In decentralized finance (DeFi), the public availability of pending transactions presents significant privacy concerns, enabling market manipulation through miner extractable value (MEV). MEV occurs when block proposers exploit the ability to reorder, omit, or include transactions, causing financial loss to users from frontrunning. Recent research has focused on encrypting pending transactions, hiding transaction data until block finalization. To this end, Choudhuri et al. (USENIX '24)...

Digital signatures ensure authenticity and secure communication. They are used to verify the integrity and authenticity of signed documents and are widely utilized in various fields such as information technologies, finance, education, and law. They are crucial in securing servers against cyber attacks and authenticating connections between clients and servers. Additionally, encryption is used in many areas, such as secure communication, cloud, server and database security to ensure data...

Functional Encryption (FE) is a cryptographic technique established to guarantee data privacy while allowing the retrieval of specific results from the data. While traditional decryption methods rely on a secret key disclosing all the data, FE introduces a more subtle approach. The key generation algorithm generates function-specific decryption keys that can be adaptively provided based on policies. Adaptive access control is a good feature for privacy-preserving techniques. Generic schemes...

Cryptocurrencies have gained high popularity in recent years, with over 9000 of them, including major ones such as Bitcoin and Ether. Each cryptocurrency is implemented on one blockchain or over several such networks. Recently, various technologies known as blockchain interoperability have been developed to connect these different blockchains and create an interconnected blockchain ecosystem. This paper aims to provide insights on the blockchain ecosystem and the connection...

Users of decentralized finance (DeFi) applications face significant risks from adversarial actions that manipulate the order of transactions to extract value from users. Such actions---an adversarial form of what is called maximal-extractable value (MEV)---impact both individual outcomes and the stability of the DeFi ecosystem. MEV exploitation, moreover, is being institutionalized through an architectural paradigm known Proposer-Builder Separation (PBS). This work introduces a system...

Verifiable Random Functions (VRFs) are cryptographic primitives that generate unpredictable randomness along with proofs that are verifiable, a critical requirement for blockchain applications in decentralized finance, online gaming, and more. Existing VRF constructions often rely on centralized entities, creating security vulnerabilities. Distributed VRFs (DVRFs) offer a decentralized alternative but face challenges like large proof sizes or dependence on computationally expensive bilinear...

Automated market makers (AMMs) are a form of decentralized cryptocurrency exchanges that have attracted huge interest lately. They are considered a prime example of Decentralized Finance (DeFi) applications, a large category under Web 3.0. Their popularity and high trading activity have resulted in millions of on-chain transactions leading to serious scalability issues in terms of throughput and on-chain state size. Existing scalability solutions, when employed in the context of AMMs, are...

This Systematization of Knowledge conducts a survey of contemporary distributed blockchain protocols, with the aim of identifying cryptographic and design techniques which practically enable both expressive programmability and user data confidentiality. To facilitate a framing which supports the comparison of concretely very different protocols, we define an epoch-based computational model in the form of a flexible UC-style ideal functionality which divides the operation of...

Machine learning (ML) as a service has emerged as a rapidly expanding field across various industries like healthcare, finance, marketing, retail and e-commerce, Industry 4.0, etc where a huge amount of data is gen- erated. To handle this amount of data, huge computational power is required for which cloud computing used to be the first choice. However, there are several challenges in cloud computing like limitations of bandwidth, network connectivity, higher latency, etc. To address...

Banks publish daily a list of available securities/assets (axe list) to selected clients to help them effectively locate Long (buy) or Short (sell) trades at reduced financing rates. This reduces costs for the bank, as the list aggregates the bank's internal firm inventory per asset for all clients of long as well as short trades. However, this is somewhat problematic: (1) the bank's inventory is revealed; (2) trades of clients who contribute to the aggregated list, particularly those deemed...

Over the past decade, cryptocurrencies have garnered attention from academia and industry alike, fostering a diverse blockchain ecosystem and novel applications. The inception of bridges improved interoperability, enabling asset transfers across different blockchains to capitalize on their unique features. Despite their surge in popularity and the emergence of Decentralized Finance (DeFi), trustless bridge protocols remain inefficient, either relaying too much information (e.g.,...

Auctions, a long-standing method of trading goods and services, are a promising use case for decentralized finance. However, due to the inherent transparency property of blockchains, current sealed-bid auction implementations on smart contracts requires a bidder to send at least two transactions to the underlying blockchain: a bidder must first commit their bid in the first transaction during the bidding period and reveal their bid in the second transaction once the revealing period starts....

