Cryptographic wallets are an essential tool to securely store and maintain users’ secret keys and consequently their funds in Blockchain networks. A compelling approach to construct such wallets is to share the user’s secret key among several devices, such that an adversary must corrupt multiple machines to extract the entire secret key. Indeed, many leading cryptocurrency companies such as Coinbase, Binance, or ZenGo have started offering such distributed wallets to their customers. An important feature of a cryptographic wallet is its compatibility with the so-called BIP32 specification, the most widely adopted standard for cryptographic wallets. Essentially, BIP32 specifies the notion of a hierarchical deterministic wallet, which allows to create a key hierarchy in a deterministic fashion. Unfortunately, despite significant interest, no practically efficiently solution for a fully distributed wallet scheme, that also follows the BIP32 standard, exists. In this work, we show the first concretely efficient construction of a fully distributed wallet that is compliant with the BIP32 standard. To this end, we first provide a game-based notion of threshold signatures with rerandomizable keys and show an instantiation via the Gennaro and Goldfeder threshold ECDSA scheme (CCS’18). We then observe that one of BIP32’s key derivation mechanisms, the so-called hardened derivation, cannot efficiently be translated to the threshold setting. Instead, we devise a novel and efficient hardened derivation mechanism for the threshold setting that satisfies the same properties as the original mechanism as specified by BIP32. As a final contribution, we evaluate our solution with respect to its running time and communication cost.

A recent work by Boneh, Partap, and Rotem [Crypto'24] introduced the concept of traceable threshold encryption, in that if t or more parties collude to construct a decryption box, which performs decryptions, then at least one party's identity can be traced by making a few black-box queries to the box. This has important applications, e.g., in blockchain mempool privacy, where collusion yields high financial gain through MEVs without any consequence -- the possibility of tracing discourages collusion. Nevertheless, their definitions leave room for exploitation as they only achieve CPA security and do not consider inconsistency in decryption via different participating sets.

We address the problem of detecting and punishing shareholder collusion in secret-sharing schemes. We do it in the recently proposed cryptographic model called individual cryptography (Dziembowski, Faust, and Lizurej, Crypto 2023), which assumes that there exist tasks that can be efficiently computed by a single machine but distributing this computation across multiple (mutually distrustful devices) is infeasible.

The notion of witness encryption introduced by Garg et al. (STOC'13) allows to encrypt a message under a statement$x$from some NP-language$\mathcal{L}$with associated relation$(x, w)\in \mathcal{R}$, where decryption can be carried out with the corresponding witness$w$. Unfortunately, known constructions for general-purpose witness encryption rely on strong assumptions, and are mostly of theoretical interest. To address these short-comings, Goyal et al. (PKC'22) recently introduced a blockchain-based alternative, where a committee decrypts ciphertexts when provided with a valid witness$w$. Blockchain-based committee solutions have recently gained broad interest to offer security against more powerful adversaries and construct new cryptographic primitives. We follow this line of work, and propose a new notion of statement-oblivious threshold witness encryption. Our new notion offers the functionality of committee-based witness encryption while additionally hiding the statement used for encryption. We present two ways to build statement-oblivious threshold witness encryption, one generic transformation based on anonymous threshold identity-based encryption (A-TIBE) and one direct construction based on bilinear maps. Due to the lack of efficient A-TIBE schemes, the former mainly constitutes a feasibility result, while the latter yields a concretely efficient scheme.

