Sidechains have long been heralded as the key enabler of blockchain scalability and interoperability. However, no modeling of the concept or a provably secure construction has so far been attempted. We provide the first formal definition of what a sidechain system is and how assets can be moved between sidechains securely. We put forth a security definition that augments the known transaction ledger properties of liveness and safety to hold across multiple ledgers and enhance them with a new “firewall” security property which safeguards each blockchain from its sidechains, limiting the impact of an otherwise catastrophic sidechain failure. We then provide a sidechain construction that is suitable for proof-of-stake (PoS) sidechain systems. As an exemplary concrete instantiation we present our construction for an epoch- based PoS system consistent with Ouroboros (Crypto 2017), the PoS blockchain protocol used in Cardano which is one of the largest pure PoS systems by market capitalisation, and we also comment how the construction can be adapted for other protocols such as Ouroboros Praos (Eurocrypt 2018), Ouroboros Genesis (CCS 2018), Snow White and Algorand. An important feature of our construction is merged-staking that prevents “goldfinger” attacks against a sidechain that is only carrying a small amount of stake. An important technique for pegging chains that we use in our construction is cross-chain certification which is facilitated by a novel cryptographic primitive we introduce called ad-hoc threshold multisignatures (ATMS) which may be of independent interest. We show how ATMS can be securely instantiated by regular and aggregate digital signatures as well as succinct arguments of knowledge such as STARKs and bulletproofs with varying degrees of storage efficiency.
During the course of education the students achieve many certificates. Student produce these certificates while applying for jobs at public or private sectors, where all these certificates are needed to be verified manually. There can be incidents where students may produce the fake certificate and it is difficult to identify them. This problem of fake academic certificates has been a longstanding issue in the academic community. Because it is possible to create such certificates at low cost and the process to verify them is very complex, as they are manually needed to be verified. This problem can be solved by storing the digital certificates on the Blockchain. The Blockchain technology provides immutability and publicly verifiable transactions, these properties of Blockchain can be used to generate the digital certificate which are anti-counterfeit and easy to verify.
The development of quantum computers has urged the cryptographic community to prepare cryptographic primitives for the eventual arrival of the post‐quantum world. To this end, the authors study the witness indistinguishability (WI) and witness hiding (WH) of proof systems against quantum adversaries. They give formal definitions of quantum WI (QWI) and quantum WH (QWH), present proof systems satisfying these definitions, and specify a condition under which QWI implies QWH. Regarding the non‐interactive proof systems, they prove that, even if a common reference string is used to generate polynomially many non‐interactive proofs, the QWI is still preserved, while quantum zero‐knowledge has no such beneficial property. To show the strength of QWI, they present two applications of them. First, they prove that the construction proposed by Feige et al . that transforms any non‐interactive bounded zero‐knowledge proof system to a general one is also feasible against quantum adversaries. Second, they construct a quantum‐secure signature scheme in the CRS model, which is existentially unforgeable against quantum adversaries and remains secure even if a common random string is used to sign polynomially many messages.
Dirk van Bokkem, Rico Hageman, Gijs Koning, Luat Nguyen · 5 authors
With the advancement of technology and subsequently the age of digital information, online trustworthy identification has become increasingly more important. With respect to the various data breaches and privacy regulations, the current identity solutions are not fully optimized. In this paper, we will take a look at several Self-Sovereign Identity solutions which are already available. Some of them are built upon blockchain technology as this already provides decentralised persistent data and consensus. We will explore the emerging landscape of Self-Sovereign Identity solutions and dissect their implementations under multiple aspect criteria to determine the necessity of blockchain technology in this field. We conclude that blockchain technology is not explicitly required for a Self-Sovereign Identity solution but it is a good foundation to build up on, due to various technical advantages that the blockchain has to offer.
The 51% attack is a technique which intends to fork a blockchain in order to conduct double-spending. Adversaries controlling more than half of the total hashing power of a network can perform this attack. In a similar way, n confirmation and selfish mining are two attack techniques that comprise a similar strategy to the 51% attack. Due to the immense attacking cost to perform the 51% attack, it was considered very unlikely for a long period. However, in recent times, the attack has befallen at a frequent pace, costing millions of dollars to various cryptocurrencies. The 51% attack strategy varies based upon the adopted consensus mechanism by a particular cryptocurrency, and it enables attackers to double-spend the same crypto-coin, restrict transactions, cancel blocks, and even have full control over the price of a cryptocurrency. A crypto-coin with a low hashing power is always jeopardized by the 51% attack due to the easily attainable hashing. In this paper, we analyze the real impact of the 51% attack, revealing serious weaknesses in consensus protocols that made this attack possible. We discuss the five most advanced protection techniques to prevent this attack and their main limitations. We conclude that in most cases, security techniques fail to provide real protection against the 51% attack because the weaknesses are inherited from the consensus protocols.
