Daniel Pérez, Sam M. Werner, Jiahua Xu, Benjamin Livshits
The trustless nature of permissionless blockchains renders overcollateralization a key safety component relied upon by decentralized finance (DeFi) protocols. Nonetheless, factors such as price volatility may undermine this mechanism. In order to protect protocols from suffering losses, undercollateralized positions can be liquidated. In this paper, we present the first in-depth empirical analysis of liquidations on protocols for loanable funds (PLFs). We examine Compound, one of the most widely used PLFs, for a period starting from its conception to September 2020. We analyze participants' behavior and risk-appetite in particular, to elucidate recent developments in the dynamics of the protocol. Furthermore, we assess how this has changed with a modification in Compound's incentive structure and show that variations of only 3% in an asset's dollar price can result in over 10m USD becoming liquidable. To further understand the implications of this, we investigate the efficiency of liquidators. We find that liquidators' efficiency has improved significantly over time, with currently over 70% of liquidable positions being immediately liquidated. Lastly, we provide a discussion on how a false sense of security fostered by a misconception of the stability of non-custodial stablecoins, increases the overall liquidation risk faced by Compound participants.
While traditional symmetric algorithms like AES and SHA-3 are optimized for efficient hardware and software implementations, a range of emerging applications using advanced cryptographic protocols such as multi-party computation and zero knowledge proofs require optimization with respect to a different metric: arithmetic complexity. In this paper we study the design of secure cryptographic algorithms optimized to minimize this metric. We begin by identifying the differences in the design space between such arithmetization-oriented ciphers and traditional ones, with particular emphasis on the available tools, efficiency metrics, and relevant cryptanalysis. This discussion highlights a crucial point—the considerations for designing arithmetization-oriented ciphers are oftentimes different from the considerations arising in the design of software- and hardware-oriented ciphers. The natural next step is to identify sound principles to securely navigate this new terrain, and to materialize these principles into concrete designs. To this end, we present the Marvellous design strategy which provides a generic way to easily instantiate secure and efficient algorithms for this emerging domain. We then show two examples for families following this approach. These families — Vision and Rescue — are benchmarked with respect to three use cases: the ZK-STARK proof system, proof systems based on Rank-One Constraint Satisfaction (R1CS), and Multi-Party Computation (MPC). These benchmarks show that our algorithms achieve a highly compact algebraic description, and thus benefit the advanced cryptographic protocols that employ them.
Ethan Heilman, Neha Narula, Garrett Tanzer, James Peter Thomas. Lovejoy · 7 authors
We present attacks on the cryptography formerly used in the IOTA blockchain, including under certain conditions the ability to forge signatures. We developed practical attacks on IOTA’s cryptographic hash function Curl-P-27, allowing us to quickly generate short colliding messages. These collisions work even for messages of the same length. Exploiting these weaknesses in Curl-P-27, we broke the EUCMA security of the former IOTA Signature Scheme (ISS). Finally, we show that in a chosen-message setting we could forge signatures and multi-signatures of valid spending transactions (called bundles in IOTA).
Recursive Length Prefix (RLP) is used to encode a wide variety of data in Ethereum, including transactions. The work described in this paper provides a formal specification of RLP encoding and a verified implementation of RLP decoding, developed in the ACL2 theorem prover. This work has led to improvements to the Ethereum documentation and additions to the Ethereum test suite.
We develop a formal model of Algorand stateless smart contracts (stateless ASC1.) We exploit our model to prove fundamental properties of the Algorand blockchain, and to establish the security of some archetypal smart contracts. While doing this, we highlight various design patterns supported by Algorand. We perform experiments to validate the coherence of our formal model w.r.t. the actual implementation.
Blockchain technology is increasingly being considered among both private enterprises and public services. However, it poses a challenge with regard to aligning its identity management scheme with the Public Key Infrastructure and the Qualified Digital Certificates issued by Qualified Trust Service Providers. To solve this challenge, we will present a solution in the form of an architecture reference model, which enables enterprises and public services to leverage blockchain technology by integrating Qualified Electronic Signatures with blockchain transactions. The evaluation of the architecture reference model is provided through the design of a Blockchain-based Trusted Public Service and a use-case scenario example. The proposed architecture reference model is based on the CEF building blocks EBSI, eSignature, and eID compliant with eIDAS.