Permissionless blockchain systems such as Bitcoin or Ethereum are slow and expensive, since transactions are processed in a distributed network by a large set of parties. To improve on these shortcomings, a prominent approach is given by so-called 2nd-layer protocols. In these protocols parties process transactions off-chain directly between each other, thereby drastically reducing the costly and slow interaction with the blockchain. In particular, in the optimistic case, when parties behave honestly, no interaction with the blockchain is needed. One of the most popular off-chain solutions are Plasma protocols (often also called commit-chains). These protocols are orchestrated by a so-called operator that maintains the system and processes transactions between parties. Importantly, the operator is trustless, i.e., even if it is malicious users of the system are guaranteed to not lose funds. To achieve this guarantee, Plasma protocols are highly complex and rely on involved and expensive dispute resolution processes. This has significantly slowed down development and deployment of these systems.In this work we propose CommiTEE – a simple and efficient Plasma system leveraging the power of trusted execution environments (TEE). Besides its simplicity, our protocol requires minimal interaction with the blockchain, thereby drastically reducing costs and improving efficiency. An additional benefit of our solution is that it allows for switching between operators, in case the main operator goes offline due to system failure, or behaving maliciously. We implemented and evaluated our system over Ethereum and show that it is at least 2 times (and in some cases more than 16 times) cheaper in terms of communication complexity when compared to existing Plasma implementations. Moreover, for protocols using zero-knowledge proofs (like NOCUST-ZKP), CommiTEE decreases the on-chain gas cost by a factor ≈ 19 compared to prior solution.

Decentralized applications (dApps) consist of smart contracts that run on blockchains and clients that model collaborating parties. dApps are used to model financial and legal business functionality. Today, contracts and clients are written as separate programs—in different programming languages—communicating via send and receive operations. This makes distributed program flow awkward to express and reason about, increasing the potential for mismatches in the client-contract interface, which can be exploited by malicious clients, potentially leading to huge financial losses. In this article, we present Prisma , a language for tierless decentralized applications, where the contract and its clients are defined in one unit and pairs of send and receive actions that “belong together” are encapsulated into a single direct-style operation, which is executed differently by sending and receiving parties. This enables expressing distributed program flow via standard control flow and renders mismatching communication impossible. We prove formally that our compiler preserves program behavior in presence of an attacker controlling the client code. We systematically compare Prisma with mainstream and advanced programming models for dApps and provide empirical evidence for its expressiveness and performance.

Decentralized applications (dApps) consist of smart contracts that run on blockchains and clients that model collaborating parties. dApps are used to model financial and legal business functionality. Today, contracts and clients are written as separate programs-in different programming languages-communicating via send and receive operations. This makes distributed program flow awkward to express and reason about, increasing the potential for mismatches in the client-contract interface, which can be exploited by malicious clients, potentially leading to huge financial losses. In this paper, we present Prisma, a language for tierless decentralized applications, where the contract and its clients are defined in one unit. Pairs of send and receive actions that "belong together" are encapsulated into a single direct-style operation, which is executed differently by sending and receiving parties. This enables expressing distributed program flow via standard control flow and renders mismatching communication impossible. We prove formally that our compiler preserves program behavior in presence of an attacker controlling the client code. We systematically compare Prisma with mainstream and advanced programming models for dApps and provide empirical evidence for its expressiveness and performance. The design space of dApp programming and other multi-party languages depends on one major choice: a local model versus a global model. In a local model, parties are defined in separate programs and their interactions are encoded via send and receive effects. In a global language, parties are defined within one shared program and interactions are encoded via combined sendand-receive operations with no effects visible to the outside world. The global model is followed by tierless and choreographic languages. However, known approaches to dApp programming follow the local model, thus rely on explicitly specifying the client-contract interaction protocol. Moreover, the contract and clients are implemented in different languages, hence, developers have to master two technology stacks. The dominating approach in industry is Solidity for the contract and JavaScript for clients. Solidity relies on expressing the protocol using assertions in the contract code, which are checked at run time. Failing to insert the correct assertions may give parties illegal access to monetary values to the detriment of others. In research, contract languages have been proposed that rely on advanced type systems such as session types, type states, and linear types. The global model has not been explored for dApp programming. This is unfortunate given the potential to get by with a standard typing discipline and to avoid intricacies and potential mismatches of a two-language stack. Our work fills this gap by proposing Prisma-the first language that features a global programming model for Ethereum dApps. While we focus on the Ethereum blockchain, we believe our techniques

