Quantum computation represents a threat to many cryptographic protocols in operation today. It has been estimated that by 2035, there will exist a quantum computer capable of breaking the vital cryptographic scheme RSA2048. Blockchain technologies rely on cryptographic protocols for many of their essential sub-routines. Some of these protocols, but not all, are open to quantum attacks. Here we analyze the major blockchain-based cryptocurrencies deployed today -- including Bitcoin, Ethereum, Litecoin and ZCash, and determine their risk exposure to quantum attacks. We finish with a comparative analysis of the studied cryptocurrencies and their underlying blockchain technologies and their relative levels of vulnerability to quantum attacks.
Christian Bräm, Marco Eilers, Péter Müller, Robin Sierra · 5 authors
Smart contracts are programs that execute inside blockchains such as Ethereum to manipulate digital assets. Since bugs in smart contracts may lead to substantial financial losses, there is considerable interest in formally proving their correctness. However, the specification and verification of smart contracts faces challenges that do not arise in other application domains. Smart contracts frequently interact with unverified, potentially adversarial outside code, which substantially weakens the assumptions that formal analyses can (soundly) make. Moreover, the core functionality of smart contracts is to manipulate and transfer resources; describing this functionality concisely requires dedicated specification support. Current reasoning techniques do not fully address these challenges, being restricted in their scope or expressiveness (in particular, in the presence of re-entrant calls), and offering limited means of expressing the resource transfers a contract performs. In this paper, we present a novel specification methodology tailored to the domain of smart contracts. Our specification constructs and associated reasoning technique are the first to enable: (1) sound and precise reasoning in the presence of unverified code and arbitrary re-entrancy, (2) modular reasoning about collaborating smart contracts, and (3) domain-specific specifications based on resources and resource transfers, which allow expressing a contract's behavior in intuitive and concise ways and exclude typical errors by default. We have implemented our approach in 2vyper, an SMT-based automated verification tool for Ethereum smart contracts written in the Vyper language, and demonstrated its effectiveness in succinctly capturing and verifying strong correctness guarantees for real-world contracts.
We propose a novel framework for off-chain execution and verification of computationally-intensive smart contracts. Our framework is the first solution that avoids duplication of computing effort across multiple contractors, does not require trusted execution environments, supports computations that do not have deterministic results, and supports general-purpose computations written in a high-level language. Our experiments reveal that some intensive applications may require as much as 141 million gas, approximately 71x more than the current block gas limit for computation in Ethereum today, and can be avoided by utilizing the proposed framework.
Cryptocurrencies have received a lot of research attention in recent years following the release of the first cryp-tocurrency Bitcoin. With the rise in cryptocurrency transactions, the need for smart contracts has also increased. Smart contracts, in a nutshell, are digitally executed contracts wherein some parties execute a common goal. The main problem with most of the current smart contracts is that there is no privacy for a party's input to the contract from either the blockchain or the other parties. Our research builds on the Hawk project that provides transaction privacy along with support for smart contracts. However, Hawk relies on a special trusted party known as a manager, which must be trusted not to leak each party's input to the smart contract. In this paper, we present a practical private smart contract protocol that replaces the manager with an MPC protocol such that the function to be executed by the MPC protocol is relatively lightweight, involving little overhead added to the smart contract function, and uses practical sigma protocols and homomorphic commitments to prove to the blockchain that the sum of the incoming balances to the smart contract matches the sum of the outgoing balances. An extended version of the paper is available at [1].