Massimiliano Sala, Domenica Sogiorno, Daniele Taufer
We show how a small subgroup confinement-like attack may be mounted on the Bitcoin addresses generation protocol, by inspecting a special subgroup of the group associated to point multiplication. This approach does not undermine the system security but highlights the importance of using fair random sources during the private key selection.
The blockchain is a distributed ledger technology that is growing in importance since inception. Besides cryptocurrencies, it has also crossed its boundary inspiring various organizations, enterprises, or business establishments to adopt this technology benefiting from the most innovative security features. The decentralized and immutable aspects have been the key points that endorse blockchain as one of the most secure technologies at the present time. However, in recent times such features seemed to be faded due to new attacking techniques. One of the biggest challenges remains within the consensus protocol itself, which is an essential component to bring all network participants to an agreed state. Cryptocurrencies adopt suitable consensus protocols based on their mining requirement, and Proof of Work (PoW) is the consensus protocol that is being predominated in major cryptocurrencies. Recent consensus protocol-based attacks, such as the 51% attack, Selfish Mining, Miner Bribe Attack, Zero Confirmation Attack, and One Confirmation Attack have been demonstrated feasible. To overcome these attacks, we propose Proof of Adjourn (PoAj), a novel consensus protocol that provides strong protection regardless of attackers hashing capability. After analyzing the 5 major attacks, and current protection techniques indicating the causes of their failure, we compared the PoAj against the most widely used PoW, showing that PoAj is not only able to mitigate the 5 attacks but also attacks relying on having a large amount of hashing power. In addition, the proposed PoAj showed to be an effective approach to mitigate the processing time issue of large-sized transactions. PoAj is not tailored to any particular attack; therefore, it is effective against malicious powerful players. The proposed approach provides a strong barrier not only to current and known attacks but also to future unknown attacks based on different strategies that rely on controlling the majority of the hashing power.
Ripple Effect is a logic puzzle where the player has to fill numbers into empty cells in a rectangular grid. The grid is divided into rooms, and each room must contain consecutive integers starting from 1 to its size. Also, if two cells in the same row or column contain the same number $x$, there must be a space of at least $x$ cells separating the two cells. In this paper, we develop a physical zero-knowledge proof for the Ripple Effect puzzle using a deck of cards, which allows a prover to convince a verifier that he/she knows a solution without revealing it. In particular, given a secret number $x$ and a list of numbers, our protocol can physically verify that $x$ does not appear among the first $x$ numbers in the list without revealing $x$ or any number in the list.
Open access
3 source records
Cryptography and Data Security
Chaos-based Image/Signal Encryption
Advanced Steganography and Watermarking Techniques
The development of eHealth systems has brought great convenience to people's life. Researchers have been combining new technologies to make eHealth systems work better for patients. The Blockchain-based eHealth system becomes popular because of its unique distributed tamper-resistant and privacy-preserving features. However, due to the security issues of the blockchain system, there are many security risks in eHealth systems utilizing the blockchain technology. i.e. 51% attacks can destroy blockchain-based systems. Besides, trivial transactions and frequent calls of smart contracts in the blockchain system bring additional costs and security risks to blockchain-based eHealth systems. Worse still, electronic medical records (EMRs) are controlled by medical institutions rather than patients, which causes privacy leakage issues. In this paper, we propose a medical data Sharing and Privacy-preserving eHealth system based on blockChain technology (SPChain). We combine RepuCoin with the SNARKs-based chameleon hash function to resist underlying blockchain attacks, and design a new chain structure to make microblocks contribute to the weight of blockchain. The system allows patients to share their EMRs among different medical institutions in a privacy-preserving way. Besides, authorized medical institutions can label wrong EMRs with the patients' permissions in the case of misdiagnosis. Security analysis and performance evaluation demonstrate that the proposed system can provide a strong security guarantee with a high efficiency.
