Quantum attacks on Bitcoin, and how to protect against them

The key cryptographic protocols used to secure the internet and financial transactions of today are all susceptible to attack by the development of a sufficiently large quantum computer. One particular area at risk are cryptocurrencies, a market currently worth over 150 billion USD. We investigate the risk of Bitcoin, and other cryptocurrencies, to attacks by quantum computers. We find that the proof-of-work used by Bitcoin is relatively resistant to substantial speedup by quantum computers in the next 10 years, mainly because specialized ASIC miners are extremely fast compared to the estimated clock speed of near-term quantum computers. On the other hand, the elliptic curve signature scheme used by Bitcoin is much more at risk, and could be completely broken by a quantum computer as early as 2027, by the most optimistic estimates. We analyze an alternative proof-of-work called Momentum, based on finding collisions in a hash function, that is even more resistant to speedup by a quantum computer. We also review the available post-quantum signature schemes to see which one would best meet the security and efficiency requirements of blockchain applications.Comment: 21 pages, 6 figures. For a rough update on the progress of Quantum devices and prognostications on time from now to break Digital signatures, see https://www.quantumcryptopocalypse.com/quantum-moores-law

Detecting brute-force attacks on cryptocurrency wallets

Blockchain is a distributed ledger, which is protected against malicious modifications by means of cryptographic tools, e.g. digital signatures and hash functions. One of the most prominent applications of blockchains is cryptocurrencies, such as Bitcoin. In this work, we consider a particular attack on wallets for collecting assets in a cryptocurrency network based on brute-force search attacks. Using Bitcoin as an example, we demonstrate that if the attack is implemented successfully, a legitimate user is able to prove that fact of this attack with a high probability. We also consider two options for modification of existing cryptocurrency protocols for dealing with this type of attacks. First, we discuss a modification that requires introducing changes in the Bitcoin protocol and allows diminishing the motivation to attack wallets. Second, an alternative option is the construction of special smart-contracts, which reward the users for providing evidence of the brute-force attack. The execution of this smart-contract can work as an automatic alarm that the employed cryptographic mechanisms, and (particularly) hash functions, have an evident vulnerability.Comment: 10 pages, 2 figures; published versio

Energy efficient mining on a quantum-enabled blockchain using light

We outline a quantum-enabled blockchain architecture based on a consortium of quantum servers. The network is hybridised, utilising digital systems for sharing and processing classical information combined with a fibre--optic infrastructure and quantum devices for transmitting and processing quantum information. We deliver an energy efficient interactive mining protocol enacted between clients and servers which uses quantum information encoded in light and removes the need for trust in network infrastructure. Instead, clients on the network need only trust the transparent network code, and that their devices adhere to the rules of quantum physics. To demonstrate the energy efficiency of the mining protocol, we elaborate upon the results of two previous experiments (one performed over 1km of optical fibre) as applied to this work. Finally, we address some key vulnerabilities, explore open questions, and observe forward--compatibility with the quantum internet and quantum computing technologies.Comment: 25 pages, 5 figure

Cryptocurrency with a Conscience: Using Artificial Intelligence to Develop Money that Advances Human Ethical Values

Cryptocurrencies like Bitcoin are offering new avenues for economic empowerment to individuals around the world. However, they also provide a powerful tool that facilitates criminal activities such as human trafficking and illegal weapons sales that cause great harm to individuals and communities. Cryptocurrency advocates have argued that the ethical dimensions of cryptocurrency are not qualitatively new, insofar as money has always been understood as a passive instrument that lacks ethical values and can be used for good or ill purposes. In this paper, we challenge such a presumption that money must be ‘value-neutral.’ Building on advances in artificial intelligence, cryptography, and machine ethics, we argue that it is possible to design artificially intelligent cryptocurrencies that are not ethically neutral but which autonomously regulate their own use in a way that reflects the ethical values of particular human beings – or even entire human societies. We propose a technological framework for such cryptocurrencies and then analyse the legal, ethical, and economic implications of their use. Finally, we suggest that the development of cryptocurrencies possessing ethical as well as monetary value can provide human beings with a new economic means of positively influencing the ethos and values of their societies

