Payment channel networks, and the Lightning Network in particular, seem to offer a solution to the lack of scalability and privacy offered by Bitcoin and other blockchain-based cryptocurrencies. Previous research has focused on the scalability, availability, and crypto-economics of the Lightning Network, but relatively little attention has been paid to exploring the level of privacy it achieves in practice. This paper presents a thorough analysis of the privacy offered by the Lightning Network, by presenting several attacks that exploit publicly available information about the network in order to learn information that is designed to be kept secret, such as how many coins a node has available or who the sender and recipient are in a payment routed through the network.
In this paper, we propose a framework for lightning-fast privacy-preserving outsourced computation framework in the cloud, which we refer to as LightCom. Using LightCom, a user can securely achieve the outsource data storage and fast secure data processing in a single cloud server different from the existing multi-server outsourced computation model. Specifically, we first present a general secure computation framework for LightCom under the cloud server equipped with multiple Trusted Processing Units (TPUs) which face the side-channel attack. Under the LightCom, we design two specified fast p…
Bitcoin (BTC) pseudonyms (layer 1) can effectively be deanonymized using heuristic clustering techniques. However, while performing transactions off-chain (layer 2) in the Lightning Network (LN) seems to enhance privacy, a systematic analysis of the anonymity and privacy leakages due to the interaction between the two layers is missing. We present clustering heuristics that group BTC addresses, based on their interaction with the LN, as well as LN nodes, based on shared naming and hosting information. We also present linking heuristics that link 45.97% of all LN nodes to 29.61% BTC addresses i…
The Lightning Network (LN) is a prominent payment channel network aimed at addressing Bitcoin's scalability issues. Due to the privacy of channel balances, senders cannot reliably choose sufficiently liquid payment paths and resort to a trial-and-error approach, trying multiple paths until one succeeds. This leaks private information and decreases payment reliability, which harms the user experience. This work focuses on the reliability and privacy of LN payments. We create a probabilistic model of the payment process in the LN, accounting for the uncertainty of the channel balances. This enab…
As Lightning network payments are neither broadcasted nor publicly stored. Thus LN has been seen not only as scalability but also as privacy solution for Bitcoin. The protocol guarantees that only the latest channel state can be confirmed on channel closure. LN nodes gossip about channels available for routing and their total capacities. To issue a (multi-hop) payment, the sender creates a route based on its local knowledge of the graph. As local channel balances are not public, payments often fail due to insufficient balance at an intermediary hop. In that case, the payment is attempted along…
Lightning Network (LN) is designed to amend the scalability and privacy issues of Bitcoin. It's a payment channel network where Bitcoin transactions are issued off chain, onion routed through a private payment path with the aim to settle transactions in a faster, cheaper, and private manner, as they're not recorded in a costly-to-maintain, slow, and public ledger. In this work, we design a traffic simulator to empirically study LN's transaction fees and privacy provisions. The simulator relies on publicly available data of the network structure and generates transactions under assumptions we a…
The Lightning Network is a scaling solution for Bitcoin that promises to enable rapid and private payment processing. In Lightning, multi-hop payments are secured by utilizing Hashed Time-Locked Contracts (HTLCs) and encrypted on the network layer by an onion routing scheme to avoid information leakage to intermediate nodes. In this work, we however show that the privacy guarantees of the Lightning Network may be subverted by an on-path adversary conducting timing attacks on the HTLC state negotiation messages. To this end, we provide estimators that enable an adversary to reduce the anonymity…
Payment channel networks (PCNs) such as the Lightning Network offer an appealing solution to the scalability problem faced by many cryptocurrencies operating on a blockchain such as Bitcoin. However, PCNs also inherit the stringent dependability requirements of blockchain. In particular, in order to mitigate liquidity bottlenecks as well as on-path attacks, it is important that payment channel networks maintain a high degree of decentralization. Motivated by this requirement, we conduct an empirical centrality analysis of the popular Lightning Network, and in particular, the betweenness centra…
The Lightning Network promises to alleviate Bitcoin's known scalability problems. The operation of such second layer approaches relies on the ability of participants to turn to the blockchain to claim funds at any time, which is assumed to happen rarely. One of the risks that was identified early on is that of a wide systemic attack on the protocol, in which an attacker triggers the closure of many Lightning channels at once. The resulting high volume of transactions in the blockchain will not allow for the proper settlement of all debts, and attackers may get away with stealing some funds. Th…
Making a payment in a privacy-aware payment channel network is achieved by trying several payment paths until one succeeds. With a large network, such as the Lightning Network, a completion of a single payment can take up to several minutes. We introduce a network imbalance measure and formulate the optimization problem of improving the balance of the network as a sequence of rebalancing operations of the funds within the channels along circular paths within the network. As the funds and balances of channels are not globally known, we introduce a greedy heuristic with which every node despite …
Recently, a number of approaches and techniques have been introduced for reporting software statistics with strong privacy guarantees. These range from abstract algorithms to comprehensive systems with varying assumptions and built upon local differential privacy mechanisms and anonymity. Based on the Encode-Shuffle-Analyze (ESA) framework, notable results formally clarified large improvements in privacy guarantees without loss of utility by making reports anonymous. However, these results either comprise of systems with seemingly disparate mechanisms and attack models, or formal statements wi…
We show how to achieve differential privacy with no or reduced added noise, based on the empirical noise in the data itself. Unlike previous works on noiseless privacy, the empirical viewpoint avoids making any explicit assumptions about the random process generating the data.