Payment channel networks are a promising solution to the scalability challenge of blockchains and are designed for significantly increased transaction throughput compared to the layer one blockchain. Since payment channel networks are essentially decentralized peer-to-peer networks, routing transactions is a fundamental challenge. Payment channel networks have some unique security and privacy requirements that make pathfinding challenging, for instance, network topology is not publicly...

Enhancing privacy on smart contract-enabled blockchains has garnered much attention in recent research. Zero-knowledge proofs (ZKPs) is one of the most popular approaches, however, they fail to provide full expressiveness and fine-grained privacy. To illustrate this, we underscore an underexplored type of Miner Extractable Value (MEV), called Residual Bids Extractable Value (RBEV). Residual bids highlight the vulnerability where unfulfilled bids inadvertently reveal traders’ unmet demands...

Stablecoins are digital assets designed to maintain a consistent value relative to a reference point, serving as a vital component in Blockchain, and Decentralized Finance (DeFi) ecosystem. Typical implementations of stablecoins via smart contracts come with important downsides such as a questionable level of privacy, potentially high fees, and lack of scalability. We put forth a new design, PARScoin, for a Privacy-preserving, Auditable, and Regulation-friendly Stablecoin that mitigates...

Privacy-preserving machine learning (PPML) techniques have gained significant popularity in the past years. Those protocols have been widely adopted in many real-world security-sensitive machine learning scenarios, e.g., medical care and finance. In this work, we introduce $\mathsf{Aegis}$~-- a high-performance PPML platform built on top of a maliciously secure 3-PC framework over ring $\mathbb{Z}_{2^\ell}$. In particular, we propose a novel 2-round secure comparison (a.k.a., sign bit...

Decentralized Finance (DeFi) has witnessed remarkable growth and innovation, with Decentralized Exchanges (DEXes) playing a pivotal role in shaping this ecosystem. As numerous DEX designs emerge, challenges such as price inefficiency and lack of user privacy continue to prevail. This paper introduces a novel DEX design, termed COMMON, that addresses these two predominant challenges. COMMON operates as an order book, natively integrated with a shielded token pool, thus providing anonymity to...

Decentralized Finance, mushrooming in permissionless blockchains, has attracted a recent surge in popularity. Due to the transparency of permissionless blockchains, opportunistic traders can compete to earn revenue by extracting Miner Extractable Value (MEV), which undermines both the consensus security and efficiency of blockchain systems. The Flashbots bundle mechanism further aggravates the MEV competition because it empowers opportunistic traders with the capability of designing more...

We introduce Lanturn: a general purpose adaptive learning-based framework for measuring the cryptoeconomic security of composed decentralized-finance (DeFi) smart contracts. Lanturn discovers strategies comprising of concrete transactions for extracting economic value from smart contracts interacting with a particular transaction environment. We formulate the strategy discovery as a black-box optimization problem and leverage a novel adaptive learning-based algorithm to address it. Lanturn...

The emergence of blockchain technologies as central components of financial frameworks has amplified the extraction of market inefficiencies, such as arbitrage, through Miner Extractable Value (MEV) from Decentralized Finance smart contracts. Exploiting these opportunities often requires fee payment to miners and validators, colloquially termed as bribes. The recent development of centralized MEV relayers has led to these payments shifting from the public transaction pool to private...

Decentralized Finance (DeFi) is a new paradigm in the creation, distribution, and utilization of financial services via the integration of blockchain technology. Our research conducts a comprehensive introduction and meticulous classification of various DeFi applications. Beyond that, we thoroughly analyze these risks from both technical and economic perspectives, spanning multiple layers. We point out research gaps and revenues, covering technical advancements, innovative economics, and...

Decentralized Finance (DeFi), a blockchain-based financial ecosystem, suffers from smart contract vulnerabilities that led to a loss exceeding 3.24 billion USD by April 2022. To address this, blockchain firms audit DeFi applications, a process known as DeFi auditing. Our research aims to comprehend the mechanism and efficacy of DeFi auditing. We discovered its ability to detect vulnerabilities in smart contract logic and interactivity with other DeFi entities, but also noted its limitations...