In this era of ubiquitous social media and messaging applications, users are becoming increasingly aware of the data privacy issues associated with such apps. Major messaging applications are moving towards end-to-end encryption (E2EE) to give their users the privacy they are demanding. However the current security mechanisms employed by different service providers are not unfeigned E2EE implementations, and are blended with many vulnerabilities. At present, the major part of the E2EE mechanism is controlled by the service provider’s servers, and the decryption keys are also stored by them in case of backup restoration. These shortcomings diminish user confidence in the privacy of their data when using these apps. A public key infrastructure (PKI) can be used to circumvent some of these issues, but it comes with high monetary costs, which makes it impossible to roll out on a global scale. This paper proposes a blockchain-based E2EE framework that can mitigate many of the contemporary vulnerabilities in today’s messaging applications. A user’s device generates the public/private key pair during application installation, and asks its mobile network operator (MNO) to issue a digital certificate and store it on a public blockchain. Any user can fetch a certificate for another user from the application server, and communicate securely with them using a ratchet forward encryption mechanism.
Matthew Tsao, Kaidi Yang, Stephen Zoepf, Marco Pavone
The era of big data has brought with it a richer understanding of user behavior through massive datasets, which can help organizations optimize the quality of their services. In the context of transportation research, mobility data can provide municipal authorities (MAs) with insights on how to operate, regulate, or improve the transportation network. Mobility data, however, may contain sensitive information about end users and trade secrets of mobility providers (MPs). Due to this data privacy concern, MPs may be reluctant to contribute their datasets to MA. Using ideas from cryptography, we propose an interactive protocol between an MA and an MP, in which MA obtains insights from mobility data without MP having to reveal its trade secrets or sensitive data of its users. This is accomplished in two steps: 1) a commitment step and 2) a computation step. In the first step, Merkle commitments and aggregated traffic measurements are used to generate a cryptographic commitment. In the second step, MP extracts insights from the data and sends them to MA. Using the commitment and zero-knowledge proofs, MA can certify that the information received from MP is accurate, without needing to directly inspect the mobility data. We also present a differentially private version of the protocol that is suitable for the large query regime. The protocol is verifiable for both MA and MP in the sense that dishonesty from one party can be detected by the other. The protocol can be readily extended to the more general setting with multiple MPs via secure multiparty computation.
This PhD thesis focuses on lattice-based cryptography and how to apply it to build post-quantum online voting systems. It is the result of the research done by the author at Scytl in close collaboration with Dr. Paz Morillo, from the Department of Applied Mathematics at UPC and Ramiro Martínez, PhD student. As part of her work at the electronic voting company Scytl, the author has participated in the design of several electronic voting systems as well as in their implementation, by providing support to the development team. Nevertheless, all these systems use standard and well-known cryptographic primitives, i.e., not lattice-based primitives, to ensure that the security requirements are fulfilled. Due to this, one of the main challenges of this PhD has been to start researching on a field which was not familiar to the author and contribute to its state of the art. This has allowed the company to enter the post-quantum world by participating in a project which aims to implement a lattice-based online voting system. The thesis has the following contents: an introduction to the lattice theory by describing some of its basic concepts and the computational problems in which the security of lattice-based cryptosystems relies. In this first part it is also described in detail those cryptosystems that are used as building blocks of three new protocols proposed in the thesis: a lattice-based coercion-resistant cast-as-intended protocol, a post-quantum mix-net and a fully post-quantum proof of a shuffle. The former is the lattice version of an existing protocol and allows the voter to check that the vote cast contains the selected voting options. The second and third protocols