Local differential privacy (LDP) gives a strong privacy guarantee to be used in a distributed setting like federated learning (FL). LDP mechanisms in FL protect a client's gradient by randomizing it on the client; however, how can we interpret the privacy level given by the randomization? Moreover, what types of attacks can we mitigate in practice? To answer these questions, we introduce an empirical privacy test by measuring the lower bounds of LDP. The privacy test estimates how an adversary predicts if a reported randomized gradient was crafted from a raw gradient $g_1$ or $g_2$. We then in…
Payment channel networks are a promising approach to improve the scalability of cryptocurrencies: they allow to perform transactions in a peer-to-peer fashion, along multi-hop routes in the network, without requiring consensus on the blockchain. However, during the discovery of cost-efficient routes for the transaction, critical information may be revealed about the transacting entities. This paper initiates the study of privacy-preserving route discovery mechanisms for payment channel networks. In particular, we present LightPIR, an approach which allows a source to efficiently discover a sho…
Data ecosystems are becoming larger and more complex due to online tracking, wearable computing, and the Internet of Things. But privacy concerns are threatening to erode the potential benefits of these systems. Recently, users have developed obfuscation techniques that issue fake search engine queries, undermine location tracking algorithms, or evade government surveillance. Interestingly, these techniques raise two conflicts: one between each user and the machine learning algorithms which track the users, and one between the users themselves. In this paper, we use game theory to capture the …
Smartphone technology has drastically improved over the past decade. These improvements have seen the creation of specialized health applications, which offer consumers a range of health-related activities such as tracking and checking symptoms of health conditions or diseases through their smartphones. We term these applications as Symptom Checking apps or simply SymptomCheckers. Due to the sensitive nature of the private data they collect, store and manage, leakage of user information could result in significant consequences. In this paper, we use a combination of techniques from both static…
Web-based chatbots provide website owners with the benefits of increased sales, immediate response to their customers, and insight into customer behaviour. While Web-based chatbots are getting popular, they have not received much scrutiny from security researchers. The benefits to owners come at the cost of users' privacy and security. Vulnerabilities, such as tracking cookies and third-party domains, can be hidden in the chatbot's iFrame script. This paper presents a large-scale analysis of five Web-based chatbots among the top 1-million Alexa websites. Through our crawler tool, we identify t…
Online Automated Privacy Policy Generators (APPGs) are tools used by app developers to quickly create app privacy policies which are required by privacy regulations to be incorporated to each mobile app. The creation of these tools brings convenience to app developers; however, the quality of these tools puts developers and stakeholders at legal risk. In this paper, we conduct an empirical study to assess the quality of online APPGs. We analyze the completeness of privacy policies, determine what categories and items should be covered in a complete privacy policy, and conduct APPG assessment w…
Federated Learning (FL) is a setting for training machine learning models in distributed environments where the clients do not share their raw data but instead send model updates to a server. However, model updates can be subject to attacks and leak private information. Differential Privacy (DP) is a leading mitigation strategy which involves adding noise to clipped model updates, trading off performance for strong theoretical privacy guarantees. Previous work has shown that the threat model of DP is conservative and that the obtained guarantees may be vacuous or may overestimate information l…
An increasing number of mental health services are offered through mobile systems, a paradigm called mHealth. Although there is an unprecedented growth in the adoption of mHealth systems, partly due to the COVID-19 pandemic, concerns about data privacy risks due to security breaches are also increasing. Whilst some studies have analyzed mHealth apps from different angles, including security, there is relatively little evidence for data privacy issues that may exist in mHealth apps used for mental health services, whose recipients can be particularly vulnerable. This paper reports an empirical …
