains Privacy
    Prastudy Fauzi, Sarah Meiklejohn, Rebekah Mercer and Claudio Orlandi

    Despite their usage of pseudonyms rather than persistent identifiers, most existing cryptocurrencies do not provide users with any meaningful levels of privacy. This has prompted the creation of privacy-enhanced cryptocurrencies such as Monero and Zcash, which are specifically designed to counteract the tracking analysis possible in currencies like Bitcoin. These cryptocurrencies, however, also suffer from some drawbacks: in both Monero and Zcash, the set of potential unspent coins is always growing, which means users cannot store a concise representation of the blockchain. Additionally, Zcash requires a common reference string and the fact that addresses are reused multiple times in Monero has led to attacks to its anonymity.

    In this paper we propose a new design for anonymous cryptocurrencies, Quisquis, that achieves provably secure notions of anonymity. Quisquis stores a relatively small amount of data, does not require trusted setup, and in Quisquis each address appears on the blockchain at most twice: once when it is generated as output of a transaction, and once when it is spent as input to a transaction. Our result is achieved by combining a DDH-based tool (that we call updatable keys) with efficient zero-knowledge arguments.

  12. The Proof is in the Pudding: Proofs of Work for Solving Discrete Logarithms 2019 Blockchains DLP FinancialCryptography ProofOfWork
    Marcella Hastings, Nadia Heninger, and Eric Wustrow

    We propose a proof of work protocol that computes the discrete logarithm of an element in a cyclic group. Individual provers generating proofs of work perform a distributed version of the Pollard rho algorithm. Such a protocol could capture the computational power expended to construct proof-of-work-based blockchains for a more useful purpose, as well as incentivize advances in hardware, software, or algorithms for an important cryptographic problem. We describe our proposed construction and elaborate on challenges and potential trade-offs that arise in designing a practical proof of work.

  13. ROYALE: A Framework for Universally Composable Card Games with Financial Rewards and Penalties Enforcement 2019 Blockchains FinancialCryptography UC
    Bernardo David, Rafael Dowsley, and Mario Larangeira

    While many tailor made card game protocols are known, the vast majority of those suffer from three main issues: lack of mechanisms for distributing financial rewards and punishing cheaters, lack of composability guarantees and little flexibility, focusing on the specific game of poker. Even though folklore holds that poker protocols can be used to play any card game, this conjecture remains unproven and, in fact, does not hold for a number of protocols (including recent results). We both tackle the problem of constructing protocols for general card games and initiate a treatment of such protocols in the Universal Composability (UC) framework, introducing an ideal functionality that captures general card games constructed from a set of core card operations. Based on this formalism, we introduce Royale, the first UC-secure general card games which supports financial rewards/penalties enforcement. We remark that Royale also yields the first UC-secure poker protocol. Interestingly, Royale performs better than most previous works (that do not have composability guarantees), which we highlight through a detailed concrete complexity analysis and benchmarks from a prototype implementation.

  14. ZLiTE: Lightweight Clients for Shielded Zcash Transactions using Trusted Execution 2019 Blockchains FinancialCryptography
    Karl Wüst, Sinisa Matetic, Moritz Schneider, Ian Miers, Kari Kostiainen, and Srdjan Capkun

    Cryptocurrencies record transactions between parties in a blockchain maintained by a peer-to-peer network. In most cryptocurrencies, transactions explicitly identify the previous transaction providing the funds they are spending, revealing the amount and sender/recipient pseudonyms. This is a considerable privacy issue. Zerocash resolves this by using zero-knowledge proofs to hide both the source, destination and amount of the transacted funds. To receive payments in Zerocash, however, the recipient must scan the blockchain, testing if each transaction is destined for them. This is not practical for mobile and other bandwidth constrained devices. In this paper, we build ZLiTE, a system that can support the so-called “light clients”, which can receive transactions aided by a server equipped with a Trusted Execution Environment. Even with the use of a TEE, this is not a trivial problem. First, we must ensure that server processing the blockchain does not leak sensitive information via side channels. Second, we need to design a bandwidth efficient mechanism for the client to keep an up-to-date version of the witness needed in order to spend the funds they previously received.

