Classifications

• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
  • H04L9/50—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols using hash chains, e.g. blockchains or hash trees
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
  • H04L9/08—Key distribution or management, e.g. generation, sharing or updating, of cryptographic keys or passwords
  • H04L9/0816—Key establishment, i.e. cryptographic processes or cryptographic protocols whereby a shared secret becomes available to two or more parties, for subsequent use
  • H04L9/085—Secret sharing or secret splitting, e.g. threshold schemes
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
  • H04L9/32—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols including means for verifying the identity or authority of a user of the system or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials
  • H04L9/3247—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols including means for verifying the identity or authority of a user of the system or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials involving digital signatures
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
  • H04L2209/04—Masking or blinding
  • H04L2209/046—Masking or blinding of operations, operands or results of the operations
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
  • H04L2209/42—Anonymization, e.g. involving pseudonyms
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
  • H04L2209/46—Secure multiparty computation, e.g. millionaire problem
• • H—ELECTRICITY
  • H04—ELECTRIC COMMUNICATION TECHNIQUE
  • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
  • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
  • H04L2209/56—Financial cryptography, e.g. electronic payment or e-cash

Definitions

• a cryptographic protocol is provided that allow at least two parties using at least one ledger to transfer a value from a first ledger account.
• One aspect of the invention allows trading of any crypto currency, smartphone-to- smartphone, without fees.
• three kinds of infrastructure can be used.
• One kind of infrastructure can be a dedicated cryptocurrency, which could have an exemplary name like LQF. This is used like a deposit, earnest money or what can be called a “commitment” fee as backing for each offer or bid. But when the transaction completes, each party's LQF commitment is returned back to them. Absent such commitment fees, spurious cancelation of trades might render the system unattractive for use. But with such commitments, counterparties are incentivized to complete agreed transactions, since otherwise the party that stops moving forward knows it will lose LQF.
• a second type of infrastructure that can be employed uses matcher nodes. Offers and bids are posted by traders to servers; in turn the servers notify traders immediately that have expressed interest in particular types of posts.
• Matchers are independently operated and paid in LQF for their various functions, including by bounties for commitments caught backing more than one offer or bid. For each pair of cryptoassets to be traded, multiple matcher nodes are designated. More heavily traded pairs can share the load across more matchers, but even obscure pairs will have multiple matchers to ensure high reliability across the board.
• the third and final type of infrastructure can be a collection of entities called “refund agents.” These are only contacted rarely, by a party that has funded a transaction upon learning that the counterparty has stopped moving forward. Refund agents earn LQF by allowing legitimate refunds, but cannot themselves gain access to funds.
• the cryptographic protocol that allows the transfer of values involving at least two parties is designed to prevent attacks on it. Attacks could be attempted by third-parties, traders, and/or infrastructure provides. Attacks include the gamut of spoofing, front-running, default, extortion and even outright theft. At each instant during a swap, however, only certain types of attack apply.
• the refund agents are publicly listed, but each has multiple pseudonyms, which are established by special cryptographic mixing. These pseudonyms are used by traders to provide secret keys to refund agents, but only if one party to a trade funds and the other party does not. If a majority of refund agents receiving these secret keys come forward, they first verify that only one party funded. They then use the keys to reconstruct the signature that returns the value to that single funding party. They receive LQF fees for this from the stake of the counterparty. Cooperation of multiple refund agents is needed to transfer and decrypt keys to any individual agent, making it infeasible for traders to cheat by secretly colluding with agents. Those agents who don’t contribute in refunding can be identified when pseudonym sets are later opened, allowing the roster to be updated based on agent performance.
• the matcher nodes each handle one or more "pairs” of asset types.
• Popular such pairs may have many dedicated matchers balancing the load. Some matchers may serve more than one pair, since even the least frequently traded pairs each have multiple matchers.
• the smartphone of a trader interested in a particular pair of digital assets always connects to multiple matchers and cross-checks that they are all reporting the same offers and bids. This transparency also prevents matchers from front-running using information about trades. Matchers are rewarded in part by bounties for catching traders trying to use the same commitment in more than one transaction, whether for the same pair or across pairs.
• the who-goes-first problem (a) was solved decades ago using a series of iterations in a way that works in theory when each participant's potential computing resources are the same.
• the inventive solution also uses multiple iterations, but it hides from both parties which single wildcard iteration completes the transaction. If either party tries to cheat in any other iteration, they lose the commitment fee (b), making the average loss to a cheater a multiple of the commitment fee. As part of transaction completion (c), the commitment fees are returned to the parties.
• Such swaps can be useful for trading, where they obviate the need for exchanges that take custody and/or make settlements, limit exposure to global pricing or liquidity, and extract fees one way or another.
• Payments within a ledger are a basic function of ledgers. Payments between ledgers can be carried out by adapting a swap, making the prospective payee’s account the destination account of one leg of the swap. This can be combined with a shortterm but full-value commitment fee, giving the payment in effect immediate finality.
• the inventive cryptographic protocol also improves some existing cryptographic custody systems by adding pre-authorized transfers to a specific destination — but only if a majority of agents agree.
• the agents can be something like escrow agents, but they cannot divert funds from the pre-arranged destinations. Agents are from an approved list, with suitable screening, reputations, and incentives. Yet the agents can be randomly chosen while kept mutually anonymous to the parties, so that agents and parties cannot corrupt each other.
• a cryptographic protocol between at least two parties uses at least one ledger, the at least one ledger comprised of ledger accounts, with transfers between the ledger accounts performed according to transfer signatures authenticated using public keys associated with the respective ledger accounts.
• the cryptographic protocol is able to allow parties to create public keys corresponding ledger accounts of the at least one ledger, wherein the cryptographic protocol at least cooperating in creating a first public key corresponding to a first ledger account.
• the cryptographic protocol can at least cooperate in creating a plurality of partial transfer signatures related to the ledger account public key of the first ledger account.
• the plural partial transfer signatures are allowed by the cryptographic protocol to be encrypted such that substantially these keys are decryptable using keys at least including those of at least a first collection of refund agents.
• a first quorum rule determines the selections of partial transfer signatures that are sufficient to develop at least a transfer signature for transferring value from the first ledger account corresponding to the first public key to at least a different ledger account on the first ledger.
• the cryptographic protocol can also allow cooperation of the at least two parties to form at least one transfer signature with the first ledger account as the source account of the transfer.
• This cooperation forming the at least one transfer signature can also include the following: the cryptographic protocol allowing previously undisclosed information known to at least one of the at least two parties to the cryptographic protocol to be made known to at least a different party to the cryptographic protocol, the previously undisclosed information unknown initially to the at least a different party to the cryptographic protocol, such that when the previously undisclosed information is known to the at least a different party to the cryptographic protocol, the at least a different party to the cryptographic protocol enabled to form at least one transfer signature having the first ledger account as source account of the corresponding transfer; such that the first destination account of the first transfer signature at least in part selectable by at least one of the at least two parties.
• the cryptographic protocol allowing at least two of the parties to cooperate in creating a public key corresponding to a second ledger account.
• the cryptographic protocol that allows at least two of the parties to cooperate in creating a public key corresponding to a second ledger account can include: the cryptographic protocol at least cooperating in creating a second plurality of partial transfer signatures related to at least a public key of the second ledger account; the second plural partial transfer signatures allowed by the cryptographic protocol to be encrypted such that substantially these keys can be decrypted at least in part by refund agents using keys at least including those of a second collection of refund agents; and such that a second quorum rule determines the selections of the second partial transfer signatures that are sufficient to develop at least a transfer signature for transfer from the second ledger account to at least a ledger account different from the first ledger account and different from the second ledger account, and optionally the additional capability such that the combination of the first quorum rule and the second quorum rule ensuring a predetermined minimum number of refund agents in the intersection of substantially any quorum allowed simultaneously by the first quorum rule and any quorum allowed by the second quorum rule.
• the cryptographic protocol that allows at least two of the parties to cooperate in creating a public key corresponding to a second ledger account can include: the cryptographic protocol allowing at least a first of the at least two parties to provide first previously undisclosed information, related to the first ledger account, to at least a second of the at least two parties; the cryptographic protocol allowing the at least second of the at least two parties to provide second previously undisclosed information, related to the second ledger account, to the at least first of the at least two parties; such that the at least first of the at least two parties substantially prevented from readily and without penalty obtaining the second previously undisclosed information, unless the second of the at least two parties substantially allowed by the at least first of the at least two parties to readily obtain the first previously undisclosed information; such that the combination of the first previously undisclosed information when known to the second of the at least two parties substantially allows the second of the at least two parties to promulgate a transfer signature with a first ledger account as source account; and such that the combination of the second previously und
• the cryptographic protocol that allows at least two of the parties to cooperate in creating a public key corresponding to a second ledger account can include: the cryptographic protocol allowing the designation of at least a third ledger account by cooperation of at least a third party of the at least two parties with at least a second of the two parties; such that the at least third party of the at least two parties differs from at least a first one of the at least two parties and differs from at least a second one of the at least two parties; the cryptographic protocol allowing a transfer from the first ledger account to the third ledger account; and such that the role of the at least a first one of the at least two parties in at least a portion of the cryptographic protocol is substantially handed over from the at least a first one of the at least two parties to the at least third party of the at least two parties.
• the cryptographic protocol cooperation forming the at least one transfer signature can also include the cryptographic protocol being responsive to cryptographic authentication by at least a quorum of parties from a third collection of parties attesting that at least one party conducting the cryptographic protocol has deviated from following the cryptographic protocol, and optionally, the cryptographic protocol and include a third collection of parties in effect predetermined.
• a second cryptographic protocol is also disclosed that is similar to the first one but also includes features relating to undisclosed information to be used as part of the transfer of value. More particularly, the cryptographic protocol is between at least two parties using at least one ledger, the at least one ledger comprised of ledger accounts, with transfers between the ledger accounts performed according to transfer signatures authenticatable using public keys associated with the respective ledger accounts.
• the cryptographic protocol is able to allow parties to create public keys corresponding to ledger accounts of the at least one ledger, including: the cryptographic protocol at least cooperating in creating a first public key corresponding to a first ledger account; the cryptographic protocol at least cooperating in creating a second public key corresponding to a second ledger account; the cryptographic protocol allowing at least a first of at least two parties to provide first previously undisclosed information, related to the first ledger account, to at least a second of the at least two parties; the cryptographic protocol allowing the at least second of the at least two parties to provide second previously undisclosed information, related to the second ledger account, to the at least first of the at least two parties; such that the combination of the first previously undisclosed information when known to the second of the at least two parties substantially allows the second of the at least two parties to promulgate a transfer signature with a first ledger account as source account; and such that the combination of the second previously undisclosed information when known to the at least first of the at least two parties substantially
• the second cryptographic protocol can include the cryptographic protocol allowing the at least two parties to make an exchange of the first previously undisclosed information and the second previously undisclosed information and such that the first party verifiably substantially obtains the second transfer signature information item if and only if the second party substantially obtains the first transfer signature information.
• the second cryptographic protocol that involves the exchange can further include one or both of: the cryptographic protocol allowing at least each of the at least two parties to at least substantially verify that the exchange, if aborted by one of the two parties, leaves each of the at least two parties, at least with substantially similar probability, and at least with substantially similar amounts of computation, to arrive at the respective transfer signature information; and the cryptographic protocol allowing the at least two parties at least to substantially verify in advance that if the exchange were to be aborted by at least one of the at least two parties, at least some evidence would result that the cryptographic protocol was substantially aborted by the at least one aborting party.
• the cryptographic protocol that involves the at least some evidence can include the cryptographic protocol allowing the evidence authenticated by at least one of the at least two parties that has aborted the cryptographic protocol to be developed by at least a different one of the at least two parties to the cryptographic protocol, such that the evidence allowing substantial irrefutability of a penalty to the at least one party aborting the cryptographic protocol.
• the cryptographic protocol involving the penalty can also include the cryptographic protocol providing for multiple rounds; the provisions for at least one round by the cryptographic protocol including allowing each of at least two parties to provide authentication of a committed contribution to the at least one round in advance of the at least one round; the provision for at least one round to allow for coordinated exchange, between the at least two parties, of delay encrypted contributions to that round; such that the contributions to the at least one round should both reveal the first previously undisclosed information to at least one of the at least two parties and reveal the second previously undisclosed information to a different one of the at least two parties; such that the cryptographic protocol substantially hides from the at least two parties which round should both reveal the first previously undisclosed information to at least a one of the two parties and reveal the second previously undisclosed information to a different one of the at least two parties; and such that at least a part of the information to be exchanged during at least one round allowing verification of consistency between at least one committed contribution by a party and the information to be revealed by that party in completing the round
• the invention also includes the method of one of the parties or refund agents involved in the transfer of value using any of the cryptographic protocols described above as part of a successful transfer of value from one party to another, transfer of values between parties, or transfer of a value to a third party, when three parties are involved, or a return of value to a party if the transfer is not completed for some reason, or application of a penalty to a party responsible for an aborted protocol completion and transfer.