Quantum-secured blockchain

Blockchain is a distributed database which is cryptographically protected against malicious modifications. While promising for a wide range of applications, current blockchain platforms rely on digital signatures, which are vulnerable to attacks by means of quantum computers. The same, albeit to a lesser extent, applies to cryptographic hash functions that are used in preparing new blocks, so parties with access to quantum computation would have unfair advantage in procuring mining rewards. Here we propose a possible solution to the quantum era blockchain challenge and report an experimental realization of a quantum-safe blockchain platform that utilizes quantum key distribution across an urban fiber network for information-theoretically secure authentication. These results address important questions about realizability and scalability of quantum-safe blockchains for commercial and governmental applications.Comment: 7 pages, 2 figures; published versio

Foundations, Properties, and Security Applications of Puzzles: A Survey

Cryptographic algorithms have been used not only to create robust ciphertexts but also to generate cryptograms that, contrary to the classic goal of cryptography, are meant to be broken. These cryptograms, generally called puzzles, require the use of a certain amount of resources to be solved, hence introducing a cost that is often regarded as a time delay---though it could involve other metrics as well, such as bandwidth. These powerful features have made puzzles the core of many security protocols, acquiring increasing importance in the IT security landscape. The concept of a puzzle has subsequently been extended to other types of schemes that do not use cryptographic functions, such as CAPTCHAs, which are used to discriminate humans from machines. Overall, puzzles have experienced a renewed interest with the advent of Bitcoin, which uses a CPU-intensive puzzle as proof of work. In this paper, we provide a comprehensive study of the most important puzzle construction schemes available in the literature, categorizing them according to several attributes, such as resource type, verification type, and applications. We have redefined the term puzzle by collecting and integrating the scattered notions used in different works, to cover all the existing applications. Moreover, we provide an overview of the possible applications, identifying key requirements and different design approaches. Finally, we highlight the features and limitations of each approach, providing a useful guide for the future development of new puzzle schemes.Comment: This article has been accepted for publication in ACM Computing Survey

Quantum resource estimates for computing elliptic curve discrete logarithms

We give precise quantum resource estimates for Shor's algorithm to compute discrete logarithms on elliptic curves over prime fields. The estimates are derived from a simulation of a Toffoli gate network for controlled elliptic curve point addition, implemented within the framework of the quantum computing software tool suite LIQ$Ui|\rangle$. We determine circuit implementations for reversible modular arithmetic, including modular addition, multiplication and inversion, as well as reversible elliptic curve point addition. We conclude that elliptic curve discrete logarithms on an elliptic curve defined over an $n$-bit prime field can be computed on a quantum computer with at most $9n + 2\lceil\log_2(n)\rceil+10$ qubits using a quantum circuit of at most $448 n^3 \log_2(n) + 4090 n^3$ Toffoli gates. We are able to classically simulate the Toffoli networks corresponding to the controlled elliptic curve point addition as the core piece of Shor's algorithm for the NIST standard curves P-192, P-224, P-256, P-384 and P-521. Our approach allows gate-level comparisons to recent resource estimates for Shor's factoring algorithm. The results also support estimates given earlier by Proos and Zalka and indicate that, for current parameters at comparable classical security levels, the number of qubits required to tackle elliptic curves is less than for attacking RSA, suggesting that indeed ECC is an easier target than RSA.Comment: 24 pages, 2 tables, 11 figures. v2: typos fixed and reference added. ASIACRYPT 201

Green Bitcoin: Global Sound Money

Modern societies have adopted government-issued fiat currencies many of which exist today mainly in the form of digits in credit and bank accounts. Fiat currencies are controlled by central banks for economic stimulation and stabilization. Boom-and-bust cycles are created. The volatility of the cycle has become increasingly extreme. Social inequality due to the concentration of wealth is prevalent worldwide. As such, restoring sound money, which provides stored value over time, has become a pressing issue. Currently, cryptocurrencies such as Bitcoin are in their infancy and may someday qualify as sound money. Bitcoin today is considered as a digital asset for storing value. But Bitcoin has problems. The first issue of the current Bitcoin network is its high energy consumption consensus mechanism. The second is the cryptographic primitives which are unsafe against post-quantum (PQ) attacks. We aim to propose Green Bitcoin which addresses both issues. To save energy in consensus mechanism, we introduce a post-quantum secure (self-election) verifiable coin-toss function and novel PQ secure proof-of-computation primitives. It is expected to reduce the rate of energy consumption more than 90 percent of the current Bitcoin network. The elliptic curve cryptography will be replaced with PQ-safe versions. The Green Bitcoin protocol will help Bitcoin evolve into a post-quantum secure network.Comment: 16 page