Motivated by the increasingly powerful computing capabilities of end-user equipment, and by the growing privacy concerns over sharing sensitive raw data, a distributed machine learning paradigm known as federated learning (FL) has emerged. By training models locally at each client and aggregating learning models at a central server, FL has the capability to avoid sharing data directly, thereby reducing privacy leakage. However, the conventional FL framework relies heavily on a single central server, and it may fail if such a server behaves maliciously. To address this single point of failure, in this work, a blockchain-assisted decentralized FL framework is investigated, which can prevent malicious clients from poisoning the learning process, and thus provides a self-motivated and reliable learning environment for clients. In this framework, the model aggregation process is fully decentralized and the tasks of training for FL and mining for blockchain are integrated into each participant. Privacy and resource-allocation issues are further investigated in the proposed framework, and a critical and unique issue inherent in the proposed framework is disclosed. In particular, a lazy client can simply duplicate models shared by other clients to reap benefits without contributing its resources to FL. To address these issues, analytical and experimental results are provided to shed light on possible solutions, i.e., adding noise to achieve local differential privacy and using pseudo-noise (PN) sequences as watermarks to detect lazy clients.
Iñigo Querejeta-Azurmendi, David Arroyo, Jorge López Hernández-Ardieta, Luis Hernández Encinas
This paper proposes NetVote, an internet voting protocol where usability and ease in deployment are a priority. We introduce the notion of strict coercion resistance, to distinguish between vote-buying and coercion resistance. We propose a protocol with ballot secrecy, practical everlasting privacy, verifiability and strict coercion resistance in the re-voting setting. Coercion is mitigated via a random dummy vote padding strategy to hide voting patterns and make re-voting deniable. This allows us to build a filtering phase with linear complexity, based on zero knowledge proofs to ensure correctness while maintaining privacy of the process. Voting tokens are formed by anonymous credentials and pseudorandom identifiers, achieving practical everlasting privacy, where even if dealing with a future computationally unbounded adversary, vote intention is still hidden. It is not assumed for voters to own cryptographic keys prior to the election, nor store cryptographic material during the election. This property allows voters not only to vote multiple times, but also from different devices each time, granting the voter a vote-from-anywhere experience. This paper builds on top of the paper published in CISIS’19. In this version, we modify the filtering. Moreover, we formally define the padding technique, which allows us to perform the linear filtering scheme. Similarly we provide more details on the protocol itself and include a section of the security analysis, where we include the formal definitions of strict coercion resistance and a game based definition of practical everlasting privacy. Finally, we prove that NetVote satisfies them all.
We discuss the challenge of achieving an auditable key management for cryptographic access control to high-value sensitive data. In such settings it is important to be able to audit the key management process - and in particular to be able to provide verifiable proofs of key generation. The auditable key management has several possible use cases in both civilian and military world. In particular, the new regulations for protection of sensitive personal data, such as GDPR, introduce strict requirements for handling of personal data and apply a very restrictive definition of what can be considered a personal data. Cryptographic access control for personal data has a potential to become extremely important for preserving industrial ability to innovate, while protecting subject’s privacy, especially in the context of widely deployed modern monitoring, tracking and profiling capabilities, that are used by both governmental institutions and high-tech companies. However, in general, an encrypted data is still considered as personal under GDPR and therefore cannot be, e.g., stored or processed in a public cloud or distributed ledger. In our work we propose an identity-based cryptographic framework that ensures confidentiality, availability, integrity of data while potentially remaining compliant with the GDPR framework.
Shee-Ihn Kim, Seung‐Hee Kim, Seung‐Hee Kim, Seung‐Hee Kim
Abstract The current e-commerce payment systems for credit or check cards require a payment gateway (PG). This incurs PG fees, which in turn increases the cost of engaging in e-commerce. This paper proposes a simple payment model that uses basic cryptocurrency features, such as public key, private key, and digital signature, to eliminate the need for transaction intermediaries such as public key certificate and PG. This model can process e-commerce payments without registering additional public key certificate, public key, or private key. The use of a digital signature guarantees the integrity and nonrepudiation of electronic payments, besides eliminating the fees for intermediary services such as PG, thereby reducing the overall cost of operating e-commerce services. This proposal is crucial as it is the first attempt to apply blockchain technology to e-commerce payment services. In addition, our model is important because it not only supports the evolution of e-commerce payment technology but also enhances the competitive advantage of using e-commerce.