  15. An Exploration of Code Diversity in the Cryptocurrency Landscape 2019 Blockchains FinancialCryptography
    Pierre Reibel, Haaroon Yousaf, and Sarah Meiklejohn

    Interest in cryptocurrencies has skyrocketed since their introduction a decade ago, with hundreds of billions of dollars now invested across a landscape of thousands of different cryptocurrencies. While there is significant diversity, there is also a significant number of scams as people seek to exploit the current popularity. In this paper, we seek to identify the extent of innovation in the cryptocurrency landscape using the open-source repositories associated with each one. Among other findings, we observe that while many cryptocurrencies are largely unchanged copies of Bitcoin, the use of Ethereum as a platform has enabled the deployment of cryptocurrencies with more diverse functionalities.

  16. I Can’t Believe It’s Not Stake! Resource Exhaustion Attacks on PoS 2019 Blockchains FinancialCryptography ProofOfStake
    Sanket Kanjalkar, Joseph Kuo, Yunqi Li, and Andrew Miller

    We present a new resource exhaustion attack affecting several chain-based proof-of-stake cryptocurrencies, and in particular Qtum, a top 30 cryptocurrency by market capitalization ($300M as of Sep ’18). In brief, these cryptocurrencies do not adequately validate the proof-of-stake before allocating resources to data received from peers. An attacker can exploit this vulnerability, even without any stake at all, simply by connecting to a victim and sending malformed blocks, which the victim stores on disk or in RAM, eventually leading to a crash. We demonstrate and benchmark the attack through experiments attacking our own node on the Qtum main network; in our experiment we are able to fill the victim’s RAM at a rate of 2MB per second, or the disk at a rate of 6MB per second. We have begun a responsible disclosure of this vulnerability to appropriate development teams. Our disclosure includes a Docker-based reproducibility kit using the Python-based test framework. This problem has gone unnoticed for several years. Although the attack can be mitigated, this appears to require giving up optimizations enjoyed by proof-of-work cryptocurrencies, underscoring the difficulty in implementing and deploying chain-based proof-of-stake.

  17. Proof-of-Stake Protocols for Privacy-Aware Blockchains 2019 Blockchains Eurocrypt Privacy ProofOfStake
    Chaya Ganesh, Claudio Orlandi, and Daniel Tschudi

    Proof-of-stake (PoS) protocols are emerging as one of the most promising alternative to the wasteful proof-of-work (PoW) protocols for consensus in Blockchains (or distributed ledgers).

    However, current PoS protocols inherently disclose both the identity and the wealth of the stakeholders, and thus seem incompatible with privacy-preserving cryptocurrencies (such as ZCash, Monero, etc.).

    In this paper we initiate the formal study for PoS protocols with privacy properties. Our results include:

    • A (theoretical) feasibility result showing that it is possible to construct a general class of private PoS (PPoS) protocols; and to add privacy to a wide class of PoS protocols,

    • A privacy-preserving version of a popular PoS protocol, Ouroboros Praos.

    Towards our result, we define the notion of anonymous verifiable random function, which we believe is of independent interest.

  18. Snow White: Robustly Reconfigurable Consensus and Applications to Provably Secure Proofs of Stake 2019 Blockchains FinancialCryptography ProofOfStake
    Phil Daian, Rafael Pass, and Elaine Shi

    Decentralized cryptocurrencies have pushed deployments of distributed consensus to more stringent environments than ever before. Most existing protocols rely on proofs-of-work which require expensive computational puzzles to enforce, imprecisely speaking, “one vote per unit of computation”. The enormous amount of energy wasted by these protocols has been a topic of central debate, and well-known cryptocurrencies have announced it a top priority to alternative paradigms. Among the proposed alternative solutions, proofs-of-stake protocols have been of particular interest, where roughly speaking, the idea is to enforce “one vote per unit of stake”. Although the community have rushed to propose numerous candidates for proofs-of-stake, no existing protocol has offered formal proofs of security, which we believe to be a critical, indispensible ingredient of a distributed consensus protocol, particularly one that is to underly a high-value cryptocurrency system.

    In this work, we seek to address the following basic questions:

    • What kind of functionalities and robustness requirements should a consensus candidate offer to be suitable in a proof-of-stake application?

    • Can we design a provably secure protocol that satisfies these requirements?

    To the best of our knowledge, we are the first to formally articulate a set of requirements for consensus candidates for proofs-of-stake. We argue that any consensus protocol satisfying these properties can be used for proofs-of-stake, as long as money does not switch hands too quickly. Moreover, we provide the first consensus candidate that provably satisfies the desired robustness properties.

