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Probabilistic Micropayments with Transferability

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Part of the Lecture Notes in Computer Science book series (LNSC,volume 12972)

Abstract

Micropayments are one of the challenges in cryptocurrencies. The problems in realizing micropayments in the blockchain are the low throughput and the high blockchain transaction fee. As a solution, decentralized probabilistic micropayment has been proposed. The winning amount is registered in the blockchain, and the tickets are issued to be won with probability p, which allows us to aggregate approximately transactions into one. Unfortunately, existing solutions do not allow for ticket transferability, and the smaller p, the more difficult it to use them in the real world. We propose a novel decentralized probabilistic micropayment Transferable Scheme. It allows tickets to be transferable among users. By allowing tickets to be transferable, we can make p smaller. We also propose a novel Proportional Fee Scheme. This is a scheme where each time a ticket is transferred, a portion of the blockchain transaction fee will be charged. With the proportional fee scheme, users will have the advantage of sending money with a smaller fee than they would generally send through the blockchain. For example, sending one dollar requires only ten cents.

Keywords

  • Blockchain
  • Micropayment
  • Transferability
  • Tamper-proof wallet

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  • DOI: 10.1007/978-3-030-88418-5_19
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Notes

  1. 1.

    The wallet does not check the validity of the escrow transaction \(\tau _0\) and \(\epsilon \). Payees will reject the ticket which is not transferred from \(\epsilon \).

  2. 2.

    Double-spending attacks can be perfectly detected, and the adversary’s address is discovered. See Sect. 6.

  3. 3.

    The compensated amount is the same as the return when received the ticket. See Sect. 5 for the value of a ticket when it is in transfer.

  4. 4.

    For practical purposes, we assume that the height of \(\tau \) can only be measured when all tickets in the sequence from \(\epsilon \) to \(\tau \) are given. Even if such sequence exists, the height of \(\tau \) is considered to be \(\infty \) unless the entire sequence is specifically presented.

  5. 5.

    In reality, the adversaries are biased, but we assume it can not be distinguishable from a legitimate user from outside.

  6. 6.

    In reality, the number of addresses each user has is considered more likely to follow exponential distribution. It is an unfavorable assumption that all user have the same number of addresses \(\alpha \).

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Takahashi, T., Otsuka, A. (2021). Probabilistic Micropayments with Transferability. In: Bertino, E., Shulman, H., Waidner, M. (eds) Computer Security – ESORICS 2021. ESORICS 2021. Lecture Notes in Computer Science(), vol 12972. Springer, Cham. https://doi.org/10.1007/978-3-030-88418-5_19

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  • DOI: https://doi.org/10.1007/978-3-030-88418-5_19

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