The rise of smart contract systems such as Ethereum has resulted in a proliferation of blockchain-based decentralized applications including applications that store and manage a wide range of data. Current smart contracts are designed to be executed solely by miners and are revealed entirely on-chain, resulting in reduced scalability and privacy. In this paper, we discuss that scalability and privacy of smart contracts can be enhanced by splitting a given contract into an off-chain contract and an on-chain contract. Specifically, functions of the contract that involve high-cost computation or sensitive information can be split and included as the off-chain contract, that is signed and executed by only the interested participants. The proposed approach allows the participants to reach unanimous agreement off-chain when all of them are honest, allowing computing resources of miners to be saved and content of the off-chain contract to be hidden from the public. In case of a dispute caused by any dishonest participants, a signed copy of the off-chain contract can be revealed so that a verified instance can be created to make miners enforce the true execution result. Thus, honest participants have the ability to redress and penalize any fraudulent or dishonest behavior, which incentivizes all participants to honestly follow the agreed off-chain contract. We discuss techniques for splitting a contract into a pair of on/off-chain contracts and propose a mechanism to address the challenges of handling dishonest participants in the system. Our implementation and evaluation of the proposed approach using an example smart contract demonstrate the effectiveness of the proposed approach in Ethereum.
Open access
3 source records
Blockchain Technology Applications and Security
Cryptography and Data Security
Advanced Steganography and Watermarking Techniques
We show that every language in QMA admits a classical-verifier, quantum-prover zero-knowledge argument system which is sound against quantum polynomial-time provers and zero-knowledge for classical (and quantum) polynomial-time verifiers. The protocol builds upon two recent results: a computational zero-knowledge proof system for languages in QMA, with a quantum verifier, introduced by Broadbent et al. (FOCS 2016), and an argument system for languages in QMA, with a classical verifier, introduced by Mahadev (FOCS 2018).
We put forward the idea that classical blockchains and smart contracts are potentially useful primitives not only for classical cryptography, but for quantum cryptography as well. Abstractly, a smart contract is a functionality that allows parties to deposit funds, and release them upon fulfillment of algorithmically checkable conditions, and can thus be employed as a formal tool to enforce monetary incentives. In this work, we give the first example of the use of smart contracts in a quantum setting. We describe a simple hybrid classical-quantum payment system whose main ingredients are a classical blockchain capable of handling stateful smart contracts, and quantum lightning, a strengthening of public-key quantum money introduced by Zhandry [Eurocrypt 2019]. Our hybrid payment system uses quantum states as banknotes and a classical blockchain to settle disputes and to keep track of the valid serial numbers. It has several desirable properties: it is decentralized, requiring no trust in any single entity; payments are as quick as quantum communication, regardless of the total number of users; when a quantum banknote is damaged or lost, the rightful owner can recover the lost value.
Antoine Durand, Elyes Ben Hamida, David Leporini, Gérard Memmi
In the light of the recent fame of Blockchain technologies, numerous proposals and projects aiming at better practical viability have emerged. However, formally assessing their particularities and benefits has proven to be a difficult task. The aim of this work is to compare the fundamental differences of such protocols to understand how they lead to different practical performances. To reach this goal, we undertake a complexity analysis of a wide range of prominent distributed algorithms proposed for blockchain systems, under the lens of Total Order Broadcast protocols. We sampled protocols designed for very different settings and that use a broad range of techniques, thus giving a good overview of the achievements of state-of-the-art techniques. By analyzing latency and network usage, we are able to discuss each protocol's characteristics and properties in a consistent manner. One corollary result to our work is a more robust criteria to classify protocols as permissioned or permissionless.
An enormous amount of energy is wasted in Proofof-Work (PoW) mechanisms adopted by popular blockchain applications (e.g., PoW-based cryptocurrencies), because miners must conduct a large amount of computation. Owing to this, one serious rising concern is that the energy waste not only dilutes the value of the blockchain but also hinders its further application. In this paper, we propose a novel blockchain design that fully recycles the energy required for facilitating and maintaining it, which is re-invested to the computation of deep learning. We realize this by proposing Proof-of-Deep-Learning (PoDL) such that a valid proof for a new block can be generated if and only if a proper deep learning model is produced. We present a proof-of-concept design of PoDL that is compatible with the majority of the cryptocurrencies that are based on hash-based PoW mechanisms. Our benchmark and simulation results show that the proposed design is feasible for various popular cryptocurrencies such as Bitcoin, Bitcoin Cash, and Litecoin.
