arXiv subjects

Pawel Szalachowski

Publications and source records attributed to Pawel Szalachowski.

At least 19 recordsLinked to original sources

arXiv2026

AQUAREUM: Non-Equivocating Censorship-Evident Centralized Ledger with EVM-Based Verifiable Execution using Trusted Computing and Blockchain

Distributed ledger systems (i.e., blockchains) have received a lot of attention. They promise to enable mutually untrusted participants to execute transactions while providing the immutability of the data and censorship resistance. Although decentralized ledgers are a disruptive innovation, as of today, they suffer from scalability, privacy, or governance issues. Therefore, they are inapplicable for many important use cases, where interestingly, centralized ledger systems might gain adoption. Unfortunately, centralized ledgers have also drawbacks, e.g., a lack of efficient verifiability or a higher risk of censorship and equivocation. In this paper, we present AQUAREUM, a novel framework for centralized ledgers removing their main limitations. By a unique combination of a trusted execution environment (TEE) with a public blockchain, AQUAREUM provides publicly verifiable non-equivocating censorship-evident private and high-performance ledgers. AQUAREUM is integrated with a Turing-complete virtual machine (e.g., EVM), allowing arbitrary transaction processing logic, such as transfers or client-specified smart contracts. AQUAREUM is fully implemented and can process over 400 transactions per second on a commodity PC. Furthermore, we modeled AQUAREUM using the Universal Composability framework and proved its security.

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arXiv2023

SmartOTPs: An Air-Gapped 2-Factor Authentication for Smart-Contract Wallets (Extended Version)

With the recent rise of cryptocurrencies' popularity, the security and management of crypto-tokens have become critical. We have witnessed many attacks on users and providers, which have resulted in significant financial losses. To remedy these issues, several wallet solutions have been proposed. However, these solutions often lack either essential security features, usability, or do not allow users to customize their spending rules. In this paper, we propose SmartOTPs, a smart-contract wallet framework that gives a flexible, usable, and secure way of managing crypto-tokens in a self-sovereign fashion. The proposed framework consists of four components (i.e., an authenticator, a client, a hardware wallet, and a smart contract), and it provides 2-factor authentication (2FA) performed in two stages of interaction with the blockchain. To the best of our knowledge, our framework is the first one that utilizes one-time passwords (OTPs) in the setting of the public blockchain. In SmartOTPs, the OTPs are aggregated by a Merkle tree and hash chains whereby for each authentication only a short OTP (e.g., 16B-long) is transferred from the authenticator to the client. Such a novel setting enables us to make a fully air-gapped authenticator by utilizing small QR codes or a few mnemonic words, while additionally offering resilience against quantum cryptanalysis. We have made a proof-of-concept based on the Ethereum platform. Our cost analysis shows that the average cost of a transfer operation is comparable to existing 2FA solutions using smart contracts with multi-signatures.

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arXiv2023

BBB-Voting: 1-out-of-k Blockchain-Based Boardroom Voting

Voting is a means to agree on a collective decision based on available choices (e.g., candidates), where participants agree to abide by their outcome. To improve some features of e-voting, decentralized blockchain-based solutions can be employed, where the blockchain represents a public bulletin board that in contrast to a centralized bulletin board provides extremely high availability, censorship resistance, and correct code execution. A blockchain ensures that all entities in the voting system have the same view of the actions made by others due to its immutability and append-only features. The existing remote blockchain-based boardroom voting solution called Open Voting Network (OVN) provides the privacy of votes, universal & End-to-End verifiability, and perfect ballot secrecy; however, it supports only two choices and lacks robustness enabling recovery from stalling participants. We present BBB-Voting, an equivalent blockchain-based approach for decentralized voting such as OVN, but in contrast to it, BBB-Voting supports 1-out-of-$k$ choices and provides robustness that enables recovery from stalling participants. We make a cost-optimized implementation using an Ethereum-based environment respecting Ethereum Enterprise Alliance standards, which we compare with OVN and show that our work decreases the costs for voters by 13.5% in normalized gas consumption. Finally, we show how BBB-Voting can be extended to support the number of participants limited only by the expenses paid by the authority and the computing power to obtain the tally.