In many cryptocurrencies, the problem of key management has become one of the most fundamental security challenges. Typically, keys are kept in designated schemes called wallets, whose main purpose is to store these keys securely. One such system is the BIP32 wallet (Bitcoin Improvement Proposal 32), which since its introduction in 2012 has been adopted by countless Bitcoin users and is one of the most frequently used wallet system today. Surprisingly, very little is known about the concrete security properties offered by this system. In this work, we propose the first formal analysis of the BIP32 system in its entirety and without any modification. Building on the recent work of Das et al. (CCS '19), we put forth a formal model for hierarchical deterministic wallet systems (such as BIP32) and give a security reduction in this model from the existential unforgeability of the ECDSA signature algorithm that is used in BIP32. We conclude by giving concrete security parameter estimates achieved by the BIP32 standard, and show that by moving to an alternative key derivation method we can achieve a tighter reduction offering an additional 20 bits of security (111 vs. 91 bits of security) at no additional costs.

Blockchain is a disruptive new technology introduced around a decade ago. It can be viewed as a method for recording timestamped transactions in a public database. Most of blockchain protocols do not scale well, i.e., they cannot process quickly large amounts of transactions. A natural idea to deal with this problem is to use the blockchain only as a timestamping service, i.e., to hash several transactions tx_1,…,tx_m into one short string, and just put this string on the blockchain, while at the same time posting the hashed transactions tx_1,…,tx_m to some public place on the Internet ("off-chain"). In this way the transactions tx_i remain timestamped, but the amount of data put on the blockchain is greatly reduced. This idea was introduced in 2017 under the name Plasma by Poon and Buterin. Shortly after this proposal, several variants of Plasma have been proposed. They are typically built on top of the Ethereum blockchain, as they strongly rely on so-called smart contracts (in order to resolve disputes between the users if some of them start cheating). Plasmas are an example of so-called off-chain protocols. In this work we initiate the study of the inherent limitations of Plasma protocols. More concretely, we show that in every Plasma system the adversary can either (a) force the honest parties to communicate a lot with the blockchain, even though they did not intend to (this is traditionally called mass exit); or (b) an honest party that wants to leave the system needs to quickly communicate large amounts of data to the blockchain. What makes these attacks particularly hard to handle in real life is that these attacks do not have so-called uniquely attributable faults, i.e. the smart contract cannot determine which party is malicious, and hence cannot force it to pay the fees for the blockchain interaction. An important implication of our result is that the benefits of two of the most prominent Plasma types, called Plasma Cash and Fungible Plasma, cannot be achieved simultaneously. Besides of the direct implications on real-life cryptocurrency research, we believe that this work may open up a new line of theoretical research, as, up to our knowledge, this is the first work that provides an impossibility result in the area of off-chain protocols.

Current permissionless cryptocurrencies such as Bitcoin suffer from a limited transaction rate and slow confirmation time, which hinders further adoption. Payment channels are one of the most promising solutions to address these problems, as they allow the parties of the channel to perform arbitrarily many payments in a peer-to-peer fashion while uploading only two transactions on the blockchain. This concept has been generalized into payment channel networks where a path of payment channels is used to settle the payment between two users that might not share a direct channel between them. However, this approach requires the active involvement of each user in the path, making the system less reliable (they might be offline), more expensive (they charge fees per payment), and slower (intermediaries need to be actively involved in the payment). To mitigate this issue, recent work has introduced the concept of virtual channels (IEEE S&P’19), which involve intermediaries only in the initial creation of a bridge between payer and payee, who can later on independently perform arbitrarily many off-chain transactions. Unfortunately, existing constructions are only available for Ethereum, as they rely on its account model and Turing-complete scripting language. The realization of virtual channels in other blockchain technologies with limited scripting capabilities, like Bitcoin, was so far considered an open challenge.In this work, we present the first virtual channel protocols that are built on the UTXO-model and require a scripting language supporting only a digital signature scheme and a timelock functionality, being thus backward compatible with virtually every cryptocurrency, including Bitcoin. We formalize the security properties of virtual channels as an ideal functionality in the Universal Composability framework and prove that our protocol constitutes a secure realization thereof. We have prototyped and evaluated our protocol on the Bitcoin blockchain, demonstrating its efficiency: for n sequential payments, they require an off-chain exchange of 9+2n transactions or a total of 3524+695n bytes, with no on-chain footprint in the optimistic case. This is a substantial improvement compared to routing payments in a payment channel network, which requires 8n transactions with a total of 3026n bytes to be exchanged.