As a next-generation power system, the smart grid can implement fine-grained smart metering data collection to optimize energy utilization. Smart meters face serious security challenges, such as a trusted third party or a trusted authority being attacked, which leads to the disclosure of user privacy. Blockchain provides a viable solution that can use its key technologies to solve this problem. Blockchain is a new type of decentralized protocol that does not require a trusted third party or a central authority. Therefore, this paper proposes a decentralized privacy-preserving data aggregation (DPPDA) scheme for smart grid based on blockchain. In this scheme, the leader election algorithm is used to select a smart meter in the residential area as a mining node to build a block. The node adopts Paillier cryptosystem algorithm to aggregate the user's power consumption data. Boneh-Lynn-Shacham short signature and SHA-256 function are applied to ensure the confidentiality and integrity of user data, which is convenient for billing and power regulation. The scheme protects user privacy data while achieving decentralization, without relying on TTP or CA. Security analysis shows that our scheme meets the security and privacy requirements of smart grid data aggregation. The experimental results show that this scheme is more efficient than existing competing schemes in terms of computation and communication overhead.
How someone can get health insurance without sharing his health infor-mation? How you can get a loan without disclosing your credit score? There is a method to certify certain attributes of various data, either this is health metrics or finance information, without revealing the data itself or any other kind of personal data. This method is known as “zero-knowledge proofs”. Zero-Knowledge techniques are mathematical methods used to verify things without sharing or revealing underlying data. Zero-Knowledge protocols have vast applications from simple identity schemes and blockchains to de-fense research programs and nuclear arms control. In this article we present the basic principles behind ZKP technology, possible applications and the threats and vulnerabilities that it is subject to and we review proposed securi-ty solutions.
Nowadays, it is still a major challenge to design a secure cross-domain authentication protocol for heterogeneous wireless networks with different security parameters. As a new technology, blockchain has attracted people’s attention because of its tamper-proof and decentralized characteristics. In this paper, we propose a cross-domain authentication and key agreement system based on smart contract of blockchains. Public keys of the nodes are managed using the smart contracts, and the system parameters are confirmed by contract query. On this basis, a cross-domain authentication and key agreement protocol is designed. In this protocol, roaming users can select temporary authentication parameters according to the system parameters of the roaming domain to complete authentication and key agreement, and users are anonymous in the process. Security of the protocol is demonstrated under the CK model, and two formal analysis tools are used to further analyze the protocol. Since the protocol does not have complex cryptographic operations and certificate verification, it has lower computational and communication overhead.
Ilhaam A. Omar, Raja Jayaraman, Khaled Salah, Mecit Can Emre Simsekler · 6 authors
BACKGROUND: Clinical Trials (CTs) help in testing and validating the safety and efficacy of newly discovered drugs on specific patient population cohorts. However, these trials usually experience many challenges, such as extensive time frames, high financial cost, regulatory and administrative barriers, and insufficient workforce. In addition, CTs face several data management challenges pertaining to protocol compliance, patient enrollment, transparency, traceability, data integrity, and selective reporting. Blockchain can potentially address such challenges because of its intrinsic features and properties. Although existing literature broadly discusses the applicability of blockchain-based solutions for CTs, only a few studies present their working proof-of-concept. METHODS: We propose a blockchain-based framework for CT data management, using Ethereum smart contracts, which employs IPFS as the file storage system to automate processes and information exchange among CT stakeholders. CT documents stored in the IPFS are difficult to tamper with as they are given unique cryptographic hashes. We present algorithms that capture various stages of CT data management. We develop the Ethereum smart contract using Remix IDE that is validated under different scenarios. RESULTS: The proposed framework results are advantageous to all stakeholders ensuring transparency, data integrity, and protocol compliance. Although the proposed solution is tested on the Ethereum blockchain platform, it can be deployed in private blockchain networks using their native smart contract technologies. We make our smart contract code publicly available on Github. CONCLUSIONS: We conclude that the proposed framework can be highly effective in ensuring that the trial abides by the protocol and the functions are executed only by the stakeholders who are given permission. It also assures data integrity and promotes transparency and traceability of information among stakeholders.
