Provisions: Privacy-preserving proofs of solvency for bitcoin exchanges

Gaby G. Dagher, Benedikt Bünz, Joseph Bonneau, Jeremy Clark, Dan Boneh

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

Abstract

Bitcoin exchanges function like banks, securely holding their customers'bitcoins on their behalf. Several exchanges have suffered catastrophic losses with customers permanently losing their savings. A proof of solvency demonstrates that the exchange controls sufficient reserves to settle each customer's account. We introduce Provisions, a privacy-preserving proof of solvency whereby an exchange does not have to disclose its Bitcoin addresses; total holdings or liabilities; or any information about its customers. We also propose an extension which prevents exchanges from colluding to cover for each other's losses. We have implemented Provisions and it offers practical computation times and proof sizes even for a large Bitcoin exchange with millions of customers.

Original languageEnglish (US)
Title of host publicationCCS 2015 - Proceedings of the 22nd ACM SIGSAC Conference on Computer and Communications Security
PublisherAssociation for Computing Machinery
Pages720-731
Number of pages12
ISBN (Electronic)9781450338325
DOIs
StatePublished - Oct 12 2015
Event22nd ACM SIGSAC Conference on Computer and Communications Security, CCS 2015 - Denver, United States
Duration: Oct 12 2015Oct 16 2015

Publication series

NameProceedings of the ACM Conference on Computer and Communications Security
Volume2015-October
ISSN (Print)1543-7221

Other

Other22nd ACM SIGSAC Conference on Computer and Communications Security, CCS 2015
CountryUnited States
CityDenver
Period10/12/1510/16/15

Keywords

  • Bitcoin
  • Exchange Services
  • Solvency
  • Zero Knowledge Protocols

ASJC Scopus subject areas

  • Software
  • Computer Networks and Communications

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