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arXiv2022

Maximal Extractable Value (MEV) Protection on a DAG

Many cryptocurrency platforms are vulnerable to Maximal Extractable Value (MEV) attacks, where a malicious consensus leader can inject transactions or change the order of user transactions to maximize its profit. A promising line of research in MEV mitigation is to enhance the Byzantine fault tolerance (BFT) consensus core of blockchains by new functionalities, like hiding transaction contents, such that malicious parties cannot analyze and exploit them until they are ordered. An orthogonal line of research demonstrates excellent performance for BFT protocols designed around Directed Acyclic Graphs (DAG). They provide high throughput by keeping high network utilization, decoupling transactions' dissemination from their metadata ordering, and encoding consensus logic efficiently over a DAG representing a causal ordering of disseminated messages. This paper explains how to combine these two advances. It introduces a DAG-based protocol called Fino, that integrates MEV-resistance features into DAG-based BFT without delaying the steady spreading of transactions by the DAG transport and with zero message overhead. The scheme operates without complex secret share verifiability or recoverability, and avoids costly threshold encryption.

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arXiv2021

Password-authenticated Decentralized Identities

Password-authenticated identities, where users establish username-password pairs with individual servers and use them later on for authentication, is the most widespread user authentication method over the Internet. Although they are simple, user-friendly, and broadly adopted, they offer insecure authentication and position server operators as trusted parties, giving them full control over users' identities. To mitigate these limitations, many identity systems have embraced public-key cryptography and the concept of decentralization. All these systems, however, require users to create and manage public-private keypairs. Unfortunately, users usually do not have the required knowledge and resources to properly handle their cryptographic secrets, which arguably contributed to failures of many end-user-focused public-key infrastructures (PKIs). In fact, as for today, no end-user PKI, able to authenticate users to web servers, has a significant adoption rate. In this paper, we propose Password-authenticated Decentralized Identities (PDIDs), an identity and authentication framework where users can register their self-sovereign username-password pairs and use them as universal credentials. Our system provides global namespace, human-meaningful usernames, and resilience against username collision attacks. A user's identity can be used to authenticate the user to any server without revealing that server anything about the password, such that no offline dictionary attacks are possible against the password. We analyze PDIDs and implement it using existing infrastructures and tools. We report on our implementation and evaluation.

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arXiv2021

Reinshard: An optimally sharded dual-blockchain for concurrency resolution

Decentralized control, low-complexity, flexible and efficient communications are the requirements of an architecture that aims to scale blockchains beyond the current state. Such properties are attainable by reducing ledger size and providing parallel operations in the blockchain. Sharding is one of the approaches that lower the burden of the nodes and enhance performance. However, the current solutions lack the features for resolving concurrency during cross-shard communications. With multiple participants belonging to different shards, handling concurrent operations is essential for optimal sharding. This issue becomes prominent due to the lack of architectural support and requires additional consensus for cross-shard communications. Inspired by hybrid Proof-of-Work/Proof-of-Stake (PoW/PoS), like Ethereum, hybrid consensus and 2-hop blockchain, we propose Reinshard, a new blockchain that inherits the properties of hybrid consensus for optimal sharding. Reinshard uses PoW and PoS chain-pairs with PoS sub-chains for all the valid chain-pairs where the hybrid consensus is attained through Verifiable Delay Function (VDF). Our architecture provides a secure method of arranging nodes in shards and resolves concurrency conflicts using the delay factor of VDF. The applicability of Reinshard is demonstrated through security and experimental evaluations. A practical concurrency problem is considered to show the efficacy of Reinshard in providing optimal sharding.

