A key component of security in decentralized blockchains is proof of opportunity cost among block producers. In the case of proof-of-work (PoW), currently used by the most prominent systems, the cost is due to spent computation. In this paper, we characterize the security investment of miners in terms of its cost in fiat money. This enables comparison of security allocations across PoW blockchains that generally use different PoW algorithms and reward miners in different cryptocurrency units. We prove that there exists a unique allocation equilibrium, depending on market prices only, that is achieved by both strategic miners (who contemplate the actions of others) and by miners seeking only short-term profit. In fact, the latter will unknowingly compensate for any attempt to deliberately shift security allocation away from equilibrium.
Our conclusions are supported analytically through the development of a Markov decision process, game theoretical analysis, and derivation of no arbitrage conditions. We corroborate those results with empirical evidence from more than two years of blockchain and price data. Overall agreement is strong. We show that between January 1, 2018 and August 1, 2020, market prices predicted security allocation between Bitcoin and Bitcoin Cash with error less than 0.6%. And from the beginning of October 2019, until August 1, 2020, market prices predicted security allocation between Bitcoin and Litecoin with error of 0.45%. These results are further corroborated by our establishment of Granger-causality between change in market prices and change in security allocation.
To demonstrate the practicality of our results, we describe a trustless oracle that leverages the equilibrium to estimate the price ratios of PoW cryptocurrencies from on-chain information only.
Internet users such as individuals and organizations are subject to different types of epidemic risks such as worms, viruses, spams, and botnets. To reduce the probability of risk, an Internet user generally invests in traditional security mechanisms like anti-virus and anti-spam software, sometimes also known as self-defense mechanisms. However, such software does not completely eliminate risk. Recent works have considered the problem of residual risk elimination by proposing the idea of cyber-insurance. In this regard, an important research problem is the analysis of optimal user self-defens…
This paper provides a comprehensive literature review on applications of economic and pricing theory to security issues in wireless networks. Unlike wireline networks, the broadcast nature and the highly dynamic change of network environments pose a number of nontrivial challenges to security design in wireless networks. While the security issues have not been completely solved by traditional or system-based solutions, economic and pricing models recently were employed as one efficient solution to discourage attackers and prevent attacks to be performed. In this paper, we review economic and p…
The Nakamoto longest chain protocol is remarkably simple and has been proven to provide security against any adversary with less than 50% of the total hashing power. Proof-of-stake (PoS) protocols are an energy efficient alternative; however existing protocols adopting Nakamoto's longest chain design achieve provable security only by allowing long-term predictability (which have serious security implications). In this paper, we prove that a natural longest chain PoS protocol with similar predictability as Nakamoto's PoW protocol can achieve security against any adversary with less than 1/(1+e)…
This paper provides a proof of the proposed Internet standard Transport Level Security protocol using the Gong-Needham-Yahalom logic. It is intended as a teaching aid and hopes to show to students: the potency of a formal method for protocol design; some of the subtleties of authenticating parties on a network where all messages can be intercepted; the design of what should be a widely accepted standard.
The authors discuss what is provable security in cryptography. Think that provable security is asymptotic, relative, and dynamic, and only a supplement to but not a replacement of exact security analysis. Because the conjecture P != NP has not been proven yet, and it is possible in terms of the two incompleteness theorems of Kurt Godel that there is some cryptosystem of which the security cannot or only ideally be proven in the random oracle model, the security of a cryptosystem is between provability and unprovability, and any academic conclusion must be checked and verified with practices or…
Bitcoin is the most secure blockchain in the world, supported by the immense hash power of its Proof-of-Work miners, but consumes huge amount of energy. Proof-of-Stake chains are energy-efficient, have fast finality and accountability, but face several fundamental security issues: susceptibility to non-slashable long-range safety attacks, non-slashable transaction censorship and stalling attacks and difficulty to bootstrap new PoS chains from low token valuation. We propose Babylon, a blockchain platform which combines the best of both worlds by reusing the immense Bitcoin hash power to enhanc…
A revocable-storage attribute-based encryption (RS-ABE) scheme is an encryption scheme which extends attribute-based encryption by intro- ducing user revocation. A key-policy RS-ABE scheme links each key to an access structure. We propose a new key-policy RS-ABE scheme whose security we prove in term of indistinguishability under a chosen-plaintext attack (IND-CPA).