Monero is a privacy-centric cryptocurrency that allows users to obscure their transactions by including chaff coins, called "mixins," along with the actual coins they spend. In this paper, we empirically evaluate two weaknesses in Monero's mixin sampling strategy. First, about 62% of transaction inputs with one or more mixins are vulnerable to "chain-reaction" analysis -- that is, the real input can be deduced by elimination. Second, Monero mixins are sampled in such a way that they can be easily distinguished from the real coins by their age distribution; in short, the real input is usually t…
Pervasive use of software applications continues to challenge user privacy when users interact with software systems. Even though privacy practices such as Privacy by Design (PbD), have clear in- structions for software developers to embed privacy into software designs, those practices are yet to become a common practice among software developers. The difficulty of developing privacy preserv- ing software systems highlights the importance of investigating software developers and the problems they face when they are asked to embed privacy into application designs. Software devel- opers are the …
We propose Noise-Augmented Privacy-Preserving Empirical Risk Minimization (NAPP-ERM) that solves ERM with differential privacy guarantees. Existing privacy-preserving ERM approaches may be subject to over-regularization with the employment of an l2 term to achieve strong convexity on top of the target regularization. NAPP-ERM improves over the current approaches and mitigates over-regularization by iteratively realizing target regularization through appropriately designed augmented data and delivering strong convexity via a single adaptively weighted dual-purpose l2 regularizer. When the targe…
National University of Singapore（新加坡国立大学）；Monash University（莫纳什大学）；The University of Melbourne（墨尔本大学）
It has been demonstrated that hidden representation learned by a deep model can encode private information of the input, hence can be exploited to recover such information with reasonable accuracy. To address this issue, we propose a novel approach called Differentially Private Neural Representation (DPNR) to preserve the privacy of the extracted representation from text. DPNR utilises Differential Privacy (DP) to provide a formal privacy guarantee. Further, we show that masking words via dropout can further enhance privacy. To maintain utility of the learned representation, we integrate DP-no…
Introducing noise in the training of machine learning systems is a powerful way to protect individual privacy via differential privacy guarantees, but comes at a cost to utility. This work looks at whether the inherent randomness of stochastic gradient descent (SGD) could contribute to privacy, effectively reducing the amount of \emph{additional} noise required to achieve a given privacy guarantee. We conduct a large-scale empirical study to examine this question. Training a grid of over 120,000 models across four datasets (tabular and images) on convex and non-convex objectives, we demonstrat…
The Pennsylvania State University（宾夕法尼亚州立大学）；University of Georgia（佐治亚大学）
The process of data mining with differential privacy produces results that are affected by two types of noise: sampling noise due to data collection and privacy noise that is designed to prevent the reconstruction of sensitive information. In this paper, we consider the problem of designing confidence intervals for the parameters of a variety of differentially private machine learning models. The algorithms can provide confidence intervals that satisfy differential privacy (as well as the more recently proposed concentrated differential privacy) and can be used with existing differentially pri…
Social platforms are heavily used by individuals to share their thoughts and personal information. However, due to regret over time about posting inappropriate social content, embarrassment, or even life or relationship changes, some past posts might also pose serious privacy concerns for them. To cope with these privacy concerns, social platforms offer deletion mechanisms that allow users to remove their contents. Quite naturally, these deletion mechanisms are really useful for removing past posts as and when needed. However, these same mechanisms also leave the users potentially vulnerable t…
University of California, San Diego（加州大学圣地亚哥分校）；Columbia University（哥伦比亚大学）
Privacy-preserving machine learning algorithms are crucial for the increasingly common setting in which personal data, such as medical or financial records, are analyzed. We provide general techniques to produce privacy-preserving approximations of classifiers learned via (regularized) empirical risk minimization (ERM). These algorithms are private under the $ε$-differential privacy definition due to Dwork et al. (2006). First we apply the output perturbation ideas of Dwork et al. (2006), to ERM classification. Then we propose a new method, objective perturbation, for privacy-preserving machin…
