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 called PROF (PRotected Order Flow) that is designed to limit harmful forms of MEV in existing PBS systems. PROF aims at this goal using two ideas. First, PROF imposes an ordering on a set ("bundle") of privately input transactions and enforces that ordering all the way through to block production -- preventing transaction-order manipulation. Second, PROF creates bundles whose inclusion is profitable to block producers, thereby ensuring that bundles see timely inclusion in blocks. PROF is backward-compatible, meaning that it works with existing and future PBS designs. PROF is also compatible with any desired algorithm for ordering transactions within a PROF bundle (e.g., first-come, first-serve, fee-based, etc.). It executes efficiently, i.e., with low latency, and requires no additional trust assumptions among PBS entities. We quantitatively and qualitatively analyze incentive structure of PROF, and its utility to users compared with existing solutions. We also report on inclusion likelihood of PROF transactions, and concrete latency numbers through our end-to-end implementation.

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 and prospective trading strategies, thus exposing them to exploitation. ZKP-based approaches failed to address RBEV as they cannot provide post-execution privacy without some level of information disclosure. Other MEV mitigations like fair-ordering protocols also failed to address RBEV. We introduce Ratel, an innovative framework bridging a multi-party computation (MPC) prototyping framework (MP-SPDZ) and a smart contract language (Solidity), harmonizing the privacy with full expressiveness of MPC with Solidity 's on-chain programmability. This synergy empowers developers to effortlessly craft privacy-preserving decentralized applications (DApps). We demonstrate Ratel's efficacy through two distinguished decentralized finance (DeFi) applications: a decentralized exchange and a collateral auction, effectively mitigating the potential RBEV issue. Furthermore, Ratel is equipped with a lightweight crash-reset mechanism, enabling the seamless recovery of transiently benign faulty nodes. To prevent the crash-reset mechanism abused by malicious entities and ward off DoS attacks, we incorporate a cost-utility analysis anchored in the Bayesian approach. Our performance evaluation of the applications developed under the Ratel framework underscores their competency in managing real-world peak-time workloads.

Decentralized Autonomous Organizations (DAOs) have emerged as a novel way to coordinate a group of (pseudonymous) entities toward a shared vision (e.g., promoting sustainability). In just a few years, over 4,000 DAOs have been launched in various domains, such as investment, education, health, and research. Despite such rapid growth and diversity, it is unclear how these DAOs actually work in practice. Given this, we aim to unpack how (well) DAOs work in practice. We conducted an in-depth analysis of a diverse set of 10 DAOs of various categories and smart contracts, leveraging on-chain data and interviewing DAO members. Specifically, we define metrics to characterize key aspects of DAOs, such as the degrees of decentralization and autonomy. We observed some DAOs having poor decentralization in voting, while decentralization has improved over time for one-person-one-vote DAOs. Lastly, we offer a set of design implications for future DAOs based on our findings.

Intel’s Software Guard Extensions (SGX) promises an isolated execution environment, protected from all software running on the machine. As such, numerous works have sought to leverage SGX to provide confidentiality and integrity guarantees for code running in adversarial environments. In the past few years however, SGX has come under heavy fire, threatened by numerous hardware attacks. With Intel repeatedly patching SGX to regain security while consistently launching new (micro)architectures, it is increasingly difficult to track the applicability of various attack techniques across the SGX design landscape.Thus, in this paper we set out to survey and categorize various SGX attacks, their applicability to different SGX architectures, as well as the information leaked by them. We then set out to explore the effectiveness of SGX’s update mechanisms in preventing attacks on real-world deployments. Here, we study two commercial SGX applications. First, we investigate the SECRET network, an SGX-backed blockchain aiming to provide privacy-preserving smart contracts. Next, we also consider PowerDVD, a UHD Blu-Ray Digital Rights Management (DRM) software licensed to play discs on PCs. We show that in both cases vendors are unable to meet security goals originally envisioned for their products, presumably due to SGX’s long update timelines and the complexities of a manual update process. This in turn forces vendors to make difficult security/usability trade offs, resulting in security compromises.

