(cid:105) (cid:105) “main˙fm” — 2010/6/16 — 16:50 — page ii — #2 (cid:105) (cid:105) HANDBOOK OF FINANCIAL CRYPTOGRAPHY AND SECURITY (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main˙fm” — 2010/6/16 — 16:50 — page iv — #4 (cid:105) (cid:105) CHAPMAN & HALL/CRC CRYPTOGRAPHY AND NETWORK SECURITY Series Editor Douglas R. Stinson Published Titles Jonathan Katz and Yehuda Lindell, Introduction to Modern Cryptography Antoine Joux, Algorithmic Cryptanalysis M. Jason Hinek, Cryptanalysis of RSA and Its Variants Burton Rosenberg, Handbook of Financial Cryptography and Security Forthcoming Titles Maria Isabel Vasco, Spyros Magliveras, and Rainer Steinwandt, Group Theoretic Cryptography Shiu-Kai Chin and Susan Beth Older, Access Control, Security and Trust: A Logical Approach (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main˙fm” — 2010/6/16 — 16:50 — page vi — #6 (cid:105) (cid:105) Chapman & Hall/CRC CRYPTOGRAPHY AND NETWORK SECURITY HANDBOOK OF FINANCIAL CRYPTOGRAPHY AND SECURITY Edited by Burton Rosenberg (cid:105) (cid:105) (cid:105) (cid:105) Chapman & Hall/CRC Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2011 by Taylor and Francis Group, LLC Chapman & Hall/CRC is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4200-5982-3 (Ebook-PDF) This book contains information obtained from authentic and highly regarded sources. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com (cid:105) (cid:105) “main” — 2010/6/29 — 17:06 — page v — #2 (cid:105) (cid:105) About the Editor Burton Rosenberg received a BS in electrical engineering from the Massachusetts Insti- tuteofTechnology,Cambridge,MA,anMSincomputersciencefromColumbiaUniversity, NewYork,andanMAandPhDincomputersciencefromPrincetonUniversity,NewJersey. He has taught at Dartmouth College, Hanover, NH, and is currently an associate professor of computer science at the University of Miami, Coral Gables, FL. He has worked both in academia and industry, including a consultant position at the Mus´ee National d’Art Moderne in Paris. His PhD is also in the field of computational geometry. v (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main” — 2010/6/29 — 17:06 — page vi — #3 (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main” — 2010/6/29 — 17:06 — page vii — #4 (cid:105) (cid:105) List of Contributors Mauro Barni Margaret Jackson DipartimentodiIngegneriadell’Informazione Graduate School of Business Universit`a di Siena RMIT University Siena, Italy Melbourne, Australia Mira Belenkiy Markus Jakobsson Microsoft Research Palo Alto Research Center Redmond, WA Palo Alto, CA Felix Brandt Stefan Katzenbeisser LFE Theoretische Informatik Security Engineering Group Ludwig-Maximillians-Universit¨at Mu¨nchen Technische Universit¨at Darmstadt Munich, Germany Darmstadt, Gemany Lynne Coventry Aggelos Kiayias School of Psychology and Sport Sciences Department of Informatics and Telecom Northumbria University National and Kapodistrian University of Newcastle, UK Athens Athens, Greece George Danezis Microsoft Research Cambridge Sjouke Mauw Cambridge, UK Facult´e des Sciences, de la Technologie et de la Communication Mohammad Torabi Dashti Universit´e du Luxembourg Informationssicherheit/ZISC Luxembourg Eidgeno¨ssische Technische Hochschule Zu¨rich, Switzerland R´obert P´arhonyi Inter Access B.V. Claudia Diaz Hilversum, The Netherlands ESAT/COSIC Katholieke Universiteit Leuven Leuven, Belgium Serdar Pehlivanoglu Division of Mathematical Sciences Carl Ellison Nanyang Technological University New York Singapore vii (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main” — 2010/6/29 — 17:06 — page viii — #5 (cid:105) (cid:105) viii Ahmad-Reza Sadeghi Sid Stamm Department of Electrical Engineering and Mozilla Information Sciences Mountain View, CA Ruhr-University Bochum Bochum, Germany Paul Syverson U.S. Naval Research Laboratory Reihaneh Safavi-Naini Washington, D.C. Department of Computer Science University of Calgary Michael Szydlo Calgary, Canada Akamai Cambridge, MA Nicholas Paul Sheppard Christian Wachsmann Department of Computer Science Chair for System Security University of Calgary Ruhr-University Bochum Calgary, Canada Bochum, Germany Radu Sion Robin Wilton Department of Computer Science Future Identity Ltd. Stony Brook University Westbury, UK Stony Brook, NY Marianne Winslett Sean Smith Department of Computer Science Department of Computer Science University of Illinois Dartmouth College Urbana, IL Hanover, NH Jianying Zhou Chris Soghoian Institute for Infocomm Research School of Informatics and Computing Agency for Science, Technology and Indiana University Bloomington Research Bloomington, IN Singapore (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) (cid:105) “main” — 2010/6/29 — 17:06 — page ix — #6 (cid:105) (cid:105) Contents Preface xix Burton Rosenberg Cryptography, Commerce, and Culture. . . . . . . . . . . . . . . . . . . . . . . . xix Overview of Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xx Required Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi In Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxv References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxv I Protocols and Theory 1 1 E-Cash 3 Mira Belenkiy 1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.1.1 E-Cash Protocols . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.1.2 Security Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.1.3 Building Blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.2 Chaum’s E-Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.2.1 Overview of the Chaum, Fiat, Naor Construction . . . . . . . . . . 10 1.2.2 Blind Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.2.3 CFN E-Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2.4 Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.5 Preventing Alice from Being Framed . . . . . . . . . . . . . . . . . 14 1.2.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.3 Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.3.1 Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.3.2 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1.3.3 Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1.3.4 Exculpability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1.4 Brands’ E-Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 1.4.1 Sigma Protocols and the Discrete Log Representation Problem . . 21 1.4.2 Restrictive Blind Signatures . . . . . . . . . . . . . . . . . . . . . . 23 1.4.3 Detecting Double-Spenders via Secret Sharing . . . . . . . . . . . . 24 1.4.4 Brands’ E-Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 1.4.5 Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 1.4.6 Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 1.5 CHL: Compact E-Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 1.5.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 1.5.2 Zero-Knowledge Proof of Knowledge . . . . . . . . . . . . . . . . . 29 ix (cid:105) (cid:105) (cid:105) (cid:105)