One of the main shortcomings of classical distributed cryptography is its reliance on a certain fraction of participants remaining honest. Typically, honest parties are assumed to follow the protocol and not leak any information, even if behaving dishonestly would benefit them economically. More realistic models used in blockchain consensus rely on weaker assumptions, namely that no large coalition of corrupt parties exists, although every party can act selfishly. This is feasible since, in...

Atomic swaps enable asset exchanges across blockchains without relying on trusted intermediaries, and are a key component of decentralized finance (DeFi) ecosystems. Recently, Chung, Masserova, Shi, and Thyagarajan introduced Rapidash (Financial Cryptography 2025), an atomic swap protocol that remains incentive compatible under user-miner collusion, by ensuring that the honest strategy forms a coalition-resistant Nash equilibrium. However, their model assumes a closed system where players...

Know Your Customer (KYC) is a core component of the Anti-Money Laundering (AML) framework, designed to prevent illicit activities within financial systems. However, enforcing KYC and AML on blockchains remains challenging due to difficulties in establishing accountability and preserving user privacy. This study proposes REGKYC, a privacy-preserving Attribute-Based Access Control (ABAC) framework that balances user privacy with externally mandated KYC and AML requirements. REGKYC leverages a...

In the interconnected global financial system, anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations are indispensable for safeguarding financial integrity. However, while illicit transactions constitute only a small fraction of overall financial activities, traditional AML/CFT frameworks impose uniform compliance burdens on all users, resulting in inefficiencies, transaction delays, and privacy concerns. These issues stem from the institution-centric...

NovaTEE is a novel private multilateral settlement network designed to address critical inefficiencies in both traditional financial markets and cryptocurrency trading. The current clearing landscape suffers from fragmented capital allocation, restrictive prime brokerage relationships, and prolonged settlement timeframes in traditional finance, while cryptocurrency markets face challenges with over-collateralization, siloed lending pools, and security risks from centralized exchanges. We...

Verifiable random access machines (vRAMs) serve as a foundational model for expressing complex computations with provable security guarantees, serving applications in areas such as secure electronic voting, financial auditing, and privacy-preserving smart contracts. However, no existing vRAM provides distributed obliviousness, a critical need in scenarios where multiple provers seek to prevent disclosure against both other provers and the verifiers. Implementing a publicly verifiable...

Internet-scale consensus protocols used by blockchains are designed to remain operational in the presence of unexpected temporary crash faults (the so-called sleepy model of consensus) -- a critical feature for the latency-sensitive financial applications running on these systems. However, their leader-based architecture, where a single block proposer is responsible for creating the block at each height, makes them vulnerable to short-term censorship attacks, in which the proposers profit...

Cryptocurrency practices worldwide are seen as innovative, yet they navigate a fragmented regulatory environment. Many local authorities aim to balance promoting innovation, safeguarding consumers, and managing potential threats. In particular, it is unclear how people deal with cryptocurrencies in the regions where trading or mining is prohibited. This insight is crucial in conveying the risk reduction strategies. To address this, we conducted semi-structured interviews with 28...

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. Within this model, we introduce a novel primitive called secret sharing...

Peer-to-peer energy trading markets enable users to exchange electricity, directly offering them increased financial benefits. However, discrepancies often arise between the electricity volumes committed to in trading auctions and the volumes actually consumed or injected. Solutions designed to address this issue often require access to sensitive information that should be kept private. This paper presents a novel, fully privacy-preserving billing protocol designed to protect users'...

In decentralized finance (DeFi), the public availability of pending transactions presents significant privacy concerns, enabling market manipulation through miner extractable value (MEV). MEV occurs when block proposers exploit the ability to reorder, omit, or include transactions, causing financial loss to users from frontrunning. Recent research has focused on encrypting pending transactions, hiding transaction data until block finalization. To this end, Choudhuri et al. (USENIX '24)...

