Founding Digital Currency on Secure Computation
Karim El Defrawy, Joshua Lampkins · 2014
Most current digital currency schemes and associated ledgers are either centralized or completely distributed similar to the design adopted by Bitcoin. Centralized schemes enable accountability, but leave the privacy of users' identities and transactions in the hands of one organization. Distributed schemes can ensure better privacy but provide little accountability. In this paper we design a privacy-preserving proactively-secure distributed ledger and associated transaction protocols that can be used to implement an accountable digital currency that inherits the ledger's privacy and security features. One of the main technical challenges that we address is dealing with the increase in ledger size over time, an unavoidable aspect as the currency spreads and the ledger is required to be maintained for a long time in the future. We accomplish this by reducing the distributed (secret-shared) storage footprint and the required bandwidth and computation for proactively refreshing the ledger to ensure long-term confidentiality and security. In the full version, we provide performance analysis of some of the subprotocols to estimate the time required to perform transactions and the proactive refreshing of the ledger.