Advertisement

Making Bitcoin Exchanges Transparent

  • Christian DeckerEmail author
  • James Guthrie
  • Jochen Seidel
  • Roger Wattenhofer
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9327)

Abstract

Bitcoin exchanges are a vital component of the Bitcoin ecosystem. They are a gateway from the classical economy to the cryptocurrency economy, facilitating the exchange between fiat currency and bitcoins. However, exchanges are also single points of failure, operating outside the Bitcoin blockchain, requiring users to entrust them with their funds in order to operate. In this work we present a solution, and a proof-of-concept implementation, that allows exchanges to prove their solvency, without publishing any information of strategic importance.

Keywords

Replay Attack Trust Platform Module Trust Computing Fractional Reserve Audit Result 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. 1.
    Bitcoin virtual currency: Unique features present distinct challenges for deterring illicit activity. Technical report, Federal Bureau of Investigation (2012)Google Scholar
  2. 2.
    Application of fincen’s regulations to persons administering: exchanging, or using virtual currencies. Technical report, Financial Crimes Enforcement Network, US Department of the Treasury (2013)Google Scholar
  3. 3.
    Andresen, G.: Bitcoin improvement proposal 11: M-of-N standard transactions (2011). https://github.com/bitcoin/bips/blob/master/bip-0011.mediawiki. Accessed February 2015
  4. 4.
    Araoz, M., Charles, R.X., Garcia, M.A.: Bip 45: Structure for deterministic P2SH multisignature wallets (2014). https://github.com/bitcoin/bips/blob/master/bip-0045.mediawiki. Accessed February 2015
  5. 5.
    Brito, J., Castillo, A.: Bitcoin: A Primer for Policymakers. Mercatus Center at George Mason University, Arlington (2013) Google Scholar
  6. 6.
    Bryans, D.: Bitcoin and money laundering: mining for an effective solution. Indiana Law J. 89, 441–472 (2014)Google Scholar
  7. 7.
    Decker, C., Wattenhofer, R.: Bitcoin transaction malleability and MtGox. In: 19th European Symposium on Research in Computer Security (ESORICS), Wroclaw, Poland, September 2014Google Scholar
  8. 8.
    Finney, H.: bcflick - using TPM’s and trusted computing to strengthen bitcoin wallets (2013). https://bitcointalk.org/index.php?topic=154290.msg1635481. Accessed February 2015
  9. 9.
    Intel Corporation: Intel Trusted Execution Technology Software Developers Guide, May 2014Google Scholar
  10. 10.
    Maxwell, G., Todd, P.: Fraud proof (2013). https://people.xiph.org/ greg/bitcoin-wizards-fraud-proof.log.txt. Accessed March 2015
  11. 11.
    Maxwell, G., Wilcox, Z.: Proving your bitcoin reserves, February 2014. https://iwilcox.me.uk/2014/proving-bitcoin-reserves. Accessed 5th January 2015
  12. 12.
    McCune, J.M., Parno, B.J., Perrig, A., Reiter, M.K., Isozaki, H.: Flicker: An execution infrastructure for TCB minimization. In: ACM SIGOPS Operating Systems ReviewGoogle Scholar
  13. 13.
    Merkle, R.C.: A digital signature based on a conventional encryption function. In: Pomerance, C. (ed.) CRYPTO 1987. LNCS, vol. 293, pp. 369–378. Springer, Heidelberg (1988) Google Scholar
  14. 14.
    Moore, T., Christin, N.: Beware the middleman: empirical analysis of bitcoin-exchange risk. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 25–33. Springer, Heidelberg (2013) CrossRefGoogle Scholar
  15. 15.
    Nakamoto, S.: Bitcoin: A peer-to-peer electronic cash system (2008). https://bitcoin.org/bitcoin.pdf. Accessed February 2015
  16. 16.
    New York State Department of Financial Services: Virtual Currencies (2015). http://www.dfs.ny.gov/legal/regulations/revised_vc_regulation.pdf. Accessed February 2015
  17. 17.
    Todd, P.: BIP 65: OP\(\_\)CHECKLOCKTIMEVERIFY (2014). https://github.com/bitcoin/bips. Accessed March 2014
  18. 18.
    Trusted Computing Group: TCG Specification Architecture Overview, rev. 1.4, August 2007Google Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Christian Decker
    • 1
    Email author
  • James Guthrie
    • 1
  • Jochen Seidel
    • 1
  • Roger Wattenhofer
    • 1
  1. 1.Distributed Computing GroupETH ZurichZürichSwitzerland

Personalised recommendations