Decentralized finance based on blockchain has experienced rapid development. To safeguard the privacy of participants, decentralized anonymous payment (DAP) systems such as ZCash and Zether have emerged. These systems employ cryptographic techniques to conceal the trader addresses and payment amounts. However, this anonymity presents challenges in terms of regulation. To address this issue, we propose the Walsh-DAP (WDAP) scheme, an efficient and generic regulation scheme for...

With the growing number of decentralized finance (DeFi) applications, transaction fairness in blockchains has gained much research interest. As a broad concept in distributed systems and blockchains, fairness has been used in different contexts, varying from ones related to the liveness of the system to ones that focus on the received order of transactions. In this work, we revisit the fairness definitions and find that existing fairness definitions are not adapted to blockchains with...

The hodlCoin game is a competitive zero-sum massively multiplayer financial game where the goal is to hodl an asset for long periods of time. By hodling, a player deposits coins of a given asset in a common reserve and receives a proportional amount of hodlCoins. Players who un-hodl pay a fee that is accumulated in the common reserve. Thus, the longer a player hodls, in comparison with other players, the more the player will benefit from fees paid by the players who are un-hodling earlier....

Uniswap is currently the most liquid Decentralized Exchange (DEX) on Ethereum. In May 2021, it upgraded to the third protocol version named Uniswap V3. The key feature update is “concentrated liquidity”, which supports liquidity provision within custom price ranges. However, this design introduces a new type of Miner Extractable Value (MEV) source called Just-in-Time (JIT) liquidity attack, where the adversary mints and burns a liquidity position right before and after a sizable swap. We...

In the classical setting of differential privacy, a privacy-preserving query is performed on a private database, after which the query result is released to the analyst; a differentially private query ensures that the presence of a single database entry is protected from the analyst’s view. In this work, we contribute the first definitional framework for differential privacy in the trusted curator setting; clients submit private inputs to the trusted curator, which then computes individual...

The decentralized finance (DeFi) ecosystem has proven to be popular in facilitating financial operations, such as token exchange and lending. The public availability of DeFi platforms’ code, together with real-time data on all user interactions with them, has given rise to complex tools that find and seize profit opportunities on behalf of users. In this work, we show that both users and the aforementioned tools sometimes act suboptimally: their profits can be increased by more than 100%,...

The ecosystem around blockchain and Decentralized Finance (DeFi) is seeing more and more interest from centralized regulators. For instance, recently, the US government placed sanctions on the largest DeFi mixer, Tornado.Cash (TC). To our knowledge, this is the first time that centralized regulators sanction a decentralized and open-source blockchain application. It has led various blockchain participants, e.g., miners/validators and DeFi platforms, to censor TC-related transactions. The...

We propose a new cryptographic primitive called "verifiably encrypted threshold key derivation" (vetKD) that extends identity-based encryption with a decentralized way of deriving decryption keys. We show how vetKD can be leveraged on modern blockchains to build scalable decentralized applications (or "dapps") for a variety of purposes, including preventing front-running attacks on decentralized finance (DeFi) platforms, end-to-end encryption for decentralized messaging and social networks...

Proof-of-stake systems require stakers to lock up their funds in order to participate in consensus validation. This leads to capital inefficiency, as locked capital cannot be invested in Decentralized Finance (DeFi). Liquid staking rewards stakers with fungible tokens in return for staking their assets. These fungible tokens can in turn be reused in the DeFi economy. However, liquid staking introduces unexpected risks, as all delegated stake is now fungible. This exacerbates the already...

Inventory matching is a standard mechanism for trading financial stocks by which buyers and sellers can be paired. In the financial world, banks often undertake the task of finding such matches between their clients. The related stocks can be traded without adversely impacting the market price for either client. If matches between clients are found, the bank can offer the trade at advantageous rates. If no match is found, the parties have to buy or sell the stock in the public market, which...

The security of cryptographic primitives is an important issue. The Shor algorithm illustrates how quantum attacks threaten the security of these widely used primitives. Code-based cryptography is one of several approaches resistant to quantum attacks. To date, no attack has been able to break a code-based cryptosystem in polynomial time. Despite this level of security, these cryptosystems have not been considered for practical applications such as e-commerce, medical and industrial IoT,...

Zero-knowledge proof (ZKP) mixers are one of the most widely used blockchain privacy solutions, operating on top of smart contract-enabled blockchains. We find that ZKP mixers are tightly intertwined with the growing number of Decentralized Finance (DeFi) attacks and Blockchain Extractable Value (BEV) extractions. Through coin flow tracing, we discover that 205 blockchain attackers and 2,595 BEV extractors leverage mixers as their source of funds, while depositing a total attack revenue of...

