Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading

Chan Nam Ngo; Fabio Massacci; Florian Kerschbaum; Julian Williams

doi:10.1007/978-3-662-64331-0_30

Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading

Chan Nam Ngo^*
, Fabio Massacci
, Florian Kerschbaum
, Julian Williams

^*Corresponding author for this work

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

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Abstract

We introduce a new cryptographic scheme, Witness Key Agreement (WKA), that allows a party to securely agree on a secret key with a counter party holding publicly committed information only if the counter party also owns a secret witness in a desired (arithmetic) relation with the committed information. Our motivating applications are over-the-counter (OTC) markets and dark pools, popular trading mechanisms. In such pools investors wish to communicate only to trading partners whose transaction conditions and asset holdings satisfy some constraints. The investor must establish a secure, authenticated channel with eligible traders where the latter committed information matches a desired relation. At the same time traders should be able to show eligibility while keeping their financial information secret. We construct a WKA scheme for languages of statements proven in the designated-verifier Succinct Zero-Knowledge Non-Interactive Argument of Knowledge Proof System (zk-SNARK). We illustrate the practical feasibility of our construction with some arithmetic circuits of practical interest by using data from US$ denominated corporate securities traded on Bloomberg Tradebook.

Original language	English
Title of host publication	Financial Cryptography and Data Security
Subtitle of host publication	25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II
Editors	Nikita Borisov, Claudia Diaz
Publisher	Springer Science and Business Media Deutschland GmbH
Pages	579-598
Number of pages	20
Volume	2
ISBN (Electronic)	9783662643310
ISBN (Print)	9783662643303
DOIs	https://doi.org/10.1007/978-3-662-64331-0_30
Publication status	Published - 2021
Event	25th International Conference on Financial Cryptography and Data Security, FC 2021 - Virtual, Online Duration: 1 Mar 2021 → 5 Mar 2021

Publication series

Name	Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Publisher	Springer
Volume	12675 LNCS
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Conference

Conference	25th International Conference on Financial Cryptography and Data Security, FC 2021
City	Virtual, Online
Period	1/03/21 → 5/03/21

Bibliographical note

Publisher Copyright:
© 2021, International Financial Cryptography Association.

Funding

This research was conducted during the author?s visit to the University of Waterloo.. Acknowledgements. We thank Ian Goldberg, Ivan Visconti, and the anonymous reviewers for their many insightful comments and suggestions. Chan Nam Ngo and Fabio Massacci were partly supported by the European Commission under the H2020 Programme Grant Agreement No. 830929 (CyberSec4Europe). Florian Kerschbaum was supported by NSERC grants RGPIN-05849, CRDPJ-531191, IRC537591, and the Royal Bank of Canada. Acknowledgements. We thank Ian Goldberg, Ivan Visconti, and the anonymous reviewers for their many insightful comments and suggestions. Chan Nam Ngo and Fabio Massacci were partly supported by the European Commission under the H2020 Programme Grant Agreement No. 830929 (CyberSec4Europe). Florian Kerschbaum was supported by NSERC grants RGPIN-05849, CRDPJ-531191, IRC537591, and the Royal Bank of Canada.

Funders	Funder number
Royal Bank of Canada
Natural Sciences and Engineering Research Council of Canada	IRC537591, RGPIN-05849, CRDPJ-531191
European Commission	830929
Natural Environment Research Council	NE/S008926/1

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 17 Partnerships for the Goals

Keywords

Blockchain-based dark pool
Designated-verifier
Quadratic Arithmetic Program
Witness-key-agreement
zk-SNARK

Access to Document

10.1007/978-3-662-64331-0_30

Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial TradingFinal published version, 1.3 MBLicence: Article 25fa Dutch Copyright Act

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Cite this

Ngo, C. N., Massacci, F., Kerschbaum, F., & Williams, J. (2021). Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading. In N. Borisov, & C. Diaz (Eds.), Financial Cryptography and Data Security: 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II (Vol. 2, pp. 579-598). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 12675 LNCS). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-662-64331-0_30

Ngo, Chan Nam ; Massacci, Fabio ; Kerschbaum, Florian et al. / Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading. Financial Cryptography and Data Security: 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II. editor / Nikita Borisov ; Claudia Diaz. Vol. 2 Springer Science and Business Media Deutschland GmbH, 2021. pp. 579-598 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).