• the method of transferring value between accounts using the cryptographic protocol between at least two parties of claim comprises at least one of the at least two parties participating in the cryptographic protocol to transfer the value from the first ledger account.
• the method of transferring value between accounts using the cryptographic protocol between at least two parties can also one of the first collection of refund agents participating in the cryptographic protocol as part of an attempted transfer of the value from the first ledger account.
• the method can further allow the cryptographic protocol in terms of cooperation of the at least two parties to form at least one transfer signature with the first ledger account as the source account of the transfer, the at least two of the parties to cooperate in creating a public key corresponding to a second ledger account, at least cooperating in creating a second plurality of partial transfer signatures related to at least a public key of the second ledger account; the second plural partial transfer signatures allowed by the cryptographic protocol to be encrypted such that substantially these keys can be decrypted at least in part by refund agents using keys at least including those of a second collection of refund agents; and such that a second quorum rule determines the selections of the second partial transfer signatures that are sufficient to develop at least a transfer signature for transfer from the second ledger account to at least a ledger account different from the first ledger account and different from the second ledger account, and wherein at least one of the at least two parties participates in the cryptographic protocol to transfer the value from the second ledger account to at least a ledger account different from the first ledger account
• Another method using the cryptographic protocol allows cooperation of the at least two parties to form at least one transfer signature with the first ledger account as the source account of the transfer, at least two of the parties to cooperate in creating a public key corresponding to a second ledger account; and the designation of at least a third ledger account by cooperation of at least a third party of the at least two parties with at least a second of the two parties; such that the at least third party of the at least two parties differs from at least a first one of the at least two parties and differs from at least a second one of the at least two parties; the cryptographic protocol allowing a transfer from the first ledger account to the third ledger account; such that the role of the at least a first one of the at least two parties in at least a portion of the cryptographic protocol is substantially handed over from the at least a first one of the at least two parties to the at least third party of the at least two parties, and wherein at least one of the at least two parties participating in the cryptographic protocol to transfer the value from the first ledger account to
• Another method of transferring value between accounts using the second cryptographic protocol between at least two parties comprising at least one of the at least two parties participating in the cryptographic protocol to transfer the value between ledger accounts, or at least one of the at least two parties participating in the cryptographic protocol to transfer the value from the first ledger account.
• Figure 1 shows exemplary overall flowcharts of multiparty computations using mixing.
• Figures 2A-J show exemplary overall flowcharts of multiparty computations using mixing.
• Figure 2A is an overall functional multiplication (or division) of values under multiplicative blinding
• Figure 2B is detailed multiplication of values under multiplicative blinding
• Figure 2C is an overall functional addition (or subtraction) of values under additive blinding
• Figure 2D is detailed addition of values under additive blinding
• Figure 2E is an overall functional changing additive blinding to multiplicative blinding
• Figure 2F is detailed changing of additive blinding to multiplicative blinding
• Figure 2G is an overall functional changing multiplicative blinding to additive blinding
• Figure 2H is detailed changing of multiplicative blinding to additive blinding
• Figure 2I is an overall functional greater (or less) than determining selection between two paths
• Figure 2J is an overall functional greater than determining selection between two paths.
• Figure 3 is a detailed example of a particular instance of a multiparty computation is provided for clarity and concreteness.
• Figures 4A-E are detailed examples shown of a setup and optional cut-and-choose for a multiparty computation.
• Figure 4A is the column of pseudonyms of nodes;
• Figure 4B is the optional commitment by the prover to the assignment of the operation of one of multiple sets of operations to one of multiple example sets of pseudonyms;
• Figure 4C is the opening for optional audit of an example set of operations assigned to an example set of pseudonyms;
• Figure 4D is the transfer of instructions from the prover to the pseudonym holders; and
• Figure 4E is example transfers of value between pseudonym holders.
• Figures 5A-B are detailed exemplary embodiments for a double-blinding multiparty computation.
• Figure 5A is an example addition of double-blinded values;
• Figure 5B is an example conversion from additive blinding to multiplicative blinding in a double blinding system.
• Figures 6A-C are exemplary additive to multiplicative operation graphs.
• Figure 6A is the graph already described with reference to Figure 5B but with its inputs and outputs and internal nodes labeled;
• Figure 6B is the full table of the graph of Figure 6B;
• Figure 6C is a compact representation of the operation of Figures 6A and 6B.
• Figure 7 is an exemplary overall combination block diagram and protocol overview.
• Figures 8A-B are exemplary overall flowcharts.
• Figure 8A is the assigning of computation parts to nodes the nodes communicating in conducting the computation while inhibiting other types of access to the nodes conducting the computation.
• Figure 8B includes the options for changing encryption of messages between nodes and the introduction of nodes that hide which nodes perform operations.
• Figure 9 is a flowchart for an exemplary distributed computation system.
• Figure 10 is an exemplary distributed computation system is shown as a combination block diagram and cryptographic protocol schematic.
• Figure 11 is an exemplary distributed atomic swap system shown in combination block diagram and cryptographic protocol schematic.
• Figure 12 is an exemplary flowchart of a distributed atomic swap system.
• Figure 13 is an exemplary computation for a distributed atomic swap system shown in combination block diagram and cryptographic protocol schematic.
• Figure 14 is an exemplary atomic swap cryptographic protocol shown in combination flowchart and protocol schematic.
• Figure 15 is an exemplary recovery cryptographic protocol shown in combination flowchart and protocol schematic.
• Figure 16 is an exemplary verifiable recovery cryptographic protocol shown in combination flowchart and protocol schematic.
• Figure 17 is an exemplary digital outcry cryptographic protocol with refund shown in combination cryptographic schematic and block diagram.
• Figure 18 is an exemplary digital outcry cryptographic protocol shown in combination flowchart and protocol schematic.
• Figure 19 is an exemplary digital outcry cryptographic protocol shown in combination cryptographic schematic and block diagram.
• Figure 20 is an exemplary digital outcry cryptographic protocol shown in combination flowchart and protocol schematic.
• Figures 21 A-B are detailed exemplary embodiments of a what may here be called a “verifiable offline key transfer” and a related distribution is shown in combination cryptographic schematic and block diagram, as well as flowchart.
• the notation of Figure 21A is known in the art and introduced more specifically in various other patents of the present applicant and will be readily understood. All the elements are residue classes either in the group, such as a so-called Diffie-Heliman group, or in the group of the exponent, as will also readily be appreciated.
• Figure 21 shows the distribution, as being typical of flowcharts.
• Figure 22 is a detailed exemplary embodiment of a verifiable offline key transfer and distribution protocol shown in combination flowchart and protocol schematic.
• Figure 23 is a detailed exemplary embodiment of a cryptographic protocol for value swap with verifiable offline key transfer shown in combination cryptographic schematic and block diagram in accordance with aspects of the present invention.
• Figure 24 is an exemplary cryptographic protocol for value swap is shown in combination flowchart and protocol schematic.
• Figure 25 is an exemplary anti-spoofing cryptographic protocol shown in combination flowchart and protocol schematic.
• Figures 26A-B are exemplary detailed cryptographic protocols, flowcharts, block diagrams and blockchain data diagrams for transaction negotiations.
• Figure 26A shows three example parties exchanging messages to negotiate potential transactions and including value that can be considered “staked” related to those transactions;
• Figure 26B shows the same transactions message detail and also including blockchain data state storage for each stake.
• Figure 27 is an exemplary combination detailed flowchart and block diagram for transaction negotiation.
• Figure 28 is an exemplary cross-chain atomic swap cryptographic protocol shown in combination flowchart and protocol schematic.
• Figure 29 is an exemplary staking for swapping cryptographic protocol shown in combination flowchart and protocol schematic.
• Figures 30A-B are exemplary anti-blocking cryptographic protocols shown in combination flowchart and protocol schematic.
• Figure 30A is the impinging on stake of the party missing deadlines for participating in the protocols properly.
• Figure 30B is wallet ID’s the returning of value to a party that funded a holding account when the counterparty did not fund the respective holding account.
• Figures 31 A-C are exemplary detailed cryptographic protocols, flowcharts, block diagrams and blockchain data diagrams for transaction negotiations.
• Figure 31 A is the initial offer.
• Figure 31 B includes the bids by two example parties.
• Figure 31 C shows the corresponding accept by the party making the initial offer of one of the bids.
• Figures 32A-C are exemplary detailed cryptographic protocols, flowcharts, block diagrams and blockchain data diagrams for transaction settlements.
• Figure 32A is the initial offer.
• Figure 32B includes the bids by two example parties.
• Figure 32C shows the corresponding accept by the party making the initial offer of one of the bids.
• Figure 33 is an exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for transaction data stored on chain.
• Figure 34 is exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for random selection of pseudonymous refund agents.
• Figure 35 is an exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for storing and validating and time stamping messages forwarded by matchers.
• Figures 36A-E are exemplary detailed cryptographic protocols, flowcharts, block diagrams and blockchain data diagrams for access tree structures.
• Figure 36A is an “AND” node.
• Figure 36B is an “OR” node.
• Figure 36C is what can here be called here an “oblivious transfer” or ⁇ ” node.
• Figure 36D is what can here be called a “range reduction” or “RR” node.
• Figure 36E is an access tree from root to leaves.
• Figure 37 is an exemplary detailed flowchart, cryptographic protocol, and block diagram for access tree structure traversal.
• Figures 38A-B are exemplary detailed cryptographic protocols, flowcharts, and block diagrams for protocol examples.
• Figure 38A is an oblivious transfer protocol for an OT node.
• Figure 38B is proof of encrypted share protocol.
• Figure 39 is an exemplary detailed flowchart, cryptographic protocol, and block diagrams for overall swap systems.
• Figures 40A-B are exemplary detailed flowchart, cryptographic protocol, and block diagrams for variations and enhancements of the overall swap.
• Figure 40A is includes variants and also optional enhancements for commits and refunds.
• Figure 40B includes an access tree steps and structure.
• Figure 41 is an exemplary detailed cryptographic protocols, flowcharts, and block diagrams for a probability-game release protocol.
• Figure 42 is an exemplary detailed flowchart, cryptographic protocol, and block diagram for overall fair swap.
• Figure 43 is an exemplary detailed flowchart, cryptographic protocol, and block diagrams for overall fair swap.
• Figure 44 is an exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for random selection of pseudonymous refund agents with intermediaries.
• Figures 45A-B are exemplary detailed flowcharts, cryptographic protocols, and block diagrams for provider anonymity with intermediary systems and variations.
• Figure 45A is one example description of insertion of intermediaries between providers and users.
• Figure 45B is a second example description of insertion of intermediaries between providers and users.
• Figures 46A-C are exemplary detailed cryptographic protocols, block diagrams and ledger data diagrams for value swaps and payments.
• Figure 46A is the funding of two respective holding accounts.
• Figure 46B is a swap by releasing control of the respective holding accounts.
• Figure 46C is a swap releasing respective signatures for value transfer or a payment release one of the signatures to a payee.
• 46D is a swap releasing one signature for value transfer and the other to holding account or a payment release one of the signatures to a payee and the other to a holding account.
• Figures 47A-B are exemplary detailed flowcharts, cryptographic protocols, and block diagrams for swap and/or payment.
• Figure 47A is a swap between two parties.
• Figure 47B includes options and swaps between parties as well as for payments to third parties.
• Figure 48 is an exemplary detailed cryptographic protocol, block diagram and ledger data diagrams for value swap and payment
• Figure 49 is an exemplary detailed flowchart, cryptographic protocol, and block diagrams for provider anonymity with intermediary systems and variations.
• Figure 50 is an exemplary detailed combination cryptographic protocol diagram, block diagram, flowchart and blockchain diagram for an immediate value transfer system with translation and variations.
• Figure 51 is an exemplary detailed flowchart, cryptographic protocol, and block diagrams for an immediate value transfer system with translation and variations.
• Figures 52Aand 52B are a combination cryptographic protocol diagrams, block diagrams, and flow charts for a cryptographic pre-defined value exchange protocol.
• Figure 52A shows the overall cryptographic protocols and exemplary formulas.