We have formalized the functional specification of HMAC-DRBG (NIST 800-90A), and we have proved its cryptographic security--that its output is pseudorandom--using a hybrid game-based proof. We have also proved that the mbedTLS implementation (C program) correctly implements this functional specification. That proof composes with an existing C compiler correctness proof to guarantee, end-to-end, that the machine language program gives strong pseudorandomness. All proofs (hybrid games, C program verification, compiler, and their composition) are machine-checked in the Coq proof assistant. Our pr…
Blockchain technology has been gaining great interest from a variety of sectors, including healthcare, supply chain and cryptocurrencies. However, Blockchain suffers from its limited ability to scale (i.e. low throughput and high latency). Several solutions have been appeared to tackle this issue. In particular, sharding proved that it is one of the most promising solutions to Blockchain scalability. Sharding can be divided into two major categories: (1) Sharding-based Proof-of-Work (PoW) Blockchain protocols, and (2) Sharding-based Proof-of-Stake (PoS) Blockchain protocols. The two categories…
We present the new mining protocol Proof-of-Reputation (PoR) for decentralized Proof-of-Work (PoW) blockchains, in particular for Bitcoin. PoR combines the classical PoW with the new ingredient of cryptographic reputation. The same level of security compared to pure PoW can be achieved with a significant energy consumption reduction (of the order of 30\%) for the same security level. The proper implementation of a decentralized reputation protocol is suitable with an extra layer of mining security: Certified Mining.
In this work, we discuss in detail a flaw in the original security proof of the W-OTS${^+}$ variant of the Winternitz one-time signature scheme, which is an important component for various stateless and stateful many-time hash-based digital signature schemes. We update the security proof for the W-OTS${^+}$ scheme and derive the corresponding security level. Our result is of importance for the security analysis of hash-based digital signature schemes.
Advances in smart devices has witnessed major developments in many mobile applications such as Android applications. These smart devices normally interconnect to the internet using wireless technology and applications using the TFTP protocol among these wireless devices are becoming commonplace. In this work, we present an enhanced lightweight security protocol for smart device and server communications using Trivial File Transfer Protocol (TFTP). We suggest the use of lightweight symmetric encryption for data encryption and asymmetric encryption for key exchange protocols in TFTP. The target …
We introduce a model for a market based economic system of cyber-risk valuation to correct fundamental problems of incentives within the information technology and information processing industries. We assess the makeup of the current day marketplace, identify incentives, identify economic reasons for current failings, and explain how a market based risk valuation system could improve these incentives to form a secure and robust information marketplace for all consumers by providing visibility into open, consensus based risk pricing and allowing all parties to make well informed decisions.
In cryptography, secure Multi-Party Computation (MPC) protocols allow participants to compute a function jointly while keeping their inputs private. Recent breakthroughs are bringing MPC into practice, solving fundamental challenges for secure distributed computation. Just as with classic protocols for encryption and key exchange, precise guarantees are needed for MPC designs and implementations; any flaw will give attackers a chance to break privacy or correctness. In this paper we present the first (as far as we know) formalisation of some MPC security proofs. These proofs provide probabilis…
In this paper we try to unify the frameworks of definitions of semantic security, indistinguishability and non-malleability by defining semantic security in comparison based framework. This facilitates the study of relations among these goals against different attack models and makes the proof of the equivalence of semantic security and indistinguishability easier and more understandable. Besides, our proof of the equivalence of semantic security and indistinguishability does not need any intermediate goals such as non devidability to change the definition framework.
Recently, a Quantum Key Exchange protocol that uses squeezed states was presented by Gottesman and Preskill. In this paper we give a generic security proof for this protocol. The method used for this generic security proof is based on recent work by Christiandl, Renner and Ekert.