Liquidations in DeFi are both a blessing and a curse — whereas liquidations prevent lenders from capital loss, they simultaneously lead to liquidation spirals and system-wide failures. Since most lending and borrowing protocols assume liquidations are indispensable, there is an increased interest in alternative constructions that prevent immediate systemic-failure under uncertain circumstances. In this work, we introduce reversible call options, a novel financial primitive that enables...

Since the proposal of Bitcoin in 2008, the world has seen accelerated growth in the field of blockchain and discovered its potential to immensely transform most industries, one of the first and most important being finance. The blockchain trilemma states that blockchains can have security, scalability, and decentralization, but never all three at the same time, in the same amount. At the moment, the most successful blockchains have a lack of scalability that researchers and developers try to...

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...

Fully Homomorphic Encryption enables arbitrary computations over encrypted data and it has a multitude of applications, e.g., secure cloud computing in healthcare or finance. Multi-Key Homomorphic Encryption (MKHE) further allows to process encrypted data from multiple sources: the data can be encrypted with keys owned by different parties. In this paper, we propose a new variant of MKHE instantiated with the TFHE scheme. Compared to previous attempts by Chen et al. and by Kwak et al.,...

Many applications in finance and healthcare need access to data from multiple organizations. While these organizations can benefit from computing on their joint datasets, they often cannot share data with each other due to regulatory constraints and business competition. One way mutually distrusting parties can collaborate without sharing their data in the clear is to use secure multiparty computation (MPC). However, MPC’s performance presents a serious obstacle for adoption as it is...

Within just four years, the blockchain-based Decentralized Finance (DeFi) ecosystem has accumulated a peak total value locked (TVL) of more than 253 billion USD. This surge in DeFi’s popularity has, unfortunately, been accompanied by many impactful incidents. According to our data, users, liquidity providers, speculators, and protocol operators suffered a total loss of at least 3.24 billion USD from Apr 30, 2018 to Apr 30, 2022. Given the blockchain’s transparency and increasing incident...

Decentralized anonymous payment schemes may be exploited for illicit activities, such as money laundering, bribery and blackmail. To address this issue, several regulatory friendly decentralized anonymous payment schemes have been proposed. However, most of these solutions lack restrictions on the regulator’s authority, which could potentially result in power abuse and privacy breaches. In this paper, we present a decentralized anonymous payment scheme with collaborative regulation (DAPCR)....

Nakamoto's longest-chain consensus paradigm now powers the bulk of the world's cryptocurrencies and distributed finance infrastructure. An emblematic property of longest-chain consensus is that it provides probabilistic settlement guarantees that strengthen over time. This makes the exact relationship between settlement error and settlement latency a critical aspect of the protocol that both users and system designers must understand to make informed decisions. A recent line of work has...

In permissionless consensus, the ordering of transactions or inputs in each block is freely determined by an anonymously elected block leader. A rational block leader will choose an ordering of inputs that maximizes financial gain; the emergence of automatic market makers in decentralized finance enables the block leader to front-run honest trade orders by injecting its own inputs prior to and after honest trades. Front-running is rampant in decentralized finance and reduces the utility of...

The proliferation of Decentralised Finance (DeFi) and Decentralised Autonomous Organisations (DAO), which in current form are exposed to front-running of token transactions and proposal voting, demonstrate the need to shield user inputs and internal state from the parties executing smart contracts. In this work we present “Eagle”, an efficient UC-secure protocol which efficiently realises a notion of privacy preserving smart contracts where both the amounts of tokens and the auxiliary data...

Traditional finance quantifies risk by collecting and vetting reputation information for an individual, such as credit scores or payment history. While decentralized finance (DeFi) is an exceptionally well-suited application of permissionless blockchains, it is severely constrained in its ability to reconcile identities and quantify associated transaction risk directly on-chain. Opening the ecosystem to a broad range of use cases requires consistent pseudonymity and quantifiable reputation....

The always-available liquidity of automated market makers (AMMs) has been one of the most important catalysts in early cryptocurrency adoption. However, it has become increasingly evident that AMMs in their current form are not viable investment options for passive liquidity providers. This is because of the cost incurred by AMMs providing stale prices to arbitrageurs against external market prices, formalized as loss-versus-rebalancing (LVR) [Milionis et al., 2022]. In this paper, we...