While the number of universities, tertiary education students and number of graduates per year constantly increase, the need to easily verify degree certificates generates new business opportunities. In this paper we project two financial models balancing where the price for the service is balanced between the graduate and the employer as the main stakeholders of that service. Students demand a proof-of-certification at low cost and easy to check, employers also demand quick and trustable verification of degrees when recruiting. As large number of students graduate every year, the problem of fake certificates is a big issue. One can easily get fake certificates in India. Companies hiring thousands of fresher spend large amount of money to get the educational certificates and transcripts verified of applicants. A Digital Certificate using blockchain technology can address this problem. Blockchain is a decentralized distributed digital ledger collectively maintained by a network of computers, called nodes. The data in the blockchain cannot be modified by a person without the consent of everyone else who maintains the records. This makes the data secure.
Nick Baumann, Samuel Steffen, Benjamin Bichsel, Petar Tsankov · 5 authors
Recent work introduces zkay, a system for specifying and enforcing data privacy in smart contracts. While the original prototype implementation of zkay (v0.1) demonstrates the feasibility of the approach, its proof-of-concept implementation suffers from severe limitations such as insecure encryption and lack of important language features. In this report, we present zkay v0.2, which addresses its predecessor's limitations. The new implementation significantly improves security, usability, modularity, and performance of the system. In particular, zkay v0.2 supports state-of-the-art asymmetric and hybrid encryption, introduces many new language features (such as function calls, private control flow, and extended type support), allows for different zk-SNARKs backends, and reduces both compilation time and on-chain costs.
Daniel Maldonado-Ruiz, Jenny Torres, Nour El Madhoun
Most of the authentication protocols assume the existence of a Trusted Third Party (TTP) in the form of a Certificate Authority or as an authentication server. The main objective of this research is to present an autonomous solution where users could store their credentials, without depending on TTPs. For this, the use of an autonomous network is imperative, where users could use their uniqueness in order to identify themselves. We propose the framework “Three Blockchains Identity Management with Elliptic Curve Cryptography (3BI-ECC)”. Our proposed framework is a decentralize identity management system where users’ identities are self-generated.
Open access
Blockchain Technology Applications and Security
Cryptography and Data Security
Advanced Steganography and Watermarking Techniques
Proof of stake (PoS), aiming at replacing Proof of work (PoW) in blockchain consensus, has drawn great attention from academia and industry. We present “Baguena”, a novel PoS protocol for public blockchain with high practicality and security. It uses a special designed algorithm with properties of uniqueness and anonymity for leader selection, and uses the longest chain rule for chain selection. Besides, entropy is introduced to prevent manipulation of leader selection process by simulating a random beacon based on Publicly verifiable secret sharing (PVSS) and threshold signature with only a linear number of exponentiations. We analyze the protocol's security by a threat model and design a robust delegation mechanism based on triple Elliptic curve digital signature algorithm (ECDSA) proxy signature. We implement Baguena and evaluate its performance on 100 Amazon EC2 virtual machines simulating 50k users, which shows that Baguena confirms transactions in 2 minutes, achieves 2.16x of Algorand's throughput and 6.95x of Ouroboros' throughput.
Vicent Cholvi, Antonio Fernández Anta, Chryssis Georgiou, Nicolas Nicolaou · 6 authors
A Distributed Ledger Object (DLO) is a concurrent object that maintains a totally ordered sequence of records, and supports two operations:APPEND, which appends a record at the end of the sequence, andGET, which returns the whole sequence of records. The work presented in this article is made up of two main contributions.The first contribution is a formalization of aByzantine-tolerantDistributed Ledger Object(BDLO), which is a DLO in which clients and servers processes may deviate arbitrarily from their intended behavior (i.e. they may be Byzantine). The proposed formal definition is accompanied by algorithms that implementBDLOs on top of an underlying Byzantine Atomic Broadcast service.The second contribution is a suite of algorithms, based on the previous BDLO implementations, that solve the Atomic Appends problem in the presence of asynchrony, Byzantine clients and Byzantine servers. This problem occurs when clients have a composite record (set of basic records) to append to different BDLOs, in such a way that either each basic record is appended to its BDLO (and this must occur in good circumstances),or no basic record is appended. Distributed algorithms are presented, which solve the Atomic Appends problem when the clients (involved in theAtomic Appends) and the servers (which maintain the BDLOs) may be Byzantine.