Battery-operated applications have been ubiquitous all over the world ranging from power-intensive electric cars down to low-power smart terminals and embedded devices. Meanwhile, serious incidents around batteries such as swelling, fire, and explosion have been witnessed, which resulted in horribly huge financial and even life loss. People used to attribute such aftermaths to unintentional design mistakes or insufficient quality inspection of original battery manufacturers. However, this is...

Federated Learning (FL) is a data-minimization approach enabling collaborative model training across diverse clients with local data, avoiding direct data exchange. However, state-of-the-art FL solutions to identify fraudulent financial transactions exhibit a subset of the following limitations. They (1) lack a formal security definition and proof, (2) assume prior freezing of suspicious customers’ accounts by financial institutions (limiting the solutions’ adoption), (3) scale poorly,...

In recent years, the number of third-party services that can access highly-sensitive data has increased steadily, e.g., in the financial sector, in eGovernment applications, or in high-assurance identity services. Protocols that enable this access must provide strong security guarantees. A prominent and widely employed protocol for this purpose is the OpenID Foundation's FAPI protocol. The FAPI protocol is already in widespread use, e.g., as part of the UK's Open Banking standards and...

Money laundering is a serious financial crime where criminals aim to conceal the illegal source of their money via a series of transactions. Although banks have an obligation to monitor transactions, it is difficult to track these illicit money flows since they typically span over multiple banks, which cannot share this information due to privacy concerns. We present secure risk propagation, a novel efficient algorithm for money laundering detection across banks without violating privacy...

Graph convolutional networks (GCNs) are gaining popularity due to their powerful modelling capabilities. However, guaranteeing privacy is an issue when evaluating on inputs that contain users’ sensitive information such as financial transactions, medical records, etc. To address such privacy concerns, we design Entrada, a framework for securely evaluating GCNs that relies on the technique of secure multiparty computation (MPC). For efficiency and accuracy reasons, Entrada builds over the MPC...

The emergence of blockchain technologies as central components of financial frameworks has amplified the extraction of market inefficiencies, such as arbitrage, through Miner Extractable Value (MEV) from Decentralized Finance smart contracts. Exploiting these opportunities often requires fee payment to miners and validators, colloquially termed as bribes. The recent development of centralized MEV relayers has led to these payments shifting from the public transaction pool to private...

In the past decade, blockchains have seen various financial and technological innovations, with cryptocurrencies reaching a market cap of over 1 trillion dollars. However, scalability is one of the key issues hindering the deployment of blockchains in many applications. To improve the throughput of the transactions, zkRollups and zkEVM techniques using the cryptographic primitive of zero-knowledge proofs (ZKPs) have been proposed and many companies are adopting these technologies in the...

Topological Data Analysis (TDA) offers a suite of computational tools that provide quantified shape features in high dimensional data that can be used by modern statistical and predictive machine learning (ML) models. In particular, persistent homology (PH) takes in data (e.g., point clouds, images, time series) and derives compact representations of latent topological structures, known as persistence diagrams (PDs). Because PDs enjoy inherent noise tolerance, are interpretable and provide a...

AI-as-a-Service has emerged as an important trend for supporting the growth of the digital economy. Digital service providers make use of their vast amount of user data to train AI models (such as image recognitions, financial modelling and pandemic modelling etc.) and offer them as a service on the cloud. While there are convincing advantages for using such third-party models, the fact that users need to upload their data to the cloud is bound to raise serious privacy concerns,...

The global supply chain involves multiple independent entities, and potential adversaries can exploit different attack vectors to steal proprietary designs and information. As a result, intellectual property (IP) owners and consumers have reasons to keep their designs private. Without a trusted third party, this mutual mistrust can lead to a deadlock where IP owners are unwilling to disclose their IP core before a financial agreement is reached, while consumers need assurance that the...