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...

Privacy-oriented cryptocurrencies, like Zcash or Monero, provide fair transaction anonymity and confidentiality but lack important features compared to fully public systems, like Ethereum. Specifically, supporting assets of multiple types and providing a mechanism to atomically exchange them, which is critical for e.g. decentralized finance (DeFi), is challenging in the private setting. By combining insights and security properties from Zcash and SwapCT (PETS 21, an atomic swap system for...

Blockchain technologies rely on a public ledger, where typically all transactions are pseudoanonymous and fully traceable. This poses a major flaw in its large scale adoption of cryptocurrencies, the primary application of blockchain technologies, as most individuals do not want to disclose their finances to the pub- lic. Motivated by the explosive growth in private-Blockchain research, this Statement-of-Knowledge (SOK) explores the ways to obtain privacy in this public ledger ecosystem....

Central Bank Digital Currencies (CBDCs) aspire to offer a digital replacement for physical cash and as such need to tackle two fundamental requirements that are in conflict. On the one hand, it is desired they are private so that a financial “panopticon” is avoided, while on the other, they should be regulation friendly in the sense of facilitating any threshold-limiting, tracing, and counterparty auditing functionality that is necessary to comply with regulations such as Know Your Customer...

In recent years, Bitcoin and Ethereum have emerged as the two largest and most popular blockchain networks. While Bitcoin provides the most secure digital asset, Ethereum provides the smart contract execution platform with the richest application ecosystem. In this paper, we present RSK, a sidechain that extends Bitcoin with Ethereum-compatible and stateful smart contract functionality. RSK's goal is to bring Ethereum's advantages to Bitcoin, allowing Bitcoin users to fully benefit from...

Blockchain oracles are systems that connect blockchains with the outside world by interfacing with external data providers. They provide decentralized applications with the external information needed for smart contract execution. In this paper, we focus on decentralized price oracles, which are distributed systems that provide exchange rates of digital assets to smart contracts. They are the cornerstone of the safety of some decentralized finance applications such as stable coins or...

The stock markets have two primary functions, that of providing liquidity and price discovery. While the market micro-structure was mostly ignored or assumed to function ideally for the purpose of asset pricing, O'Hara (Journal of Finance, 2003) has established that both liquidity and price discovery affect asset pricing, and in particular asset returns. Easley and O'Hara (Journal of Finance 2004) have demonstrated that informed investors' private information is not reflected efficiently in...

Blockchain ``on-chain'' oracles are critical to the functioning of many Decentralized Finance (DeFi) protocols. We analyze these oracles for manipulation resistance. Specifically, we analyze the cost of manipulating on-chain time-weighted average price (TWAP) oracles that use the arithmetic mean. It has been assumed that manipulating a TWAP oracle with the well-known multi-block attack is expensive and scales linearly with the length of the TWAP. We question this assumption with two novel...

Uniswap, like other DEXs, has gained much attention this year because it is a non-custodial and publicly verifiable exchange that allows users to trade digital assets without trusted third parties. However, its simplicity and lack of regulation also makes it easy to execute initial coin offering scams by listing non-valuable tokens. This method of performing scams is known as rug pull, a phenomenon that already existed in traditional finance but has become more relevant in DeFi. Various...

Decentralized Finance (DeFi) protocols have triggered a paradigm shift in the world of finance: intermediaries as known in traditional finance risk becoming redundant because DeFi creates an inherent state of “trustlessness”; financial transactions are executed in a deterministic, trustless and censorship resistant manner; the individual is granted verifiability, control and sovereignty. This creates challenges for compliance with jurisdictional Anti-Money Laundering and Combatting the...

Front-running is the malicious, and often illegal, act of both manipulating the order of pending trades and injecting additional trades to make a profit at the cost of other users. In decentralized finance (DeFi), front-running strategies exploit both public knowledge of user trades from transactions pending on the network and the miner's ability to determine the final transaction order. Given the financial loss and increased transaction load resulting from adversarial front-running in...

Using secure multiparty computation (MPC), organizations which own sensitive data (e.g., in healthcare, finance or law enforcement) can train machine learning models over their joint dataset without revealing their data to each other. At the same time, secure computation restricts operations on the joint dataset, which impedes computation to assess its quality. Without such an assessment, deploying a jointly trained model is potentially illegal. Regulations, such as the European Union's...