• Figure 52B is a flowchart for aspects of the operation of Figure 52A.
• Figures 53A-53C are exemplary detailed flowchart, cryptographic protocol, and block diagrams for swap and/or payment.
• Figure 53A is a transfer from one account to another account;
• Figure 53B is transferring from at least a second account to a third account;
• Figure 53C is verifiable fair exchange with pre-arranged and delegated and escrowed transfers.
• Figure 54 is exemplary detailed flowchart, cryptographic protocol, and block diagrams for margin accounts and futures and options.
• Figures 55A-G are combination cryptographic protocol diagrams and notational exemplary elements.
• Figure 55A is ledger account with multiple input and output transfers and curly-bracket notation introduced.
• Figure 55B is a party funded account transferred to a planned account by parties.
• Figure 55C is an account transferred to a planned account by agents.
• Figure 55D shows account openings to a party by parties and by agents.
• Figure 55E shows account openings to everyone by parties and by agents.
• Figure 55F is the transfer to a party both by an agent and by parties.
• Figure 55G is multiple coordinated transfers.
• Figures 56A-D are cryptographic diagrammatic and notational example combinations.
• Figure 56A is a mutual transfer between two parties.
• Figure 56B is an account that can both be added to by one party and that can be refunded by mutual agreement of a second party.
• Figure 56C is one party providing value to a second party, secured by value from the first party that the first party can increase and cooperation of both parties can decrease.
• Figure 56D is one party providing value to a second party, secured by value from the first party that the second party can increase and cooperation of both parties can decrease.
• Figures 57A-C are cryptographic diagrammatic and notational example combinations of exemplary elements.
• Figure 57A is one party handing over its role to a third party while maintaining a second party.
• Figure 57B is a mutual rotation transfer between three parties.
• Figure 57C is a mutual transfer or non-transfer decided at a later time.
• Figure 57D is one party escrowing a second amount for a third party and offering a second party a first amount to transfer a related amount to a third party that will unlock the escrow.
• Figures 58A-G are combination cryptographic protocol diagrams and notational exemplary elements.
• Figure 58A is a generic transfer from a ledger account to the benefit of a party.
• Figure 58B is transfer between two joint accounts.
• Figure 58C is transfer of value from a joint account to account of a party.
• Figure 58D is transfer of control from a joint account to a party.
• Figure 58E is transfer by agents from a joint account to the benefit of a party.
• Figure 58F is an example of multiple transfers in and out.
• Figure 58G is shows overlap between agent quora.
• Figure 58H is a notation for describing transfers between accounts.
• Figure 58I is an exemplary two-ledger coordinated.
• Figures 59A-C are cryptographic diagrammatic and notational example combinations of exemplary elements.
• Figure 59A is an exemplary arrangement related to a basic swap.
• Figure 59B is an exemplary arrangement related to a handover between parties.
• Figure 59C is an account that can at least be increased from time to time by one party.
• Figure 59D is an exemplary collateralized loan or repo.
• Figures 60A-D are cryptographic diagrammatic and notational example combinations of exemplary elements.
• Figures 61A-C are combination flow-chart and block diagrams for exemplary refund agent and transfer signature aspects of the cryptographic protocols.
• Figure 61 A is a flowchart for allowing the creation and provision of partial keys.
• Figure 61 B shows allowing the creation of a transfer signature.
• Figure 64C is a flowchart for allowing transfer of previously undisclosed information.
• Figures 62A-E are combination flow-chart and block diagrams for exemplary aspects of forming of signatures, accounts, partial keys and quora of the cryptographic protocols.
• Figure 62A is a flowchart for allowing the selection of transfer signatures.
• Figure 62B shows allowing the uncontrolled creation of a destination account.
• Figure 62C is a flowchart for allowing the creation of a second ledger account.
• Figure 62 D is a flowchart for allowing the creation and provision of a second set of partial keys.
• Figure 62E shows a flowchart for allowing overlap in refund agent quora.
• Figure 63 is a combination flow-chart and block diagram for an exemplary exchange cryptographic protocol.
• Figures 64A-C are combination flow-chart and block diagrams for exemplary aspects of forming of handover and attesting in accordance with aspects of the present invention will be described.
• Figure 64A is a flowchart for allowing handover of accounts.
• Figure 64B shows a flowchart for allowing use of attesting by other parties.
• Figure 67C is a flowchart for allowing attesting parties to be pre-determined.
• Figure 65 is a combination flow-chart and block diagram for an exemplary variation on an exchange cryptographic protocol.
• Figures 66A-D are combination flow-chart and block diagrams for exemplary aspects of fair exchange by and evidence of abort of the cryptographic protocols.
• Figure 66A is a flowchart for allowing verifiable exchange.
• Figure 66B shows allowing verification that abort will result in fairness.
• Figure 66C shows allowing verification that abort will result in evidence.
• Figure 66 D shows a flowchart for allowing the development of evidence and penalty for abort.
• Figure 67 is a combination flow-chart and block diagram for an exemplary alternate variation on an exchange cryptographic protocol.
• a first box shows that a set of hardware devices each establish, or have established for them, a digital pseudonym.
• hardware devices may also be referred to here as “nodes” and/or “parties'’ and/or “owners” of digital pseudonyms)
• this can be by each hardware device developing at least one private key and then inputting corresponding public keys to an initial round of mixing, the output of the initial round of mixing defining the pseudonyms of the respective hardware devices.
• a “public key digital pseudonyms” or just “digital pseudonym” or, even just “pseudonym” for short, of a hardware device is any naming of the device that keeps its identity hidden among a set of such devices.
• Other examples include multiparty protocols that result in public keys unlinkable to particular participants and/or physical shuffling of objects with hidden indicia in a ceremony, as are known.
• the identity of the devices is indicated by or associated with a so-called “public key” or the like, the device can, and is often believed uniquely capable of in the cryptographic art, decrypt messages encrypted with the public key and also form digital signatures verifiable with that public key.
• the what may here be called “establishing” of digital pseudonyms by a set of hardware devices can also be accomplished using mixing, as mentioned elsewhere here, and now further described generally.
• a dedicated mix can accept an input batch entry from each hardware device and each output batch item can then be the digital pseudonym of the unlinkable entity that created the corresponding input batch entry.
• the “mixing” “hides” the correspondence between the “input batch” entries, which may be linked to the respective hardware device that sent them, and the pseudonyms of the “output batch,” which should remain “unlinkable” to the respective hardware devices.
• Pseudonyms can be established in various other ways, such as from other pseudonyms, physical ceremonies, other multiparty protocols, etc.
• a central party can use a blind signature protocol to validate pseudonyms that can later be used by those who blind, submit, and then unblind them, as will be understood.
• a second box shows an orchestrator, for example, of the computation making known operations per pseudonym.
• an “instruction” and/or an “operation” and/or “processing step” may here be said to be “performed” and/or “carried out” and/or “executed,” as will be understood by those of skill in the computer arts.
• operations can for clarity as just some examples for instance include: decrypting encrypted inputs to the computation, signing outputs of the computation, multiplying values within the computation, adding values within the computation, making decisions between sets of operations based on values within the computation, blinding values used in other instructions, unblinding values used in other instructions, saving encrypted values for later computation instances and/or recovering encrypted values saved by earlier or parallel instances.
• Operations can, in some examples for instance, also include indication of input source and/or output recipient pseudonyms and/or positions.
• Some operations may include what may here be called “trigger” conditions, such as when having received sufficient inputs from other nodes and/or orchestrators and/or published values, or possibly other sources, as will be understood.
• a third box shows the what may here be called “assigning" of the operations as to the respective pseudonyms.
• the ordering of the list of operations can be assigned in order: first pseudonym to first operation, second pseudonym to second operation, and so forth.
• a random draw or the like can be used in, or influence, the assignment of or “mapping” of operations to pseudonyms.
• the hardware devices can scan the operations for any that correspond to them, thereby learning the respective instructions while remaining unlinkable.
• confidential values that are mainly non-public and/or secret and/or otherwise not generally known, can be input to and/or included in computations, as will be appreciated, in some examples at least.
• Such values can be encrypted, by those holding them, using the public key pseudonyms of the nodes, as mentioned.
• This can be, for instance, be a complete value per node and/or what may here be called a “multisig,” the confidential value is divided into more than one part and then reconstituted later by combining the parts, as is known in the cryptographic art, such as by X- OR as proposed Feistel and/or as secret sharing and/or by blinding some values and including the blinding values as other values, and/or various combinations or the like.
• a fourth box shows, the hardware devices, using the respective digital pseudonyms and corresponding to the respective operations, receiving inputs under the digital pseudonyms and providing outputs responsive to the respective inputs.
• a node When a node receives sufficient input values, according to the instruction it is processing, it can compute the corresponding output and supply it as the instruction directs.
• an instruction may direct supply of the result to a particular pseudonym position in the particular pseudonym ordering as already mentioned; the information can be encrypted using the public key of the recipient pseudonym and ideally sent by mutually untraceable means, such as is believed provide by mixing, to a published output batch that is unlinkably scanned by the recipient, as mentioned. Examples of such operations will be described with reference to Figure 2 and Figure 3.
• Figure 2A is an overall functional multiplication (or division) of values under multiplicative blinding
• Figure 2B is detailed multiplication of values under multiplicative blinding
• Figure 2C is an overall functional addition (or subtraction) of values under additive blinding
• Figure 2D is detailed addition of values under additive blinding
• Figure 2E is an overall functional changing additive blinding to multiplicative blinding
• Figure 2F is detailed changing of additive blinding to multiplicative blinding
• Figure 2G is an overall functional changing multiplicative blinding to additive blinding
• Figure 2H is detailed changing of multiplicative blinding to additive blinding
• Figure 2I is an overall functional greater (or less) than determining selection between two paths
• Figure 2J is an overall functional greater than determining selection between two paths.
• Values can be represented by various known techniques. For example, residue classes modulo a large prime are believed to allow addition and multiplication as well as multiplicative and additive blinding. As another example, as is known in the signal-processing art additive and multiplicative blinding can be by statistical means. Other representations may take advantage of the hidden code paths for re-normalization of values. Referring now to Figure 2A, two inputs are shown x and y, each is separately blinded by respective factors r and s. The output is the product xy but still with the blinding factors r and s, so it is shown as xyrs.
• the two inputs are shown being additively blinded at the first diagram horizontal level by r and s, respectively.
• the blinding parameters in this case addends, are shown being known to the nodes represented as hexagons and also being supplied to later stages for unblinding, as indicated by downward arrows.
• the additive blinded x shown as the input, x+r is transformed into multiplicative blinded out, xt, so as to then be suitable for multiplication (division) already described or comparison to be described with reference to Figure 21 and 2J.
• the first expression is the input x+r, as already mentioned. Then, in this example, the multiplicative blinding factor t, shown using square bracket “Q” notation, is multiplied in. This then results in two terms, one of which is divided out. The final result is xt.
• the first expression is the input xr, as already mentioned. Then, in this example, the blinding factor tr, shown using square bracket “Q" notation, is multiplied in. This then results in two terms, xr and tr, and the common r is then shown divided out, such as by multiplying by the additive inverse of r. The final result is x+t.
• the flow of control in the execution of the computation can take one of the two paths in some examples; in other examples, for instance and without limitation, both paths can be followed but one can be marked by values so as not to deliver an output.
• which code path is taken can be revealed and the code path not taken it is believed need not be executed in those instances.
• it may be desirable that which code path is taken is not revealed but which code path is what may here be referred to as "hidden.”
• hidden code path the same number of operations and/or types of operations can be arranged to be performed for the one or more alternate paths, such as in the known example of so-called “constant time” implementation of cryptographic primitives. If only one path produces an output, and the operations are the same, which path was followed it is believed can be hidden by, for example, re-convergence of the control paths into one or more shared output nodes.
• a node performing an operation associated with a particular outcome of a test may not know the outcome of the test because the particular what may here be called “position” of the operation being performed by that node within the particular arrangement of operations making up the instance of the computation is what may here be called "obscured,” It is believed that some of the optional aspects to be disclosed with reference to Figure 4 can facilitate obscuring positions from nodes.
• an obscured code portion when blinding is not perfect, different positions may be exposed to differently imperfect blinding of values, so even though a node may be able to see the particular blinded value, it does not in effect know which blinding imperfection it is seeing.
• obscured code also not shown for clarity, but as will be readily understood, two sequences of operations in different legs after a condition can differ in the choice of permutation of values and operations.
