173 research outputs found
A Framework for Resilient, Transparent, High-throughput, Privacy-Enabled Central Bank Digital Currencies
Central Bank Digital Currencies refer to the digitization of lifecycle\u27s of central bank money in a way that meets first of a kind requirements for transparency in transaction processing, interoperability with legacy or new world, and resilience that goes beyond the traditional crash fault tolerant model. This comes in addition to legacy system requirements for privacy and regulation compliance, that may differ from central bank to central bank.
This paper introduces a novel framework for Central Bank Digital Currency settlement that outputs a system of record---acting a a trusted source of truth serving interoperation, and dispute resolution/fraud detection needs---, and brings together resilience in the event of parts of the system being compromised, with throughput comparable to crash-fault tolerant systems. Our system further exhibits agnosticity of the exact cryptographic protocol adopted for meeting privacy, compliance and transparency objectives, while ensuring compatibility with the existing protocols in the literature. For the latter, performance is architecturally guaranteed to scale horizontally. We evaluated our system\u27s performance using an enhanced version of Hyperledger Fabric, showing how a throughput of >100K TPS can be supported even with computation-heavy privacy-preserving protocols are in place
A Privacy-Preserving Framework Using Hyperledger Fabric for EHR Sharing Applications
Electronic Health Records, or EHRs, include private and sensitive information of a patient. The privacy of personal healthcare data can be protected through Hyperledger Fabric, a permissioned blockchain framework. A few Hyperledger Fabric- integrated EHR solutions have emerged in recent years. However, none of them implements the privacy-preserving techniques of Hyperledger Fabric to make transactions anonymous or preserve the transaction data privacy during the consensus. Our proposed architecture is built on Hyperledger Fabric and its privacy-preserving mechanisms, such as Identity Mixer, Private Data Collections, Channels and Transient Fields to securely store and transfer patient-sensitive data while providing anonymity and unlinkability of transactions
Provably unlinkable smart card-based payments
The most prevalent smart card-based payment method, EMV, currently offers no privacy to its users. Transaction details and the card number are sent in cleartext, enabling the profiling and tracking of cardholders. Since public awareness of privacy issues is growing and legislation, such as GDPR, is emerging, we believe it is necessary to investigate the possibility of making payments anonymous and unlinkable without compromising essential security guarantees and functional properties of EMV. This paper draws attention to trade-offs between functional and privacy requirements in the design of such a protocol. We present the UTX protocol - an enhanced payment protocol satisfying such requirements, and we formally certify key security and privacy properties using techniques based on the applied pi-calculus
SoK: Privacy-Enhancing Technologies in Finance
Recent years have seen the emergence of practical advanced cryptographic tools that not only protect data privacy and authenticity, but also allow for jointly processing data from different institutions without sacrificing privacy. The ability to do so has enabled implementations a number of traditional and decentralized financial applications that would have required sacrificing privacy or trusting a third party. The main catalyst of this revolution was the advent of decentralized cryptocurrencies that use public ledgers to register financial transactions, which must be verifiable by any third party, while keeping sensitive data private. Zero Knowledge (ZK) proofs rose to prominence as a solution to this challenge, allowing for the owner of sensitive data (e.g. the identities of users involved in an operation) to convince a third party verifier that a certain operation has been correctly executed without revealing said data. It quickly became clear that performing arbitrary computation on private data from multiple sources by means of secure Multiparty Computation (MPC) and related techniques allows for more powerful financial applications, also in traditional finance.
In this SoK, we categorize the main traditional and decentralized financial applications that can benefit from state-of-the-art Privacy-Enhancing Technologies (PETs) and identify design patterns commonly used when applying PETs in the context of these applications. In particular, we consider the following classes of applications: 1. Identity Management, KYC & AML; and 2. Markets & Settlement; 3. Legal; and 4. Digital Asset Custody. We examine how ZK proofs, MPC and related PETs have been used to tackle the main security challenges in each of these applications. Moreover, we provide an assessment of the technological readiness of each PET in the context of different financial applications according to the availability of: theoretical feasibility results, preliminary benchmarks (in scientific papers) or benchmarks achieving real-world performance (in commercially deployed solutions). Finally, we propose future applications of PETs as Fintech solutions to currently unsolved issues. While we systematize financial applications of PETs at large, we focus mainly on those applications that require privacy preserving computation on data from multiple parties
Aggregate Signatures with Versatile Randomization and Issuer-Hiding Multi-Authority Anonymous Credentials
Anonymous credentials (AC) have emerged as a promising privacy-preserving solu- tion for user-centric identity management. They allow users to authenticate in an anonymous and unlinkable way such that only required information (i.e., attributes) from their credentials are re- vealed. With the increasing push towards decentralized systems and identity, e.g., self-sovereign identity (SSI) and the concept of verifiable credentials, this also necessitates the need for suit- able AC systems. For instance, when relying on existing AC systems, obtaining credentials from different issuers requires the presentation of independent credentials, which can become cum- bersome. Consequently, it is desirable for AC systems to support the so-called multi-authority (MA) feature. It allows a compact and efficient showing of multiple credentials from different is- suers. Another important property is called issuer hiding (IH). This means that showing a set of credentials is not revealed which issuer has issued which credentials but only whether a verifier- defined policy on the acceptable set of issuers is satisfied. This issue becomes particularly acute in the context of MA, where a user could be uniquely identified by the combination of issuers in their showing. Unfortunately, there are no AC schemes that satisfy both these properties simul- taneously. To close this gap, we introduce the concept of Issuer-Hiding Multi-Authority Anonymous Cre- dentials (IhMA). Our proposed solution involves the development of two new signature primi- tives with versatile randomization features which are independent of interest: 1) Aggregate Sig- natures with Randomizable Tags and Public Keys (AtoSa) and 2) Aggregate Mercurial Signatures (ATMS), which extend the functionality of AtoSa to additionally support the randomization of messages and yield the first instance of an aggregate (equivalence-class) structure-preserving sig- nature. These primitives can be elegantly used to obtain IhMA with different trade-offs but have applications beyond. We formalize all notations and provide rigorous security definitions for our proposed primi- tives. We present provably secure and efficient instantiations of the two primitives as well as corresponding IhMA systems. Finally, we provide benchmarks based on an implementation to demonstrate the practical efficiency of our construction
zk-creds: Flexible Anonymous Credentials from zkSNARKs and Existing Identity Infrastructure
Frequently, users on the web need to show that they are, for example, not a robot, old enough to access an age restricted video, or eligible to download an ebook from their local public library without being tracked. Anonymous credentials were developed to address these concerns. However, existing schemes do not handle the realities of deployment or the complexities of real-world identity. Instead, they implicitly make assumptions such as there being an issuing authority for anonymous credentials that, for real applications, requires the local department of motor vehicles to issue sophisticated cryptographic tokens to show users are over 18. In reality, there are multiple trust sources for a given identity attribute, their credentials have distinctively different formats, and many, if not all, issuers are unwilling to adopt new protocols.