Proof of liabilities (PoL) allows a prover to prove his/her liabilities to a group of verifiers. This is a cryptographic primitive once used only for proving financial solvency but is also applicable to domains outside finance, including transparent and private donations, new algorithms for disapproval voting and publicly verifiable official reports such as COVID-19 daily cases. These applications share a common nature in incentives: it's not in the prover's interest to increase his/her...

Decentralized finance (DeFi) refers to interoperable smart contracts running on distributed ledgers offering financial services beyond payments. Recently, there has been an explosion of DeFi applications centered on Ethereum, with close to a hundred billion USD in total assets deposited as of September 2021. These applications provide financial services such as asset management, trading, and lending. The wide adoption of DeFi has raised important concerns, and among them is the key issue of...

We introduce the Clockwork Finance Framework (CFF), a general purpose, formal verification framework for mechanized reasoning about the economic security properties of composed decentralized-finance (DeFi) smart contracts. CFF features three key properties. It is contract complete, meaning that it can model any smart contract platform and all its contracts—Turing complete or otherwise. It does so with asymptotically constant model overhead. It is also attack-exhaustive by construction,...

A great challenge for distributed payment systems is their compliance with regulations, such as anti-money laundering, insolvency legislation, countering the financing of terrorism and sanctions laws. After Bitcoin's MtGox scandal, one of the most needed auditing functionalities for financial solvency and tax reporting purposes is to prove ownership of blockchain reserves, a process known as Proof of Assets (PoA). This work formalizes the PoA requirements in account-based blockchains,...

With the development of Bitcoin, Ethereum and other projects, blockchain has been widely concerned with its outstanding characteristics such as non-centralization, collective maintenance, openness and transparency. Blockchain has been widely used in finance, logistics, copyright and other fields. However, as transactions are stored in plaintext in the blockchain for public verification, the privacy of users is not well guaranteed such that many financial applications can not be adopted...

Asset custody is a core financial service in which the custodian holds in-safekeeping assets on behalf of the client. Although traditional custody service is typically endorsed by centralized authorities, decentralized custody scheme has become technically feasible since the emergence of digital assets, and furthermore, it is greatly needed by new applications such as blockchain and DeFi (Decentralized Finance). In this work, we propose a framework of decentralized asset custody scheme that...

A decade long thrive of cryptocurrency has shown its potential as a source of alternative-finance and the security and the robustness of the underpinning blockchain technology. However, most cryptocurrencies fail to show inimitability and their meanings in the real world. As a result, they usually start off as favourites but quickly become the outcasts of the digital asset market. The blockchain society attempts to anchor the value of cryptocurrency with real values by employing smart...

The abilities of smart contracts today are confined to reading from their own state. It is useful for a smart contract to be able to react to events and read the state of other smart contracts. In this paper, we devise a mechanism by which a derivative smart contract can read data, observe the state evolution, and react to events that take place in one or more underlying smart contracts of its choice. Our mechanism works even if the underlying smart contract is not designed to operate with...

Machine learning tools have illustrated their potential in many significant sectors such as healthcare and finance, to aide in deriving useful inferences. The sensitive and confidential nature of the data, in such sectors, raises natural concerns for the privacy of data. This motivated the area of Privacy-preserving Machine Learning (PPML) where privacy of the data is guaranteed. Typically, ML techniques require large computing power, which leads clients with limited infrastructure to rely...

Machine learning has started to be deployed in fields such as healthcare and finance, which involves dealing with a lot of sensitive data. This propelled the need for and growth of privacy-preserving machine learning (PPML). We propose an actively secure four-party protocol (4PC), and a framework for PPML, showcasing its applications on four of the most widely-known machine learning algorithms -- Linear Regression, Logistic Regression, Neural Networks, and Convolutional Neural Networks. Our...

Atomic Swap enables two parties to atomically exchange their own cryptocurrencies without trusted third parties. This paper provides the first quantitative analysis on the fairness of the Atomic Swap protocol, and proposes the first fair Atomic Swap protocol with implementations. In particular, we model the Atomic Swap as the American Call Option, and prove that an Atomic Swap is equivalent to an American Call Option without the premium. Thus, the Atomic Swap is unfair to the swap...