Data owners upload large files to cloud storage servers, but malicious servers may potentially tamper data. To check integrity of remote data, Proof-of-retrievability (PoR) schemes were introduced. Existing PoR protocols assume that data owners and third-party auditors are honest and audit only the potentially malicious cloud server to check integrity of stored data. In this article, we consider a system where any party may attempt to cheat others and consider collusion cases. We design a protocol, Cumulus, that is secure under such adversarial assumptions and use blockchain smart contracts to act as mediator in case of dispute and payment settlement. We use state channels to reduce blockchain interactions in order to build a practical audit solution. The security of the protocol has been proven in Universal Composability (UC) framework. Finally, we illustrate several applications of our basic protocol and evaluate practicality of our approach via a prototype implementation for fairly selling large files over the Ethereum platform. We evaluate the prototype and show that our scheme has comparable performance.
Data owners upload large files to cloud storage servers, but malicious servers may potentially tamper data. To check integrity of remote data, Proof of Retrievability (PoR) schemes were introduced. Existing PoR protocols assume that data owners and third-party auditors are honest and audit only the potentially malicious cloud server to check integrity of stored data. In this paper we consider a system where any party may attempt to cheat others and consider collusion cases. We design a protocol that is secure under such adversarial assumptions and use blockchain smart contracts to act as mediator in case of dispute and payment settlement. We use state channels to reduce blockchain interactions in order to build a practical audit solution. We implement and evaluate a prototype using Ethereum as the blockchain platform and show that our scheme has comparable performance.
Peter Robinson, Raghavendra Ramesh, Sandra Johnson
Public blockchains such as Ethereum and Bitcoin do not give enterprises the privacy they need for many of their business processes. Consequently consortiums are exploring private blockchains to keep their membership and transactions private. Ethereum Private Sidechains is a private blockchain technology which allows many blockchains to be operated in parallel. Communication is needed between Ethereum Private Sidechains to allow a function in a contract on one sidechain to execute function calls which return values from, or update the state of, another sidechain. We propose a crosschain technique which allows transactions to be executed atomically across sidechains, introduce a new mechanism for proving values across sidechains, describe a transaction locking mechanism which works in the context of blockchain to enable atomic transactions, and a methodology for providing a global time-out across sidechains. We outline the programming model to be used with this technology and provide as an example, a variable amount atomic swap contract for exchanging value between sidechains. Although this paper presents Atomic Crosschain Transaction technology in the context of Ethereum Private Sidechains, we discuss how this technology can be readily applied to many blockchain systems to provide cross-blockchain transactions.
Ehab Zaghloul, Tongtong Li, Matt W. Mutka, Jian Ren
Blockchain is a technology that was proposed to enable the decentralized digital currency, Bitcoin. Since its inception, blockchain has been widely used in many other areas, including tracing sensor data and mitigating its duplication in IoT applications, the healthcare industry, and e-voting. In this article, we provide a comprehensive review and analysis of the major security and privacy issues of Bitcoin and blockchain, the major challenges, and opportunities in utilizing the technology. First, we present a comprehensive background of Bitcoin and the preliminary on security. Second, the major security threats and countermeasures of Bitcoin are investigated. We analyze the risk of double-spending attacks, evaluate the probability of success in performing the attacks, and derive the profitability for the attacker to perform such attacks. Third, we analyze the underlying Bitcoin peer-to-peer network security risks and Bitcoin storage security. We compare three types of Bitcoin wallets in terms of security, types of services, and their tradeoffs. Finally, we discuss the security and privacy features of alternative cryptocurrencies and present an overview of emerging technologies today. Our results can help Bitcoin users to determine a tradeoff between the risk of double-spending attempts and the transaction time delay or confidence before accepting transactions. These results can also assist miners to develop suitable strategies to get involved in the mining process and maximize their profits.
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Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
About 1Bn people around the globe are born and live without identity documents. In addition, displaced people, projected at 1Bn within a generation, often find themselves without worthy identity documentation even if they had any in their country of origin.
