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