TEE-based smart contracts are an emerging blockchain architecture, offering fully programmable privacy with better performance than alternatives like secure multiparty computation. They can also support compatibility with existing smart contract languages, such that existing (plaintext) applications can be readily ported, picking up privacy enhancements automatically. While previous analysis of TEE-based smart contracts have focused on failures of TEE itself, we asked whether other aspects might be understudied. We focused on state consistency, a concern area highlighted by Li et al., as well as new concerns including access pattern leakage and software upgrade mechanisms. We carried out a code review of a cohort of four TEE-based smart contract platforms. These include Secret Network, the first to market with in-use applications, as well as Oasis, Phala, and Obscuro, which have at least released public test networks. The first and most broadly applicable result is that access pattern leakage occurs when handling persistent contract storage. On Secret Network, its fine-grained access pattern is catastrophic for the transaction privacy of SNIP-20 tokens. If ERC-20 tokens were naively ported to Oasis they would be similarly vulnerable; the others in the cohort leak coarse-grained information at approximately the page level (4 kilobytes). Improving and characterizing this will require adopting techniques from ORAMs or encrypted databases. Second, the importance of state consistency has been underappreciated, in part because exploiting such vulnerabilities is thought to be impractical. We show they are fully practical by building a proof-of-concept tool that breaks all advertised privacy properties of SNIP-20 tokens, able to query the balance of individual accounts and the token amount of each transfer. We additionally demonstrate MEV attacks against the Sienna Swap application. As a final consequence of lacking state consistency, the developers have inadvertently introduced a decryption backdoor through their software upgrade process. We have helped the Secret developers mitigate this through a coordinated vulnerability disclosure, after which their state consistency should be roughly on par with the rest.

Society appears to be on the verge of recognizing the need for control over sensitive data in modern web applications. Recently, many systems claim to give control to individuals, promising the preeminent goal of data sovereignty. However, despite recent attention, research and industry efforts are fragmented and lack a holistic system overview. In this paper, we provide the first transecting systematization of data sovereignty by drawing from a dispersed body of knowledge. We clarify the field by identifying its three main areas: (i) decentralized identity, (ii) decentralized access control and (iii) policy-compliant decentralized computation. We find that literature lacks a cohesive set of formal definitions. Each area is considered in isolation, and priorities in industry and academia are not aligned due to a lack of clarity regarding user control. To solve this issue, we propose formal definitions for each sub-area. By highlighting that data sovereignty transcends the domain of decentralized identity, we aim to guide future works to embrace a broader perspective on user control. In each section, we augment our definition with security and privacy properties, discuss the state of the art and proceed to identify open challenges. We conclude by highlighting synergies between areas, emphasizing the real-world benefit obtained by further developing data sovereign systems.

Distributed Key Generation (DKG) is a technique to bootstrap threshold cryptosystems without a trusted third party and is a building block to decentralized protocols such as randomness beacons, threshold signatures, and general multiparty computation. Until recently, DKG protocols have assumed the synchronous model and thus are vulnerable when their underlying network assumptions do not hold. The recent advancements in asynchronous DKG protocols are insufficient as they either have poor efficiency or limited functionality, resulting in a lack of concrete implementations. In this paper, we present a simple and concretely efficient asynchronous DKG (ADKG) protocol. In a network of n nodes, our ADKG protocol can tolerate up to $t\lt n/3$ malicious nodes and have an expected $O(\kappa n^{3})$ communication cost, where $\kappa$ is the security parameter. Our ADKG protocol produces a field element as the secret and is thus compatible with off-the-shelf threshold cryptosystems. We implement our ADKG protocol and evaluate it using a network of up to 128 nodes in geographically distributed AWS instances. Our evaluation shows that our protocol takes as low as 3 and 9.5 seconds to terminate for 32 and 64 nodes, respectively. Also, each node sends only 0.7 Megabytes and 2.9 Megabytes of data during the two experiments, respectively.

