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

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

doi: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; Williams, Julian

Authors

Chan Nam Ngo

Fabio Massacci

Florian Kerschbaum

Professor Julian Williams julian.williams@durham.ac.uk
Head of Department

Contributors

Nikita Borisov
Editor

Claudia Diaz
Editor

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.

Citation

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 (579-598). Springer Verlag. https://doi.org/10.1007/978-3-662-64331-0_30

Acceptance Date	Jan 25, 2021
Online Publication Date	Oct 23, 2021
Publication Date	2021
Deposit Date	Feb 2, 2021
Publicly Available Date	Feb 4, 2021
Publisher	Springer Verlag
Pages	579-598
Series Title	Lecture Notes in Computer Science
Series Number	12675
Book Title	Financial Cryptography and Data Security 25th International Conference, FC 2021, Virtual Event, March 1–5, 2021, Revised Selected Papers, Part II
ISBN	978-3-662-64330-3
DOI	https://doi.org/10.1007/978-3-662-64331-0_30
Public URL	https://durham-repository.worktribe.com/output/1649186