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Digital Signature in the Blockchain
Jean-Luc Beuchat
Institute of Information Systems,
Techno-Pˆole 3, 3960 Sierre, Switzerland
jean-luc.beuchat@hevs.ch
Outline of the Talk
Background on Blockchain
Digital Signature in Bitcoin
Digital Signature in the Blockchain 1 / 20
Blockchain in Switzerland – A Few Examples
2016 · · · · · ·•
The city of Zug is the first public entity in the world to accept
as payment option
2018 · · · · · ·•
Canton of Schaffhausen officially launches Procivis electronic
ID solution (timestamping on the blockchain)
2018 · · · · · ·•
Blockimmo (real estate tokenization platform) receives FINMA
approval that real estate shares can be purchased via
blockchain
2018 · · · · · ·• CMTA – Blueprint for tokenization
Digital Signature in the Blockchain 2 / 20
Blockchain in Switzerland – A Few Examples
2019 · · · · · ·•
ZHAW and Swisscom announce the first qualified electronic
signature for blockchain
2019 · · · · · ·•
Several Swiss private banks enter blockchain asset
management market (Von Tobel, Falcon, Arab Bank
Switzerland, etc.)
2019 · · · · · ·• Switzerland’s first crypto banks (Sygnum and SEBA) receive
FINMA licences
2019 · · · · · ·• First prototype of the SIX Digital Exchange
Digital Signature in the Blockchain 3 / 20
Outline of the Talk
Background on Blockchain
Digital Signature in Bitcoin
Digital Signature in the Blockchain 4 / 20
Where the Story Begins
1978 · · · · · ·•
Public-key cryptography (R.L. Rivest, A. Shamir, and L.
Adleman)
1982 · · · · · ·•
Byzantine generals problem (L. Lamport, R. Shostak, and M.
Pease)
1982 · · · · · ·• Blind signatures for untraceable payments (D. Chaum)
Digital Signature in the Blockchain 5 / 20
Chaum’s Blind Signature
The message author and the signer are different parties
• e-voting: voter and election authority
• Chaum’s untraceable payment: payer and mint (central authority)
A message is disguised before it is signed
Paper analog: carbon paper lined envelope
Digital Signature in the Blockchain 6 / 20
Where the Story Begins
1997 · · · · · ·• Smart contracts (N. Szabo)
1998 · · · · · ·• b-money (W. Dai)
2002 · · · · · ·• Proof of work (A. Back)
2008 · · · · · ·• (S. Nakamoto)
2013 · · · · · ·• Ethereum (Vitalik Buterin)
Digital Signature in the Blockchain 7 / 20
Background on Blockchain
Distributed database
Growing list of records (called blocks)
Blocks are secured and bound to each other using cryptography
Shared and immutable ledger (i.e. your wealth can’t be tampered with)
Digital Signature in the Blockchain 8 / 20
Background on Blockchain
Permissionless blockchain
• Open and decentralized
• Everyone is allowed to create new blocks
• Truly public and easily verifiable
• Examples: , Ethereum
Permissioned blockchain
• Central authority
• Peers receive read and/or write privileges
• Examples: Hyperledger, Corda
Digital Signature in the Blockchain 9 / 20
Background on Blockchain
Ability to reach consensus despite malicious nodes
Desired properties of a consensus algorithm
• Responsiveness
(drive to consensus at the pace of actual vs. maximum network delay)
• Communication complexity linear in the number of peers
Algorithm Responsiveness Linearity
Proof of work
NEO Delegated Byzantine fault tolerance
Libra HotStuff
Digital Signature in the Blockchain 10 / 20
Outline of the Talk
Background on Blockchain
Digital Signature in Bitcoin
Digital Signature in the Blockchain 11 / 20
Bitcoin Address
Short, alphanumeric string
Used to send and receive digital assets
Derived from a user’s public key
Example: 17khFNgJ4yk55agx9vjZbwTfHMHDHvFn7A
Digital Signature in the Blockchain 12 / 20
Wallet
Stores your private key(s)
Hot wallet
• Connected to the internet
• Risky (zero-day, unpatched OS vulnerability, etc.)