We present CanDID, a platform for practical, user-friendly realization of decentralized identity, the idea of empowering end users with management of their own credentials.While decentralized identity promises to give users greater control over their private data, it burdens users with management of private keys, creating a significant risk of key loss. Existing and proposed approaches also presume the spontaneous availability of a credential-issuance ecosystem, creating a bootstrapping problem. They also omit essential functionality, like resistance to Sybil attacks and the ability to detect misbehaving or sanctioned users while preserving user privacy.CanDID addresses these challenges by issuing credentials in a user-friendly way that draws securely and privately on data from existing, unmodified web service providers. Such legacy compatibility similarly enables CanDID users to leverage their existing online accounts for recovery of lost keys. Using a decentralized committee of nodes, CanDID provides strong confidentiality for user’s keys, real-world identities, and data, yet prevents users from spawning multiple identities and allows identification (and blacklisting) of sanctioned users.We present the CanDID architecture and report on experiments demonstrating its practical performance.

State channels are a leading approach for improving the scalability of blockchains and cryptocurrencies. They allow a group of distrustful parties to optimistically execute an application-defined program amongst themselves, while the blockchain serves as a backstop in case of a dispute or abort. This effectively bypasses the congestion, fees and performance constraints of the underlying blockchain in the typical case. However, state channels introduce a new and undesirable assumption that a party must remain online and synchronised with the blockchain at all times to defend against execution fork attacks. An execution fork can revert a state channel's history, potentially causing financial damage to a party that is innocent except for having crashed. To provide security even to parties that may go offline for an extended period of time, we present Pisa, the first protocol to propose an accountable third party who can be hired by parties to cancel execution forks on their behalf. To evaluate Pisa, we provide a proof-of-concept implementation for a simplified Sprites and we demonstrate that it is cost-efficient to deploy on the Ethereum network.

Multiparty computation as a service (MPSaaS) is a promising approach for building privacy-preserving communication systems. However, in this paper, we argue that existing MPC implementations are inadequate for this application as they do not address fairness, let alone robustness. Even a single malicious server can cause the protocol to abort while seeing the output for itself, which in the context of an anonymous communication service would create a vulnerability to censorship and de-anonymization attacks. To remedy this we propose a new MPC implementation, HoneyBadgerMPC, that combines a robust online phase with an optimistic offline phase that is efficient enough to run continuously alongside the online phase. We use HoneyBadgerMPC to develop an application case study, called AsynchroMix, that provides an anonymous broadcast functionality. AsynchroMix features a novel MPC program that trades off between computation and communication, allowing for low-latency message mixing in varying settings. In a cloud-based distributed benchmark with 100 nodes, we demonstrate mixing a batch of 512 messages in around 20 seconds and up to 4096 messages in around two minutes.

Smart contracts are applications that execute on blockchains. Today they manage billions of dollars in value and motivate visionary plans for pervasive blockchain deployment. While smart contracts inherit the availability and other security assurances of blockchains, however, they are impeded by blockchains' lack of confidentiality and poor performance. We present Ekiden, a system that addresses these critical gaps by combining blockchains with Trusted Execution Environments (TEEs). Ekiden leverages a novel architecture that separates consensus from execution, enabling efficient TEE-backed confidentiality-preserving smart-contracts and high scalability. Our prototype (with Tendermint as the consensus layer) achieves example performance of 600× more throughput and 400× less latency at 1000× less cost than the Ethereum mainnet. Another contribution of this paper is that we systematically identify and treat the pitfalls arising from harmonizing TEEs and blockchains. Treated separately, both TEEs and blockchains provide powerful guarantees, but hybridized, though, they engender new attacks. For example, in naïve designs, privacy in TEE-backed contracts can be jeopardized by forgery of blocks, a seemingly unrelated attack vector. We believe the insights learned from Ekiden will prove to be of broad importance in hybridized TEE-blockchain systems.

