publication . Conference object . Other literature type . Preprint . Article . 2015

Centrally Banked Cryptocurrencies

George Danezis; Sarah Meiklejohn;
Open Access English
  • Published: 26 May 2015
  • Publisher: Internet Society
  • Country: United Kingdom
Abstract
Current cryptocurrencies, starting with Bitcoin, build a decentralized blockchain-based transaction ledger, maintained through proofs-of-work that also generate a monetary supply. Such decentralization has benefits, such as independence from national political control, but also significant limitations in terms of scalability and computational cost. We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over the monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees....
Persistent Identifiers
Subjects
free text keywords: Computer Science - Cryptography and Security, Transparency (graphic), Computer security, computer.software_genre, computer, Computer science, Cryptocurrency, Decentralization, Hash function, Database transaction, Monetary policy, Ledger, Scalability
Funded by
EC| PANORAMIX
Project
PANORAMIX
Privacy and Accountability in Networks via Optimized Randomized Mix-nets
  • Funder: European Commission (EC)
  • Project Code: 653497
  • Funding stream: H2020 | IA
Validated by funder
,
RCUK| Strengthening anonymity in messaging systems
Project
  • Funder: Research Council UK (RCUK)
  • Project Code: EP/M013286/1
  • Funding stream: EPSRC
33 references, page 1 of 3

[1] M. Babaioff, S. Dobzinski, S. Oren, and A. Zohar, “On Bitcoin and red balloons,” SIGecom Exchanges, vol. 10, no. 3, pp. 56-73, 2011.

[2] Bank of England, Private communication, 2015.

[3] --, “One bank research agenda,” 2015, www.bankofengland.co.uk/research/Documents/onebank/discussion.pdf.

[4] E. Ben-Sasson, A. Chiesa, C. Garman, M. Green, I. Miers, E. Tromer, and M. Virza, “Zerocash: Decentralized anonymous payments from bitcoin,” in 2014 IEEE Symposium on Security and Privacy, SP 2014, Berkeley, CA, USA, May 18-21, 2014. IEEE Computer Society, 2014, pp. 459-474.

[5] B. Bernanke, Nov. 2013, qz.com/148399/ben-bernanke-bitcoin-may-hold-long-term-promise/.

[6] J. Bonneau, A. Miller, J. Clark, A. Narayanan, J. A. Kroll, and E. W. Felten, “Research perspectives and challenges for Bitcoin and cryptocurrencies,” in Proceedings of the IEEE Symposium on Security and Privacy, 2015.

[7] G. Danezis, C. Fournet, M. Kohlweiss, and B. Parno, “Pinocchio coin: building zerocoin from a succinct pairing-based proof system,” in PETShop'13, Proceedings of the 2013 ACM Workshop on Language Support for Privacy-Enhancing Technologies, Co-located with CCS 2013, November 4, 2013, Berlin, Germany, M. Franz, A. Holzer, R. Majumdar, B. Parno, and H. Veith, Eds. ACM, 2013, pp. 27-30.

[8] European Central Bank, “Virtual currency schemes - a further analysis,” Feb. 2015, www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemesen.pdf.

[9] I. Eyal and E. G. Sirer, “Majority is not enough: Bitcoin mining is vulnerable,” in Proceedings of Financial Cryptography 2014, 2014. [OpenAIRE]

[10] J. Garay, A. Kiayias, and N. Leonardos, “The Bitcoin backbone protocol: Analysis and applications,” in Proceedings of Eurocrypt 2015, 2015. [OpenAIRE]

[11] A. Gervais, G. O. Karame, S. Capkun, and V. Capkun, “Is Bitcoin a decentralized currency?” IEEE Security & Privacy, vol. 12, pp. 54-60, 2014.

[12] J. Groth and M. Kohlweiss, “One-out-of-many proofs: Or how to leak a secret and spend a coin,” in Advances in Cryptology - EUROCRYPT 2015 - 34th Annual International Conference on the Theory and Applications of Cryptographic Techniques, Sofia, Bulgaria, April 26-30, 2015, Proceedings, Part II, ser. Lecture Notes in Computer Science, E. Oswald and M. Fischlin, Eds., vol. 9057. Springer, 2015, pp. 253-280. [OpenAIRE]

[13] HM Treasury, “Digital currencies: response to the call for information,” Mar. 2015, www.gov.uk/government/uploads/system/uploads/ attachment data/file/414040/digital currencies response to call for information final changes.pdf.

[14] B. Johnson, A. Laszka, J. Grossklags, M. Vasek, and T. Moore, “Game-theoretic analysis of DDoS attacks against Bitcoin mining pools,” in Workshop on Bitcoin Research, 2014. [OpenAIRE]

[15] G. Karame, E. Androulaki, and S. Capkun, “Double-Spending Fast Payments in Bitcoin,” in Proceedings of ACM CCS 2012, 2012.