Cold wallet
• USB drive or paper wallet in a safe deposit box
• Offline hardware wallet
Trezor
Ledger Nano S
Hardware Security Module (HSM)
Digital Signature in the Blockchain 13 / 20
Bitcoin Transaction
Interaction between parties
Public entry in the blockchain
Unspent Transaction Output (UTXO)
• Indivisible chunk of
• Locked to a specific owner
• Scattered in the blockchain
• Transaction input: UTXO consumed by a transaction
• Transaction output: UTXO produced by a transaction
Digital Signature in the Blockchain 14 / 20
Transaction Scripts
Script: scripting system for transactions
• Forth-like
• Stacked-based
• Intentionally not Turing-complete, with no loops
scriptPubKey (locking script)
• Encumbrance placed on an output
• Specifies the conditions that must be met to spend the output
• Usually contains a public key
scriptSig (unlocking script)
• Allows an UTXO to be spent
• Usually contains a digital signature
Digital Signature in the Blockchain 15 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey>
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey><PubKey>
<PubKey>
<sig>
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey><PubKey>
<PubKey>
<sig>
<PubKeyHash>
<sig>
<PubKey>
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey><PubKey>
<PubKey>
<sig>
<PubKeyHash>
<sig>
<PubKey><PubKey>
<PubKeyHash>
<PubKeyHash>
<sig>
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey><PubKey>
<PubKey>
<sig>
<PubKeyHash>
<sig>
<PubKey><PubKey>
<PubKeyHash>
<PubKeyHash>
<sig>
<PubKey>
<sig>
Digital Signature in the Blockchain 16 / 20
Transaction Scripts
<PubKeyHash> EQUALVERIFY CHECKSIGDUP
Locking script (scriptPubKey)
HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey>
Unlocking script (scriptSig)
Execution pointer
<sig>
Stack
<sig>
<PubKey><PubKey>
<PubKey>
<sig>
<PubKeyHash>
<sig>
<PubKey><PubKey>
<PubKeyHash>
<PubKeyHash>
<sig>
<PubKey>
<sig>TRUE
Digital Signature in the Blockchain 16 / 20
Pay to Script Hash (P2SH) Transaction
Script hash instead of public key hash in the locking script
The Recipient must provide
• A script matching the script hash
• Data which makes the script evaluate to true
M-of-N multisignature transaction
Locking scriptUnlocking script
<script><C sig><B sig>OP 0 HASH160 <script hash> EQUAL
<A pubkey> <B pubkey> <C pubkey> OP 3OP 2 CHECKMULTSIG
Digital Signature in the Blockchain 17 / 20
Summary
Bitcoin uses digital signatures to prove ownership of UTXOs
Proof that you own the private key without having to reveal it
Keep your private key(s) offline (cold storage)
Digital Signature in the Blockchain 18 / 20
Questions?
Digital Signature in the Blockchain 19 / 20
References
S. Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System. 2008.
https://bitcoin.org/bitcoin.pdf
A.M. Antonopoulos. Mastering Bitcoin. O’Reilly, 2014.
R. Wattenhofer. The Science of the Blockchain. Inverted Forest Publishing, 2016.
K. W¨ust and A. Gervais. Do you need a Blockchain? Cryptology ePrint Archive,
Report 2017/375.
D. Yaga, N. Roby, K. Scarfone. Blockchain Technology Overview. NISTIR 8202,
October 2018.