We present and build zk-creds, a protocol that uses general-purpose zero-knowledge proofs to 1) remove the need for credential issuers to hold signing keys: credentials can be issued to a bulletin board instantiated as a transparency log, Byzantine system, or even a blockchain; 2) convert existing identity documents into anonymous credentials without modifying documents or coordinating with their issuing authority; 3) allow for flexible, composable, and complex identity statements over multiple credentials. Concretely, identity assertions using zk-creds take less than 150ms in a real-world scenario of using a passport to anonymously access age-restricted videos
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Secure multi-party computation-based privacy-preserving authentication for smart cities
The increasing concern for identity confidentiality in the Smart City scenario has fostered research on privacy-preserving authentication based on pseudonymization. Pseudonym systems enable citizens to generate pseudo-identities and establish unlinkable anonymous accounts in cloud service providers. The citizen's identity is concealed, and his/her different anonymous accounts cannot be linked to each other. Unfortunately, current pseudonym systems require a trusted certification authority (CA) to issue the cryptographic components (e.g. credentials, secret keys, or pseudonyms) to citizens. This CA, generally a Smart City governmental entity, has the capability to grant or revoke privacy rights at will, hence posing a serious threat in case of corruption. Additionally, if the pseudonym system enables de-anonymization of misusers, a corrupted CA can jeopardize the citizens' privacy. This paper presents a novel approach to construct a pseudonym system without a trusted issuer. The CA is emulated by a set of Smart City service providers by means of secure multi-party computation (MPC), which circumvents the requirement of assuming an honest CA. The paper provides a full description of the system, which integrates an MPC protocol and a pseudonym-based signature scheme. The system has been implemented and tested
ZEBRA: SNARK-based Anonymous Credentials for Practical, Private and Accountable On-chain Access Control
Restricting access to certified users is not only desirable for many blockchain applications, it is also legally mandated for decentralized finance (DeFi) applications to counter malicious actors. Existing solutions, however, are either (i) non-private, i.e., they reveal the link between users and their wallets to the authority granting credentials, or (ii) they introduce additional trust assumptions by relying on a decentralized oracle to verify anonymous credentials (ACs).
To remove additional trust in the latter approach, we propose verifying credentials on-chain in this work. We find that this approach has impractical costs with prior AC schemes, and propose a new AC scheme ZEBRA that crucially relies on zkSNARKs to provide efficient on-chain verification for the first time. In addition to the standard unlinkability property that provides privacy for users, ZEBRA also supports auditability, revocation, traceability, and theft detection, which adds accountability for malicious users and convenience for honest users to our access control solution. Even with these properties, ZEBRA reduces the gas cost incurred on the Ethereum Virtual Machine (EVM) by 14.3x when compared to Coconut [NDSS 2019], the state-of-the-art AC scheme for blockchains that only provides unlinkability. This improvement translates to a reduction in transaction fees from 176 USD to 12 USD on Ethereum in May 2023. Since 12 USD is still high for most applications, ZEBRA further drives down credential verification costs through batched verification. For a batch of 512 layer-1 and layer-2 wallets, the transaction fee on Ethereum is reduced to just 0.44 USD and 0.02 USD, respectively, which is comparable to the minimum transaction costs on Ethereum
Provably Unlinkable Smart Card-based Payments
The most prevalent smart card-based payment method, EMV, currently offers no
privacy to its users. Transaction details and the card number are sent in
cleartext, enabling the profiling and tracking of cardholders. Since public
awareness of privacy issues is growing and legislation, such as GDPR, is
emerging, we believe it is necessary to investigate the possibility of making
payments anonymous and unlinkable without compromising essential security
guarantees and functional properties of EMV. This paper draws attention to
trade-offs between functional and privacy requirements in the design of such a
protocol. We present the UTX protocol - an enhanced payment protocol satisfying
such requirements, and we formally certify key security and privacy properties
using techniques based on the applied pi-calculus
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