Given that centralized, top-down identity-granting solutions are failing a large portion of the world population, a bottom-up, grassroots, decentralized solution that allows every human being to create and own a trustworthy \emph{genuine global identity} is an urgent necessity. Such a bottom-up solution is worthy only if it is resilient to malicious antagonists that create fake and duplicate identities (so called \emph{sybils}). Furthermore, for a solution to be truly grassroots, the people that rely on it for their global identity should also be its sovereign. Hence its governance has to be sybil-resilient as well.
Here, we present a foundation for a decentralized, grassroots, bottom-up, self-sovereign process in which every human being may easily create and own a genuine global identity, realized as a public key. The solution relies on the formation of a Web of Trust among global identities, but does not rely on biometrics, nor does it require to store any personal information on public or even third-party storage, except for the public key itself. The approach is designed for natural realization using distributed ledger/blockchain technology. For the solution to be complete, additional components are needed, including a mechanism that encourages honest behavior and an egalitarian cryptocurrency to fuel the mechanism. These are a subject for future research.
While most of humanity is suddenly on the net, the value of this singularity is hampered by the lack of credible digital identities: Social networking, person-to-person transactions, democratic conduct, cooperation and philanthropy are all hampered by the profound presence of fake identities, as illustrated by Facebook's removal of 5.4Bn fake accounts since the beginning of 2019. Here, we introduce the fundamental notion of a \emph{genuine personal identifier}---a globally unique and singular identifier of a person---and present a foundation for a decentralized, grassroots, bottom-up process in which every human being may create, own, and protect the privacy of a genuine personal identifier. The solution employs mutual sureties among owners of personal identifiers, resulting in a mutual-surety graph reminiscent of a web-of-trust. Importantly, this approach is designed for a distributed realization, possibly using distributed ledger technology, and does not depend on the use or storage of biometric properties. For the solution to be complete, additional components are needed, notably a mechanism that encourages honest behavior and a sybil-resilient governance system.
The Internet of Things (IoT) is very attractive because of its promises. However, it brings many challenges, mainly issues about privacy preservation and lightweight cryptography. Many schemes have been designed so far but none of them simultaneously takes into account these aspects. In this paper, we propose an efficient attribute-based credential scheme for IoT devices. We use elliptic curve cryptography without pairing, blind signing, and zero-knowledge proof. Our scheme supports block signing, selective disclosure, and randomization. It provides data minimization and transaction unlinkability. Our construction is efficient since smaller key size can be used, and computing time can be reduced. As a result, it is a suitable solution for IoT devices characterized by three major constraints, namely low-energy power, small storage capacity, and low computing power.
Yang Xiao, Ning Zhang, Jin Li, Wenjing Lou · 5 authors
The abundance and rich varieties of data are enabling many transformative applications of big data analytics that have profound societal impacts. However, there are also increasing concerns regarding the improper use of individual data owner's private data. In this paper, we propose PrivacyGuard, a system that leverages blockchain smart contract and trusted execution environment (TEE) to enable individual's control over the access and usage of their private data. Smart contracts are used to specify data usage policy, i.e., who can use what data under which conditions and what analytics to perform, while the distributed blockchain ledger is used to keep an irreversible and non-repudiable data usage record. To address the efficiency problem of on-chain contract execution and to prevent exposing private data on the publicly viewable blockchain, PrivacyGuard incorporates a novel TEE-based off-chain contract execution engine along with a protocol to securely commit the execution result onto blockchain. We have built and deployed a prototype of PrivacyGuard with Ethereum and Intel SGX. Our experiment result demonstrates that PrivacyGuard fulfills the promised privacy goal and supports analytics on data from a considerable number of data owners.
Franklin Schrans, Daniel Hails, Alexander Harkness, Sophia Drossopoulou · 5 authors
The Ethereum blockchain platform supports the execution of decentralised applications or smart contracts. These typically hold and transfer digital currency to other parties on the platform; however, they have been subject to numerous attacks due to the unintentional introduction of bugs. Over a billion dollars worth of currency has been stolen since its release in July 2015. As smart contracts cannot be updated after deployment, it is imperative that the programming language supports the development of robust contracts. We propose Flint, a new statically-typed programming language specifically designed for writing robust smart contracts. Flint's features enforce the writing of safe and predictable code. To encourage good practices, we introduce protection blocks. Protection blocks restrict who can run code and when (using typestate) it can be executed. To prevent vulnerabilities relating to the unintentional loss of currency, Flint Asset traits provide safe atomic operations, ensuring the state of contracts is always consistent. Writes to state are restricted, simplifying reasoning about smart contracts.