Digital Signature in the Blockchain 20 / 20

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eGov Workshop - Digital Signature in the Blockchain - Jean-Luc Beuchat

  • 1. Digital Signature in the Blockchain Jean-Luc Beuchat Institute of Information Systems, Techno-Pˆole 3, 3960 Sierre, Switzerland jean-luc.beuchat@hevs.ch
  • 2. Outline of the Talk Background on Blockchain Digital Signature in Bitcoin Digital Signature in the Blockchain 1 / 20
  • 3. Blockchain in Switzerland – A Few Examples 2016 · · · · · ·• The city of Zug is the first public entity in the world to accept as payment option 2018 · · · · · ·• Canton of Schaffhausen officially launches Procivis electronic ID solution (timestamping on the blockchain) 2018 · · · · · ·• Blockimmo (real estate tokenization platform) receives FINMA approval that real estate shares can be purchased via blockchain 2018 · · · · · ·• CMTA – Blueprint for tokenization Digital Signature in the Blockchain 2 / 20
  • 4. Blockchain in Switzerland – A Few Examples 2019 · · · · · ·• ZHAW and Swisscom announce the first qualified electronic signature for blockchain 2019 · · · · · ·• Several Swiss private banks enter blockchain asset management market (Von Tobel, Falcon, Arab Bank Switzerland, etc.) 2019 · · · · · ·• Switzerland’s first crypto banks (Sygnum and SEBA) receive FINMA licences 2019 · · · · · ·• First prototype of the SIX Digital Exchange Digital Signature in the Blockchain 3 / 20
  • 5. Outline of the Talk Background on Blockchain Digital Signature in Bitcoin Digital Signature in the Blockchain 4 / 20
  • 6. Where the Story Begins 1978 · · · · · ·• Public-key cryptography (R.L. Rivest, A. Shamir, and L. Adleman) 1982 · · · · · ·• Byzantine generals problem (L. Lamport, R. Shostak, and M. Pease) 1982 · · · · · ·• Blind signatures for untraceable payments (D. Chaum) Digital Signature in the Blockchain 5 / 20
  • 7. Chaum’s Blind Signature The message author and the signer are different parties • e-voting: voter and election authority • Chaum’s untraceable payment: payer and mint (central authority) A message is disguised before it is signed Paper analog: carbon paper lined envelope Digital Signature in the Blockchain 6 / 20
  • 8. Where the Story Begins 1997 · · · · · ·• Smart contracts (N. Szabo) 1998 · · · · · ·• b-money (W. Dai) 2002 · · · · · ·• Proof of work (A. Back) 2008 · · · · · ·• (S. Nakamoto) 2013 · · · · · ·• Ethereum (Vitalik Buterin) Digital Signature in the Blockchain 7 / 20
  • 9. Background on Blockchain Distributed database Growing list of records (called blocks) Blocks are secured and bound to each other using cryptography Shared and immutable ledger (i.e. your wealth can’t be tampered with) Digital Signature in the Blockchain 8 / 20
  • 10. Background on Blockchain Permissionless blockchain • Open and decentralized • Everyone is allowed to create new blocks • Truly public and easily verifiable • Examples: , Ethereum Permissioned blockchain • Central authority • Peers receive read and/or write privileges • Examples: Hyperledger, Corda Digital Signature in the Blockchain 9 / 20
  • 11. Background on Blockchain Ability to reach consensus despite malicious nodes Desired properties of a consensus algorithm • Responsiveness (drive to consensus at the pace of actual vs. maximum network delay) • Communication complexity linear in the number of peers Algorithm Responsiveness Linearity Proof of work NEO Delegated Byzantine fault tolerance Libra HotStuff Digital Signature in the Blockchain 10 / 20
  • 12. Outline of the Talk Background on Blockchain Digital Signature in Bitcoin Digital Signature in the Blockchain 11 / 20
  • 13. Bitcoin Address Short, alphanumeric string Used to send and receive digital assets Derived from a user’s public key Example: 17khFNgJ4yk55agx9vjZbwTfHMHDHvFn7A Digital Signature in the Blockchain 12 / 20
