Cloud-based Quadratic Optimization with Partially Homomorphic Encryption

The development of large-scale distributed control systems has led to the outsourcing of costly computations to cloud-computing platforms, as well as to concerns about privacy of the collected sensitive data. This paper develops a cloud-based protocol for a quadratic optimization problem involving multiple parties, each holding information it seeks to maintain private. The protocol is based on the projected gradient ascent on the Lagrange dual problem and exploits partially homomorphic encryption and secure multi-party computation techniques. Using formal cryptographic definitions of indistinguishability, the protocol is shown to achieve computational privacy, i.e., there is no computationally efficient algorithm that any involved party can employ to obtain private information beyond what can be inferred from the party's inputs and outputs only. In order to reduce the communication complexity of the proposed protocol, we introduced a variant that achieves this objective at the expense of weaker privacy guarantees. We discuss in detail the computational and communication complexity properties of both algorithms theoretically and also through implementations. We conclude the paper with a discussion on computational privacy and other notions of privacy such as the non-unique retrieval of the private information from the protocol outputs

Cloud-Based Quadratic Optimization with Partially Homomorphic Encryption

This article develops a cloud-based protocol for a constrained quadratic optimization problem involving multiple parties, each holding private data. The protocol is based on the projected gradient ascent on the Lagrange dual problem and exploits partially homomorphic encryption and secure communication techniques. Using formal cryptographic definitions of indistinguishability, the protocol is shown to achieve computational privacy. We show the implementation results of the protocol and discuss its computational and communication complexity. We conclude this article with a discussion on privacy notions

Private Computation of Polynomials over Networks

This study concentrates on preserving privacy in a network of agents where each agent seeks to evaluate a general polynomial function over the private values of her immediate neighbors. We provide an algorithm for the exact evaluation of such functions while preserving privacy of the involved agents. The solution is based on a reformulation of polynomials and adoption of two cryptographic primitives: Paillier as a Partially Homomorphic Encryption scheme and multiplicative-additive secret sharing. The provided algorithm is fully distributed, lightweight in communication, robust to dropout of agents, and can accommodate a wide class of functions. Moreover, system theoretic and secure multi-party conditions guaranteeing the privacy preservation of an agent's private values against a set of colluding agents are established. The theoretical developments are complemented by numerical investigations illustrating the accuracy of the algorithm and the resulting computational cost.Comment: 11 pages, 2 figure

Private Computation of Polynomials over Networks

This study concentrates on preserving privacy in a network of agents where each agent seeks to evaluate a general polynomial function over the private values of her immediate neighbors. We provide an algorithm for the exact evaluation of such functions while preserving privacy of the involved agents. The solution is based on a reformulation of polynomials and adoption of two cryptographic primitives: Paillier as a Partially Homomorphic Encryption scheme and multiplicative-additive secret sharing. The provided algorithm is fully distributed, lightweight in communication, robust to dropout of agents, and can accommodate a wide class of functions. Moreover, system theoretic and secure multi-party conditions guaranteeing the privacy preservation of an agent's private values against a set of colluding agents are established. The theoretical developments are complemented by numerical investigations illustrating the accuracy of the algorithm and the resulting computational cost.Comment: 11 pages, 2 figure

Truthful and Faithful Monetary Policy for a Stablecoin Conducted by a Decentralised, Encrypted Artificial Intelligence

The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be attained by the novel and interdisciplinary combination of previously unrelated fields: model predictive control, deep learning, alternating direction method of multipliers (consensus-ADMM), mechanism design, secure multi-party computation, and zero-knowledge proofs. For the first time, this paper proves: - the feasibility of decentralising the central bank while securely preserving its independence in a decentralised computation setting - the benefits for price stability of combining mechanism design, provable security, and control theory, unlike the heuristics of previous stablecoins - the implementation of complex monetary policies on a stablecoin, equivalent to the ones used by central banks and beyond the current fixed rules of cryptocurrencies that hinder their price stability - methods to circumvent the impossibilities of Guaranteed Output Delivery (G.O.D.) and fairness: standing on truthfulness and faithfulness, we reach G.O.D. and fairness under the assumption of rational parties As a corollary, a decentralised artificial intelligence is able to conduct the monetary policy of a stablecoin, minimising human intervention