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Private Liquidity Matching Using MPC

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Topics in Cryptology – CT-RSA 2022 (CT-RSA 2022)

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Abstract

Many central banks, as well as blockchain systems, are looking into distributed versions of interbank payment systems, in particular the netting procedure. When executed in a distributed manner this presents a number of privacy problems. This paper studies a privacy-preserving netting protocol to solve the gridlock resolution problem in such Real Time Gross Settlement systems. Our solution utilizes Multi-party Computation and is implemented in the SCALE MAMBA system, using Shamir secret sharing scheme over three parties in an actively secure manner. Our experiments show that, even for large throughput systems, such a privacy-preserving operation is often feasible.

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Notes

  1. 1.

    The algorithm from [6] removes just one transaction of a source with a negative balance at this point, but it is equivalent to removing one transaction from each source which has a negative balance.

  2. 2.

    https://www.federalreserve.gov/paymentsystems/fedfunds_about.htm.

  3. 3.

    https://www.frbservices.org/resources/financial-services/wires/volume-value-stats/monthly-stats.html.

  4. 4.

    https://www.ecb.europa.eu/pub/targetar/html/ecb.targetar2019.en.html.

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Acknowledgments

We would like to thank Cedric Humbert of the European Central Bank for suggesting we look into this problem, and answering various questions we had along the way. This work has been supported in part by ERC Advanced Grant ERC-2015-AdG-IMPaCT, by the FWO under an Odysseus project GOH9718N, and by CyberSecurity Research Flanders with reference number VR20192203.

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Authors and Affiliations

  1. imec-COSIC, KU Leuven, Leuven, Belgium

    Shahla Atapoor, Nigel P. Smart & Younes Talibi Alaoui

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  1. Shahla Atapoor
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Correspondence to Nigel P. Smart .

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  1. University of Auckland, Auckland, New Zealand

    Steven D. Galbraith

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Atapoor, S., Smart, N.P., Alaoui, Y.T. (2022). Private Liquidity Matching Using MPC. In: Galbraith, S.D. (eds) Topics in Cryptology – CT-RSA 2022. CT-RSA 2022. Lecture Notes in Computer Science(), vol 13161. Springer, Cham. https://doi.org/10.1007/978-3-030-95312-6_5

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