This thesis addresses computer security problems in: Access Control, Ethereum Smart Contracts, Cloud VM Scheduling, and Logic Locking. These problems are solved using polynomially timed reductions to 2 complexity classes: PSPACE-Complete and NP-Complete. This thesis is divided into 2 parts, problems reduced to: Model Checking (PSPACE-Complete) and Integer Linear Programming (ILP) (NP-Complete). The PSPACE-Complete problems are: Safety Analysis of Administrative Temporal Role Based Access Control (ATRBAC) Policies, and Safety Analysis of Ethereum Smart Contracts. The NP-Complete problems are: Minimizing Information Leakage in Virtual Machine (VM) Cloud Environments using VM Migrations, and Attacking Logic Locked Circuits using a Reduction to Integer Linear Programming (ILP). \n \nIn Chapter 3, I create the Cree Administrative Temporal Role Based Access Control (ATRBAC)-Safety solver. Which is a reduction from ATRBAC-Safety to Model Checking. I create 4 general performance techniques which can be utilized in any ATRBAC-Safety solver. \n \n 1. Polynomial Time Solving, which is able to solve specific archetypes of ATRBAC-Safety policies using a polynomial timed algorithm. \n 2. Static Pruning, which includes 2 methods for reducing the size of the policy without effecting the result of the safety query. \n 3. Abstraction Refinement, which can increase the speed for reachable safety queries by only solving a subset of the original policy. \n 4. Bound Estimation, which creates a bound on the number of steps from the initial state, where a satisfying state must exist. This is directly used by the model checker's bounded model checking mode, but can be utilized by any solver with a bound limiting parameter. \n \nIn Chapter 4, I analyze ATRBAC-Safety policies to identify some of the ``sources of complexity'' which make solving ATRBAC-Safety policies difficult. I provide analysis of the sources of complexity that exists in the previously published datasets [128,90,54]. I perform analysis of Cree's performance techniques on the previous datasets. I create 2 new datasets, which are shown to be hard instances of ATRBAC-Safety. I analyze the new datasets to show how they achieve this hardness and how they differ from each other and the previous datasets. \n \nIn Chapter 5, I create a novel reduction from a Reduced-Solidity Smart Contract, subset of available Solidity features, to Model Checking. This reduction reduces Reduced-Solidity Smart Contract into a Finite State Machine and then reduces to an instance of a Model Checking problem. This provides the ability to test smart contracts published on the Ethereum blockchain and test if there exists bugs or malicious code. I perform empirical analysis on select Smart contracts. \n \nIn Chapter 6, I create 2 methods for generating instances of ATRBAC policies into Solidity Smart Contracts. The first method is the Generic ATRBAC Smart Contract. This method requires no modification before deployment. After deployed the owner is able to create, and maintain, the policy using special access functions. The special action functions are automated with code that converts an ATRBAC policy into a series of transactions the owner can run. The second method is the Baked ATRBAC Smart Contract. This method takes an ATRBAC policy and reduces it to a Smart Contract instance with no special access functions. The smart contract can then be deployed by anyone, and that person will have no special access. I perform an empirical analysis on the setup costs, transaction costs, and security each provides. \n \nIn Chapter 7, I create a new reduction from Minimizing Information Leakage via Virtual Machine (VM) Migrations to Integer Linear Programming (ILP). I compare a polynomial algorithm by Moon et. al. [71], my ILP reduction, and a reduction to CNF-SAT that is not included in this thesis. The polynomial method is faster, but the problem is NP-Complete thus that solution must have sacrificed something to obtain the polynomial time speed (unless P = NP). I show instances in which the polynomial time algorithm does not produce the minimum total information leakage, but the ILP and CNF-SAT reductions are able to. In addition to this, I show that Total Information Leakage also has a security vulnerability for non-zero information leakage using the <R,C> model. I propose an alternative method to Total Information Leakage, called Max Client-to-Client Information Leakage, which removes the vulnerability at the cost of increased total information leakage. \n \nIn Chapter 8, I create a reduction from the Key Recovery Attack on Logic Locked Circuits to Integer Linear Programming (ILP). This is a recreation of the ``SAT Attack'' using ILP. I provide an empirical analysis of the ILP attack and compare it to the SAT-Attack. I show that ``ILP Attack'' is a viable attack, thus future claims of ``SAT-Attack Resistant Logic Locking Techniques'' need to also show resistance to all potential NP-Complete attacks.