  19. Instantaneous Decentralized Poker 2017 Asiacrypt Blockchains MPC SmartContracts
    Iddo Bentov and Ranjit Kumaresan and Andrew Miller

    We present efficient protocols for amortized secure multiparty computation with penalties and secure cash distribution, of which poker is a prime example. Our protocols have an initial phase where the parties interact with a cryptocurrency network, that then enables them to interact only among themselves over the course of playing many poker games in which money changes hands. The high efficiency of our protocols is achieved by harnessing the power of stateful contracts. Compared to the limited expressive power of Bitcoin scripts, stateful contracts enable richer forms of interaction between standard secure computation and a cryptocurrency. We formalize the stateful contract model and the security notions that our protocols accomplish, and provide proofs in the simulation paradigm. Moreover, we provide a reference implementation in Ethereum/Solidity for the stateful contracts that our protocols are based on. We also adapt our off-chain cash distribution protocols to the special case of stateful duplex micropayment channels, which are of independent interest. In comparison to Bitcoin based payment channels, our duplex channel implementation is more efficient and has additional features.

  20. Ouroboros Praos: An adaptively-secure, semi-synchronous proof-of-stake protocol 2018 Blockchains Eurocrypt ProofOfStake
    Bernardo David, Peter Gaži, Aggelos Kiayias, and Alexander Russell

    We present “Ouroboros Praos”, a new proof-of-stake blockchain protocol that provides, for the first time, a robust distributed ledger that is provably secure in the semi-synchronous adversarial setting, i.e., assuming a delay \Delta in message delivery which is unknown to protocol participants, and fully adaptively secure, i.e., the adversary can choose to corrupt any participant of an ever evolving population of stakeholders at any moment as long the stakeholder distribution maintains an honest majority of stake at any given time. To achieve that, our protocol puts to use forward secure digital signatures and a new type of verifiable random functions that maintains unpredictability under malicious key generation, a property we introduce and instantiate in the random oracle model. Our security proof entails a combinatorial analysis of a class of forkable strings tailored to semi-synchronous blockchains that may be of independent interest in the context of security analysis of blockchain protocols.

  21. Thunderella: Blockchains with Optimistic Instant Confirmation 2018 Blockchains Eurocrypt
    Rafael Pass and Elaine Shi

    State machine replication, or “consensus”, is a central abstraction for distributed systems where a set of nodes seek to agree on an ever-growing, linearly-ordered log. In this paper, we propose a practical new paradigm called Thunderella for achieving state machine replication by combining a fast, asynchronous path with a (slow) synchronous “fall-back” path (which only gets executed if something goes wrong); as a consequence, we get simple state machine replications that essentially are as robust as the best synchronous protocols, yet “optimistically” (if a super majority of the players are honest), the protocol “instantly” confirms transactions. We provide instantiations of this paradigm in both permissionless (using proof-of-work) and permissioned settings. Most notably, this yields a new blockchain protocol (for the permissionless setting) that remains resilient assuming only that a majority of the computing power is controlled by honest players, yet optimistically—if 3/4 of the computing power is controlled by honest players, and a special player called the “accelerator”, is honest—transactions are confirmed as fast as the actual message delay in the network. We additionally show the 3/4 optimistic bound is tight for protocols that are resilient assuming only an honest majority.

  22. Decentralized Anonymous Micropayments 2017 Blockchains Eurocrypt PaymentChannels
    Alessandro Chiesa, Matthew Green, Jingcheng Liu, Peihan Miao, Ian Miers, and Pratyush Mishra

    Micropayments (payments worth a few pennies) have numerous potential applications. A challenge in achieving them is that payment networks charge fees that are high compared to “micro” sums of money.

    Wheeler (1996) and Rivest (1997) proposed probabilistic payments as a technique to achieve micropayments: a merchant receives a macro-value payment with a given probability so that, in expectation, he receives a micro-value payment. Despite much research and trial deployment, micropayment schemes have not seen adoption, partly because a trusted party is required to process payments and resolve disputes.

    The widespread adoption of decentralized currencies such as Bitcoin (2009) suggests that decentralized micropayment schemes are easier to deploy. Pass and Shelat (2015) proposed several micropayment schemes for Bitcoin, but their schemes provide no more privacy guarantees than Bitcoin itself, whose transactions are recorded in plaintext in a public ledger.