are the result of the research on lattice-based mix-nets. Two constructions are proposed: the first one allows to demonstrate that a mix-node has permuted and re-encrypted a list of RLWE ciphertexts without modifying them, but it cannot be considered fully post-quantum since the binding property of the commitment scheme relies on classical computational problems. The second one is fully post-quantum since all the cryptographic schemes used for building it, i.e., commitment scheme and zero-knowledge proofs, are based on lattices. Last but not least, for this second proposal a security definition and a proof of security are also provided. Finally, the last part of the thesis consists of building a post-quantum online voting system using as building blocks the protocols already presented and existing lattice-based constructions. This system is considered secure under quantum attacks and provides long-term privacy. It also guarantees vote anonymity, vote authenticity, vote integrity, individual verifiability and receipt-freeness. The algorithms involved in each phase are described in detail as well as the interaction among the participants. An implementation of this system is not given as part of this thesis although a lattice-based online voting system based on that is already being implemented at the company. Aquest tesi es centra en la criptografia basada en reticles i com aplicar-la a la construcció de sistemes de votació electrònica post-quàntics. És el fruit de la recerca feta per l'autora de la tesi a Scytl en estreta col·laboració amb la Dra. Paz Morillo, del Departament de Matemàtica Aplicada de la UPC i en Ramiro Martínez, estudiant de doctorat. Com a part de la seva feina a l'empresa de vot electrònic Scytl, l'autora ha participat tant en el disseny de sistemes de votació electrònica com en la seva implementació, donant suport a l'equip de desenvolupament. No obstant, tots aquests sistemes utilitzen primitives criptogràfiques estàndard (primitives no basades en reticles) per assegurar que els requisits de seguretat es compleixen, i és per aquest motiu que un dels principals reptes d'aquest doctorat ha estat fer en recerca en un camp que no era familiar per l'autora, i contribuir-hi. Per altra banda, això ha permès a l'empresa endinsar-se en el món post-quàntic i participar en un projecte que té per objectiu implementar un sistema de vot electrònic basat en reticles. Aquest tesi consta dels següents continguts: una introducció a la teoria dels reticles on es descriuen alguns dels seus conceptes bàsics i els problemes computacionals dels quals depèn la seguretat dels criptosistemes basats en reticles. En aquesta primera part també es descriuen en detall aquells criptosistemes utilitzats en la construcció dels tres nous protocols presentats en aquesta tesi: un protocol basat en reticles resistent a la coacció i que ofereix verificabilitat “cast-as-intended”; una “mix-net post-quàntica” i una prova de coneixement nul totalment post-quàntica que permet demostrar que la barreja de vots s'ha realitzat correctament. El primer protocol és la versió basada en reticles d'un protocol ja existent i permet que el votant comprovi que el vot emès conté les opcions que havia seleccionat. El segon i el tercer protocol són el resultat de la recerca feta en el camp de les mix-nets basades en reticles. Es proposen dues construccions: la primera d'elles permet demostrar que un node de la mix-net ha barrejat i rexifrat una llista de xifrats RLWE sense modificar-los, però no es pot considerar totalment post-quàntica ja que la propietat de lligar de l'esquema de compromís utilitzat per construir la prova es basa en problemes computacionals clàssics. La segona construcció és totalment post-quàntica ja que tots els esquemes criptogràfics utilitzats en el seu disseny, és a dir, esquema de compromís i proves de coneixement nul, estan basats en reticles. Finalment, però no per això menys important, per aquesta segona proposta també es dóna una definició de seguretat i una prova de seguretat. L'última part de la tesi consisteix en construir un sistema de vot online post-quàntic, utilitzant com a components els protocols prèviament presentats i construccions ja existents basades en reticles. El sistema es considera segur en front atacs quàntics i ofereix privadesa a llarg plaç. També garanteix l'anonimat del vot, la seva autenticitat i integritat, verificabilitat individual i resistència a la coacció. Es descriuen en detall tant els algoritmes executats a cada fase com la interacció entre els seus participants. Com a part de la tesi no s'inclou cap implementació del sistema tot i que l'empresa està implementant un sistema de vot online basat en el que es presenta en aquesta tesi.
