Stian Lybech, Eun-Young Kang, Riccardo Tonello, Anders Dalskov
This paper develops a model of a smart-contract language for a blockchain architecture with off-chain components. Off-chain components are pieces of smart contracts that execute at designated locations outside of the network of blockchain nodes, but remain synchronised with the on-chain contract state. They react to changes to the on-chain state, but may also notify the on-chain component about events in the world, e.g. stock prices, weather data etc., or even act as a bridge between different blockchains. This affords greater flexibility for the developer, but may also enable new vulnerabilities. As a concrete example, we use the model to study the problem of ensuring integrity and secrecy of data between the on-chain and off-chain components, using static information flow control techniques. This fails, even in the absence of a loop construct, because off-chain components act as separate threads and can encode a blocking construct e.g. through recursive method calls. We end the paper with a discussion of possible ways to remedy this situation.