Most blockchain solutions are susceptible to quantum attackers as they rely on cryptography that is known to be insecure in the presence of quantum adversaries. In this work we advance the study of quantum-resistant blockchain solutions by giving a quantum-resistant construction of a deterministic wallet scheme. Deterministic wallets are frequently used in practice in order to secure funds by storing the sensitive secret key on a so-called cold wallet that is not connected to the Internet. Recently, Das et al. (CCS'19) developed a formal model for the security analysis of deterministic wallets and proposed a generic construction from certain types of signature schemes that exhibit key rerandomization properties. We revisit the proposed classical construction in the presence of quantum adversaries and obtain the following results.

Selling digital commodities securely over the Internet is a challenging task when Seller and Buyer do not trust each other. With the advent of cryptocurrencies, one prominent solution for digital exchange is to rely on a smart contract as a trusted arbiter that fairly resolves disputes when Seller and Buyer disagree. Such protocols have an optimistic mode, where the digital exchange between the parties can be completed with only minimal interaction with the smart contract. In this work we present OptiSwap, a new smart contract based fair exchange protocol that significantly improves the optimistic case of smart contract based fair exchange protocols. In particular, OptiSwap has almost no overhead in communication complexity, and improves on the computational overheads of the parties compared to prior solutions. An additional feature of OptiSwap is a protection mechanism against so-called grieving attacks, where an adversary attempts to violate the financial fairness of the protocol by forcing the honest party to pay fees. We analyze OptiSwap's security in the UC model and provide benchmark results over Ethereum.

Abstract Non-malleable codes (Dziembowski et al., ICS’10 and J. ACM’18) are a natural relaxation of error correcting/detecting codes with useful applications in cryptography. Informally, a code is non-malleable if an adversary trying to tamper with an encoding of a message can only leave it unchanged or modify it to the encoding of an unrelated value. This paper introduces continuous non-malleability, a generalization of standard non-malleability where the adversary is allowed to tamper continuously with the same encoding. This is in contrast to the standard definition of non-malleable codes, where the adversary can only tamper a single time. The only restriction is that after the first invalid codeword is ever generated, a special self-destruct mechanism is triggered and no further tampering is allowed; this restriction can easily be shown to be necessary. We focus on the split-state model, where an encoding consists of two parts and the tampering functions can be arbitrary as long as they act independently on each part. Our main contributions are outlined below. We show that continuous non-malleability in the split-state model is impossible without relying on computational assumptions. We construct a computationally secure split-state code satisfying continuous non-malleability in the common reference string (CRS) model. Our scheme can be instantiated assuming the existence of collision-resistant hash functions and (doubly enhanced) trapdoor permutations, but we also give concrete instantiations based on standard number-theoretic assumptions. We revisit the application of non-malleable codes to protecting arbitrary cryptographic primitives against related-key attacks. Previous applications of non-malleable codes in this setting required perfect erasures and the adversary to be restricted in memory. We show that continuously non-malleable codes allow to avoid these restrictions.

In cryptocurrencies such as Bitcoin or Ethereum, users control funds via secret keys. To transfer funds from one user to another, the owner of the money signs a new transaction that transfers the funds to the new recipient. This makes secret keys a highly attractive target for attacks, and has lead to prominent examples where millions of dollars worth in cryptocurrency have been stolen. To protect against these attacks, a widely used approach are so-called hot/cold wallets. In a hot/cold wallet system, the hot wallet is permanently connected to the network, while the cold wallet stores the secret key and is kept without network connection. In this work, we propose the first comprehensive security model for hot/cold wallets and develop wallet schemes that are provable secure within these models. At the technical level our main contribution is to provide a new provably secure ECDSA-based hot/cold wallet scheme that can be integrated into legacy cryptocurrencies such as Bitcoin. Our construction and security analysis uses a modular approach, where we show how to generically build secure hot/cold wallets from signature schemes that exhibit a rerandomizing property of the keys.