Abstract The persevering pursuit of security has proved historically limiting the implementation of significant design improvements for Electronic Health Records (EHR). Such a vital requirement for these kinds of technical development is revamped now. This is because the patients are motivated by personalization and data science to participate in the health information sharing. The implementation of cloud computing has already shown substantial benefits for both clinical organizations and patients in managing electronic health records. The prime security issue of cloud-based electronic health records is that the patient is physically unable to own a medical record whereas a clinical organization can maintain one for them. The latter may collude with centralized cloud servers. So, there is a vulnerability of such records being tampered with in order to hide the medical malpractices. So, maintaining data integrity and data privacy becomes a significant challenge when deploying cloud computing. Therefore, in this paper, a consortium blockchain-based cloud-stored electronic health record is proposed which provides data integrity, data privacy, storage scalability, and fine-grained access control. Each process in outsourcing electronic health records to the cloud is incorporated as a transaction in a consortium ethereum blockchain through smart contracts. Through smart contracts, an attribute-based contract key is generated for the users that can decrypt the encrypted data stored in the cloud. The attribute-based contract key allows only users who are authorized to access the information ensuring data privacy and fine-grained access control. Moreover, the proposed scheme is proved to provide tamper-proof although the medical records are controlled by a group of clinical organizations.
In recent years, we have witnessed the evolutionary development of a new breed of distributed systems. Systems of this type share a number of characteristics – highly decentralized, of Internet-grade scalability, and autonomous within their administrative domains. Most importantly, they are expected to operate collaboratively across both known and unknown domains. Prime examples include peer-to-peer applications and open web services. Typically, authorization in distributed systems is identity-based, e.g. access control lists. However, approaches based on predefined identities are unsuitable for the new breed of distributed systems because of the need to deal with unknown users, i.e. strangers, and the need to manage a potentially large number of users and/or resources. Furthermore, effective administration and management of authorization in such systems requires: (1) natural mapping of organizational policies into security policies; (2) managing collaboration of independently administered domains/organizations; (3) decentralization of security policies and policy enforcement. This thesis describes Fidelis, a trust management framework designed to address the authorization needs for the next-generation distributed systems. A trust management system is a term coined to refer to a unified framework for the specification of security policies, the representation of credentials, and the evaluation and enforcement of policy compliances. Based on the concept of trust conveyance and a generic abstraction for trusted information as trust statements, Fidelis provides a generic platform for building secure, trust-aware distributed applications. At the heart of the Fidelis framework is a language for the specification of security policies, the Fidelis Policy Language (FPL), and the inference model for evaluating policies expressed in FPL. With the policy language and its inference model, Fidelis is able to model recommendation-style policies and policies with arbitrarily complex chains of trust propagation. Web services have rapidly been gaining significance both in industry and research as a ubiquitous, next-generation middleware platform. The second half of the thesis describes the design and implementation of the Fidelis framework for the standard web service platform. The goal of this work is twofold: first, to demonstrate the practical feasibility of Fidelis, and second, to investigate the use of a policy-driven trust management framework for Internet-scale open systems. An important requirement in such systems is trust negotiation that allows unfamiliar principals to establish mutual trust and interact with confidence. Addressing this requirement, a trust negotiation framework built on top of Fidelis is developed. This thesis examines the application of Fidelis in three distinctive domains: implementing generic role-based access control, trust management in the World Wide Web, and an electronic marketplace comprising unfamiliar and untrusted but collaborative organizations.
DNS has always been criticized for its inherent design flaws, making the system vulnerable to kinds of attacks. Besides, DNS domain names are not fully controlled by the users, which can be easily taken down by the authorities and registrars. Since blockchain has its unique properties like immutability and decentralization, it seems to be promising to build a decentralized name service on blockchain. Ethereum Name Service (ENS), as a novel name service built atop Etheruem, has received great attention from the community. Yet, no existing work has systematically studied this emerging system, especially the security issues and misbehaviors in ENS. To fill the void, we present the first large-scale study of ENS by collecting and analyzing millions of event logs related to ENS. We characterize the ENS system from a number of perspectives. Our findings suggest that ENS is showing gradually popularity during its four years' evolution, mainly due to its distributed and open nature that ENS domain names can be set to any kinds of records, even censored and malicious contents. We have identified several security issues and misbehaviors including traditional DNS security issues and new issues introduced by ENS smart contracts. Attackers are abusing the system with thousands of squatting ENS names, a number of scam blockchain addresses and malicious websites, etc. Our exploration suggests that our community should invest more effort into the detection and mitigation of issues in Blockchain-based Name Services towards building an open and trustworthy name service.