The universal composability (UC) framework is the established standard for analyzing cryptographic protocols in a modular way, such that security is preserved under concurrent composition with arbitrary other protocols. However, although UC is widely used for on-paper proofs, prior attempts at systemizing it have fallen short, either by using a symbolic model (thereby ruling out computational reduction proofs), or by limiting its expressiveness.

In-browser cryptojacking is a form of resource abuse that leverages end-users' machines to mine cryptocurrency without obtaining the users' consent. In this paper, we design, implement, and evaluate Outguard, an automated cryptojacking detection system. We construct a large ground-truth dataset, extract several features using an instrumented web browser, and ultimately select seven distinctive features that are used to build an SVM classification model. Outguardachieves a 97.9% TPR and 1.1% FPR and is reasonably tolerant to adversarial evasions. We utilized Outguardin the wild by deploying it across the Alexa Top 1M websites and found 6,302 cryptojacking sites, of which 3,600 are new detections that were absent from the training data. These cryptojacking sites paint a broad picture of the cryptojacking ecosystem, with particular emphasis on the prevalence of cryptojacking websites and the shared infrastructure that provides clues to the operators behind the cryptojacking phenomenon.

Abstract 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 the “newest” input. We estimate that this heuristic can be used to guess the real input with 80% accuracy over all transactions with 1 or more mixins. Next, we turn to the Monero ecosystem and study the importance of mining pools and the former anonymous marketplace AlphaBay on the transaction volume. We find that after removing mining pool activity, there remains a large amount of potentially privacy-sensitive transactions that are affected by these weaknesses. We propose and evaluate two countermeasures that can improve the privacy of future transactions.

The surprising success of cryptocurrencies has led to a surge of interest in deploying large scale, highly robust, Byzantine fault tolerant (BFT) protocols for mission-critical applications, such as financial transactions. Although the conventional wisdom is to build atop a (weakly) synchronous protocol such as PBFT (or a variation thereof), such protocols rely critically on network timing assumptions, and only guarantee liveness when the network behaves as expected. We argue these protocols are ill-suited for this deployment scenario. We present an alternative, HoneyBadgerBFT, the first practical asynchronous BFT protocol, which guarantees liveness without making any timing assumptions. We base our solution on a novel atomic broadcast protocol that achieves optimal asymptotic efficiency. We present an implementation and experimental results to show our system can achieve throughput of tens of thousands of transactions per second, and scales to over a hundred nodes on a wide area network. We even conduct BFT experiments over Tor, without needing to tune any parameters. Unlike the alternatives, HoneyBadgerBFT simply does not care about the underlying network.

Selfish mining, originally discovered by Eyal et al. [9], is a well-known attack where a selfish miner, under certain conditions, can gain a disproportionate share of reward by deviating from the honest behavior. In this paper, we expand the mining strategy space to include novel "stubborn" strategies that, for a large range of parameters, earn the miner more revenue. Consequently, we show that the selfish mining attack is not (in general) optimal. Further, we show how a miner can further amplify its gain by non-trivially composing mining attacks with network-level eclipse attacks. We show, surprisingly, that given the attacker's best strategy, in some cases victims of an eclipse attack can actually benefit from being eclipsed!

Emerging smart contract systems over decentralized cryptocurrencies allow mutually distrustful parties to transact safely without trusted third parties. In the event of contractual breaches or aborts, the decentralized blockchain ensures that honest parties obtain commensurate compensation. Existing systems, however, lack transactional privacy. All transactions, including flow of money between pseudonyms and amount transacted, are exposed on the blockchain. We present Hawk, a decentralized smart contract system that does not store financial transactions in the clear on the blockchain, thus retaining transactional privacy from the public's view. A Hawk programmer can write a private smart contract in an intuitive manner without having to implement cryptography, and our compiler automatically generates an efficient cryptographic protocol where contractual parties interact with the blockchain, using cryptographic primitives such as zero-knowledge proofs. To formally define and reason about the security of our protocols, we are the first to formalize the blockchain model of cryptography. The formal modeling is of independent interest. We advocate the community to adopt such a formal model when designing applications atop decentralized blockchains.