Additively Homomorphic Encryption (AHE) has been widely used in various applications, such as federated learning, blockchain, and online auctions. Elliptic Curve (EC) based AHE has the advantages of efficient encryption, homomorphic addition, scalar multiplication algorithms, and short ciphertext length. However, EC-based AHE schemes require solving a small exponential Elliptic Curve Discrete Logarithm Problem (ECDLP) when running the decryption algorithm, i.e., recovering the plaintext...

In the classical notion of multiparty computation (MPC), an honest party learning private inputs of others, either as a part of protocol specification or due to a malicious party's unspecified messages, is not considered a potential breach. Several works in the literature exploit this seemingly minor loophole to achieve the strongest security of guaranteed output delivery via a trusted third party, which nullifies the purpose of MPC. Alon et al. (CRYPTO 2020) presented the notion of Friends...

Central Bank Digital Currencies (CBDCs) aspire to offer a digital replacement for physical cash and, as such, must address two fundamental yet conflicting requirements. On the one hand, they should be private to prevent the emergence of a financial “panopticon.” On the other hand, they must be regulation friendly, facilitating threshold-limiting, tracing, and counterparty auditing functionalities necessary for compliance with regulations such as Know Your Customer (KYC), Anti-Money...

Financial dark pool trading venues are designed to keep pre-trade order information secret so that it cannot be misused by others. However, dark pools are vulnerable to an operator misusing the information in their system. Prior work has used MPC to tackle this problem by assuming that the dark pool is operated by a small set of two or three MPC parties. However, this raises the question of who plays the role of these operating parties and whether this scenario could be applied in the real...

We study witness-authenticated key exchange (WAKE), in which parties authenticate through knowledge of a witness to any NP statement. WAKE achieves generic authenticated key exchange in the absence of trusted parties; WAKE is most suitable when a certificate authority is either unavailable or undesirable, as in highly decentralized networks. In practice WAKE approximates witness encryption, its elusive non-interactive analogue, at the cost of minimal interaction. This work is the first to...

In light of continued innovation in money and payments, many central banks are exploring the creation of a central bank digital currency (CBDC), a new form of central bank money which supplements existing central bank reserve account balances and physical currency. This paper presents Hamilton, a flexible transaction processor design that supports a range of models for a CBDC and minimizes data storage in the core transaction processor by storing unspent funds as opaque hashes. Hamilton...

With the advent of the Internet of Things (IoT), e-health has become one of the main topics of research. Due to the sensitivity of patient information, patient privacy seems challenging. Nowadays, patient data is usually stored in the cloud in healthcare programs, making it difficult for users to have enough control over their data. The recent increment in announced cases of security and surveillance breaches compromising patients' privacy call into question the conventional model, in which...

We introduce policy-compliant signatures (PCS). A PCS scheme can be used in a setting where a central authority determines a global policy and distributes public and secret keys associated with sets of attributes to the users in the system. If two users, Alice and Bob, have attribute sets that jointly satisfy the global policy, Alice can use her secret key and Bob's public key to sign a message. Unforgeability ensures that a valid signature can only be produced if Alice's secret key is known...

Merkle tree is applied in diverse applications, namely, Blockchain, smart grid, IoT, Biomedical, financial transactions, etc., to verify authenticity and integrity. Also, the Merkle tree is used in privacy-preserving computing. However, the Merkle tree is a computationally costly data structure. It uses cryptographic string hash functions to partially verify the data integrity and authenticity of a data block. However, the verification process creates unnecessary network traffic because it...

In an electronic voting procedure, mixing networks are used to ensure anonymity of the casted votes. Each node of the network re-encrypts the input list of ciphertexts and randomly permutes it in a process named shuffle, and must prove (in zero-knowledge) that the process was applied honestly. To maintain security of such a process in a post-quantum scenario, new proofs are based on different mathematical assumptions, such as lattice-based problems. Nonetheless, the best lattice-based...

In recent years, smartphones have become an increasingly important storage facility for personal sensitive data ranging from photos and credentials up to financial and medical records like credit cards and person’s diseases. Trivially, it is critical to secure this information and only provide access to the genuine and authenticated user. Smartphone vendors have already taken exceptional care to protect user data by the means of various software and hardware security features like code...