We propose the first generalization of the famous Non-Interactive Zero-Knowledge (NIZK) proofs to quantum languages (NIZKoQS) and we provide a protocol to prove advanced properties on a received quantum state non-destructively and non-interactively (a single message being sent from the prover to the verifier). In our second orthogonal contribution, we improve the costly Remote State Preparation protocols [Cojocaru et al. 2019 ; Gheorghiu and Vidick 2019 ] that can classically fake a quantum channel (this is at the heart of our NIZKoQS protocol) by showing how to create a multi-qubit state from a single superposition. Finally, we generalize these results to a multi-party setting and prove that multiple parties can anonymously distribute a GHZ state in such a way that only participants knowing a secret credential can share this state, which could have applications to quantum anonymous transmission, quantum secret sharing, quantum onion routing and more.
We propose the first generalization of the famous Non-Interactive\nZero-Knowledge (NIZK) proofs to quantum languages (NIZKoQS) and we provide a\nprotocol to prove advanced properties on a received quantum state\nnon-destructively and non-interactively (a single message being sent from the\nprover to the verifier).\n In our second orthogonal contribution, we improve the costly Remote State\nPreparation protocols [CCKW18,CCKW19,GV19] that can classically fake a quantum\nchannel (this is at the heart of our NIZKoQS protocol) by showing how to create\na multi-qubits state from a single superposition.\n Finally, we generalize these results to a multi-party setting and prove that\nmultiple parties can anonymously distribute a GHZ state in such a way that only\nparticipants knowing a secret credential can share this state, which could have\napplications to quantum anonymous transmission, quantum secret sharing, quantum\nonion routing and more.\n
Non-interactive zero-knowledge (NIZK) proofs for chosen-ciphertext security are generally considered to give an impractical construction. An interesting recent work by Seo, Abdalla, Lee, and Park (Information Sciences, July 2019) proposed an efficient semi-generic conversion method for achieving chosen-ciphertext security based on NIZK proofs in the random oracle model. The recent work by Seo et al. demonstrated that the semi-generic conversion method transforms a one-way (OW)-secure key encapsulation mechanism (KEM) into a chosen-ciphertext secure KEM while preserving tight security reduction. This paper shows that the security analysis of the semi-generic conversion method has a flaw, which comes from the OW security condition of the underlying KEM. Without changing the conversion method, this paper presents a revised security proof under the changed conditions that (1) the underlying KEM must be chosen-plaintext secure in terms of indistinguishability and (2) an NIZK proof derived from the underlying KEM via the Fiat–Shamir transform must have the properties of zero-knowledge and simulation soundness. This work extended the security proof strategy to the case of identity-based KEM (IBKEM) and also revise the security proof for IBKEM of previous method by Seo et al. Finally, this work gives a corrected security proof by applying the new proofs to several existing (IB)KEMs.
Interoperation for data sharing between permissioned blockchain networks relies on networks' abilities to independently authenticate requests and validate proofs accompanying the data; these typically contain digital signatures. This requires counterparty networks to know the identities and certification chains of each other's members, establishing a common trust basis rooted in identity. But permissioned networks are ad hoc consortia of existing organizations, whose network affiliations may not be well-known or well-established even though their individual identities are. In this paper, we describe an architecture and set of protocols for distributed identity management across permissioned blockchain networks to establish a trust basis for data sharing. Networks wishing to interoperate can associate with one or more distributed identity registries that maintain credentials on shared ledgers managed by groups of reputed identity providers. A network's participants possess self-sovereign decentralized identities (DIDs) on these registries and can obtain privacy-preserving verifiable membership credentials. During interoperation, networks can securely and dynamically discover each others' latest membership lists and members' credentials. We implement a solution based on Hyperledger Indy and Aries, and demonstrate its viability and usefulness by linking a trade finance network with a trade logistics network, both built on Hyperledger Fabric. We also analyze the extensibility, security, and trustworthiness of our system.
