A trusted cryptocurrency scheme for secure and verifiable digital transactions

Marco Baldi, Franco Chiaraluce
2017 First Monday  
Decentralized digital currency systems known as cryptocurrencies are a breakthrough in electronic payments: the absence of a central authority can avoid the risk that a not fully reliable government seizes assets or causes hyperinflation, very small transactions can be made without incurring high costs and transactions can be traced, thus providing a tool to counter laundering and tax evasion. Furthermore, decentralization provides robustness against many attacks. Despite these advantages,
more » ... ocurrencies have still not become mainstream solutions, because of scarce users' inclination to adopt them as a privileged payment tool. This is mostly due to the absence of a structured form of control, which also prevents from having some credit insurance. Moreover, some present and future attacks, like quantum computer-based attacks, may threaten their security. In this paper we define new technical solutions to allow cryptocurrencies to become trusted tools for secure and verifiable digital transactions, and also for deposits, while preserving decentralization and users' privacy. Based on a thorough security analysis, a new cryptocurrency model is first defined, exploiting a set of secure and post-quantum cryptographic primitives. Then, a secure supervision and authentication network is designed, which allows to control transactions, while guaranteeing users' privacy. A robust reputation system for this context is also proposed, which helps to increase users' trust and to reduce misconduct.
doi:10.5210/fm.v22i11.6981 fatcat:cqk2yy32pzhc3dzf57gyyw7udq