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arXiv2021

Post-Quantum VRF and its Applications in Future-Proof Blockchain System

A verifiable random function (VRF in short) is a powerful pseudo-random function that provides a non-interactively public verifiable proof for the correctness of its output. Recently, VRFs have found essential applications in blockchain design, such as random beacons and proof-of-stake consensus protocols. To our knowledge, the first generation of blockchain systems used inherently inefficient proof-of-work consensuses, and the research community tried to achieve the same properties by proposing proof-of-stake schemes where resource-intensive proof-of-work is emulated by cryptographic constructions. Unfortunately, those most discussed proof-of-stake consensuses (e.g., Algorand and Ouroborous family) are not future-proof because the building blocks are secure only under the classical hard assumptions; in particular, their designs ignore the advent of quantum computing and its implications. In this paper, we propose a generic compiler to obtain the post-quantum VRF from the simple VRF solution using symmetric-key primitives (e.g., non-interactive zero-knowledge system) with an intrinsic property of quantum-secure. Our novel solution is realized via two efficient zero-knowledge systems ZKBoo and ZKB++, respectively, to validate the compiler correctness. Our proof-of-concept implementation indicates that even today, the overheads introduced by our solution are acceptable in real-world deployments. We also demonstrate potential applications of a quantum-secure VRF, such as quantum-secure decentralized random beacon and lottery-based proof of stake consensus blockchain protocol.

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arXiv2021

A First Look into DeFi Oracles

Recently emerging Decentralized Finance (DeFi) takes the promise of cryptocurrencies a step further, leveraging their decentralized networks to transform traditional financial products into trustless and transparent protocols that run without intermediaries. However, these protocols often require critical external information, like currency or commodity exchange rates, and in this respect they rely on special oracle nodes. In this paper, we present the first study of DeFi oracles deployed in practice. First, we investigate designs of mainstream DeFi platforms that rely on data from oracles. We find that these designs, surprisingly, position oracles as trusted parties with no or low accountability. Then, we present results of large-scale measurements of deployed oracles. We find and report that prices reported by oracles regularly deviate from current exchange rates, oracles are not free from operational issues, and their reports include anomalies. Finally, we compare the oracle designs and propose potential improvements.

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arXiv2021

Accountable Fine-grained Blockchain Rewriting in the Permissionless Setting

Blockchain rewriting with fine-grained access control allows a user to create a transaction associated with a set of attributes, while another user (or modifier) who possesses enough rewriting privileges from a trusted authority satisfying the attribute set can rewrite the transaction. However, it lacks accountability and is not designed for open blockchains that require no trust assumptions. In this work, we introduce accountable fine-grained blockchain rewriting in a permissionless setting. The property of accountability allows the modifier's identity and her rewriting privileges to be held accountable for the modified transactions in case of malicious rewriting (e.g., modify the registered content from good to bad). We first present a generic framework to secure blockchain rewriting in the permissionless setting. Second, we present an instantiation of our approach and show its practicality through evaluation analysis. Last, we demonstrate that our proof-of-concept implementation can be effectively integrated into open blockchains.

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arXiv2021

LaKSA: A Probabilistic Proof-of-Stake Protocol

We present Large-scale Known-committee Stake-based Agreement (LaKSA), a chain-based Proof-of-Stake protocol that is dedicated, but not limited, to cryptocurrencies. LaKSA minimizes interactions between nodes through lightweight committee voting, resulting in a simpler, more robust, and more scalable proposal than competing systems. It also mitigates other drawbacks of previous systems, such as high reward variance and long confirmation times. LaKSA can support large numbers of nodes by design, and provides probabilistic safety guarantees in which a client makes commit decisions by calculating the probability that a transaction is reverted based on its blockchain view. We present a thorough analysis of LaKSA and report on its implementation and evaluation. Furthermore, our new technique of proving safety can be applied more broadly to other Proof-of-Stake protocols.

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arXiv2020

Securing Password Authentication for Web-based Applications

The use of passwords and the need to protect passwords are not going away. The majority of websites that require authentication continue to support password authentication. Even high-security applications such as Internet Banking portals, which deploy 2-factor authentication, rely on password authentication as one of the authentication factors. However phishing attacks continue to plague password-based authentication despite aggressive efforts in detection and takedown as well as comprehensive user awareness and training programs. There is currently no foolproof mechanism even for security-conscious websites to prevent users from being directed to fraudulent websites and having their passwords phished. In this paper, we apply a threat analysis on the web password login process, and uncover a design vulnerability in the HTML field. This vulnerability can be exploited for phishing attacks as the web authentication process is not end-to-end secured from each input password field to the web server. We identify four properties that encapsulate the requirements to stop web-based password phishing, and propose a secure protocol to be used with a new credential field that complies with the four properties. We further analyze the proposed protocol through an abuse-case evaluation, discuss various deployment issues, and also perform a test implementation to understand its data and execution overheads