An implicit goal of Bitcoin's reward structure is to diffuse network influence over a diverse, decentralized population of individual participants. Indeed, Bitcoin's security claims rely on no single entity wielding a sufficiently large portion of the network's overall computational power. Unfortunately, rather than participating independently, most Bitcoin miners join coalitions called mining pools in which a central pool administrator largely directs the pool's activity, leading to a consolidation of power. Recently, the largest mining pool has accounted for more than half of network's total mining capacity. Relatedly, "hosted mining" service providers offer their clients the benefit of economies-of-scale, tempting them away from independent participation. We argue that the prevalence of mining coalitions is due to a limitation of the Bitcoin proof-of-work puzzle -- specifically, that it affords an effective mechanism for enforcing cooperation in a coalition. We present several definitions and constructions for "nonoutsourceable" puzzles that thwart such enforcement mechanisms, thereby deterring coalitions. We also provide an implementation and benchmark results for our schemes to show they are practical.

Bit coin has emerged as the most successful cryptographic currency in history. Within two years of its quiet launch in 2009, Bit coin grew to comprise billions of dollars of economic value despite only cursory analysis of the system's design. Since then a growing literature has identified hidden-but-important properties of the system, discovered attacks, proposed promising alternatives, and singled out difficult future challenges. Meanwhile a large and vibrant open-source community has proposed and deployed numerous modifications and extensions. We provide the first systematic exposition Bit coin and the many related crypto currencies or 'altcoins.' Drawing from a scattered body of knowledge, we identify three key components of Bit coin's design that can be decoupled. This enables a more insightful analysis of Bit coin's properties and future stability. We map the design space for numerous proposed modifications, providing comparative analyses for alternative consensus mechanisms, currency allocation mechanisms, computational puzzles, and key management tools. We survey anonymity issues in Bit coin and provide an evaluation framework for analyzing a variety of privacy-enhancing proposals. Finally we provide new insights on what we term disinter mediation protocols, which absolve the need for trusted intermediaries in an interesting set of applications. We identify three general disinter mediation strategies and provide a detailed comparison.

An authenticated data structure (ADS) is a data structure whose operations can be carried out by an untrusted prover, the results of which a verifier can efficiently check as authentic. This is done by having the prover produce a compact proof that the verifier can check along with each operation's result. ADSs thus support outsourcing data maintenance and processing tasks to untrusted servers without loss of integrity. Past work on ADSs has focused on particular data structures (or limited classes of data structures), one at a time, often with support only for particular operations.

Bit coin is widely regarded as the first broadly successful e-cash system. An oft-cited concern, though, is that mining Bit coins wastes computational resources. Indeed, Bit coin's underlying mining mechanism, which we call a scratch-off puzzle (SOP), involves continuously attempting to solve computational puzzles that have no intrinsic utility. We propose a modification to Bit coin that repurposes its mining resources to achieve a more broadly useful goal: distributed storage of archival data. We call our new scheme Perm coin. Unlike Bit coin and its proposed alternatives, Perm coin requires clients to invest not just computational resources, but also storage. Our scheme involves an alternative scratch-off puzzle for Bit coin based on Proofs-of-Retrievability (PORs). Successfully minting money with this SOP requires local, random access to a copy of a file. Given the competition among mining clients in Bit coin, this modified SOP gives rise to highly decentralized file storage, thus reducing the overall waste of Bit coin. Using a model of rational economic agents we show that our modified SOP preserves the essential properties of the original Bit coin puzzle. We also provide parameterizations and calculations based on realistic hardware constraints to demonstrate the practicality of Perm coin as a whole.