Single Secret Leader Election (SSLE) protocols allow a set of users to elect a leader among them so that the identity of the winner remains secret until she decides to reveal herself. This notion was formalized and implemented in a recent result by Boneh, et al. (ACM Advances on Financial Technology 2020) and finds important applications in the area of Proof of Stake blockchains. In this paper we put forward new SSLE solutions that advance the state of the art both from a theoretical and a...

In the past few years blockchains have been a major focus for security research, resulting in significant progress in the design, formalization, and analysis of blockchain protocols. However, the more general class of distributed ledgers, which includes not just blockchains but also prominent non-blockchain protocols, such as Corda and OmniLedger, cannot be covered by the state-of-the-art in the security literature yet. These distributed ledgers often break with traditional blockchain...

The modern financial world has seen a significant rise in the use of cryptocurrencies in recent years, partly due to the convincing lures of anonymity promised by these schemes. Bitcoin, despite being considered as the most widespread among all, is claimed to have significant lapses in relation to its anonymity. Unfortunately, studies have shown that many cryptocurrency transactions can be traced back to their corresponding participants through the analysis of publicly available data, to...

A cryptographic protocol (CP) is a distributed algorithm designed to provide a secure communication in an insecure environment. CPs are used, for example, in electronic payments, electronic voting procedures, database access systems, etc. Errors in the CPs can lead to great financial and social damage, therefore it is necessary to use mathematical methods to justify the correctness and safety of the CPs. In this paper, a new mathematical model of a CP is introduced, which allows one to...

Nowadays, virtually all products and services offered by financial institutions are backed by technology. While the frontend banking services seem to be simple, the core-banking backend systems and architecture are complex and often based on legacy technologies. Customer-facing applications and services are evolving rapidly, yet they have data dependencies on core banking systems running on ancient technology standards. While those legacy systems are preferred for their stability,...

Asset custody is a core financial service in which the custodian holds in-safekeeping assets on behalf of the client. Although traditional custody service is typically endorsed by centralized authorities, decentralized custody scheme has become technically feasible since the emergence of digital assets, and furthermore, it is greatly needed by new applications such as blockchain and DeFi (Decentralized Finance). In this work, we propose a framework of decentralized asset custody scheme that...

Privacy-preserving machine learning (PPML) has many applications, from medical image classification and anomaly detection to financial analysis. nGraph-HE enables data scientists to perform private inference of deep learning (DL) models trained using popular frameworks such as TensorFlow. nGraph-HE computes linear layers using the CKKS homomorphic encryption (HE) scheme. The non-polynomial activation functions, such as MaxPool and ReLU, are evaluated in the clear by the data owner who...

Incentive systems (such as customer loyalty systems) are omnipresent nowadays and deployed in several areas such as retail, travel, and financial services. Despite the benefits for customers and companies, this involves large amounts of sensitive data being transferred and analyzed. These concerns initiated research on privacy-preserving incentive systems, where users register with a provider and are then able to privately earn and spend incentive points. In this paper we construct an...

A decade long thrive of cryptocurrency has shown its potential as a source of alternative-finance and the security and the robustness of the underpinning blockchain technology. However, most cryptocurrencies fail to show inimitability and their meanings in the real world. As a result, they usually start off as favourites but quickly become the outcasts of the digital asset market. The blockchain society attempts to anchor the value of cryptocurrency with real values by employing smart...

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...

Machinelearning(ML)istodaycommonlyemployedintheFinancialServicesSector(FSS) to create various models to predict a variety of conditions ranging from financial transactions fraud to outcomes of investments and also targeted marketing campaigns. The common ML technique used for the modeling is supervised learning using regression algorithms and usually involves large amounts of data that needs to be shared and prepared before the actual learning phase. Compliance with privacy laws and...

