Cryptographic and Financial Fairness

【Author】 Friolo, Daniele; Massacci, Fabio; Chan Nam Ngo; Venturi, Daniele

【Source】IEEE TRANSACTIONS ON INFORMATION FORENSICS AND SECURITY

【影响因子】7.231

【Abstract】A recent trend in multi-party computation is to achieve cryptographic fairness via monetary penalties, i.e. each honest player either obtains the output or receives a compensation in the form of a cryptocurrency. We pioneer another type of fairness, financial fairness, that is closer to the real-world valuation of financial transactions. Intuitively, a penalty protocol is financially fair if the net present cost of participation (the total value of cash inflows less cash outflows, weighted by the relative discount rate) is the same for all honest participants, even when some parties cheat. We formally define the notion, show several impossibility results based on game theory, and analyze the practical effects of (lack of) financial fairness if one was to run the protocols for real on Bitcoin using Bloomberg's dark pool trading. For example, we show that the ladder protocol (CRYPTO'14), and its variants (CCS'15 and CCS'16), fail to achieve financial fairness both in theory and in practice, while the penalty protocols of Kumaresan and Bentov (CCS'14) and Baum, David and Dowsley (FC'20) are financially fair.

【Keywords】Protocols; Cryptography; Uncertainty; Computational modeling; Bitcoin; Stochastic processes; Software; Multi-party computation; fairness; penalties

【发表时间】2022

【收录时间】2022-10-17

【文献类型】理论模型

【主题类别】

区块链技术-协同技术-多方计算