Payment channels emerged recently as an efficient method for performing cheap micropayments in cryptocurrencies. In contrast to traditional on-chain transactions, payment channels have the advantage that they allow for nearly unlimited number of transactions between parties without involving the blockchain. In this work, we introduce Perun, an off-chain channel system that offers a new method for connecting channels that is more efficient than the existing technique of ``routing transactions'' over multiple channels. To this end, Perun introduces a technique called ``virtual payment channels'' that avoids involvement of the intermediary for each individual payment. In this paper we formally model and prove security of this technique in the case of one intermediary, who can be viewed as a ``payment hub'' that has direct channels with several parties. Our scheme works over any cryptocurrency that provides Turing-complete smart contracts. As a proof of concept, we implemented Perun's smart contracts in Ethereum.

A recent trend in cryptography is to formally show the leakage resilience of cryptographic implementations in a given leakage model. One of the most prominent leakage model—the so-called bounded leakage model—assumes that the amount of leakage that an adversary receives is a-priori bounded. Unfortunately, it has been pointed out by several works that the assumption of bounded leakages is hard to verify in practice. A more realistic assumption is to consider that leakages are sufficiently noisy, following the engineering observation that real-world physical leakages are inherently perturbed by physical noise. While already the seminal work of Chari et al. (in: CRYPTO, pp 398–412, 1999 ) study security of side-channel countermeasures in the noisy model, only recently Prouff and Rivain (in: Johansson T, Nguyen PQ (eds) EUROCRYPT, volume 7881 of lecture notes in 931 computer science, pp 142–159, Springer, 2013 ) offer a full formal analysis of the masking countermeasure in a physically motivated noise model. In particular, the authors show that a block-cipher implementation that uses the Boolean masking scheme is secure against a very general class of noisy leakage functions. While this is an important step toward better understanding the security of masking schemes, the analysis of Prouff and Rivain has several shortcomings including in particular requiring leak-free gates. In this work, we provide an alternative security proof in the same noise model that overcomes these challenges. We achieve this goal by a new reduction from noisy leakage to the important model of probing adversaries (Ishai et al. in: CRYPTO, pp 463–481, 2003 ). This reduction is the main technical contribution of our work that significantly simplifies the formal security analysis of masking schemes against realistic side-channel leakages.

We introduce FairSwap -- an efficient protocol for fair exchange of digital goods using smart contracts. A fair exchange protocol allows a sender S to sell a digital commodity x for a fixed price p to a receiver R. The protocol is said to be secure if R only pays if he receives the correct x. Our solution guarantees fairness by relying on smart contracts executed over decentralized cryptocurrencies, where the contract takes the role of an external judge that completes the exchange in case of disagreement. While in the past there have been several proposals for building fair exchange protocols over cryptocurrencies, our solution has two distinctive features that makes it particular attractive when users deal with large commodities. These advantages are: (1) minimizing the cost for running the smart contract on the blockchain, and (2) avoiding expensive cryptographic tools such as zero-knowledge proofs. In addition to our new protocols, we provide formal security definitions for smart contract based fair exchange, and prove security of our construction. Finally, we illustrate several applications of our basic protocol and evaluate practicality of our approach via a prototype implementation for fairly selling large files over the cryptocurrency Ethereum.

One of the fundamental challenges that hinder further adaption of decentralized cryptocurrencies is scalability. Because current cryptocurrencies require that all transactions are processed and stored on a distributed ledger -- the so-called blockchain -- transaction throughput is inherently limited. An important proposal to significantly improve scalability are off-chain protocols, where the massive amount of transactions is executed without requiring the costly interaction with the blockchain. Examples of off-chain protocols include payment channels and networks, which are currently deployed by popular cryptocurrencies such as Bitcoin and Ethereum. A further extension of payment networks envisioned for cryptocurrencies are so-called state channel networks. In contrast to payment networks that only support off-chain payments between users, state channel networks allow execution of arbitrary complex smart contracts. The main contribution of this work is to give the first full specification for general state channel networks. Moreover, we provide formal security definitions and prove the security of our construction against powerful adversaries. An additional benefit of our construction is the use of channel virtualization, which further reduces latency and costs in complex channel networks.