• either additive or multiplicative blinding can be applied to characters or bits separately of at least two elements; then the elements are permuted in ways that differ per leg; then the elements are unblinded in a way that takes the permutation into account so that the same value is used to unblind as was used to blind. It is believed that in this way a permutation of a character string, vector or other array of values can be affected with believed perfect blinding. (Permutation without changing blinding may it is believed allow the same value to be seen by multiple nodes and leak information about the permutation used.)
• Three input variable, x, y, z, are supplied, the first by party A and the second and third by party B, as can be seen.
• Such inputs can be provided by multisig, as already mentioned but not shown here for clarity (although stored value w is shown provided by multisig).
• the input x is then what may here be called and will be understood as “blinded additively” by r; the value y is shown blinded additively by s, (In some examples the proven can, for instance, provide r and r+y separately, such as when a cut and choose establishes that the r is used consistently, as will be understood.)
• B provides input to the computation z, which is then what may here be called “blinded multiplicatively” as will be understood, by being multiplied, such as in a modular arithmetic system by u.
• the next layer down in the illustrative example for clarity includes an addition and a multiplication, as will be seen.
• the addition of the two additively blinded values x+r and y+s already mentioned includes the blinding addends, which are then removed by subtraction but intermingled with the multiplicative blinding for the next step.
• the nodes with the blinding addends/factors are shown as hexagons and deliver their secrets (which they can generate themselves) to the respective other nodes as shown by the lines with arrows.
• First s is removed by subtraction, then t is included multiplicatively, then rt is removed by subtraction, leaving xt +yt as a first input to the multiply.
• the second input to the multiply, the other multiplicand, is zu, the u multiplicative blinding of the input z.
• the resulting product, xztu+yztu is first unblinded by dividing u out, yielding xzt+yzt.
• t is replaced by v, through blinding by the quotient of v over t, yielding xzv+yzv.
• wv which is formed from the previously saved output of an earlier instance of the process: wq and the multiplicative inverse of q, by first blinding with v and then unblinding with q.
• the node performing the test may be able to determine the quotient of the two comparands, but for clarity in the example this imperfection is tolerated.
• the number of steps can be kept the same but certain operations can be marked as dummy so that the timing and/or number of steps is not revealed, as will be understood.
• Figure 4A is the column of pseudonyms of nodes;
• Figure 4B is the optional commitment by the prover to the assignment of the operation of one of multiple sets of operations to one of multiple example sets of pseudonyms;
• Figure 4C is the opening for optional audit of an example set of operations assigned to an example set of pseudonyms;
• Figure 4D is the transfer of instructions from the prover to the pseudonym holders; and
• Figure 4E is example transfers of value between pseudonym holders.
• some portions of the instructions may be considered confidential and yet some properties may be desired to be established about them.
• One approach in an aspect of the present invention, is to commit to various versions of the instructions, allow a random audit of portions of the committed values in order to establish some confidence of the properties desired, and then to what may here be called “open” or decrypt the commitments in such a way that the corresponding pseudonym holders receive them.
• the column of dashed-line boxes represents a set of pseudonym holders.
• Some examples cut and choose structures can use a single set of pseudonyms with multiple sets of operations; however, it is believed then that only a single set of nodes or what may also be here called “pseudonym holders” will perform the operations. In other examples, there can be more than one set of pseudonym holders and more than one set of operations.
• the orchestrator (comprised of one or more parties) may be at least inhibited from if not ideally prevented from manipulating the assignment of which operations are to be performed by which nodes.
• a list of operations can be published or committed in advance of, for instance, mixing those results in the pseudonyms. Then the permutation induced by the mixing, which is presumably random and hard to manipulate, makes it difficult for the orchestrator to influence the assignment.
• the assignment can be made to the pseudonyms in an at least partly manipulatable order, such as lexicographic order, and then a permutation is ideally determined in a way that is at least difficult for the orchestrator to manipulate.
• a public random draw or the like can be used to make the mapping.
• the mapping can it is believed also ideally be hidden from public view but committed by the orchestrator, such as permuted or influenced by an earlier committed value (not shown for clarity) by the orchestrator, so as to be still un-manipulatable by the orchestrator but also unknown even when the random draw is public.
• the examples shown in this Figure 4A through 4D include such a permutation formed by and committed to by the orchestrator that is later revealed at least to the respective nodes.
• Optional steps 4B and 4C are believed to disclose how the optional cut-and-choose of proposed instructions can be achieved.
• a column of pseudonyms as described with reference to Figure 4A is again present, on the left; however, on the right a set of commitments to operations by a prover are shown. These latter are made up of an outer layer of encryption for the commitment, as will be understood, that contains the operation (shown using adapted flowchart notation) with the specific pseudonym slot (either, as mentioned, for instance, lexicographic or output batch order) that is to perform the operation if the set of operations is not opened in audit. Arrows redundantly for clarity indicate the particular pseudonym holders that will correspond to the respective operations.
• FIG. 4C an example column opened in audit is depicted.
• the outer encryption being removed reveals both which pseudonyms each operation was to transfer to, such as because it has been encrypted with the of corresponding pseudonym public key.
• the value transferred is also revealed so that it can be checked for consistency with the otherwise public or published or agreed computation. If the check fails, it is believed that the particular prover would be discredited, as mentioned, and the overall computation process instance terminated.
• Figure 5A-B a detailed exemplary embodiment for a double-blinding multiparty computation in accordance with aspects of the teachings of the invention.
• Figure 5A is an example addition of double-blinded values
• Figure 5B is an example conversion from additive blinding to multiplicative blinding in a double blinding system.
• Single blinding may be referred to here as “single level” blinding. It will be appreciated that double-blinding can, it is believed, protect against collusion of any two nodes. It may be referred to here as “double level” blinding. Blinding of more than one level, here refers to double level, triple level, and so forth.
• two inputs x+a+b and y+d+c are shown and they are to be added; each is double blinded, x by a+b and y by d+c.
• a and c is removed from each and one blinding summand, u and t, is added to each; in the second level, again one blinding summand, b and d, is removed from each and one blinding summand, rand s, is added to each.
• the resulting sum has four blinding summands.
• the upper layer removes the u from the left side and the t from the right side; the lower layer removes the r from the left and s from the right. So what is left is the sum, x+y, double-blinded: on the left, x+y+s+t, and on the right x+y+r+u.
• nodes such as a pair of nodes
• nodes can be what may here be called “isolated” from each other by the inclusion of intermediary nodes, and intermediary blinding that is later removed, that ensures that the two nodes of the pair have no value in common that they could use to reach out to each other.
• FIG. 5B an example conversion between additive and multiplicative blinding is shown.
• the direction shown starts with the double additively blinded value x+v+w and converts it to the double multiplicatively blinded value xab.
• the opposite direction, from multiplicative to additive is readily understood by those of skill in the art, as can be interpreted as isomorphic or simply swapping notation for additive and multiplicative.
• a multiplicative factor is combined into the input, x+v+w, with the result being shown as xa+wa+va.
• the next level removes the va term.
• a factor of b is introduced, yielding xab+wab.
• the last term is removed, such as by adding its additive inverse, and the final multiplicatively double-blinded result is obtained, xab.
• Figure 6A-C an exemplary additive to multiplicative operation graph is further detailed for clarity, as will be appreciated, in accordance with aspects of the teachings of the invention.
• Figure 6A is the graph already described with reference to Figure 5B but with its inputs and outputs and internal nodes labeled;
• Figure 6B is the full table of the graph of Figure 6B;
• Figure 6C is a compact representation of the operation of Figures 6A and 6B.
• the input can be seen labeled by the “A” within a circle, also called here circle “A” for short.
• the first operation a multiplication, takes this input and combines it with the input from hexagon labeled circle “5,” and so forth, to the output shown labeled as circle “B.”
• Column 1 shows the elementary operation type.
• the first row for instance, is a multiply with a single output, as will be understood.
• the second column shows for this elementary operation the ID of the circle notation that performs it, as circle “1
• Two inputs are shown, one is circle “A” and the other is from the hexagon labeled circle “5.”
• the fourth row corresponds to label circle “4” and forms the sum of three additive inverses. It has an additional input that is not subtracted. Its output is the output of the operation, labeled circle “B.”
• FIG. 7 an exemplary overall combination block diagram and protocol overview is shown in accordance with aspects of the teachings of the invention.
• a plurality of input providers, shown as persons, and plural output recipients, shown as persons, are also depicted.
• Memory subsystems providing data and receiving data for storage are shown.
• the operations are shown in two groups, those that are additive and those that translate in from additive and back out.
• the inputs are shown as two people separated by an ellipsis, to signify that one or more persons or other entities can provide inputs.
• Each person is shown providing multiple inputs, one to each of multiple trapezoids.
• the inputs can be protected by being spread across nodes much as internal computation values.
• the outputs are shown being provided to people or entities, and in parts that the recipient can combine, yielding similar advantages, as will be understood.
• a way to provide such protection is through encryption, such as using keys known to the counterparties.
• One example type of encryption includes exponentiation and this is why the exponentiation operations are shown between the inputs and outputs and the main computation.
• a person may send in three values, each raised to a secret power, and when the values are successively raised to the multiplicative inverse of that power and multiplied together, the plaintext input may result; however, it was protected on the way in and is divided across multiple nodes.
• Storage of data, whether reading or writing, is shown similarly on the left and right sides of the diagram, respectively, with a drum icon symbolizing storage media, as will be appreciated.
• the data can also be multiply exponentiated for storage and then reconstructed, as with inputs, by combining and decryption, as indicated by the multiple arrows and the exponentiation operation.
• the octagon on the left has, for example, multiplicative operations shown, such as multiplication and division.
• multiplicative operations such as multiplication and division.
• the comparison is shown with a circle to indicate that it is believed a more expensive test in this setting than, for instance, equality.
• the outputs of this octagon can be used as inputs of other such octagons, as will be understood.
• Figure SAB presented is a detailed description of an exemplary overall flowchart in accordance with aspects of the teachings of the present invention.
• Figure 8A is the assigning of computation parts to nodes the nodes communicating in conducting the computation while inhibiting other types of access to the nodes conducting the computation.
• Figure SB includes the options for changing encryption of messages between nodes and the introduction of nodes that hide which nodes perform operations.
• What can here be called “define graph of operations (including an inherent labelling)” is any way for a set of computational elements (in whatever non-limiting combination of arithmetic, symbolic, cryptographic, decision, control flow or other known aspects of computations) to be interconnected so as to form a definition or effective procedure for a desired computation and/or process, with whatever ongoing data storage, inputs, and outputs. Also, as will be understood, when encoding such a graph one or more orderings are typically in effect assigned to the nodes and edges, such as for instance by whatever algorithm for walking the graph.
• nodes each (good if untraceably) post public key(s) is any way for nodes to make public keys (for which they know all or part of the private keys) available at least to the other nodes. For instance, more than one node and/or other entity may be needed to decrypt a message sent encrypted with a private key, and/or more than one node and/or other entity may be needed to form a signature with a private key.
• mapping good if unpredictable between operations and public keys
• nodes performing the operation(s) mapped to them is any way for the nodes, whether separately and/or jointly, to compute the operations of the graph that have been mapped to them.
• nodes use public keys, at least of other nodes, to send messages for performing the operations is any way for the nodes to communicate information, such as using encryption with public and/or symmetric and/or other keys, at least facilitating the completion of their own operations and/or the operations of one or more other portions of the graph and/or assigned to other nodes.
• nodes use public keys, at least including their own, to receive messages for performing the operations” is any way for the nodes to communicate information, such as using decryption with public and/or symmetric and/or other keys, at least facilitating the completion of their own operations and/or the operations of one or more other portions of the graph and/or assigned to other nodes.
• the resulting property can here be called “the computation of the graph is performed without the particular nodes performing the particular functions being readily reachable by other than by the corresponding nodes of the graph,’’ which is any way to inhibit and/or impede and/or make detectable and/or make uncertain efforts by entities to try to and/or to reach out to and/or communicate with specific nodes of the graph.
• additional keys being included by nodes performing the mixing of messages sent to the nodes is any way for one or more communication channels that can be used to reach nodes to include the incorporation of additional and/or extra encryption or public-key operations or the like.
• One exemplary advantage and/or aspect can be to create extra difficulty in reaching nodes performing certain functions, as the communication would have to pass through the particular channel in order to recover and/or reconstruct and/or arrive at the form of the message that is properly encrypted and/or decryptable by the recipient.
• mapping being known to the nodes on a roughly or approximately need to know basis is any way to encrypt at least local and/or peephole and/or regional portions and/or subsets of what may here be called “interconnect points" between various operation sub-graphs so that the decryption is by the nodes that are mapped to those regions.