Traditional voting and bidding systems largely rely on paperwork and human resources throughout the voting process, which can incur high costs in terms of both time and money. Electronic voting and electronic bidding systems can be used to reduce costs, and many new systems have been introduced. However, most systems require a powerful and trusted third party to guarantee system integrity and security. With developments in blockchain technology, research has begun to highlight the core concept of decentralization. In this study, we introduce the first decentralized electronic voting and bidding systems based on a blockchain and smart contract. We also use cryptographic techniques such as oblivious transfer and homomorphic encryptions to improve privacy protection. Our proposed systems allow voters and bidders to participate in the opening phase and improve participant anonymity, the privacy of data transmission, and data reliability and verifiability. Moreover, compared with other electronic voting and bidding systems, our systems are safer and more efficient.
Dijiang Huang, Chun-Jen Chung, Qiuxiang Dong, Jim Luo · 5 authors
Blockchain technology is increasingly being adopted as a trusted platform to support business functions including trusted and verifiable transactions, tracking, and validation. However, most business use-cases require privacy and confidentiality for data and transactions. As a result, businesses are forced to choose private blockchain solutions and unable to take full advantage of the capabilities, benefits and infrastructure of public blockchain systems. To address this issue, we present an Attribute-Based Encryption (ABE) security solution built on a private-over-public (PoP) blockchain approach. The policy based distributed operation of ABE conforms well to the blockchain concept. The cross-chain PoP approach provides the benefits from both public blockchains and private blockchains. Businesses will be able to restrict access, maintain privacy, and improve performance while still being able to leverage the distributed trust of public blockchains. This paper present the ABE-based security framework and protocol for securing data, transactions as well as smart contracts. Security analysis and performance evaluation show the proposed solution to be effective, efficient and practical. It can greatly reduce the cost and complexity for businesses compared to running isolated private blockchain solutions.
Vincent Reniers, Dimitri Van Landuyt, Paolo Viviani, Bert Lagaisse · 6 authors
Many applications by design depend on costly trusted third-party auditors. One such example is the industrial application case of federated multi-disciplinary optimization (MDO), in which different organizations contribute to a complex engineering design effort. Although blockchain and distributed ledger technology (DLT) has strong potential in reducing the dependence on such intermediaries, the architectural complexity involved in designing a solution is daunting.
Krishnendu Chatterjee, Amir Kafshdar Goharshady, Ehsan Kafshdar Goharshady
Smart contracts are programs that are stored and executed on the Blockchain and can receive, manage and transfer money (cryptocurrency units). Two important problems regarding smart contracts are formal analysis and compiler optimization. Formal analysis is extremely important, because smart contracts hold funds worth billions of dollars and their code is immutable after deployment. Hence, an undetected bug can cause significant financial losses. Compiler optimization is also crucial, because every action of a smart contract has to be executed by every node in the Blockchain network. Therefore, optimizations in compiling smart contracts can lead to significant savings in computation, time and energy.
Nguyen B. Truong, Kai Sun, Gyu Myoung Lee, Yike Guo
The General Data Protection Regulation (GDPR) gives control of personal data back to the owners by appointing higher requirements and obligations on service providers who manage and process personal data. As the verification of GDPR-compliance, handled by a supervisory authority, is irregularly conducted; it is challenging to be certified that a service provider has been continuously adhering to the GDPR. Furthermore, it is beyond the data owner's capability to perceive whether a service provider complies with the GDPR and effectively protects her personal data. This motivates us to envision a design concept for developing a GDPR-compliant personal data management platform leveraging the emerging blockchain and smart contract technologies. The goals of the platform are to provide decentralised mechanisms to both service providers and data owners for processing personal data; meanwhile, empower data provenance and transparency by leveraging advanced features of the blockchain technology. The platform enables data owners to impose data usage consent, ensures only designated parties can process personal data, and logs all data activities in an immutable distributed ledger using smart contract and cryptography techniques. By honestly participating in the platform, a service provider can be endorsed by the blockchain network that it is fully GDPR-compliant; otherwise, any violation is immutably recorded and is easily figured out by associated parties. We then demonstrate the feasibility and efficiency of the proposed design concept by developing a profile management platform implemented on top of the Hyperledger Fabric permissioned blockchain framework, following by valuable analysis and discussion.