Atomic Swap enables two parties to atomically exchange their own cryptocurrencies without trusted third parties. This paper provides the first quantitative analysis on the fairness of the Atomic Swap protocol, and proposes the first fair Atomic Swap protocol with implementations. In particular, we model the Atomic Swap as the American Call Option, and prove that an Atomic Swap is equivalent to an American Call Option without the premium. Thus, the Atomic Swap is unfair to the swap...

Smart contracts are programmable, decentralized and transparent financial applications. Because smart contract platforms typically support Turing-complete programming languages, such systems are often said to enable arbitrary applications. However, the current permissionless smart contract systems impose heavy restrictions on the types of computations that can be implemented. For example, the globally-replicated and sequential execution model of Ethereum requires low gas limits that make...

Financial deposits are fundamental to the security of cryptoeconomic protocols as they serve as insurance against potential misbehaviour of agents. However, protocol designers and their agents face a trade-off when choosing the deposit size. While substantial deposits might increase the protocol security, for example by minimising the impact of adversarial behaviour or risks of currency fluctuations, locked-up capital incurs opportunity costs. Moreover, some protocols require...

Machine learning on encrypted data is a cryptographic method for analyzing private and/or sensitive data while keeping privacy. In the training phase, it takes as input an encrypted training data and outputs an encrypted model without using the decryption key. In the prediction phase, it uses the encrypted model to predict results on new encrypted data. In each phase, no decryption key is needed, and thus the privacy of data is guaranteed while the underlying encryption is secure. It has...

Blockchains show promise as potential infrastructure for financial transaction systems. The security of blockchains today, however, relies critically on Proof-of-Work (PoW), which forces participants to waste computational resources. We present REM (Resource-Efficient Mining), a new blockchain mining framework that uses trusted hardware (Intel SGX). REM achieves security guarantees similar to PoW, but leverages the partially decentralized trust model inherent in SGX to achieve a fraction of...

Centralized reputation systems use stars and reviews and thus require algorithm secrecy to avoid manipulation. In autonomous open source decentralized systems this luxury is not available. We create a reputation network for decentralized marketplaces where the trust each user gives to the other users is quantifiable and expressed in monetary terms. We introduce a new model for bitcoin wallets in which user coins are split among trusted associates. Direct trust is defined using shared bitcoin...

Security architectures such as Intel SGX need protection against rollback attacks, where the adversary violates the integrity of a protected application state by replaying old persistently stored data or by starting multiple application instances. Successful rollback attacks have serious consequences on applications such as financial services. In this paper, we propose a new approach for rollback protection on SGX. The intuition behind our approach is simple. A single platform cannot...

Man-in-the-middle attacks in TLS due to compromised CAs have been mitigated by log-based PKI enhancements such as Certificate Transparency. However, these log-based schemes do not offer sufficient incentives to logs and monitors, and do not offer any actions that domains can take in response to CA misbehavior. We propose IKP, a blockchain-based PKI enhancement that offers automatic responses to CA misbehavior and incentives for those who help detect misbehavior. IKP’s decentralized nature...

Web advertisements, an integral part of today's web browsing experience, financially support countless websites. Meaningful advertisements, however, require behavioral targeting, user tracking and profile fingerprinting that raise serious privacy concerns. To counter privacy issues and enhance usability, adblockers emerged as a popular way to filter web requests that do not serve the website's main content. Despite their popularity, little work has focused on quantifying the privacy...

Our new Access Control Encryption is an implementation of CP-ABE, when used as part of a key delivery mechanism for an encrypted Data Base. It focuses on improving performance. In ACE the access policies are any predicates over the set of object attributes. Efficiency gains are most pronounced when the DNF representations of policies are compact. In ACE, within the life span of the keys, each user has to perform very few ABE decryptions, regardless of the number of policies accessible to...

Smart contracts are programs that execute autonomously on blockchains. Their key envisioned uses (e.g. financial instruments) require them to consume data from outside the blockchain (e.g. stock quotes). Trustworthy data feeds that support a broad range of data requests will thus be critical to smart contract ecosystems. We present an authenticated data feed system called Town Crier (TC). TC acts as a bridge between smart contracts and existing web sites, which are already commonly trusted...