In this paper we extend the attack landscape of bribing attacks on cryptocurrencies by presenting a new method, which we call Pay-To-Win (P2W). To the best of our knowledge, it is the first approach capable of facilitating double-spend collusion across different blockchains. Moreover, our technique can also be used to specifically incentivize transaction exclusion or (re)ordering. For our construction we rely on smart contracts to render the payment and receipt of bribes trustless for the...

The underlying fundaments of blockchain are cryptography and cryptographic concepts that provide reliable and secure decentralized solutions. Although many recent papers study the use-cases of blockchain in different industrial areas, such as finance, health care, legal relations, IoT, information security, and consensus building systems, only few studies scrutinize the cryptographic concepts used in blockchain. To the best of our knowledge, there is no Systematization of Knowledge (SoK)...

Cluster analysis is one of the most significant unsupervised machine learning tasks, and it is utilized in various fields associated with privacy issues including bioinformatics, finance and image processing. In this paper, we propose a practical solution for privacy-preserving cluster analysis based on homomorphic encryption~(HE). Our work is the first HE solution for the mean-shift clustering algorithm. To reduce the super-linear complexity of the original mean-shift algorithm, we adopt a...

Motivated by recent advances in exploring the power of hybridized TEE-blockchain systems, we present LucidiTEE, a unified framework for confidential, policy-compliant computing that guarantees fair output delivery. For context: • Kaptchuk et al. (NDSS’19) showed that enclave-ledger interactions can enable applications such as one-time programs and rate limited logging. We generalize their ideas to enforcing arbitrary history-based policies within and across several multi-step computations....

Electronic toll collection (ETC) is widely used all over the world not only to finance our road infrastructures, but also to realize advanced features like congestion management and pollution reduction by means of dynamic pricing. Unfortunately, existing systems rely on user identification and allow tracing a user's movements. Several abuses of this personalized location data have already become public. In view of the planned European-wide interoperable tolling system EETS and the new EU...

Since the seminal paper on Fully Homomorphic Encryption (FHE) by Gentry in 2009, a lot of work and improvements have been proposed, with an amazing number of possible applications. It allows outsourcing any kind of computations on encrypted data, and thus without leaking any information to the provider who performs the computations. This is quite useful for many sensitive data (finance, medical, etc.). Unfortunately, FHE fails at providing some computation on private inputs to a third...

Machine learning on encrypted data is a cryptographic method for analyzing private and/or sensitive data while keeping privacy. In the training phase, it takes as input an encrypted training data and outputs an encrypted model without using the decryption key. In the prediction phase, it uses the encrypted model to predict results on new encrypted data. In each phase, no decryption key is needed, and thus the privacy of data is guaranteed while the underlying encryption is secure. It has...

Logistic regression is a popular technique used in machine learning to construct classification models. Since the construction of such models is based on computing with large datasets, it is an appealing idea to outsource this computation to a cloud service. The privacy-sensitive nature of the input data requires appropriate privacy preserving measures before outsourcing it. Homomorphic encryption enables one to compute on encrypted data directly, without decryption, and can be used to...

In this paper, we present an implementation scheme of an RTGS on Quorum using the Solidity language. It is heavily inspired by the Schnorr signature protocol to verify the identity of the participants. We have implemented a distributed ledger solution for Delivery vs Payment that promises to offer increased efficiency and resilience. Our architecture mimics current market structure. For such needs, we added an extra layer of security that allows our solution to comply with the requirements...

The stock markets have two primary functions, that of providing liquidity and price discovery. While the market micro-structure was mostly ignored or assumed to function ideally for the purpose of asset pricing, M. O'Hara (Journal of Finance, 2003) has established that both liquidity and price discovery affect asset pricing, and in particular asset returns. While the cost of liquidity provision is borne by investors, and is clearly detrimental to asset returns, periodic price discovery has...

The present work introduces the first decentralized secure funds transfer protocol with multiple participants. The protocol guarantees that a participant only loses money if a trusted peer happens to be corrupt. Furthermore, the loss is limited to the amount of credit given to that partner. The protocol supports expiration times for payment orders, and takes into consideration actual network queuing delays. To achieve our goals, we used several models and techniques from the Quality of...

In standard voting procedures, random audits are one method for increasing election integrity. In the case of cryptographic (or end-to-end) election verification, random challenges are often used to establish that the tally was computed correctly. In both cases, a source of randomness is required. In two recent binding cryptographic elections, this randomness was drawn from stock market data. This approach allows anyone with access to financial data to verify the challenges were generated...