Security against hardware trojans is currently becoming an essential ingredient to ensure trust in information systems. A variety of solutions have been introduced to reach this goal, ranging from reactive (i.e., detection-based) to preventive (i.e., trying to make the insertion of a trojan more difficult for the adversary). In this paper, we show how testing (which is a typical detection tool) can be used to state concrete security guarantees for preventive approaches to trojan-resilience. For this purpose, we build on and formalize two important previous works which introduced ``input scrambling" and ``split manufacturing" as countermeasures to hardware trojans. Using these ingredients, we present a generic compiler that can transform any circuit into a trojan-resilient one, for which we can state quantitative security guarantees on the number of correct executions of the circuit thanks to a new tool denoted as ``testing amplification". Compared to previous works, our threat model covers an extended range of hardware trojans while we stick with the goal of minimizing the number of honest elements in our transformed circuits. Since transformed circuits essentially correspond to redundant multiparty computations of the target functionality, they also allow reasonably efficient implementations, which can be further optimized if specialized to certain cryptographic primitives and security goals.

Non-malleable codes, defined by Dziembowski, Pietrzak, and Wichs (ICS '10), provide roughly the following guarantee: if a codeword c encoding some message x is tampered to c'= f (c) such that c' ≠ c, then the tampered message x' contained in c' reveals no information about x. The nonmalleable codes have applications to immunizing cryptosystems against tampering attacks and related-key attacks. One cannot have an efficient non-malleable code that protects against all efficient tampering functions f . However, in this paper we show “the next best thing”: for any polynomial bound s given a-priori, there is an efficient non-malleable code that protects against all tampering functions f computable by a circuit of size s. More generally, for any family of tampering functions F of size |F| ≤ 2s, there is an efficient non-malleable code that protects against all f ∈ F. The rate of our codes, defined as the ratio of message to codeword size, approaches 1. Our results are information-theoretic and our main proof technique relies on a careful probabilistic method argument using limited independence. As a result, we get an efficiently samplable family of efficient codes, such that a random member of the family is non-malleable with overwhelming probability. Alternatively, we can view the result as providing an efficient non-malleable code in the “common reference string” model. We also introduce a new notion of non-malleable key derivation, which uses randomness x to derive a secret key y = h(x) in such a way that, even if x is tampered to a different value x'= f (x), the derived key y' = h(x') does not reveal any information about y. Our results for non-malleable key derivation are analogous to those for non-malleable codes. As a useful tool in our analysis, we rely on the notion of “leakage-resilient storage” of Davi, Dziembowski, and Venturi (SCN '10), and, as a result of independent interest, we also significantly improve on the parameters of such schemes.

Physical computational devices leak side-channel information that may, and often does, reveal secret internal states. We present a general transformation that compiles any circuit into a circuit with the same functionality but resilience against well-defined classes of leakage. Our construction requires a small, stateless, and computation-independent leak-proof component that draws random elements from a fixed distribution. In essence, we reduce the problem of shielding arbitrarily complex circuits to the problem of shielding a single, simple component. Our approach is based on modeling the adversary as a powerful observer that inspects the device via a limited measurement apparatus. We allow the apparatus to access all the bits of the computation (except those inside the leak-proof component), and the amount of leaked information to grow unbounded over time. However, we assume that the apparatus is limited in the amount of output bits per iteration and the ability to decode certain linear encodings. While our results apply in general to such leakage classes, in particular, we obtain security against (a) constant-depth circuits leakage, where the leakage function is computed by an $\mathsf{AC}^0$ circuit (composed of NOT gates and unbounded fan-in AND and OR gates); (b) noisy leakage, where the leakage function reveals all the bits of the internal state of the circuit, but each bit is perturbed by independent binomial noise---i.e., flipped with some probability $p$. Namely, for some number $p\in(0,1/2]$, each bit of the computation is flipped with probability $p$, and remains unchanged with probability $1-p$.