A first-order conditional logic is considered, with semantics given by a variant of epsilon-semantics, where p -> q means that Pr(q | p) approaches 1 super-polynomially --faster than any inverse polynomial. This type of convergence is needed for reasoning about security protocols. A complete axiomatization is provided for this semantics, and it is shown how a qualitative proof of the correctness of a security protocol can be automatically converted to a quantitative proof appropriate for reasoning about concrete security.
Quantum key distribution (QKD) protocols make it possible for two parties to generate a secret shared key. One of the most important QKD protocols, BB84, was suggested by Bennett and Brassard in 1984. Various proofs of unconditional security for BB84 have been suggested, but the first security proofs were not composable. Here we improve a security proof of BB84 given by [Biham, Boyer, Boykin, Mor, and Roychowdhury, J. Cryptology, 19(4):381-439, 2006] to be composable and match the state-of-the-art results for BB84, and we extend it to prove unconditional security of several variants of the BB8…
As the core issue of blockchain, the mining requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to high computing power needed. Thus, the development of blockchain in mobile applications is restricted. In this paper, we consider the edge computing as the network enabler for mobile blockchain. In particular, we study optimal pricing-based edge computing resource management to support mobile blockchain applications where the mining process can be offloaded to an Edge computing Service Provider (ESP). We adopt a two-stage Stackelberg game to joi…
Quantum key distribution is the most well-known application of quantum cryptography. Previous proposed proofs of security of quantum key distribution contain various technical subtleties. Here, a conceptually simpler proof of security of quantum key distribution is presented. The new insight is the invariance of the error rate of a teleportation channel: We show that the error rate of a teleportation channel is independent of the signals being transmitted. This is because the non-trivial error patterns are permuted under teleportation. This new insight is combined with the recently proposed qu…
In this paper we propose a tokenization algorithm of Reversible Hybrid type, as defined in PCI DSS guidelines for designing a tokenization solution, based on a block cipher with a secret key and (possibly public) additional input. We provide some formal proofs of security for it, which imply our algorithm satisfies the most significant security requirements described in PCI DSS tokenization guidelines. Finally, we give an instantiation with concrete cryptographic primitives and fixed length of the PAN, and we analyze its efficiency and security.
The mining process in blockchain requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to the high computing power and energy needed. In this paper, we, for the first time, consider edge computing as an enabler for mobile blockchain. In particular, we study edge computing resource management and pricing to support mobile blockchain applications in which the mining process of miners can be offloaded to an edge computing service provider. We formulate a two-stage Stackelberg game to jointly maximize the profit of the edge computing service provid…
Attracted by the inherent security and privacy protection of the blockchain, incorporating blockchain into Internet of Things (IoT) has been widely studied in these years. However, the mining process requires high computational power, which prevents IoT devices from directly participating in blockchain construction. For this reason, edge computing service is introduced to help build the IoT blockchain, where IoT devices could purchase computational resources from the edge servers. In this paper, we consider the case that IoT devices also have other tasks that need the help of edge servers, suc…
Secure multi-party computation (MPC) is a general cryptographic technique that allows distrusting parties to compute a function of their individual inputs, while only revealing the output of the function. It has found applications in areas such as auctioning, email filtering, and secure teleconference. Given its importance, it is crucial that the protocols are specified and implemented correctly. In the programming language community it has become good practice to use computer proof assistants to verify correctness proofs. In the field of cryptography, EasyCrypt is the state of the art proof a…
EarthOL: A Proof-of-Human-Contribution Consensus Protocol -- Addressing Fundamental Challenges in Decentralized Value Assessment with Enhanced Verification and Security Mechanisms
We prove the security of theoretical quantum key distribution against the most general attacks which can be performed on the channel, by an eavesdropper who has unlimited computation abilities, and the full power allowed by the rules of classical and quantum physics. A key created that way can then be used to transmit secure messages such that their security is also unaffected in the future.
National University of Singapore（新加坡国立大学）；Tsinghua University（清华大学）；Shanghai Qi Zhi Institute（上海期智研究院）；HKUST (GZ)（香港科技大学（广州））；New York University（纽约大学）；Yau Mathematical Sciences Center（丘成桐数学科学中心）