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arXiv2020

The Security Reference Architecture for Blockchains: Towards a Standardized Model for Studying Vulnerabilities, Threats, and Defenses

Blockchains are distributed systems, in which security is a critical factor for their success. However, despite their increasing popularity and adoption, there is a lack of standardized models that study blockchain-related security threats. To fill this gap, the main focus of our work is to systematize and extend the knowledge about the security and privacy aspects of blockchains and contribute to the standardization of this domain. We propose the security reference architecture (SRA) for blockchains, which adopts a stacked model (similar to the ISO/OSI) describing the nature and hierarchy of various security and privacy aspects. The SRA contains four layers: (1) the network layer, (2) the consensus layer, (3) the replicated state machine layer, and (4) the application layer. At each of these layers, we identify known security threats, their origin, and countermeasures, while we also analyze several cross-layer dependencies. Next, to enable better reasoning about security aspects of blockchains by the practitioners, we propose a blockchain-specific version of the threat-risk assessment standard ISO/IEC 15408 by embedding the stacked model into this standard. Finally, we provide designers of blockchain platforms and applications with a design methodology following the model of SRA and its hierarchy.

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arXiv2020

Exploring HTTPS Security Inconsistencies: A Cross-Regional Perspective

If two or more identical HTTPS clients, located at different geographic locations (regions), make an HTTPS request to the same domain (e.g. example.com), on the same day, will they receive the same HTTPS security guarantees in response? Our results give evidence that this is not always the case. We conduct scans for the top 250,000 most visited domains on the Internet, from clients located at five different regions: Australia, Brazil, India, the UK, and the US. Our scans gather data from both application (URLs and HTTP headers) and transport (servers' selected TLS version, ciphersuite, and certificate) layers. Overall, we find that HTTPS inconsistencies at the application layer are higher than those at the transport layer. We also find that HTTPS security inconsistencies are strongly related to URLs and IPs diversity among regions, and to a lesser extent to the presence of redirections. Further manual inspection shows that there are several reasons behind URLs diversity among regions such as downgrading to the plain-HTTP protocol, using different subdomains, different TLDs, or different home page documents. Furthermore, we find that downgrading to plain-HTTP is related to websites' regional blocking. We also provide attack scenarios that show how an attacker can benefit from HTTPS security inconsistencies, and introduce a new attack scenario which we call the "region confusion" attack. Finally, based on our analysis and observations, we provide discussion, which include some recommendations such as the need for testing tools for domain administrators and users that help to mitigate and detect regional domains' inconsistencies, standardising regional domains format with the same-origin policy (of domains) in mind, standardising secure URL redirections, and avoid redirections whenever possible.

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arXiv2020

Decentralized Lightweight Detection of Eclipse Attacks on Bitcoin Clients

Clients of permissionless blockchain systems, like Bitcoin, rely on an underlying peer-to-peer network to send and receive transactions. It is critical that a client is connected to at least one honest peer, as otherwise the client can be convinced to accept a maliciously forked view of the blockchain. In such an eclipse attack, the client is unable to reliably distinguish the canonical view of the blockchain from the view provided by the attacker. The consequences of this can be catastrophic if the client makes business decisions based on a distorted view of the blockchain transactions. In this paper, we investigate the design space and propose two approaches for Bitcoin clients to detect whether an eclipse attack against them is ongoing. Each approach chooses a different trade-off between average attack detection time and network load. The first scheme is based on the detection of suspicious block timestamps. The second scheme allows blockchain clients to utilize their natural connections to the Internet (i.e., standard web activity) to gossip about their blockchain views with contacted servers and their other clients. Our proposals improve upon previously proposed eclipse attack countermeasures without introducing any dedicated infrastructure or changes to the Bitcoin protocol and network, and we discuss an implementation. We demonstrate the effectiveness of the gossip-based schemes through rigorous analysis using original Internet traffic traces and real-world deployment. The results indicate that our protocol incurs a negligible overhead and detects eclipse attacks rapidly with high probability, and is well-suited for practical deployment.