Chiara Spadafora, Riccardo Longo, Massimiliano Sala
We propose a decentralized e-voting protocol that is coercion-resistant and vote-selling resistant, while being also completely transparent and not receipt-free. We achieve decentralization using blockchain technology. Because of the properties such as transparency, decentralization, and non-repudiation, blockchain is a fundamental technology of great interest in its own right, and it also has large potential when integrated into many other areas. We prove the security of the protocol under the standard DDH assumption on the underlying prime-order cyclic group (e.g. the group of points of an elliptic curve), as well as under standard assumptions on blockchain robustness.
Guntur Dharma Putra, Volkan Dedeoglu, Salil S. Kanhere, Raja Jurdak · 5 authors
Authorization or access control limits the actions a user may perform on a computer system, based on predetermined access control policies, thus preventing access by illegitimate actors. Access control for the Internet of Things (IoT) should be tailored to take inherent IoT network scale and device resource constraints into consideration. However, common authorization systems in IoT employ conventional schemes, which suffer from overheads and centralization. Recent research trends suggest that blockchain has the potential to tackle the issues of access control in IoT. However, proposed solutions overlook the importance of building dynamic and flexible access control mechanisms. In this paper, we design a decentralized attribute-based access control mechanism with an auxiliary Trust and Reputation System (TRS) for IoT authorization. Our system progressively quantifies the trust and reputation scores of each node in the network and incorporates the scores into the access control mechanism to achieve dynamic and flexible access control. We design our system to run on a public blockchain, but we separate the storage of sensitive information, such as user's attributes, to private sidechains for privacy preservation. We implement our solution in a public Rinkeby Ethereum test-network interconnected with a lab-scale testbed. Our evaluations consider various performance metrics to highlight the applicability of our solution for IoT contexts.
Adrián Silveira, Gustavo Betarte, Maximiliano Cristiá, Carlos Luna
MimbleWimble (MW) is a privacy-oriented cryptocurrency technology which provides security and scalability properties that distinguish it from other protocols of its kind. We present and discuss those properties and outline the basis of a model-driven verification approach to address the certification of the correctness of the protocol implementations. In particular, we propose an idealized model that is key in the described verification process, and identify and precisely state sufficient conditions for our model to ensure the verification of relevant security properties of MW. Since MW is built on top of a consensus protocol, we develop a Z specification of one such protocol and present an excerpt of the $\{log\}$ prototype generated from the Z specification. This $\{log\}$ prototype can be used as an executable model where simulations can be run. This allows us to analyze the behavior of the protocol without having to implement it in a low level programming language. Finally, we analyze the Grin and Beam implementations of MW in their current state of development.