David Froelicher, Juan Ramón Troncoso-Pastoriza, João Sá Sousa, Jean‐Pierre Hubaux
Data sharing has become of primary importance in many domains such as big-data analytics, economics and medical research, but remains difficult to achieve when the data are sensitive. In fact, sharing personal information requires individuals' unconditional consent or is often simply forbidden for privacy and security reasons. In this paper, we propose Drynx, a decentralized system for privacy-conscious statistical analysis on distributed datasets. Drynx relies on a set of computing nodes to enable the computation of statistics such as standard deviation or extrema, and the training and evaluation of machine-learning models on sensitive and distributed data. To ensure data confidentiality and the privacy of the data providers, Drynx combines interactive protocols, homomorphic encryption, zero-knowledge proofs of correctness, and differential privacy. It enables an efficient and decentralized verification of the input data and of all the system's computations thus provides auditability in a strong adversarial model in which no entity has to be individually trusted. Drynx is highly modular, dynamic and parallelizable. Our evaluation shows that it enables the training of a logistic regression model on a dataset (12 features and 600,000 records) distributed among 12 data providers in less than 2 seconds. The computations are distributed among 6 computing nodes, and Drynx enables the verification of the query execution's correctness in less than 22 seconds.
A large number of IoT devices are connected via the Internet. However, most of these IoT devices are generally not perfect-by-design even have security weaknesses or vulnerabilities. Thus, it is essential to update these IoT devices securely, patching their vulnerabilities and protecting the safety of the involved users. Existing studies deliver secure and reliable updates based on blockchain network which serves as the transmission network. However, these approaches could compromise users privacy when updating the IoT devices. In this paper, we propose a new blockchain based privacy-preserving software updates protocol, which delivers secure and reliable updates with an incentive mechanism, as well protects the privacy of involved users. The vendor delivers the updates and it makes a commitment by using a smart contract to provide financial incentive to the transmission nodes who deliver the updates to the IoT devices. A transmission node gets financial incentive by providing a proof-of-delivery. The transmission node uses double authentication preventing signature (DAPS) to carry out the fair exchange to obtain the proof-of-delivery. Specifically, the transmission node exchanges an attribute-based signature from a IoT device by using DAPS. Then, it uses the attribute-based signature as a proof-of-delivery to receive financial incentives. Generally, the IoT device has to execute complex computation for an attribute-based signature (ABS). It is intolerable for resource limited devices. We propose a concrete outsourced attribute-based signature (OABS) scheme to resist the weakness. Then, we prove the security of the proposed OABS and the protocol as well. Finally, we implement smart contract in Solidity to demonstrate the validity of the proposed protocol.
The Internet of Things (IoT) is experiencing explosive growth and has gained extensive attention from academia and industry in recent years. Most of the existing IoT infrastructures are centralized, in which the presence of a cloud server is mandatory. However, centralized frameworks suffer from the issues of unscalability and single-point-of-failure. Consequently, decentralized IoT has been proposed by taking advantage of the emerging technology of Blockchain. Voting systems are widely adopted in IoT, such as a leader election in wireless sensor networks. Self-tallying voting systems are alternatives to traditional centralized voting systems in decentralized IoT since the traditional ones are not suitable for such scenarios. Unfortunately, self-tallying voting systems inherently suffer from fairness issues, such as adaptive and abortive issues caused by malicious voters. In this paper, we introduce a framework of self-tallying systems in decentralized IoT based on Blockchain. We propose a concrete construction and prove the proposed system satisfies all the security requirements including fairness, dispute-freeness and maximal ballot secrecy. The implementations on mobile phones demonstrate the practicability of our system.
With the advent of blockchain technologies, the idea of decentralized applications has gained traction. Smart contracts permit the implementation of application logic to foster distributed systems that are capable of removing intermediaries. Hereby, lock in effects originating from isolated data storage and central authorities are mitigated. Yet, smart contracts deployed to a ledger generate dependencies on the underlying blockchain. Over time, requirements regarding contract execution may detach from the utilized blockchain due to contradicting incentives and security or performance issues. To avoid a novel form of lock in effect towards a host blockchain, we introduce a concept for smart contract portability that permits any user to migrate contract logic and state between blockchains in a flexible and verifiable manner. As the Ethereum Virtual Machine (EVM) is supported by a multitude of blockchain implementations, it poses a common execution environment for smart contracts. We provide a toolbox that facilitates smart contract portability between EVM-compatible blockchains without trust requirements in the entity executing the migration process. To prove the concept's soundness, we transfer token contracts based on the ERC20 standard as well as applications containing dependencies to other smart contracts. Our evaluation shows the validity of ported applications including their current states.
Cryptocurrencies, led by bitcoin launched in 2009, have obtained wide attention due to the emerging Blockchain in recent years. Anonymous cryptocurrencies are highly essential since users want to preserve their privacy when conducting transactions. However, some users might misbehave with the cover of anonymity such as rampant trafficking and extortion. Thus, it is important to balance anonymity and accountability of anonymous cryptocurrencies. In this paper, we solve this issue by proposing a linkable group signature (LGS) for signing cryptocurrency transactions, which can be used to trace a payer's identity in consortium blockchain based anonymous cryptocurrencies, in case the payer tries illegal activities. A payer keeps anonymous if he/she behaves honestly. We prove that the proposed scheme achieves full-anonymity, full-traceability and linkability in the random oracle. Implementation of the proposed LGS scheme demonstrates its high efficiency thus, can be adopted in anonymous cryptocurrencies in reality.
