We present the design and implementation of a distributed service for performing sealed bid auctions. This service provides an interface by which clients, or "bidders", can issue secret bids to the service for an advertised auction. Once the bidding period has ended, the auction service opens the bids, determines the winning bid, and provides the winning bidder with a ticket for claiming the item bid upon. Using novel cryptographic techniques, the service is constructed to provide strong protection for both the auction house and correct bidders, despite the malicious behavior of any number of bidders and fewer than one third of the servers comprising the auction service. Specifically, it is guaranteed that: bids of correct bidders are not revealed until after the bidding period has ended; the auction house collects payment for the winning bid; losing bidders forfeit no money; and only the winning bidder can collect the item bid upon. We also discuss techniques to enable anonymous bidding.

The design and implementation of a secure auction service

We present the design and implementation of a distributed service for performing sealed-bid auctions. This service provides an interface by which clients, or "bidders", can issue secret bids to the service for an advertised auction. Once the bidding period has ended, the auction service opens the bids, determines the winning bid, and provides the winning bidder with a ticket for claiming the item bid upon. Using novel cryptographic techniques, the service is constructed to provide strong protection for both the auction house and correct bidders, despite the malicious behavior of any number of bidders and even a constant fraction of the servers comprising the auction service. Specifically, it is guaranteed that (i) bids of correct bidders are not revealed until after the bidding period has ended, (ii) the auction house collects payment for the winning bid, (iii) losing bidders forfeit no money, and (iv) only the winning bidder can collect the item bid upon. We also discuss techniques to enable anonymous bidding. >

Security of distributed systems requires both technical and administrative foundations. Technical foundation is based on cryptographic measures and access control models, and is well understood. Administrative foundation is based on several non-technical layers added on top of technical communication protocols. Several models for secure interconnection of information systems suggest common ethics to be the uppermost layer and base for legal, managerial and operational procedures. Ethics as a foundation of secure interconnection of systems is critically analysed and several problems of ethical layer are identified. Considering this analysis, a new group and social contract layer is suggested on top of ethical layer. The new approach can be enforced within current technology, supports social behaviour of human beings, and is iterative allowing forming of larger secure communities by interconnecting existing secure groups.

/pdf/an-analysis-of-ethics-as-foundation-of-information-security-wpn1auiy7n.pdf

An analysis of ethics as foundation of information security in distributed systems

Cryptology policy deals not only with various technological encryption methods but also with thorny political and administrative problems. It is a challenge to address these in a timely and open manner. The problems arise in law enforcement, civil liberties, and export control policy. They must be confronted if a rational cryptographic policy is to provide a framework in which technological solutions can operate.

/pdf/encryption-policy-for-the-global-information-infrastructure-20i51dzcrm.pdf

Encryption Policy for the Global Information Infrastructure

rganizing the interdependencies within and between communities is one of the ongoing challenges of mankind. Once organizations are formed, companies run their businesses, and a legal system is in place, there is an urgent need for procedures to perform legally binding transactions. This in turn brings up the need for unforgeable documents or tokens of legitimation. Traditional examples are letters and cheques with handwritten signatures or seals, hard-to-counterfeit bills, drivers licences and passports with hardly removable pictures imprinted, etc. The implementations of legitimations change as the technological paradigms change, but the need for legitimations persists. In information societies, many of the traditional implementations are obsolete because they are no longer efficient and often too costly. In addition, information technology often provides better approximations to the ideal properties of legitimations, e.g. unforgeability. Electronic commerce is one if not the pioneering area where the new implementations of legitimations are developed, tested and put into everyday’s practice. Examples are electronic wallets, phone cards, e-cash, e-tickets, etc. While an amount of money can be regarded as a legitimation to consume a corresponding portion of the national gross product, there are also other kinds of legitimations. This work starts by categorizing them and identifying important examples in real life. Namely, we distinguish personal and coin legitimations. The former cannot be transferred between holders and the latter cannot be used more often than a pre-specified limit. Orthogonal to these categories then are privacy requirements. This is where electronic implementations are really superior to traditional implementations: Not only are they more efficient, but they can achieve more privacy for holders of legitimations than the conventional paper based implementations can. Such electronic implementations have been introduced in 1985 by Chaum [60] as credentials. Holders can get a credential from an issuer and later show it to a verifier without letting the issuer and verifiers recognize that they have issued and verified a credential of the same holder (unlinkability). Although several cryptographic mechanisms for credentials have been suggested since, formal definitions have been given only for the special case of electronic cash. We propose a formal modular framework to define the different categories of credentials sketched above (including electronic cash). Furthermore, we suggest the first mechanism for personal credentials that can be shown many times in an unlinkable way. In order to achieve non-transferability, we suggest the use of O

Secure offline legitimation systems

The impact of a secret cryptographic standard on encryption, privacy, law, enforcement and technology

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The impact of a secret cryptographic standard on encryption, privacy, law, enforcement and technology