Hassan Mansur Hussien, Sharifah Md Yasin, Nur Izura Udzir, Mohd Izuan Hafez Ninggal
Blockchain technology provides a tremendous opportunity to transform current personal health record (PHR) systems into a decentralised network infrastructure. However, such technology possesses some drawbacks, such as issues in privacy and storage capacity. Given its transparency and decentralised features, medical data are visible to everyone on the network and are inappropriate for certain medical applications. By contrast, storing vast medical data, such as patient medical history, laboratory tests, X-rays, and MRIs, significantly affect the repository storage of blockchain. This study bridges the gap between PHRs and blockchain technology by offloading the vast medical data into the InterPlanetary File System (IPFS) storage and establishing an enforced cryptographic authorisation and access control scheme for outsourced encrypted medical data. The access control scheme is constructed on the basis of the new lightweight cryptographic concept named smart contract-based attribute-based searchable encryption (SC-ABSE). This newly cryptographic primitive is developed by extending ciphertext-policy attribute-based encryption (CP-ABE) and searchable symmetric encryption (SSE) and by leveraging the technology of smart contracts to achieve the following: (1) efficient and secure fine-grained access control of outsourced encrypted data, (2) confidentiality of data by eliminating trusted private key generators, and (3) multikeyword searchable mechanism. Based on decisional bilinear Diffie-Hellman hardness assumptions (DBDH) and discrete logarithm (DL) problems, the rigorous security indistinguishability analysis indicates that SC-ABSE is secure against the chosen-keyword attack (CKA) and keyword secrecy (KS) in the standard model. In addition, user collusion attacks are prevented, and the tamper-proof resistance of data is ensured. Furthermore, security validation is verified by simulating a formal verification scenario using Automated Validation of Internet Security Protocols and Applications (AVISPA), thereby unveiling that SC-ABSE is resistant to man-in-the-middle (MIM) and replay attacks. The experimental analysis utilised real-world datasets to demonstrate the efficiency and utility of SC-ABSE in terms of computation overhead, storage cost and communication overhead. The proposed scheme is also designed and developed to evaluate throughput and latency transactions using a standard benchmark tool known as Caliper. Lastly, simulation results show that SC-ABSE has high throughput and low latency, with an ultimate increase in network life compared with traditional healthcare systems.
Data analytics based on the produced data from the Internet of Things (IoT) devices is expected to improve the individuals' quality of life. However, ensuring security and privacy in the IoT data aggregation process is a non-trivial task. Generally, the IoT data aggregation process is based on centralized servers. Yet, in the case of distributed approaches, it is difficult to coordinate several untrustworthy parties. Fortunately, the blockchain may provide decentralization while overcoming the trust problem. Consequently, blockchain-based IoT data aggregation may become a reasonable choice for the design of a privacy-preserving system. To this end, we propose PrivDA, a Privacy-preserving IoT Data Aggregation scheme based on the blockchain and homomorphic encryption technologies. In the proposed system, each data consumer can create a smart contract and publish both terms of service and requested IoT data. Thus, the smart contract puts together into one group potential data producers that can answer the consumer's request and chooses one aggregator, the role of which is to compute the group requested result using homomorphic computations. Therefore, group-level aggregation obfuscates IoT data, which complicates sensitive information inference from a single IoT device. Finally, we deploy the proposal on a private Ethereum blockchain and give the performance evaluation.
Financial Regulation is a form of compliance system that subjects financial institutions to certain requirements and restrictions. Investment Compliance is an example that involves investment restrictions and monitoring on behalf of investors. Hedge Funds differ from other traditional funds such as mutual funds because of their ability to employ complex investment and hedging techniques. These are private entities with few public disclosure requirements. This is useful in a way as the strategies used are confidential which allows financial agents to participate in the financial markets without any fear of information leakage, hence promoting liquidity. However, this is often implied as a lack of transparency. Hedge Funds are expected to produce higher returns, but sometimes investors seek a risk guarantee in addition to higher returns. However, too much transparency rules out the incentives financial entities have by participating in the first place. On the other hand, too much secrecy may give rise to malicious entities that can break the rules due to a lack of compliance. We aim to solve this problem of protecting investors while ensuring the privacy of financial bodies using zero knowledge proofs. Proofs can be visualized as a way of providing enough information to investors while the zero-knowledge property of proofs maintains the privacy of the fund manager’s strategies. We propose a protocol to address this scenario using Zokrates, a framework for verifiable computation using Zk-SNARKs on Ethereum, to encode the constraints and export the verifier. Based on our implementation and analysis, it can be concluded that zero knowledge proofs provide us with a variety of ways to develop compliance systems.