• each node can use so-called “private information retrieval” to obtain the portion of the graph that has been assigned to it and then again use private information retrieval to find the key for the region and/or of the specific interconnect points.
• first nodes (good untraceably and/or protectedly) provide operation type and (optionally blinded) public key(s) of operation inputs and outputs to second nodes (good through posted public keys and/or protectedly)” is any way to transfer the duty of performing the operations to entities that are not publicly visible as associated with specific operations.
• FIG. 9 a flowchart for an exemplary distributed computation system is . shown, in accordance with aspects of the teachings of the invention.
• the system in some examples, can be understood it is believed as including the following steps:
• What can here be called “publishing a collection of gate operations and the pattern of input and output wires of the gate operations” is any way to lay out and/or determine and/or compile and/or create a graph with operations as nodes and interconnections for the inputs and outputs of those operations characterized by the edges.
• a first set of pseudonym public keys is any way to allow more than one node, typically, to obtain identities, such as public keys, that are not readily linked to the nodes by at least some parties.
• What can here be called “publishing an unpredictable mapping from the gate operations to the first pseudonym public keys” is any way to associate and/or link each of multiple operations, at whatever level they are defined, to respective nodes based on first pseudonyms of the nodes. For instance, this can be by a mutually trusted random number source, such as a blockchain, and a pre-arranged algorithm for making the mapping.
• the mapping can, in some examples, be known to the nodes and few if any other entities, or for instance it can be public.
• each of the first nodes communicating using the pseudonym public keys to establish an unpredictable key for each of the wires is any way to for the first nodes to communicate selectively with other first nodes to create keys that are not public but that correspond, for instance, to each wire.
• One kind of example is where the nodes use the public keys already posted to encrypt additional keys and send those additional keys as messages and then some or all of the keys enter into the final wire key or key computation, as will be understood.
• What can here be calied “publishing, by each of the first node, a second pseudonym public key” is any way to allow more than one node, typically, to obtain identities, such as public keys, that are not readily linked to the nodes by at least some parties.
• a third set of pseudonyms is any way to allow more than one node, typically, to obtain identities, such as public keys, that are not readily linked to the nodes by at least some parties.
• What can here be called “publishing an unpredictable mapping between the second set of pseudonyms and the third set of pseudonyms” is any way to associate and/or link each of multiple second pseudonyms third pseudonym and/or linking the respective nodes, as will be understood. For instance, this can be by a mutually trusted random number source, such as a blockchain, and a pre-arranged algorithm for making the mapping.
• the mapping can, in some examples, be known to the nodes and few if any other entities, or for instance it can be public.
• the nodes of the second pseudonyms each sending to respective mapped nodes of the third pseudonyms respective operation and wire public keys is any way for the second nodes to communicate to the third nodes and the third nodes to receive information related to the operations that the respective third nodes are to perform and the keys corresponding to the wires for those operations.
• FIG 10 an exemplary distributed computation system is shown in combination block diagram and cryptographic protocol schematic, in accordance with aspects of the teachings of the invention.
• the vertical lines divide sets that are at least at some point and to some extent unlinkable; two example gate operations are included and a wire connecting output of one to input of the other; four nodes, shown as triangles, each communicate with each other at least including via untraceable sending.
• each of the two leftmost nodes, n g and nn have published public keys, such as so-called “diffie-heilman” public keys.
• the first unpredictable mapping assigns in the example a gate to a node identified by public key, such as for instance best in a one-to-one or bijective mapping, though an injective mapping is believed also useable.
• the nodes knowing that they have been mapped to the same wire of the gate, such as because of the matched input output numbers mentioned above, communicate. In some examples this can, it is believed be without a mix; however, they are shown using a mix for consistency and potential advantage.
• the messages exchanged by the two nodes can be thought of as identified by the same value in an output batch of a mix publishing system, for clarity here.
• the header is thus shown as the image under the one-way function f of the diffie-heilman key that they can both form, g w ; the payload x is thus then indicated for simplicity and clarity but without limitation in the example as being the product of the secret and the pre-image of the header under f, as will be understood. Accordingly, both upper and lower leftmost nodes now know their mutual secret key x.
• each of the leftmost nodes publish a new public key or second pseudonym, anonymously, g s and g f respectively, it is believed ideally unlinkably to at least their previous key g* and g v , respectively.
• second pseudonym anonymously
• g s and g f it is believed ideally unlinkably to at least their previous key g* and g v , respectively.
• other or the same nodes under different pseudonyms publish a third set of pseudonyms. These are shown as separate nodes n j and n k on the right side of the diagram, with public key pseudonyms g u and g y , respectively. At this point a separate unpredictable mapping is made known, between the second pseudonyms and the third pseudonyms.
• the second pseudonym owners can communicate, based on the wire key x, to arrive at public keys corresponding to the respective third nodes, g su and g rt .
• the second nodes can communicate with the mapped nodes of the third set, n j and n k , respectively.
• These messages can use hashes of the corresponding public key pairs as headers.
• the key y then is unlikable to the previous messages, was included as the payload exchanged, similar to the way x was a wire key. Then, finally, y can be used to send the value as shown through a mix from g ( to g u during evaluation of the operation graph.
• an exemplary distributed atomic swap system is shown in combination block diagram and cryptographic protocol schematic, in accordance with aspects of the teachings of the invention.
• Two parties and two blockchains are shown and two sets of computations are used by the parties to move value on a first chain from a first party to a second party on the first chain and value on the second chain from the second party to the first party, in such a way that is believed to ensure that neither party can obtain the value from the other party unless both parties obtain the value from their counterparty.
• a first blockchain with some example data stored in its ledger is shown changing overtime from left to right; similarly, across the bottom a second blockchain with some example data stored in its ledger is shown changing over about the same timeline.
• walletlDs There are potentially six so-called “walletlDs” shown: two are created by the protocol, waiietIDI and waiietiD2; two are controlled unilaterally in some examples by party “a,” called here Alex for clarity, and are labeled as such; and two are controlled unilaterally in some examples by party “e,” called here Ellis for clarity, and are also labeled as such.
• the walletID’s shown dotted line may contain no value, such as after being created as indicated by the asterisk line end, whereas those shown solid line are shown receiving value by the filled circle line end.
• a first and second set of computations and/or protocols is shown conducted between at least the parties shown, as indicated by the dotted octagon notation used elsewhere here as well. Also for clarity, as will be appreciated, what may be regarded as steps are numbered in circles, sometimes including a suffix of “a” or “e” to indicate when a step is performed by each of the two example parties, Alex and Ellis, at least somewhat separately.
• the first computation and/or protocol is shown as step one being performed by Alex and Ellis. It will be described in more detail, such as with reference to Figure 13, but can be thought of as made of up two sub-parts, one that creates each of two separate public keys or “walletlDs” in blockchain, as is indicated by the asterisk line ends.
• the private keys of these two walletlDs are what may be called '‘shared” in the sense of secret-sharing protocols, or divided into parts, such that the parties, in this case Alex and Ellis are unable, without helping each other, to create signatures that would result in removing value from either walletID.
• Alex and Ellis are involved somehow respectively in transferring value to the new walletlDs on their native blockchains. For instance, Alex is shown above the line that moves value from a walletID, or potentially another source, to walletIDI in step 2a; similarly, Ellis is shown below the line indicating moving of value from a walletID labeled “e” to walletlD2 in step 2e.
• a further step 3 is again a computation and/or protocol set 2 performed in the example by at least Alex and Ellis, as shown.
• a “release of secrets” protocol known in the art.
• Such protocols allow one party to gradually likely but verifiably make a secret easier to compute and/or increasingly likely to be revealed to at least another party.
• Alex and Ellis are able to in a parallel manner release signatures, indicated as hollow circle line ends, that transfer value from the respective wallets.
• the value from walletIDI on chainl can be obtained by Ellis in step 5e in a wallet or other method/means shown as a rectangle with an “e” in it; and the value from walietlD2 can be obtained by Alex in step 5a in a wallet or other method/means shown as a rectangle with an “a” in it.
• a cryptographic protocol system is any means and/or method whereby one or more parties are able to use cryptography, in some cases in cooperation with other parties, to obtain desired properties with respect to information, such as secret keys, public keys, distributed ledgers and the like.
• parties are any entities, whether natural persons, devices believed under control of such persons, legal entities, technical processes that may be controlled by others or largely autonomous.
• blockchains are any and all protocols involving multiple parties that in some way control and/or protect the store of value in wallets.
• the at least two parties create a public key for each of at least a respective first and a second chain, where the corresponding private keys are secret from the two parties unilaterally” is any way for at least two parties to cooperate to create places where and/or names under which value can be stored on a biockchain, but that neither party acting alone can take that value from that place without cooperation of the at least one other party.
• the at least first and second parties create jointly blocked transfer signatures for at least each of the two public keys” is any cryptographic or other protocol or computation that makes the signatures in a protected but releasable state.
• the at least first and second parties mutually release blocking on the at least two signatures so that neither party obtains substantial advantage in unblocking unilaterally
• a “substantial advantage’’ as used here can be any way that the party could get access to their value but still not have gone far enough with the unblocking that the other party is unable to obtain their value.
• the at least first party obtains value on the second chain and the second party obtains value on the first chain is the desired end result that after the release of the blocked transactions, the parties receive the swapped value; however, any variant of multiple parties and/or where the value is stored is anticipated.
• FIG 13 an exemplary computation for a distributed atomic swap system is shown in combination block diagram and cryptographic protocol schematic, in accordance with aspects of the teachings of the invention.
• the overall notation is related to that introduced, for instance, with reference to Figure 2, Figure 3 and Figure 7; however, two parties are here shown providing input that is pre-combined, such as for clarity, efficiency and/or to illustrate an option, for a respective input of a series of inputs, some multiplicative and some additive.
• Alex and Ellis there are two parties, Alex and Ellis, as already described with reference to Figure 11 , shown providing inputs across the top. Each of these inputs (apart from Z) is combined pairwise to produce the inputs shown below the dot dash boundary line.
• Alex and Ellis each encrypt each respective input for each node (of which there may be more than one, such as using the techniques described with reference to Figure 5 not shown here for clarity) using a public key of the respective node. Since in the example show for clarity the encryption is by exponentiation using the “public key” of the recipient node, as will be understood, encrypted inputs can be combined in the clear. For instance,
• Alex and Ellis can, it is believed, multiply in the multiplicative group of the encryption with the nodes what is in effect their respective shares of the secret key D, shown in square brackets to indicate this case; each of Alex and Ellis would have to cooperate, it is believed, to recover the combined key, the sum in the exponent of their respective secret exponents. Similarly for J, which is also shown in square brackets to denote this.
• K although in some systems might ultimately be made public, it is believed best and in the example case shown here for clarity would be mutually random and can be kept confidential. To this end, it is shown as the product of two encryptions, so that as with D, it becomes what is believed a mutually random value for the two parties, Alexa and Ellis.
• Z since it is typically the image under a believed one-way or hash function, each party would, it is believed ideally be able to check it and/or agree on it. Accordingly, Z is shown being sent in by both Alex and Ellis; however, to keep it confidential for various reasons, it can still be encrypted using a public key known to nodes for this purpose, shown as exponentiation.
• the value J shown in square brackets as is the private key, would be a mutually random and believed ideally secret value to the parties; for instance, neither Alex nor Ellis would be able to learn J until, as in step 4 already described with reference to Figure 11 , the parties participate in a release of secrets protocol, as are known in the art as already mentioned and not shown here for clarity.
• the protocol described here with reference to Figure 13 can conducted once in advance, with J set to the identity or left out, taking advantage of the well-known property that the public key can be computed from such a signature and a walletID then arrived at from the public key.
• FIG 14 an exemplary atomic swap cryptographic protocol is shown in combination flowchart and protocol schematic, in accordance with aspects of the teachings of the invention.
• the swap is described for ease in understanding and clarity between a first blockchain and second blockchain (anticipated, however, are more than two chains) by a first and a second party (anticipated, however, are more than two parties).
• party e and party a conduct first and second instances of what may here be called a “public key generation protocol” that is said here to result in “walletIDs” on the first and second blockchains respectively.
• a public key generation protocol that is said here to result in “walletIDs” on the first and second blockchains respectively.
• value is transferred on the first blockchain into a respective first walletID” and similarly value is transferred on the second blockchain into a respective second walletID.
• value is transferred on the first blockchain into a respective first walletID
• value is transferred on the second blockchain into a respective second walletID.
• parties moving the value can in some examples be a and e, respectively; however, this value is anticipated to be possibly moved by whatever other entities or combinations of entities.