Emerging smart contract systems over decentralized cryp- tocurrencies allow mutually distrustful parties to transact safely with each other without trusting a third-party inter- mediary. In the event of contractual breaches or aborts, the decentralized blockchain ensures that other honest parties obtain commesurate remuneration. Existing systems, how- ever, lack transactional privacy. All transactions, including flow of money between pseudonyms and amount trasacted, are exposed in the clear...

Several new services incentivize clients to compete in solving large computation tasks in exchange for financial rewards. This model of competitive distributed computation enables every user connected to the Internet to participate in a game in which he splits his computational power among a set of competing pools — the game is called a computational power splitting game. We formally model this game and show its utility in analyzing the security of pool protocols that dictate how financial...

Recently a series of expressive, secure and efficient Attribute-Based Encryption (ABE) schemes, both in key-policy flavor and ciphertext-policy flavor, have been proposed. However, before being applied into practice, these systems have to attain traceability of malicious users. As the decryption privilege of a decryption key in Key-Policy ABE (resp. Ciphertext-Policy ABE) may be shared by multiple users who own the same access policy (resp. attribute set), malicious users might tempt to leak...

The combination of software-as-a-service and the increasing use of mobile devices gives rise to a considerable difference in computational power between servers and clients. Thus, there is a desire for clients to outsource the evaluation of complex functions to an external server. Servers providing such a service may be rewarded per computation, and as such have an incentive to cheat by returning garbage rather than devoting resources and time to compute a valid result. In this work, we...

Ecash is a concept of electronic cash which would allow users to carry money in form of digital coins. Transaction can be done both offline and online in absence of a third party/financial institution. This paper proposes an offline model which supports multiple usage of transferable ecoin. The protocol is based on RSA, digital signature and a two-step encryption process. In this two step encryption, the user account details are encrypted in the coin using unique numbers in each step. The...

We describe, and implement, a maliciously secure protocol for two-party computation in a parallel computational model. The protocol is based on cut-and-choose of Yao’s garbled circuit and an efficient oblivious transfer extension. The implementation is done using CUDA and yields fast results in a financially feasible and practical setting by using a consumer grade CPU and GPU. Our protocol introduces a novel construction in order to verify consistency of the garbled circuit constructor’s...

We show efficient, practical (server-aided) secure two-party computation protocols ensuring privacy, correctness and fairness in the presence of malicious (Byzantine) faults. Our requirements from the server are modest: to ensure privacy and correctness, we only assume offline set-up prior to protocol execution; and to also ensure fairness, we further assume a trusted-decryption service, providing decryption service using known public key. The fairness-ensuring protocol is optimistic, i.e.,...

Attack tree analysis is used to estimate different parameters of general security threats based on information available for atomic subthreats. We focus on estimating the expected gains of an adversary based on both the cost and likelihood of the subthreats. Such a multi-parameter analysis is considerably more complicated than separate probability or skill level estimation, requiring exponential time in general. However, this paper shows that under reasonable assumptions a completely...

Time Capsule Signature, first formalized by Dodis and Yum in Financial Cryptography 2005, is a digital signature scheme which allows a signature to bear a (future) time t so that the signature will only be valid at time t or later, when a trusted third party called time server releases time-dependent information for checking the validity of a time capsule signature. Also, the actual signer of a time capsule signature has the privilege to make the signature valid before time t. In this...

A coupon is an electronic data that represents the right to access a service provided by a service provider (e.g. gift certificates or movie tickets). Recently, a privacy-protecting multi-coupon system that allows a user to withdraw a predefined number of single coupons from the service provider has been proposed by Chen et al. at Financial Crypto 2005. In this system, every coupon has the same value which is predetermined by the system. The main drawbacks of Chen et al. proposal are that...