A distributed ledger is a tamperproof sequence of data that can be publicly accessed and augmented by everyone, without being maintained by a centralized party. Distributed ledgers stand to revolutionize the way a modern society operates. They can secure all kinds of traditional transactions, such as payments, asset transfers and titles, in the exact order in which the transactions occur; and enable totally new transactions, such as cryptocurrencies and smart contracts. They can remove intermediaries and usher in a new paradigm for trust. As currently implemented, however, distributed ledgers scale poorly and cannot achieve their enormous potential. In this paper we propose Algorand, an alternative, secure and efficient distributed ledger. Algorand is permissionless and works in a highly asynchronous environment. Unlike prior implementations of distributed ledgers based on “proof of work,” Algorand dispenses with “miners” and requires only a negligible amount of computation. Moreover, its transaction history “forks” only with negligible probability: that is, Algorand guarantees the finality of a transaction the moment the transaction enters the ledger.
Alessio Meneghetti, Tommaso Parise, Massimiliano Sala, Daniele Taufer
The main problem faced by smart contract platforms is the amount of time and computational power required to reach consensus. In a classical blockchain model, each operation is in fact performed by each node, both to update the status and to validate the results of the calculations performed by others. In this short survey we sketch some state-of-the-art approaches to obtain an efficient and scalable computation of smart contracts. Particular emphasis is given to sharding, a promising method that allows parallelization and therefore a more efficient management of the computational resources of the network.
PAI Coin's Proof-of-Work (PoW) consensus mechanism utilizes the double SHA-256 hashing protocol-- the same mechanism used by Bitcoin Core. This compatibility with classic Bitcoin-style mining provides low barrier to entry for PAI Coin mining, consequently rendering the PAI Coin network vulnerable to so-called 51% attacks, among others. To mitigate such risks, this paper proposes a hybrid Proof-of-Work, Proof-of-Stake (PoS) consensus mechanism and provides a detailed technical analysis of how such a mechanism would counter some of the PAI Coin network's inherent vulnerabilities, if successfully implemented. A detailed technical outline of blockchain-based PoW & PoS consensus, including their advantages and disadvantages, when used both independently and in the context of the hybrid model, is provided. An economic analysis of attacking a hybrid-powered PAI Coin network is presented, and a final recommendation for future development of PAI Coin consensus is made.
Distributed ledger and blockchain systems are expected to make financial systems easier to audit, reduce counter-party risk and transfer assets seamlessly. The key concept is a token controlled by a cryptographic private key for spending, and represented by a public key for receiving and audit purposes. Ownership transfers are authorized with digital signatures and recorded on a ledger visible to numerous participants. Several ways to enhance the privacy of such ledgers have been proposed. In this paper we study two major techniques to enhance privacy of token transfers with the help of improved cryptography: Möbius and CryptoNote. The comparison is illuminating: both techniques use "ring signatures" and some form of "stealth addressing" or key derivation techniques, yet each does it in a completely different way. Möbius is more recent and operates in a more co-operative way (with permission) and is not yet specified at a sufficiently detailed level. Our primary goal is to explore the suitability of these two techniques for improving the privacy of payments on cryptographic ledgers. We explain various conflicting requirements and strategic choices which arise when trying to conceal the identity of participants and the exact details of transactions in our context while simultaneously enabling fast final settlement of tokens with a reasonable level of liquidity. We show that in these systems, third-party observers see obfuscated settlement. We finish with a summary of explicit warnings and advice for implementors of such systems.
The Ethereum block chain as a decentralized platform is so successful that many applications deployed on it. However, for the inherent transparency properties and the lack of privacy, deploying a financial application on top of it is always a challenge. In this paper, we tackle this challenge and propose an anonymous sealed-bid auction protocol based on time-released encryption atop Consortium Block chain. We adopt a strict digital certificate-based identity mechanism of the consortium block chain to permit legitimate participants, and utilize the blind signature based on elliptic curve technology to allowing anonymous participation. Moreover, a timed release public key encryption algorithm is adopted to encrypt bids and prevent auctioneer from colluding with bidders. This is completely different from the method (zero-knowledge proof) used in other papers to prevent collusion between auctioneer and bidder. We provide a specific analysis of our protocol, which shows that our protocol meets anonymity and applicability.