• walletID's are any and all signatures or other digital authentication of whatever form that can transfer the value from the walletID's to other types of ownership and/or control, such as for instance but without limitation to other walletID’s and/or to so-called “burning” and/or to coins or other formats.
• party e proves to party a that s e is at least likely within a range of successively smaller possible values at each of a series of mutually realized time steps.” This can be used to mean the gradual and/or probabilistic transfer of a secret by party e to party a, according for instance to protocols such as those described in the following:
• party a proves to party e that s a is at least likely within a successively smaller range of possible values at each of roughly the same series of mutually realized time steps” the meaning is similar to the symmetric case just described above.
• party e obtains the transfer-out signature for the first walled by combining s e with s a obtained from party a.”
• This can mean any way to combine information already developed and/or obtained to recover the a. signature on the mutually agreed transfer of value, such as already described with reference to Figure 11 , Figure 12 and/or Figure 13, to a walletID on the same blockchain but now under the control of a party that was not in control of the value at the earlier stage when it was moved to the walletID partly controlled by the counterparty.
• a system can here be said to consist of “each of a set of entities has a respective public key and has agreed to conditions for making decryptions related to the public key available.”
• the purpose of the making the of decryptions available can be in some instances to be to “allow at least one party to check and/or recover a secret under the respective conditions.” In other instances, as described below, it the purpose can be for checking and in other instances for recovery, as will be described.
• a first party divides a secret into shares according to a threshold and encrypting each share with a respective one of the public keys of the set.
• the sharing can be verifiably or not verifiably, as mentioned, with verifiable to be described with reference to Figure 16.
• the division of a secret into shares is well known in the cryptographic art, and any suitable way to accomplish this, whether with thresholds and/or other monotonic predicates is anticipated.
• a selection of the encryptions, of a quantity below the threshold, being made for decryption in a way that at least is not significantly manipulatable by the first party which can be any way to choose which shares to decrypt that cannot readily be manipulated to cheat the party who is checking and/or the party issuing the shares, as will be understood.
• the number checked can be well below the threshold to arrive at the secret.
• Each share, however, can be formed and/or committed to in a way that can be verified separately, as will be understood.
• the second party may be said to “verify that in the main the decryptions were properly formed.”
• shares can be formed and/or committed to in a way that can be verified separately, the selected shares can be checked, as will be understood.
• Such verification can be accomplished in any way, such as for instance interactively or non-interactively.
• FIG 16 an exemplary verifiable recovery cryptographic protocol is shown in combination flowchart and protocol schematic, in accordance with aspects of the teachings of the invention.
• the keys for unlocking value are divided among a set of entities so that in case the counterparty fails to complete the swap, a party whose value is locked can unlock it with cooperation of a subset of the entities; however, in the present example a so-called “verifiable” secret sharing is used so that the shares are in effect checkable without being “opened” and this simplifies and increase the performance of the protocol.
• each of a set of entities has a respective public key and each entity is to under a condition make decryptions related to the public key available to allow at least one party to recover a secret under the condition” to mean any setting or the like where there are entities, of whatever type, that are believed likely to at least approximately make available to a party a secret under a condition.
• a condition could be that a party to a swap has value that is locked up or otherwise inaccessible in the swap protocol because of failure to participate by the counterparty.
• a first party verifiably dividing a secret into shares according to a threshold and encrypting each share with a respective one of the public keys of the set to mean any type of verifiable or publicly verifiable secret sharing system, as are known or may become known, used to for shares that can be verified at least by the counterparty as at least likely to mainly allow that the transaction to complete should enough of them be opened.
• the checking is that the exponent is revealed that allows the signature with the walletlD to move the value back to the walletID that the party supplied it from and/or to another walletID controlled by the party being blocked.
• the second party verifies that the decryptions were properly formed,” to mean any cryptographic protocol steps and/or process that gives adequate probability and/or security against anticipate threats levels to ensure adequate that at least enough of the shares were at least mostly correctly formed so that they can be used if needed.
• a quorum of entities can be according to any monotonic rule or even dynamic or adaptive condition, and such a quorum can, as will be understood, release enough information at least to the second party or other parties cooperating with that party to allow the second party or other cooperating parties to at least with some reasonable probability unlock or other free up the blocked value.
• FIG 17 an exemplary digital outcry cryptographic protocol with refund is shown in combination cryptographic schematic and block diagram, in accordance with aspects of the teachings of the invention.
• the two example parties use infrastructure for locking up value and protocols for fallback and swapping.
• the two example parties to the eventual swap are shown as Alex and Bobbi, themselves labeled with the letters “a” and “b” respectively.
• the parties each lockup some value, what may be considered a security deposit or the like, shown associated with public keys a' and b' respectively.
• the corresponding private keys are shown without the apostrophe, a and b, respectively.
• the parties are shown for clarity both in phase one and in phase two, as will be appreciated.
• Alex can then send the first protocol message shown in the now conventional notation as a closed form on an arrow.
• the message is shown signed by a, in a basic notation as will be understood. This message is anticipated that is some examples the message is in effect broadcast; the public keys associated with the message in the example are shown associated with the lockup.
• the message type indicator shown as the literal string example “offer”
• a transaction identifier x which may be superfluous in some examples, as for instance various already-present quantities could serve this function
• the definition of the value that Alex wants to swap, c, and the definition of the value, d, that Alex hopes to receive in return during the swap where the value can for instance be defined as a specific quantity of a specific asset.
• the offer is associated with a public key a' because of the signature. This key allows the signature to be verified; it is also shown associated with a corresponding lockup, something that can checked, for instance by parties considering accepting the offer. It will be appreciated that different levels or types of lockups may be believed appropriate for different swap values.
• Alex receives an accept from Bobbi, shown as the second cryptographic protocol message step. This is left-point, from Bobbi to Alex, and essentially provides at least implicitly the public key of Bobbi, b'. This key allows the signature to be verified; it is also shown associated with a corresponding lockup, something that Alex can check in accepting the offer.
• Alex and Bobbi When Alex and Bobbi have in this way agreed at least in principle to do the swap, they are shown by the next message to cooperate in creating two public keys that will serve as account identifiers that they will have so-called “multi-sig” access to, requiring in some examples keys from both to transfer value from the account, as already explained with reference for instance to Figures 11, 12, 14 and 15.
• Two account identifier public keys such as are well known in blockchain technology, are shown in the example, one for each of the values defined in the example of the original offer. One is shown as having public key C for the value defined as c; the other is shown as having public key D' for the value defined as d.
• phase one The final message of what is called “phase one” is shown as two arrows meeting each other. This can for example be a gradual reveal of secrets, as already described with reference to Brickel et al and for instance to Figures 11, 12, 14 and 15.
• Each of the two parties, Alex and Bobbi reveal to their respective counterparty, a signature confirming consummation of phase one.
• This signature for clarity is shown including a number of elements that are believed to define phase one: the public key of the counterparty, the transaction identifier (if needed) x, the definitions of the things to be swapped, c and d, as well as the public keys, C and D', under which the values will ⁇ be held until released at finality, as will be explained.
• the lockups are shown receiving notice of the transition to phase two, such as supplied them by the respective parties. (It is believed that the parties are incentivized to show these signatures, otherwise they may not be able to unlock the locked-up value; if the signature is shown too late, the lockup can be forfeited, as will be described. A timestamp may be included in the signatures, with one example use being allowing the timely reporting to be checked by the lockups.)
• the lockups can test the signature made by their respective “owner” and know that they should enter phase two; however, they also learn the public key of the respective counterparty, whose signature will allow phase two to be ended with finality, as will be described. Conflicting signatures by the owner of a lockup can cause it to, for example, not complete phase two in time and, as will be described, for instance, return value to the infrastructure provider or other parties.
• Alex and Bobbi When Alex and Bobbi enter phase two, having revealed the signatures to each other, they can start by setting up various fallbacks, such as in the present example, refund capabilities. These are believed to server as protection against a variety of undesirable scenarios or attacks, that may include abandonment of the transaction and/or extortion related to value held inaccessibly in it.
• a refund capability can refund the value contributed as c by Alex to Alex and/or the value contributed as d by Bobbi back to Bobbi.
• An encrypted signature that allows the value to be returned from C' to Alex at G', where in the example Bobbi transferred it into C in the first place is used.
• Alex Since the messages would be encrypted for the specific node public keys, in some examples, Alex would not be able to access the signature directly; however, if Bobbi were to default and not help finalize the overall transaction, then Alex would be able to send evidence of this to the nodes and if enough of them found it compelling, they could allow the refund.
• the choice of nodes can be a sample of all nodes; however, it is believed advantageous if the sample is made in a way that neither Alex nor Bobbi can manipulate; such mutual random protocols being know, such as those disclosed by the present applicant, in US 2003/0104859, “Random number generator security systems,” which is incorporated here by reference as if copied in its entirety.
• Bobbi shares the D to H transfer encryption with nodes, potentially other randomly-chosen nodes. This provides the same sort of protection to Bobbi,
• Alex can transfer the value from, in the example for simplicity and clarity, G' to C.
• Bobbi can transfer the value from, in the example for simplicity and clarity, H' to D'.
• the dot-dash lines are intended to indicate the recommended temporal ordering of the transfer and the respective refund capabilities.
• the Alex and Bobbi can conduct protocols, already described here with reference to Figure for instance to Figures 11 , 12, 14 and 15, to produce the transfer signatures for the values c and d: the separate secrets behind formation of C’are used to make, for instance, the transfer signature from C'to £'; similarly, the separate secrets behind formation of C'are used to make, for instance, the transfer signature from C' to E'
• the separate secrets behind formation of C'are used to make, for instance, the transfer signature from C' to E'
• Alex reveals both: a signature on x that indicates finalization for the lockup; and what is shown as j, that is the signature authorizing the transfer from c to E'.
• Bobbi reveals both: again a signature on xto indicate finalization for the lockup; and what is shown as k , that is the signature authorizing the transfer from d to F.
• the signatures with a and b can be shown to the lockup infrastructure to establish that the transaction was finalized and the lockup can be released (though a portion may be held back for instance as fees), as indicated by the dashed lines.
• the release can also check, if desired in some cases, other aspects of the finalization, such as that the value and accounts defined at the end of phase one were actually used in achieving finality.
• phase two If a timeout on the finalization of phase two were to occur, only an exceptional case, and not shown for clarity, then various things can be allowed to happen.
• the nodes can refund one or both of the values they hold the signatures for.
• Alex and Bobbi coordinately release signatures signed with a and b, respectively, for transition to second phase of x and for jointly controlled account public keys C’and D ⁇ the accounts to hold the amounts of value c and d, respectively” to mean any type of joint release of secrets or otherwise coordinated authentication that indicates that both Alex and Bobbi are agreeing at least provisionally to transfer value to or otherwise lock up value in a way that some sort of mutual cooperation and/or third party actions would be required to unlock and/or refund it.
• Alex secret-shares refund keys for transfer from C'to a suitable account /-/'supplied by Bobbi, to nodes unpredictable to Alex and proofs by the nodes to this effect provided to Bobbi
• Bobbi secret-shares refund keys for transfer from D'to an account G' supplied by Alex, to nodes unpredictable to Bobbi and proofs by the nodes to this effect provided to Alex” to mean any way to accomplish the division of secret values between a number of nodes such that at least Alex can have some confidence that those secrets will allow those nodes to refund Alex.
• Alex and Bobbi coordinately release signatures signed with a and b, respectively, for finality of x and signatures authorizing transfer of c from C'to £', an account supplied by Bobbi, and transfer of d from D'to F, an account supplied by Alex" to mean that the parties release to each other, in a manner that neither should be able to unilaterally interrupt, authenticated orders to move the respective values to the agreed locations so that they are swapped.
• FIG 19 an exemplary digital outcry cryptographic protocol is shown in combination cryptographic schematic and block diagram, in accordance with aspects of the teachings of the invention.
• the two example parties use infrastructure for pledging value and then locking up value for swap and protocols for fallback and swap.
• the two example parties to the eventual swap are shown as Alex and Bobbi, themselves labeled with the letters “a” and "b” respectively.
• the parties each pledge some value, what may be considered a security deposit or the like, shown associated with public keys a' and b' respectively.
• the corresponding private keys are shown without the apostrophe, a and b, respectively.
• the parties are shown for clarity both in phase one and in phase two, as will be appreciated.
• the eventual value c and d is that to be swapped by being transferred from C and D', respectively, to E and F, respectively.
• the parties issue and offer and acceptance.