Abrar O. Alkhamisi and Fathy Alboraei Abrar O. Alkhamisi and Fathy Alboraei
In recent years, the Internet of Things (IoT) plays a vital role in our daily activities .Owing to the increased number of vulnerabilities on the IoT devices, security becomes critical in the untrustworthy IoT environment. Access control is one of the top security concerns, however, implementing the traditional access control mechanisms in the resource-constrained nature of the IoT devices is a challenging task. With the emergence of blockchain technology, several recent research works have focused on the adoption of blockchain in IoT to resolve the security concerns. Despite, integrating the blockchain in the resource-constrained IoT context is difficult. To overcome these obstacles, the proposed work presents a privacy-aware IoT security architecture to ensure the access control based on Smart contract for resource-constrained and distributed IoT devices. The design of the proposed architecture incorporates three main components such as the contextual blockchain gateway, decentralized revocation manager, and non-interactive zero-knowledge proof based validation. By modeling the contextual blockchain gateway, the proposed architecture ensures the dynamic authentication and authorization based on the contextual information and access policies. Instead of integrating the blockchain technology into resource-constrained IoT devices, the smart contract-based distributed access control system with the contextual blockchain gateway provides the scalable solution. With the association of decentralized revocation manager in the smart contract, it prevents the resource access from the unauthorized users by dynamically generating and updating the revoked user list of all the nodes in the smart contract. Moreover, the proposed architecture employs the non-interactive zeroknowledge proof cryptographic protocol to ensure the transaction privacy within the smart contract. Consequently, it maintains the trade-off between the transparency and privacy while ensuring the security for the distributed IoT environment.
Assisting traffic control is one of the most important applications on the Internet of Vehicles (IoVs). Traffic information provided by vehicles is desired since drivers or vehicle sensors are sensitive in perceiving or detecting nuances on roads. However, the availability and privacy preservation of this information are critical while conflicted with each other in the vehicular communication. In this paper, we propose a semicentralized mode with attribute-based blockchain in IoVs to balance the tradeoff between the availability and the privacy preservation. In this mode, a method of control-by-vehicles is used to control signals of traffic lights to increase traffic efficiency. Users are grouped their attributes such as locations and directions before starting the communication. The users reach an agreement on determining a temporary signal timing by interacting with each other without leaking privacy. Final decisions are verifiable to all users, even if they have no a priori agreement and processes of consensus. The mode not only achieves the aim of privacy preservation but also supports responsibility investigation for historical agreements via ciphertext-policy attribute-based encryption (CP-ABE) and blockchain technology. Extensive experimental results demonstrated that our mode is efficient and practical.
The developments of Narrow Band Internet of Things have attracted much attention from both academia and industry nowadays. While Narrow Band Internet of Things is gradually designed for commercial applications, it also confronts with several security concerns such as identification and privacy. Blockchain technique is equipped with authentication, auditing, and accountability, and thus it can serve as a promising tool for providing secure data communication on the network. To enhance the security level and achieve reliable data authentication and accountability for Narrow Band Internet of Things system, in this article, we combine the merits of blockchain technique and propose a blockchain-based architecture for Narrow Band Internet of Things. The presented architecture consists of three layers which are sensing layer, transport layer, and transaction layer. We describe the interaction processes between each layer in detail and construct the algorithms which are used to conduct data authentication and blockchain generation. By evaluation, our scheme is demonstrated to obtain favorable performances in terms of privacy, authentication, accountability, and efficiency, which makes it an appropriate method to be applied for secure data communication in Narrow Band Internet of Things systems.
We present models that utilize smart contracts and interledger mechanisms to provide decentralized authorization for constrained IoT devices. The models involve different tradeoffs in terms of cost, delay, complexity, and privacy, while exploiting key advantages of smart contracts and multiple blockchains that communicate with interledger mechanisms. These include immutably recording hashes of authorization information and policies in smart contracts, resilience through the execution of smart contract code on all blockchain nodes, and cryptographically linking transactions and IoT events recorded on different blockchains using hash and time-lock mechanisms. The proposed models are evaluated on the public Ethereum testnets Rinkeby and Ropsten, in terms of execution cost (gas), delay, and reduction of data that needs to be sent to the constrained IoT devices.