33 references, page 1 of 3
Abstract
Current cryptocurrencies, starting with Bitcoin, build a decentralized blockchain-based transaction ledger, maintained through proofs-of-work that also generate a monetary supply. Such decentralization has benefits, such as independence from national political control, but also significant limitations in terms of scalability and computational cost. We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over the monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees....
Persistent Identifiers
Subjects
free text keywords: Computer Science - Cryptography and Security, Transparency (graphic), Computer security, computer.software_genre, computer, Computer science, Cryptocurrency, Decentralization, Hash function, Database transaction, Monetary policy, Ledger, Scalability
Funded by
EC| PANORAMIX
Project
PANORAMIX
Privacy and Accountability in Networks via Optimized Randomized Mix-nets
  • Funder: European Commission (EC)
  • Project Code: 653497
  • Funding stream: H2020 | IA
Validated by funder
,
RCUK| Strengthening anonymity in messaging systems
Project
  • Funder: Research Council UK (RCUK)
  • Project Code: EP/M013286/1
  • Funding stream: EPSRC
33 references, page 1 of 3

[1] M. Babaioff, S. Dobzinski, S. Oren, and A. Zohar, “On Bitcoin and red balloons,” SIGecom Exchanges, vol. 10, no. 3, pp. 56-73, 2011.

[2] Bank of England, Private communication, 2015.

[3] --, “One bank research agenda,” 2015, www.bankofengland.co.uk/research/Documents/onebank/discussion.pdf.

[4] E. Ben-Sasson, A. Chiesa, C. Garman, M. Green, I. Miers, E. Tromer, and M. Virza, “Zerocash: Decentralized anonymous payments from bitcoin,” in 2014 IEEE Symposium on Security and Privacy, SP 2014, Berkeley, CA, USA, May 18-21, 2014. IEEE Computer Society, 2014, pp. 459-474.

[5] B. Bernanke, Nov. 2013, qz.com/148399/ben-bernanke-bitcoin-may-hold-long-term-promise/.

[6] J. Bonneau, A. Miller, J. Clark, A. Narayanan, J. A. Kroll, and E. W. Felten, “Research perspectives and challenges for Bitcoin and cryptocurrencies,” in Proceedings of the IEEE Symposium on Security and Privacy, 2015.

[7] G. Danezis, C. Fournet, M. Kohlweiss, and B. Parno, “Pinocchio coin: building zerocoin from a succinct pairing-based proof system,” in PETShop'13, Proceedings of the 2013 ACM Workshop on Language Support for Privacy-Enhancing Technologies, Co-located with CCS 2013, November 4, 2013, Berlin, Germany, M. Franz, A. Holzer, R. Majumdar, B. Parno, and H. Veith, Eds. ACM, 2013, pp. 27-30.

[8] European Central Bank, “Virtual currency schemes - a further analysis,” Feb. 2015, www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemesen.pdf.

[9] I. Eyal and E. G. Sirer, “Majority is not enough: Bitcoin mining is vulnerable,” in Proceedings of Financial Cryptography 2014, 2014. [OpenAIRE]

[10] J. Garay, A. Kiayias, and N. Leonardos, “The Bitcoin backbone protocol: Analysis and applications,” in Proceedings of Eurocrypt 2015, 2015. [OpenAIRE]

[11] A. Gervais, G. O. Karame, S. Capkun, and V. Capkun, “Is Bitcoin a decentralized currency?” IEEE Security & Privacy, vol. 12, pp. 54-60, 2014.

[12] J. Groth and M. Kohlweiss, “One-out-of-many proofs: Or how to leak a secret and spend a coin,” in Advances in Cryptology - EUROCRYPT 2015 - 34th Annual International Conference on the Theory and Applications of Cryptographic Techniques, Sofia, Bulgaria, April 26-30, 2015, Proceedings, Part II, ser. Lecture Notes in Computer Science, E. Oswald and M. Fischlin, Eds., vol. 9057. Springer, 2015, pp. 253-280. [OpenAIRE]

[13] HM Treasury, “Digital currencies: response to the call for information,” Mar. 2015, www.gov.uk/government/uploads/system/uploads/ attachment data/file/414040/digital currencies response to call for information final changes.pdf.

[14] B. Johnson, A. Laszka, J. Grossklags, M. Vasek, and T. Moore, “Game-theoretic analysis of DDoS attacks against Bitcoin mining pools,” in Workshop on Bitcoin Research, 2014. [OpenAIRE]

[15] G. Karame, E. Androulaki, and S. Capkun, “Double-Spending Fast Payments in Bitcoin,” in Proceedings of ACM CCS 2012, 2012.

33 references, page 1 of 3
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