Mixcoin Anonymity for Bitcoin with accountable mixes (Full version)

Abstract. We propose Mixcoin, a protocol to facilitate anonymous payments in Bitcoin and similar cryptocurrencies. We build on the emergent phenomenon of currency mixes, adding an accountability mechanism to expose theft. We demonstrate that incentives of mixes and clients can be aligned to ensure that rational mixes will not steal. Our scheme is efficient and fully compatible with Bitcoin. Against a passive attacker, our scheme provides an anonymity set of all other users mixing coins contemporaneously. This is an interesting new property with no clear analog in better-studied communication mixes. Against active attackers our scheme offers similar anonymity to traditional communication mixes.

TumbleBit: an untrusted Bitcoin-compatible anonymous payment hub

This paper presents TumbleBit, a new unidirectional unlinkable payment hub that is fully compatible with today s Bitcoin protocol. TumbleBit allows parties to make fast, anonymous, off-blockchain payments through an untrusted intermediary called the Tumbler. TumbleBits anonymity properties are similar to classic Chaumian eCash: no one, not even the Tumbler, can link a payment from its payer to its payee. Every payment made via TumbleBit is backed by bitcoins, and comes with a guarantee that Tumbler can neither violate anonymity, nor steal bitcoins, nor print money by issuing payments to itself. We prove the security of TumbleBit using the real/ideal world paradigm and the random oracle model. Security follows from the standard RSA assumption and ECDSA unforgeability. We implement TumbleBit, mix payments from 800 users and show that TumbleBits offblockchain payments can complete in seconds.https://eprint.iacr.org/2016/575.pdfPublished versio

A New Look at the Refund Mechanism in the Bitcoin Payment Protocol

BIP70 is the Bitcoin payment protocol for communication between a merchant and a pseudonymous customer. McCorry et al. (FC 2016) showed that BIP70 is prone to refund attacks and proposed a fix that requires the customer to sign their refund request. They argued that this minimal change will provide resistance against refund attacks. In this paper, we point out the drawbacks of McCorry et al.’s fix and propose a new approach for protection against refund attacks using the Bitcoin multisignature mechanism. Our solution does not rely on merchants storing the refund request, and unlike the previous solution, allows updating the refund addresses through email. We discuss the security of our proposed method and compare it with the previous solution. We also propose a novel application of our refund mechanism in providing anonymity for payments between a payer and payee in which merchants act as mixing servers. We finally discuss how to combine the above two mechanisms in a single payment protocol to have an anonymous payment protocol secure against refund attacks

Anonymity and trust in the electronic world

Privacy has never been an explicit goal of authorization mechanisms. The traditional approach to authorisation relies on strong authentication of a stable identity using long term credentials. Audit is then linked to authorization via the same identity. Such an approach compels users to enter into a trust relationship with large parts of the system infrastructure, including entities in remote domains. In this dissertation we advance the view that this type of compulsive trust relationship is unnecessary and can have undesirable consequences. We examine in some detail the consequences which such undesirable trust relationships can have on individual privacy, and investigate the extent to which taking a unified approach to trust and anonymity can actually provide useful leverage to address threats to privacy without compromising the principal goals of authentication and audit. We conclude that many applications would benefit from mechanisms which enabled them to make authorization decisions without using long-term credentials. We next propose specific mechanisms to achieve this, introducing a novel notion of a short-lived electronic identity, which we call a surrogate. This approach allows a localisation of trust and entities are not compelled to transitively trust other entities in remote domains. In particular, resolution of stable identities needs only ever to be done locally to the entity named. Our surrogates allow delegation, enable role-based access control policies to be enforced across multiple domains, and permit the use of non-anonymous payment mechanisms, all without compromising the privacy of a user. The localisation of trust resulting from the approach proposed in this dissertation also has the potential to allow clients to control the risks to which they are exposed by bearing the cost of relevant countermeasures themselves, rather than forcing clients to trust the system infrastructure to protect them and to bear an equal share of the cost of all countermeasures whether or not effective for them. This consideration means that our surrogate-based approach and mechanisms are of interest even in Kerberos-like scenarios where anonymity is not a requirement, but the remote authentication mechanism is untrustworthy

Learning from 20 Years of Payments for Ecosystem Services in Costa Rica

Costa Rica's Payments for Ecosystems Services (PES) programme has become something of an icon in the world of conservation. Its innovative blend of economic and regulatory instruments - and its hitches and successes - provide a valuable source of inspiration for other countries that are looking for effective ways to conserve and regenerate ecosystems. Since 1997, nearly one million hectares of forest in Costa Rica have been part of the PES programme at one time or another, and forest cover has now returned to over 50 per cent of the country's land area, from a low of just 20 per cent in the 1980s. What lessons can be learnt from the 20 years since it was founded? Also published in Spanish, this paper is for local practitioners, international researchers and donors who are interested in the Costa Rican experience

Dynamic Mobile Anonymity with Mixing

Staying anonymous and not revealing real identity is highly desired in today's mobile business. Especially generic frameworks for different kinds of context-aware mobile business applications should provide communication anonymity of mobile users as a core security feature. For enabling communication anonymity, Mix-net based solutions are widely accepted and used. But directly deploying existing Mix-net clients on mobile devices with limited hardware capacity is not a realistic approach. In addition, different anonymity sensitivities of both applications and users require to enforce anonymity dynamically rather than on a fixed level. In this paper, we present an approach towards a solution that addresses the specific anonymity challenges in mobile business while exploiting the benefits of existing Mix-net frameworks