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arXiv2020

SmartCert: Redesigning Digital Certificates with Smart Contracts

The Transport Layer Security (TLS) protocol and its public-key infrastructure (PKI) are widely used in the Internet to achieve secure communication. Validating domain ownership by trusted certification authorities (CAs) is a critical step in issuing digital certificates, but unfortunately, this process provides a poor security level. In this work, we present SmartCert, a novel approach based on smart contracts to improve digital certificates. A certificate in SmartCert conveys detailed information about its validation state which is constantly changing but only with respect to the specified smart contract code and individual domain policies. CAs issuing and updating certificates are kept accountable and their actions are transparent and monitored by the code. We present the implementation and evaluation of SmartCert, and discuss its deployability.

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arXiv2020

SMACS: Smart Contract Access Control Service

Although blockchain-based smart contracts promise a ``trustless'' way of enforcing agreements even with monetary consequences, they suffer from multiple security issues. Many of these issues could be mitigated via an effective access control system, however, its realization is challenging due to the properties of current blockchain platforms (like lack of privacy, costly on-chain resources, or latency). To address this problem, we propose the SMACS framework, where updatable and sophisticated Access Control Rules (ACRs)} for smart contracts can be realized with low cost. SMACS shifts the burden of expensive ACRs validation and management operations to an off-chain infrastructure, while implementing on-chain only lightweight token-based access control. SMACS is flexible and in addition to simple access control lists can easily implement rules enhancing the runtime security of smart contracts. With dedicated ACRs backed by vulnerability-detection tools, SMACS can protect vulnerable contracts after deployment. We fully implement SMACS and evaluate it.

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arXiv2020

Fail-safe Watchtowers and Short-lived Assertions for Payment Channels

The recent development of payment channels and their extensions (e.g., state channels) provides a promising scalability solution for blockchains which allows untrusting parties to transact off-chain and resolve potential disputes via on-chain smart contracts. To protect participants who have no constant access to the blockchain, a watching service named as watchtower is proposed -- a third-party entity obligated to monitor channel states (on behalf of the participants) and correct them on-chain if necessary. Unfortunately, currently proposed watchtower schemes suffer from multiple security and efficiency drawbacks. In this paper, we explore the design space behind watchtowers. We propose a novel watching service named as fail-safe watchtowers. In contrast to prior proposed watching services, our fail-safe watchtower does not watch on-chain smart contracts constantly. Instead, it only sends a single on-chain message periodically confirming or denying the final states of channels being closed. Our watchtowers can easily handle a large number of channels, are privacy-preserving, and fail-safe tolerating multiple attack vectors. Furthermore, we show that watchtowers (in general) may be an option economically unjustified for multiple payment scenarios and we introduce a simple, yet powerful concept of short-lived assertions which can mitigate misbehaving parties in these scenarios.

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arXiv2019

Towards Forward Secure Internet Traffic

Forward Secrecy (FS) is a security property in key-exchange algorithms which guarantees that a compromise in the secrecy of a long-term private-key does not compromise the secrecy of past session keys. With a growing awareness of long-term mass surveillance programs by governments and others, FS has become widely regarded as a highly desirable property. This is particularly true in the TLS protocol, which is used to secure Internet communication. In this paper, we investigate FS in pre-TLS 1.3 protocols, which do not mandate FS, but still widely used today. We conduct an empirical analysis of over 10 million TLS servers from three different datasets using a novel heuristic approach. Using a modern TLS client handshake algorithms, our results show 5.37% of top domains, 7.51% of random domains, and 26.16% of random IPs do not select FS key-exchange algorithms. Surprisingly, 39.20% of the top domains, 24.40% of the random domains, and 14.46% of the random IPs that do not select FS, do support FS. In light of this analysis, we discuss possible paths toward forward secure Internet traffic. As an improvement of the current state, we propose a new client-side mechanism that we call "Best Effort Forward Secrecy" (BEFS), and an extension of it that we call "Best Effort Forward Secrecy and Authenticated Encryption" (BESAFE), which aims to guide (force) misconfigured servers to FS using a best effort approach. Finally, within our analysis, we introduce a novel adversarial model that we call "discriminatory" adversary, which is applicable to the TLS protocol.

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