Short Paper: Privacy Preserving Decentralized Netting

Amit Agarwal, Angelo De Caro, Andrew Miller

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

Abstract

This paper proposes a secure decentralized protocol that a consortium of local banks can use to complete a netting process in a privacy-preserving fashion without relying on a single central bank. To do so, it makes use of two key ingredients - zero-knowledge proofs and secure multiparty computation (MPC). We use these two primitives to construct a multi-phase protocol and prove its security in the UC framework. We also study the feasibility of using Linear programming based solution to find optimal solution to the netting problem in gridlock scenarios. To do so, we implemented a proof of concept of our proposed protocol using MP-SPDZ [Kel20] (a framework for prototyping MPC applications) and analyzed the costs involved. Compared to prior work [Cao+20], we manage to achieve 40–50% higher percentage settlement of total transaction.

Original languageEnglish (US)
Title of host publicationFinancial Cryptography and Data Security. FC 2022 International Workshops - CoDecFin, DeFi, Voting, WTSC, Revised Selected Papers
EditorsShin’ichiro Matsuo, Lewis Gudgeon, Daniel Perez Hernandez, Sam Werner, Ariah Klages-Mundt, Thomas Haines, Aleksander Essex, Andrea Bracciali, Massimiliano Sala
PublisherSpringer
Pages280-298
Number of pages19
ISBN (Print)9783031324147
DOIs
StatePublished - 2023
Event26th International Conference on Financial Cryptography and Data Security, FC 2022 - Saint George, Grenada
Duration: May 2 2022May 6 2022

Publication series

NameLecture Notes in Computer Science
Volume13412 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference26th International Conference on Financial Cryptography and Data Security, FC 2022
Country/TerritoryGrenada
CitySaint George
Period5/2/225/6/22

Keywords

  • Privacy-preserving Netting
  • Secure multiparty computation
  • Zero-knowledge proofs

ASJC Scopus subject areas

  • Theoretical Computer Science
  • General Computer Science

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