We give a straightforward proof for the formula giving the long-term apparent hashrate of the Selfish Mining strategy in Bitcoin using only elementary probabilities and combinatorics, and more precisely, Dyck words. There is no need to compute stationary probabilities on Markov chain nor stopping times for Poisson processes as it was previously done. We consider also several other block withholding strategies.
Public key infrastructures (PKIs) are one of the main building blocks for securing communications over the Internet. Currently, PKIs are under the control of centralized authorities, which is problematic as evidenced by numerous incidents where they have been compromised. The distributed, fault tolerant log of transactions provided by blockchains and more recently, smart contract platforms, constitutes a powerful tool for the decentralization of PKIs. To verify the validity of identity records, blockchain-based identity systems store on chain either all identity records, or, a small (or even constant) sized amount of data for verifying identity records stored off chain. However, as most of these systems have never been implemented, there is little information regarding the practical implications of each design's tradeoffs. In this work, we first implement and evaluate the only provably secure, smart contract based PKI of Patsonakis et al. on top of Ethereum. This construction incurs constant-sized storage at the expense of computational complexity. To explore this tradeoff, we propose and implement a second construction which, eliminates the need for trusted setup, preserves the security properties of Patsonakis et al. and, as illustrated through our evaluation, is the only version with constant-sized state that can be deployed on the live chain of Ethereum. Furthermore, we compare these two systems with the simple approach of most prior works, e.g., the Ethereum Name Service, where all identity records are stored on the smart contract's state, to illustrate several shortcomings of Ethereum and its cost model. We propose several modifications for fine tuning the model, which would be useful to be considered for any smart contract platform like Ethereum so that it reaches its full potential to support arbitrary distributed applications.
Blockchain is an innovative application model that integrates distributed data storage, peer-to-peer transmission, consensus mechanisms, digital encryption technology and other computer technologies. It is decentralized, secure, and Information disclosure. In the blockchain, digital encryption technology has a core position. The security of user information and transaction data is a necessary condition for the promotion of blockchain. The development of cryptography technology promotes and restricts the further development of blockchain. This paper outlines the infrastructure of blockchain, including the data layer, network layer, consensus layer, contract layer and application layer. The principles of encryption technology is introduced briefly, such as hash function, asymmetric cryptosystem, digital signature. The application of cryptography in all levels of blockchain is analyzed, including data layer, network layer, consensus layer, etc. It shows that cryptography runs through the whole blockchain system. The existing security problems of blockchain is analyzed, and the future research direction is expected.
Open access
Advanced Steganography and Watermarking Techniques
Mokka is a partial-synchronous, strong consistent BFT consensus algorithm for reaching the consensus about a certain value in open networks. This algorithm has some common approaches nested from RAFT, but its nature and design make Mokka a better solution for DLT (distributed ledger).
Alberto Sonnino, Michał Król, Argyrios G. Tasiopoulos, Ioannis Psaras
Recent developments in blockchains and edge computing allows to deploy decentralized shared economy with utility tokens, where altcoins secure and reward useful work. However, the majority of the systems being developed, does not provide mechanisms to pair workers and clients, or rely on manual and insecure resolution. AStERISK bridges this gap allowing to perform sealed-bid auctions on blockchains, automatically determine the most optimal price for services, and assign clients to the most suitable workers. AStERISK allows workers to specify a minimal price for their work, and hide submitted bids as well the identity of the bidders without relying on any centralized party at any point. We provide a smart contract implementation of AStERISK and show how to deploy it within the Filecoin network, and perform an initial benchmark on Chainspace.
In today's blockchain system, designing a secure and high throughput blockchain on par with a centralized payment system is a difficult task. Sharding is one of the most worthwhile emerging technologies for improving the system throughput while maintain high-security level. However, previous sharding-related designs have two main limitations. First, the security and throughput of their random-based sharding system are not high enough as they did not leverage the heterogeneity among validators. Second, to design an incentive mechanism that promotes cooperation could incur a huge overhead on their system. In this article, we propose RepChain, a reputation-based secure and fast blockchain system via sharding, which also provides high incentive to stimulate node cooperation. RepChain utilizes reputation to explicitly characterize the heterogeneity among the validators and lay the foundation for the incentive mechanism. We propose a new double-chain architecture-a transaction chain and a reputation chain. For the transaction chain, an efficient Raft-based synchronous consensus has been presented. For the reputation chain, the synchronous Byzantine fault tolerance consensus that combines collective signing has been utilized to prevent the attack on both reputation score and the related transaction blocks. It supports a high throughput transaction chain with moderate generation speed. Moreover, we propose a reputation-based sharding and leader selection scheme. To analyze the security of RepChain, we propose a recursive formula to calculate the epoch security within only $\mathcal {O}(km^{2})$ time. Furthermore, we implement and evaluate RepChain on the Amazon Web Service platform. The results show our solution can enhance both throughout and security level of the existing sharding-based blockchain system.