ZeroTrade: Privacy respecting assets trading system based on public ledger

Lei Xu, Lin Chen, Nolan Shah, Zhimin Gao, Yang Lu, Weidong Shi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Motivation. Public ledger is a decentralized book keeping technology and is believed to have the potential to revolutionize many areas. Besides handling crypto-currency, public ledger can be used to tokenize arbitrary assets, and then support trading of these asset tokens in a decentralized manner. With public ledger based token trading system, users do not necessarily convert their assets to currencies, but can exchange assets directly. It also avoids unnecessary transportation as the asset only needs to be physically transferred to its last owner. Furthermore, utilization of the public ledger does not require that users have to trust each other in order to trade tokens safely. However, using decentralized public ledger for trading asset tokens raises serious privacy concerns. Because token ownership information is stored on the public ledger and disclosed to the public, anyone can uncover users trading activities and history. For a token based asset trading platform, all tokens are unique and transactions are usually two-ways or multi-ways. In response to these challenges, we propose ZeroTrade, a privacy respecting heterogeneous assets trading system that leverages various cryptography tools to conceal the exchange trace of asset tokens and takes advantage of public ledger for guaranteeing fairness of asset token exchange. Solution. ZeroTrade involves trusted hubs that are responsible for converting assets to tokens and back, where trusted means that hubs will generate/accept valid tokens, and uses the public ledger to record all token exchange information. When two or more users want to exchange tokens with each other, each user picks an agent for the exchange. Asset tokens are first poured into a pool and users leverage agents to obliviously retrieve tokens from the pool in order to finish the exchange. The oblivious retrieving process cut off the connection between the original user and the agent. Therefore, one cannot determine the relationship between the original users who want to exchange tokens by observing information recorded on the public ledger. To implement the design, ZeroTrade leverages different cryptography tools including zero-knowledge proof and various encryption techniques. Considering various demands in token trade, ZeroTrade also supports operations like partial token trade and revocation. A preliminary evaluation of the performance shows that ZeroTrade only adds limited burden on top of the public ledger. More detailed information can be found in the full version of the paper. Conclusion. ZeroTrade provides a privacy friendly platform for asset trading based on public ledger. For the next step, we plan to implement a fully functional prototype and considering more complex token trading scenarios.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security - FC 2017 International Workshops, WAHC, BITCOIN, VOTING, WTSC, and TA, Revised Selected Papers
EditorsMichael Brenner, Kurt Rohloff, Joseph Bonneau, Andrew Miller, Peter Y.A. Ryan, Vanessa Teague, Andrea Bracciali, Massimiliano Sala, Federico Pintore, Markus Jakobsson
PublisherSpringer-Verlag
Pages633
Number of pages1
ISBN (Print)9783319702773
StatePublished - 2017
Event21st International Workshops on Financial Cryptography and Data Security, FC 2017 held in conjuction with 5th Workshop on Encrypted Computing and Applied Homomorphic Cryptography, WAHC 2017, 4th Workshop on Bitcoin and Blockchain Research, BITCOIN 2017, 2nd Workshop on Advances in Secure Electronic Voting Schemes, VOTING 2017, 1st Workshop on Trusted Smart Contracts, WTSC 2017 and 1st Workshop on Targeted Attacks, TA 2017 - Sliema, Malta
Duration: Apr 7 2017Apr 7 2017

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10323 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference21st International Workshops on Financial Cryptography and Data Security, FC 2017 held in conjuction with 5th Workshop on Encrypted Computing and Applied Homomorphic Cryptography, WAHC 2017, 4th Workshop on Bitcoin and Blockchain Research, BITCOIN 2017, 2nd Workshop on Advances in Secure Electronic Voting Schemes, VOTING 2017, 1st Workshop on Trusted Smart Contracts, WTSC 2017 and 1st Workshop on Targeted Attacks, TA 2017
CountryMalta
CitySliema
Period04/7/1704/7/17

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  • Cite this

    Xu, L., Chen, L., Shah, N., Gao, Z., Lu, Y., & Shi, W. (2017). ZeroTrade: Privacy respecting assets trading system based on public ledger. In M. Brenner, K. Rohloff, J. Bonneau, A. Miller, P. Y. A. Ryan, V. Teague, A. Bracciali, M. Sala, F. Pintore, & M. Jakobsson (Eds.), Financial Cryptography and Data Security - FC 2017 International Workshops, WAHC, BITCOIN, VOTING, WTSC, and TA, Revised Selected Papers (pp. 633). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 10323 LNCS). Springer-Verlag.