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abstract = "We introduce a new cryptographic scheme, Witness Key Agreement (WKA), that allows a party to securely agree on a secret key with a counter party holding publicly committed information only if the counter party also owns a secret witness in a desired (arithmetic) relation with the committed information. Our motivating applications are over-the-counter (OTC) markets and dark pools, popular trading mechanisms. In such pools investors wish to communicate only to trading partners whose transaction conditions and asset holdings satisfy some constraints. The investor must establish a secure, authenticated channel with eligible traders where the latter committed information matches a desired relation. At the same time traders should be able to show eligibility while keeping their financial information secret. We construct a WKA scheme for languages of statements proven in the designated-verifier Succinct Zero-Knowledge Non-Interactive Argument of Knowledge Proof System (zk-SNARK). We illustrate the practical feasibility of our construction with some arithmetic circuits of practical interest by using data from US\$ denominated corporate securities traded on Bloomberg Tradebook.",

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Ngo, CN, Massacci, F, Kerschbaum, F & Williams, J 2021, Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading. in N Borisov & C Diaz (eds), Financial Cryptography and Data Security: 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II. vol. 2, Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 12675 LNCS, Springer Science and Business Media Deutschland GmbH, pp. 579-598, 25th International Conference on Financial Cryptography and Data Security, FC 2021, Virtual, Online, 1/03/21. https://doi.org/10.1007/978-3-662-64331-0_30

Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading. / Ngo, Chan Nam; Massacci, Fabio; Kerschbaum, Florian et al.
Financial Cryptography and Data Security: 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II. ed. / Nikita Borisov; Claudia Diaz. Vol. 2 Springer Science and Business Media Deutschland GmbH, 2021. p. 579-598 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 12675 LNCS).

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

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AU - Ngo, Chan Nam

AU - Massacci, Fabio

AU - Kerschbaum, Florian

AU - Williams, Julian

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Y1 - 2021

N2 - We introduce a new cryptographic scheme, Witness Key Agreement (WKA), that allows a party to securely agree on a secret key with a counter party holding publicly committed information only if the counter party also owns a secret witness in a desired (arithmetic) relation with the committed information. Our motivating applications are over-the-counter (OTC) markets and dark pools, popular trading mechanisms. In such pools investors wish to communicate only to trading partners whose transaction conditions and asset holdings satisfy some constraints. The investor must establish a secure, authenticated channel with eligible traders where the latter committed information matches a desired relation. At the same time traders should be able to show eligibility while keeping their financial information secret. We construct a WKA scheme for languages of statements proven in the designated-verifier Succinct Zero-Knowledge Non-Interactive Argument of Knowledge Proof System (zk-SNARK). We illustrate the practical feasibility of our construction with some arithmetic circuits of practical interest by using data from US$ denominated corporate securities traded on Bloomberg Tradebook.

AB - We introduce a new cryptographic scheme, Witness Key Agreement (WKA), that allows a party to securely agree on a secret key with a counter party holding publicly committed information only if the counter party also owns a secret witness in a desired (arithmetic) relation with the committed information. Our motivating applications are over-the-counter (OTC) markets and dark pools, popular trading mechanisms. In such pools investors wish to communicate only to trading partners whose transaction conditions and asset holdings satisfy some constraints. The investor must establish a secure, authenticated channel with eligible traders where the latter committed information matches a desired relation. At the same time traders should be able to show eligibility while keeping their financial information secret. We construct a WKA scheme for languages of statements proven in the designated-verifier Succinct Zero-Knowledge Non-Interactive Argument of Knowledge Proof System (zk-SNARK). We illustrate the practical feasibility of our construction with some arithmetic circuits of practical interest by using data from US$ denominated corporate securities traded on Bloomberg Tradebook.

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KW - zk-SNARK

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Ngo CN, Massacci F, Kerschbaum F, Williams J. Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading. In Borisov N, Diaz C, editors, Financial Cryptography and Data Security: 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II. Vol. 2. Springer Science and Business Media Deutschland GmbH. 2021. p. 579-598. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). Epub 2021 Oct 23. doi: 10.1007/978-3-662-64331-0_30

Practical Witness-Key-Agreement for Blockchain-Based Dark Pools Financial Trading

Abstract

Publication series

Conference

Bibliographical note

Funding

UN SDGs

Keywords

Access to Document

Persistent URL (handle)

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