  • 14. Wallet Stores your private key(s) Hot wallet • Connected to the internet • Risky (zero-day, unpatched OS vulnerability, etc.) Cold wallet • USB drive or paper wallet in a safe deposit box • Offline hardware wallet Trezor Ledger Nano S Hardware Security Module (HSM) Digital Signature in the Blockchain 13 / 20
  • 15. Bitcoin Transaction Interaction between parties Public entry in the blockchain Unspent Transaction Output (UTXO) • Indivisible chunk of • Locked to a specific owner • Scattered in the blockchain • Transaction input: UTXO consumed by a transaction • Transaction output: UTXO produced by a transaction Digital Signature in the Blockchain 14 / 20
  • 16. Transaction Scripts Script: scripting system for transactions • Forth-like • Stacked-based • Intentionally not Turing-complete, with no loops scriptPubKey (locking script) • Encumbrance placed on an output • Specifies the conditions that must be met to spend the output • Usually contains a public key scriptSig (unlocking script) • Allows an UTXO to be spent • Usually contains a digital signature Digital Signature in the Blockchain 15 / 20
  • 17. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160 Digital Signature in the Blockchain 16 / 20
  • 18. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Digital Signature in the Blockchain 16 / 20
  • 19. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack Digital Signature in the Blockchain 16 / 20
  • 20. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey> Digital Signature in the Blockchain 16 / 20
  • 21. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey><PubKey> <PubKey> <sig> Digital Signature in the Blockchain 16 / 20
  • 22. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey><PubKey> <PubKey> <sig> <PubKeyHash> <sig> <PubKey> Digital Signature in the Blockchain 16 / 20
  • 23. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey><PubKey> <PubKey> <sig> <PubKeyHash> <sig> <PubKey><PubKey> <PubKeyHash> <PubKeyHash> <sig> Digital Signature in the Blockchain 16 / 20
  • 24. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey><PubKey> <PubKey> <sig> <PubKeyHash> <sig> <PubKey><PubKey> <PubKeyHash> <PubKeyHash> <sig> <PubKey> <sig> Digital Signature in the Blockchain 16 / 20
  • 25. Transaction Scripts <PubKeyHash> EQUALVERIFY CHECKSIGDUP Locking script (scriptPubKey) HASH160DUP HASH160 <PubKeyHash> EQUALVERIFY CHECKSIG<sig> <PubKey> Unlocking script (scriptSig) Execution pointer <sig> Stack <sig> <PubKey><PubKey> <PubKey> <sig> <PubKeyHash> <sig> <PubKey><PubKey> <PubKeyHash> <PubKeyHash> <sig> <PubKey> <sig>TRUE Digital Signature in the Blockchain 16 / 20
  • 26. Pay to Script Hash (P2SH) Transaction Script hash instead of public key hash in the locking script The Recipient must provide • A script matching the script hash • Data which makes the script evaluate to true M-of-N multisignature transaction Locking scriptUnlocking script <script><C sig><B sig>OP 0 HASH160 <script hash> EQUAL <A pubkey> <B pubkey> <C pubkey> OP 3OP 2 CHECKMULTSIG Digital Signature in the Blockchain 17 / 20
  • 27. Summary Bitcoin uses digital signatures to prove ownership of UTXOs Proof that you own the private key without having to reveal it Keep your private key(s) offline (cold storage) Digital Signature in the Blockchain 18 / 20
  • 28. Questions? Digital Signature in the Blockchain 19 / 20
  • 29. References S. Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System. 2008. https://bitcoin.org/bitcoin.pdf A.M. Antonopoulos. Mastering Bitcoin. O’Reilly, 2014. R. Wattenhofer. The Science of the Blockchain. Inverted Forest Publishing, 2016. K. W¨ust and A. Gervais. Do you need a Blockchain? Cryptology ePrint Archive, Report 2017/375. D. Yaga, N. Roby, K. Scarfone. Blockchain Technology Overview. NISTIR 8202, October 2018. Digital Signature in the Blockchain 20 / 20