    We formulate and construct decentralized anonymous micropayment (DAM) schemes, which enable parties with access to a ledger to conduct offline probabilistic payments with one another, directly and privately. Our techniques extend those of Zerocash (2014) with a new probabilistic payment scheme; we further provide an efficient instantiation based on a new fractional message transfer protocol.

    Double spending in our setting cannot be prevented. Our second contribution is an economic analysis that bounds the additional utility gain of any cheating strategy, and applies to virtually any probabilistic payment scheme with offline validation. In our construction, this bound allows us to deter double spending by way of advance deposits that are revoked when cheating is detected.

  23. SilentWhispers: Enforcing Security and Privacy in Decentralized Credit Networks 2017 Blockchains NDSS Privacy
    Giulio Malavolta, Pedro Moreno-Sanchez, Aniket Kate, and Matteo Maffei

    Credit networks model transitive trust (or credit) between users in a distributed environment and have recently seen a rapid increase of popularity due to their flexible design and robustness against intrusion. They serve today as a backbone of real-world IOweYou transaction settlement networks such as Ripple and Stellar, which are deployed by various banks worldwide, as well as several other systems, such as spam-resistant communication protocols and Sybil-tolerant social networks. Current solutions, however, raise serious privacy concerns, as the network topology as well as the credit value of the links are made public for apparent transparency purposes and any changes are logged. In payment scenarios, for instance, this means that all transactions have to be public and everybody knows who paid what to whom.

    In this work, we question the necessity of a privacy-invasive transaction ledger. In particular, we present SilentWhispers, the first distributed, privacy-preserving credit network that does not require any ledger to protect the integrity of transactions. Yet, SilentWhispers guarantees integrity and privacy of link values and transactions even in the presence of distrustful users and malicious neighbors, whose misbehavior in changing link values is detected and such users can be held accountable. We formalize these properties as ideal functionalities in the universal composability framework and present a secure realization based on a novel combination of secret-sharing-based multiparty computation and digital signature chains. SilentWhispers can handle network churn, and it is efficient as demonstrated with a prototype implementation evaluated using payments data extracted from the currently deployed Ripple payment system.

  24. Solidus: Confidential Distributed Ledger Transactions via PVORAM 2017 Blockchains CCS Implementation ORAM
    Ethan Cecchetti, Fan Zhang, Yan Ji, Ahmed Kosba, Ari Juels, and Elaine Shi

    Blockchains and more general distributed ledgers are becoming increasingly popular as efficient, reliable, and persistent records of data and transactions. Unfortunately, they ensure reliability and correctness by making all data public, raising confidentiality concerns that eliminate many potential uses.

    In this paper we present Solidus, a protocol for confidential transactions on public blockchains, such as those required for asset transfers with on-chain settlement. Solidus operates in a framework based on real-world financial institutions: a modest number of banks each maintain a large number of user accounts. Within this framework, Solidus hides both transaction values and the transaction graph (i.e., the identities of transacting entities) while maintaining the public verifiability that makes blockchains so appealing. To achieve strong confidentiality of this kind, we introduce the concept of a Publicly-Verifiable Oblivious RAM Machine (PVORM). We present a set of formal security definitions for both PVORM and Solidus and show that our constructions are secure. Finally, we implement Solidus and present a set of benchmarks indicating that the system is efficient in practice.

  25. Practical UC-Secure Delegatable Credentials with Attributes and Their Application to Blockchain 2017 AnonymousCredentials Blockchains CCS UC
    Jan Camenisch, Manu Drijvers, and Maria Dubovitskaya

    Certification of keys and attributes is in practice typically realized by a hierarchy of issuers. Revealing the full chain of issuers for certificate verification, however, can be a privacy issue since it can leak sensitive information about the issuer’s organizational structure or about the certificate owner. Delegatable anonymous credentials solve this problem and allow one to hide the full delegation (issuance) chain, providing privacy during both delegation and presentation of certificates. However, the existing delegatable credentials schemes are not efficient enough for practical use.

    In this paper, we present the first hierarchical (or delegatable) anonymous credential system that is practical. To this end, we provide a surprisingly simple ideal functionality for delegatable credentials and present a generic construction that we prove secure in the UC model. We then give a concrete instantiation using a recent pairing-based signature scheme by Groth and describe a number of optimizations and efficiency improvements that can be made when implementing our concrete scheme. The latter might be of independent interest for other pairing-based schemes as well. Finally, we report on an implementation of our scheme in the context of transaction authentication for blockchain, and provide concrete performance figures.