• the parties optionally, as illustrated and indicated by the star superscript on the private key used to make the signatures, use so-called “offline-cash” type signatures, as disclosed by the present applicant, in US patent No. 4,987,593, titled “One-show blind signature systems” included here by reference as if copied herein its entirety.
• achallenge such as a random number provided by the party being paid.
• these values can be determined at least in part by the parameters of the offer and acceptance, such as c, d, x, the time, and so forth.
• a so-called “hash function” or the like could be applied to all or some of the parameters before including them in the signature.
• the desired effect is that if the same party makes more than one offer with the same pledge and/or makes more than one acceptance with the same pledge, such as within a certain time period when the signature is value, then this fact would be revealed irrefutably once the signatures are combined, as usual, but with these special type of signature additional information, such as the identity of the party obtaining the signatures and/or access to a penalty value and/or for instance revealing other information that the signing party might wish to keep confidential.
• These signatures and this use are believed to offer advantages, including that the spamming or otherwise making false offers or acceptances is discouraged and/or traceable to larger things, such as the set of pledges and/or the identity of the party behind the process.
• the pledges can be interpreted in some examples as transitioning from phase one to phase two. They might not return to phase one without penalty, in some examples, unless the transaction identified as parameters to the signature is finalized.
• the secret sharing is shown. It can for example be using a public secret sharing system, such as that disclosed by Schoenmakers, in "A simple publicly verifiable secret sharing scheme and its application to electronic voting," that appeared in Advances in Cryptology— -CRYPTO ’99, Lecture Notes in Computer Science, Springer-Verlag, 1999, pp. 148-164.
• the parties who receive the shares here called nodes, need not be involved in the distribution of the secret shares; all the nodes have to do is provided public keys.
• the counterparty can verify that the secret share is well formed without contacting the parties, as will be understood. This is believed to offer the advantage of efficiency and the nodes need not be contacted unless they are actually being asked to reconstruct the secret.
• the secret is unpredictable to the party issuing the shares, the dealer, Alex or Bobbi in the present case.
• the secret can be used in effect as a key the decrypts the transfer signature.
• one example solution is for the parties to simply create a number of instances of the value public keys and transfer signatures and then each party be allowed to request all but one such instance to be opened; the unopened one is that used. The opened instances can each be verified to ensure that the secret shared is a valid transfer, thereby giving confidence that the unopened instance is also valid.
• the shares could be from the underlying joint transfer protocol and/or they could with a suitable encryption algorithm be proved in zero knowledge and/or minimum disclosure to correspond.
• the parties can transfer the principal value to be swapped to the respective stores of value, shown with public keys C and D'.
• the values can be considered, it is believed, essentially “locked up” until released either by enough nodes or by the respective counterparty.
• Alex and Bobbi may simply release the data in a somewhat uncoordinated manner, such as one first or both at about the same time; however, in other examples, the mutual release of secrets, as mentioned elsewhere here, such as with reference to Figure 17, can it is believed still advantageously be used so as to protect either party from being disadvantaged by the counterparty forcing them to work with the nodes to finalize the aspect of the transaction in their favor.
• “at least a first and a second party jointly computing public keys for a pair of holding accounts” to mean any kind of cryptographic protocol by two or more parties that arrives at so-called “wallet ID” or other types of public keys or the like that identify and/or serve to secure digital assets or the like.
• “at least the first and a second party jointly computing secret sharing of the transfer signatures to a number of nodes” to mean any kind of cryptographic computation and/or protocol that is aimed at arriving at digital information related to value transfer signatures to be potentially reconstructed by the nodes.
• the at least two parties conducting protocols convincing each other that the public keys at least likely require secrets of both the first and the second party to efficiently make corresponding transfer signatures to mean any kind of so-called minimum disclosure, zero-knowledge, and/or other proof technique that gives confidence, based on whatever assumptions, about the need for both parties, and/or the nodes as described later, to access make the signatures or other authorizations to move value from the custody of the keys.
• the at least two parties being substantially convinced that desired transfer signatures have been secret-shared to a number of nodes so that subsets of the nodes agreed by the first and second party can with reasonable probability and effort recover the transfer signatures” to mean any kind of so- called secret sharing or other cryptographic scheme that is “verifiable” or otherwise imparts confidence that under certain assumptions and/or with certain probabilities that the various subsets, such as so-called monotonic subsets, of the nodes can recover the authentication to move the value.
• the first and second party exchanging between themselves keys to the transfer signatures and optionally the exchange by mutual release of secrets to mean any kind of process or system whereby the parties cause information to be obtained by the parties that can be used to transfer digitally represented value, whether that information is provided first in one direction and then in the other direction, interspersed in some manner, and/or by a mutual release of secrets protocol.
• “at least optionally including that if the nodes are provided with the encrypted secret shares after a predetermined time the nodes are to reveal at least one of the secret signatures” to mean any kind of incentive and/or authorization and/or programming that makes it at least likely that nodes will reveal the secrets that were shared to them, and/or use those secrets in a computation, for the purpose of allowing the transfers to be conducted, provided that sufficient time has passed and/or an event has occurred and/or it is determined in some other way that the moment is appropriate.
• Figure 21AB a detailed exemplary embodiment of a what may here be called a “verifiable offline key transfer” and a related distribution is shown in combination cryptographic schematic and block diagram, as well as flowchart, in accordance with aspects of the teaching of the invention.
• the notation of Figure 21 A is known in the art and introduced more specifically in various other patents of the present applicant and will be readily understood. All the elements are residue classes either in the group, such as a so-called Diffie-Hellman group, or in the group of the exponent, as will also readily be appreciated; the notation of Figure 21 B, which shows the distribution, is typical of flowcharts.
• a single node is considered for clarity and concreteness and it has a single public key, denoted as h k , which may be said to be the modular reduction of the generator h when k is applied in the exponent, as will be understood.
• Both parties know the public keys of the nodes (or pseudonymous public keys).
• the first party is shown having a sort of public key, g s .
• the first is the generator g to the first random power x
• the second is a generator h to the power that is the image of the second random number u under a one-way function f (for convenience and completeness the preimages can be taken as group elements and images as elements in the exponent group)
• the third element is similarly the second generator to the power that is the image of the third random number v under the one-way function
• the fourth can be considered an encryption of the sum of the secret values s and x, known in the example to the first party, where encryption is by multiplication in the group by a generator raised to a what may be considered, as will be appreciated, as like a Diffie-Hellman key distribution power, the product to the node private key k and the image of the second random element; similarly, and finally, the fifth can be considered an encryption of the difference of the secret values, s and x, as again known in the example to
• the second party provides a so-called "challenge’’ bit b that is until this point ideally unpredictable to the first party.
• the first party sends the first pre-image, u, that for the second element sent in the first message.
• the second party checks that the second element sent was formed properly from the generator h and the one-way function f of u.
• the second party also checks that the product of g s , which is known to the parties as mentioned, and the value that should be the g*, sent as the first element of the first message, does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fourth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• the first party sends the second pre-image, v , that for the third element sent in the first message.
• the second party checks that this third element sent was formed as the image properly from the generator and the one-way function f of v.
• the second party also checks that the quotient of g s and the value that should be the g x does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fifth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• FIG 21 B a flowchart showing the application of the verifiable offline key transfer protocol, just described with reference to Figure 21 A, for providing the second party by the first party with significant confidence that a set of nodes can recover the transfer signature via s ⁇ — in preparation for a possible case that the second party contacts the nodes and supplies them the data. It is believed, as will be appreciated, that not involving the nodes in the setup for this contingency is advantageous; however, the second party it is believed would advantageously have high confidence that things won't be locked up indefinitely, or only the first party can unlock them, even if the first party does not provide more information after this setup.
• the nodes can release the value back to the parties as refunds and/or to allow the nodes to finalize the transaction by moving the value to the appropriate locations when the parties do not do so for instance at least not in a timely manner.
• the flowchart for simplicity and clarity shows how the protocol of Figure 21 A can be repeated a security parameter number of times for each of the #nodes instances of the outer loop.
• the conditional flowchart diamond tests whether j is great or equal #nodes and if so completes; otherwise the protocol of Figure 21 A is performed with reference to node /.
• the public key h k of a node is known to mean the usual public key setup, though it is anticipated that these keys can be digital pseudonyms and that the parties owning them are not readily learned without at least contacting them via the pseudonyms.
• a first party knows a secret power s of a generator g and at least both the first party and a second party know the result of raising the generator g to the system secret power s” to mean any kind of protocol that has revealed and optionally proved properties of this residue class; for example, the protocol of Gennaro et al has powers of a generator believed known to and with certain properties proved to the parties but where the power exponents themselves are in fact the secrets that allow a particular signature to be computed.
• the first party creates three random elements, x, u, v ” to mean any kind of way to construct such elements that is at least believed difficult for the counterparty to predict, guess, and/or manipulate.
• the first party sends to the second party five elements: a generator to a first random value, g x ; a generator to powers that are respectively images under a one-way function of the second and third random values, h f(u) h f(v) and the sum and the difference of the exponents of s and the exponent of the first random element, s+x and s-x, each encrypted with a respective one of the images (s+x) hkf(v) and (s-x) hkf(v) to mean any kind of
• the second party sends to the first party a single challenge bit b” to mean any kind of challenge that comes from the second party and/or other parties or mechanisms at least believed by the second party as roughly or mainly or largely unpredictable and/or unimplementable by the first party.
• the first party provides the first pre-image and the second party checks two things: (a) that the second element actually is the generator h to the power of the corresponding image f(u) and (b) that, after decrypting the exponent of the fourth element by raising the public key to the checked image and inverting this as an exponent of h, that the result equals that formed by multiplying the first element by known g s ” to mean any kind of way for the parties to perform these operations, as also detailed with reference to Figure 21.
• FIG 23 a detailed exemplary embodiment of a cryptographic protocol for value swap with verifiable offline key transfer is shown in combination cryptographic schematic and block diagram in accordance with aspects of the present invention.
• Alex is shown in a protocol with Bobbi, as labeled across the top and again in the middle of the figure, similarly to earlier figures, as will be understood.
• the initial offer and acceptance each by an authenticated message sent by the respective parties.
• a value but in this case called out as a “pledge,” is potentially held back until ideally the transaction contemplated is either cancelled or final.
• the next two arrows from the parties are what can here be called “confirmations,” from the first and second party, respectively. It is believed that in at least some settings such confirmations responsive to at least some of the transaction particulars are advantageous, as for instance there may be more than two parties making offers and/or acceptances and each party may make more than one offer and/or acceptance and some messages may be delayed, corrupted, and/or received in whatever order and/or claimed to have been and/or screened and/or prioritized and/or rejected by the parties.
• the examples shown are intended to suggest that the payloads and/or other information authenticated in earlier messages and/or rounds is somehow related to that in these rounds, as indicated by the non-limiting example of composition of messages, as will be understood.
• the pledge by Alex can be considered forfeited once a signature by Alex on the third message is known; similarly, the pledge by Bobbi can be considered forfeited once a signature by Bobbi on the fourth message is known.
• the joint transfer can be put into surety. This is shown as accomplished by joint computation of the transfer signatures for consummation but then some of these signatures can in some examples be what may be called here “verifiable offline key transferred” to the nodes.
• the nodes should be given enough shares by Alex so that even a majority of them can cause the transaction to go through that Alex should send through according to the offer and acceptance once Bobbi has filled the holding account (but Bobbi will want to make sure not only that the nodes are so empowered but that the transaction only has Bobbi’s account E'as the beneficiary and no other signatures are issued for that holding account).
• Alex the protocol like that of Gennaro et al where there are 2n shares, with a threshold set for instance at 3 ⁇ 4 of the shares; only Alex and Bobbi conduct the protocols and Alex has n shares and Bobbi has n shares.
• Alex sends all n of Alex's shares by "verifiable offline key transferred" to the nodes (in other words proves to Alex what Alex could send to the nodes is correctly formed from Alex; Bobbi can do the same, or optionally can use a simpler transfer to the node public keys that is not verifiable by Alex. (For clarity, the shares from Bobbi are shown input to the VOKT along with those of Alex.)
• the nodes should be able to compute the signature that moves the funds from the holding C'to the place Bobbi wants them £'.
• Bobbi is pretty sure to certain because of the VOKT that Alex gave the nodes the shares Alex had to the nodes. If Bobbi also gives al the shares Bobbi has to the nodes, without Alex being able to learn them, such as by encrypting them using the nodes public keys, then each node has two shares. Then 3 ⁇ 4 of the nodes can go ahead and compute the transfer signature if they all agree to do so. But if Bobbi were to give all Bobbi's shares to every node, then only half the nodes would be enough, which may be an acceptable approach for many applications.