Bitcoin came into existence as a peer-to-peer payment system for use on online transactions. This achievement was the result of a shared vision about the future relationship between governments’ control and citizenry, and the collaborative work of the many who contributed to the development of the cryptographic field. This innovation and its underlying technology, the blockchain, have been at the root of a change of paradigm, as the joint use of blockchain and artificial intelligence (AI) seed the next technological revolution. However, as it is often the case, these revolutionary inventions have also been met with skepticism in the financial sector and society at large. Using the case of Bitcoin and the blockchain, this paper analyzes the intersection between the philosophy and technology underlying these innovations, and the outlook of a sector of society who fears these developments while others try to profit. In this chapter, we first look at the history of Bitcoin together with that of those behind it. We then review the mixed reception it obtained after coming to the market. We assess the innovations’ properties and confront these with the needs of a society eager to obtain further clarity and enjoy more transparency in matters of relevance to their participation in democratic processes.
Blockchain’s versatility is primarily due to its immutable and almost indestructible nature. These attributes have caught the attention of researchers and developers interested in applications and environments where the need for the integrity of identity and content are as paramount as the safe delivery and record of transactions. Self-sovereign digital identity in particular is often cited as a human right that nation states need to embrace with as much conviction as education and lifelong learning are considered to be a public good. Although the blockchain has long been identified as an opportunity for driving much-needed change in the core processes of the education sector, use cases to date have been limited in scope and execution, with blockchain advocates and education policy makers seemingly disconnected on fundamental issues such as governance, self-sovereignty, interoperability, choice of blockchain platforms and overall trust in standards and the integrity of the infrastructure. This article is primarily interested in the affordances of the technology as a public good for the education sector. It levers on the lead author’s perspective as a mediator between the blockchain and education sectors in Europe on high-profile blockchain in education projects to provide a snapshot of the challenges and workable solutions in the blockchain-enabled, European digital credentials sector.
The barriers of food enterprises and departments caused information asymmetry, which is the root cause of food safety incidents. Simultaneously, it is challenging to solve the information asymmetry by the existing cloud-based food supply-chain regulation system. Establishing a secure and reliable data sharing environment is an effective solution to the information island. Blockchain can construct a security network based on mathematical algorithms, eliminating the third party’s potential security risk, and realize transparently share data. In this paper, on the principle of metadata remaining in the food enterprises, we propose a blockchain-cloud fusion scheme based on Decentralized Attribute-Based Signature (DABS) to realize secure data sharing between departments. It constructs a decentralized and trusting environment for data owners to share data and achieves social co-governance of food safety based on the smart contract. It can also preserve the existing system architecture and complement the performance disadvantage of blockchain and cloud storage. The result achieved from security analysis shows that our scheme supports unconditional full anonymity and can resist collusion attacks of N-1 out of N corrupted attribute authorities.
Tzung‐Her Chen, Ting-Le Zhu, Fuh-Gwo Jeng, Chien-Lung Wang
Although encryption and signatures have been two fundamental technologies for cryptosystems, they still receive considerable attention in academia due to the focus on reducing computational costs and communication overhead. In the past decade, applying certificateless signcryption schemes to solve the higher cost of maintaining the certificate chain issued by a certificate authority (CA) has been studied. With the recent increase in the interest in blockchains, signcryption is being revisited as a new possibility. The concepts of a blockchain as a CA and a transaction as a certificate proposed in this paper aim to use a blockchain without CAs or a trusted third party (TTP). The proposed provably secure signcryption scheme implements a designated recipient beforehand such that a sender can cryptographically facilitate the interoperation on the blockchain information with the designated recipient. Thus, the proposed scheme benefits from the following advantages: (1) it removes the high maintenance cost from involving CAs or a TTP, (2) it seamlessly integrates with blockchains, and (3) it provides confidential transactions. This paper also presents the theoretical security analysis and assesses the performance via the simulation results. Upon evaluating the operational cost in real currency based on Ethereum, the experimental results demonstrate that the proposed scheme only requires a small cost as a fee.