• the nodes should be given enough shares by Bobbi so that even a majority of them can cause the transaction to go through that Bobbi should send through according to the offer and acceptance once Alex has filled the holding account (but Alex will want to make sure that the transaction only has Alex’s account Fas the beneficiary).
• Alex will want to make sure that the transaction only has Alex’s account Fas the beneficiary.
• Alex and Bobbi are able to consummate the swap and make it final by providing each other with the signatures.
• Alex provides Bobbi the shares, described already above that were sent verifiably offline to the nodes, that Alex has retained for this purpose that allow the construction of the signature that transfers the value in C'to the place Bobbi wanted it sent,
• an authenticated offer emitted by a first party to mean any kind of digital signature and/or one-show signature and/or other form of digitally authenticated information that includes and/or relates to what may be called an order and/or an offer or the like related to swapping and/or exchanging value.
• an authenticated acceptance emitted by a second party to mean any kind of digital signature and/or one-show signature and/or other form of digitally authenticated information that includes and/or relates to what may be called an acceptance of an offer and/or counter-offer related to such an offer or the like related to swapping and/or exchanging value.
• an authenticated closing emitted by the first party and including information related to the offer and acceptance to mean any kind of digitally authenticated information including signed or one-show signed that relates to a party emitting an offer or the like acknowledging or otherwise confirming that an acceptance is the one of possibly more than one acceptance that has been accepted by the offering party.
• joint computation between the first and at least the second party of a set of shares for transfer of a first value and a second value from jointly controlled destinations to mean any kind of exchange of messages and/or other cooperative computation that arrives at jointly controlled locations and/or keys and/or whatever custody technique.
• a portion of the shares for transfer of the first value substantially verifiably optionally offline key transferred to plural nodes to mean any kind of cryptographic informational protocol whereby plural nodes are empowered to jointly and/or in qualifying combinations transfer value and such empowerment is verifiable or otherwise determinable by a first party who would benefit from such transfer.
• a portion of the shares for transfer of the second value substantially verifiably optionally offline key transferred to plural nodes to mean any kind of cryptographic informational protocol whereby plural nodes are empowered to jointly and/or in qualifying combinations transfer value and such empowerment is verifiable or otherwise determinable by a second party who would benefit from such transfer.
• the first and second party transferring value to the respective jointly controlled destinations, optionally incrementally to mean any kind of method or system whereby the first and second parties are able to transfer value so that it comes under joint control and/or custody, in such a way that one or the other of the parties is mainly prevented or is unable to unilaterally transfer the value to their own benefit. It is anticipated that some parties may prefer to transfer the value incrementally (and or in parallel), such as while observing that the counterparty is reciprocating by also making such transfers, and the amounts may escalate as will be understood.
• receiving a first signature of first public key corresponding to the public key of a wallet with value optionally on hold on a ledger to mean for example any blockchain and/or its block producers and/or validators and/or other nodes or the like receiving a signature or similar authentication corresponding to the public key or the like associated with a wallet or other store of value including a “coin” causing the ledger entry and/or other data associated with the value to record an indication of a state of that may here be called “hold.”
• the first signature at least characterizes a second one-way image and optionally transfer characterization
• any first signature authenticates a public identifier of a potentially at least separate digital authentication capability, such as a party that knows a signing key corresponding to a public key that is the one-way image and/or for example one or more pre-images and/or structures thereof.
• the optional transfer characterization can be information related to a trade or offered and/or accepted trade, swap or other transaction, such as but not limited to a hash and/or fingerprint and/or data and/or pointer to such data or information.
• “changing the wallet state to locked” to mean for example any indication and/or encoding related to the blockchain ledger entry that blocks and/or inhibits and/or otherwise interferes with the transfer of the value and/or a portion of the value from the wallet and/or coin; the indication believed ideally transparently visible to potential counterparties and/or included in an authenticated message to that effect.
• “at least including the characterization of the second one-way image in the wallet state on the ledger” to mean for example any way to record and/or link to a mainly public portion of information that can be used to authenticate what is believed in effect the second party being associated with the ledger entry.
• “changing the wallet state to unlocked when receiving a corresponding authentication checkable with the second one-way image and optionally matching transfer characterization ” to mean for example any way that the second party, that with the ability to make the second authentication, such as holding a preimage for a hash function and/or a private key corresponding to a public key, to release the what is called “lock” on the value of the first party when the first party completes the transaction or otherwise satisfies the second party.
• “optionally changing the wallet state to unlocked after a predefined time interval” to mean for example any that whatever mark or indication that a wallet is blocked or otherwise inhibited can, by specific and/or general parameters and/or rules be changed after a pre-defined or variable — such as set when the lock was put in place — time, whether calendar time and/or blockchain block time and/or another type of monotonic advancing convention.
• “optionally changing the wallet state to unlocked if and when receiving a corresponding authentication checkable with the second one-way image, or chain of such images, during the time interval ” to mean for example any changing of the indication of value state on the blockchain as mentioned responsive to authenticated information, such as from a corresponding counterparty as mentioned, to an unlocked state, as mentioned, being responsive and/or taking place according to a suitable type of authenticated message from the counterparty.
• the hold itself can be tied to an aspect of value to be traded
• the unlock can be tied to an aspect of the value to be traded
• Figure 26AB exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for transaction negotiation are presented in accordance with aspects of the teachings of the invention.
• Figure 26A shows three example parties exchanging messages to negotiate potential transactions and including value that can be considered “staked” related to those transactions;
• Figure 26B shows the same transactions message detail and also including blockchain data state storage for each stake.
• unlocked hold and “locked,” as will be appreciated, to suggest that when unlocked the stake value can at least mainly be accessed for other purposes, but while on hold or locked, such access is at least inhibited.
• example transitions between the example states are shown with filled downward arrows connected to message endpoints by dotted lines, to indicate that the messages can trigger the transitions.
• the message sending by the recipient or sender shown, itself may not trigger the transition; rather, the transition can be triggered in such examples by one or more parties or entities providing the messages to the appropriate blockchain or the like.
• first party one sends what may here be called an “offer” message to what can be called a “bulletin board” and/or considered a public place or other side of a mix network and/or other means of posting or making it available to other potential transaction parties.
• the offer contains, in the example, two example transaction parameters. For instance, they can be an amount of a first token, such as called “c,” and an amount of a second token, such as called “d.”
• the offer is shown being obtained and/or received by two example parties, two and three; however, the ellipsis indicates any number of such parties are anticipated.
• the arrow does emanate from the first party and is connected by dotted line to the transition from unlocked to hold, as mentioned earlier. If, for instance, this message was signed by party one and such a signature were received by state means, such as a blockchain, then the state related to the stake of party one, as will be described further below, can be changed to hold, as also detailed further below. Since the arrows indicated do not terminate on the dotted lines of either party two or three, as mentioned, corresponding state transitions are not in this example indicated as occurring in this connection.
• Party two supplies bid1 and party three bid2.
• Each bid includes a counteroffer related to the second parameter, d2 in the case of party two and d3 in the case of party three; these may, for instance, be different amounts of these commodities, currencies and/or for instance tokens that are proposed by the respective counter-parties as will be understood, and adjustment can for instance be made to the first parameter to indicate that there may be conventions related to this; however, and without los of generality, the parameters may be those of the offer and/or both parameters may differ from those of the offer.
• the parties are subject to state transformation from unlocked to hold, as already mentioned, which can occur when the respective signatures by the parties are shown to the entity that maintains the state. It will be understood that in some examples, not shown for clarity, the state maintaining means can be consulted as part of obtaining the signatures; however, in the present embodiment it is believed that not requiring this allows fast transaction setup and/or negotiation, as will be appreciated.
• FIG 26B a conventional protocol diagram is shown in the center with respective state tables for each of the three parties already described with reference to Figure 26A.
• the states are indicated symbolically and consistently with the protocol messages shown in the center.
• the states of a party are separated by horizontal lines and depict example values that would, for instance, be visible in a transparent blockchain ledger, as will be appreciated.
• Each collection of states is labeled by the respective party name in italics and enclosed in a dotted rectangle for clarity. (The optional state and message from party one is shown separately for clarity as will be understood and mentioned again below.)
• the initial state of the three parties is similar.
• Each includes a public key, p1, p2 and p3, respectively. These might also be referred to as WalletID's in blockchain parlance.
• the corresponding private key information is known to the parties and ideally kept secret as it confers access to the value and the ability to make signatures that verify with the public keys, as will be understood.
• the private keys are shown when in use as private signing functions, s1, s2, s3, respectively checkable with the corresponding public keys, as will be understood.
• Each initial state also contains, in the example, the image under a one-way function. As indicated, this is the fourth iteration of the function f applied to a secret of the respective party. Thus, for instance, accordingly f4(k1 ) is the result of applying the one-way function f four times to the secret key ki .
• k1 is created randomly and/or unpredictably by party 1 ; in other examples, for instance, as may be known, k1 is itself the result of applying a one way function, such as the same function, in a whole what are sometimes called “ladder” or “chain” of such applications, with or without varying non-secret so-called “salt” parameters included.
• a new walletID or state for the re-use of the keys and location earlier values in the ladder can be switched to.
• the initial state of the three parties is also shown, as the third component in the first rectangle before the first state transition, as mentioned, as being “unlocked.” This corresponds to the state already described with reference to Figure 26A by the same name.
• the generic unlocked state is believed a good choice.
• the square brackets show the content signed with key s1 , already mentioned, and that this is denoted also by the temporary variable t, which is then used to construct the hash of this signature under f and store it in variable hO, as will be understood.
• the message signed includes four example parameters for clarity:
• the first, 1 is the message type that is believed good practice to distinguish the various message types signed.
• the second parameter is the triple application of f to k1, something that party one can compute and anyone is believed able to readily check against the already mentioned fourth iteration in the state.
• the last two components in the signature are example transaction parameters, d1 and d; these can each include a type of commodity and/or currency and/or other type of value as well as the amount of such value.
• the public key and/ora fingerprint of it, the so-called walletID already mentioned is concatenated and/or otherwise included.
• the sending of this first message is shown as transitioning the first party to the second state; however, as will be understood, such transition is by supplying the signature to the ledger manager, for instance the consensus of the blockchain.
• the ledger state can be as indicated in the example shown: “p1 ,f3(k1 ),holdT’.
• This holdl state results from issuing the offer, as described with reference to Figure 26A and as will be understood.
• hO in a rectangle. This is intended to indicate, as will be understood, that if a signature verifiable with p1 and message type 1 has a hash different from hO (which is what was used to form/verify hO such as when it was included on the ledger), then party one has issued conflicting offers and should in some examples be penalized, such as for instance by impugned reputation and/or forfeiture of all or part of the value staked.
• the two recipient parties receive the message; however, it may not be entered directly on the blockchain as indicated by the solid disc endpoints on the lines not touching the state rectangles.
• Each of party one and party two in the example do, however, use this first message as a basis for their bids, shown as respective bid1 and bid2 in Figure 26A.
• Each bid signature shown as a solid protocol message arrow delivered by dot dash lines, impinges on the state transition line, from the first to the second state, of the respective wallet.
• Each bid is signed by the respective private key, s2 and s3.
• Each bid differs, in general, as indicated by c2 and d2 differing potentially from d and d2, as well as party three bid c3 and d3.
• the one-way ladders are opened one level down, to three applications of f.
• the respective hashes, hi and he2 are, shown formed from the signatures. Inside the signature the type, 2 in the example, is included as a prefix as are two identifiers (though many other examples can readily be devised) of the first party and the offer, in this case p1 and the third application f3(k1), both from the offer message just described.
• the public key of the signers are appended for clarity.
• bids are shown available to party one by the dot dash lines impinging on the second state of party one.
• Party one can choose to accept one of these bids by issuing the accept signature, as already explained with reference to Figure 26A.
• the hash of the signature is h3
• the message type is 3
• the payload also contains in the example the public key and f3(k2) of the bid, as mentioned before as an example way of identifying the transaction.
• the public key could be a fingerprint.
• the f2(k1) is the hash for this second message sent by the first party.
• h0 the hash of the original offer is included for completeness and/or security reasons.
• the public key of the issuer, p1, is appended.
• Each of party two and three illustrate an example way that this message is used to transition the state of a party.
• Party three has issued a bid that was not accepted, so the state transition allowed, once the signature is shown to the ledger, is to unlocked3, to indicate that the hold was released because though a bid was accepted, this bid was not the one accepted.
• the hash of the acceptance h3 is included with the state, in case more than one acceptance is issued from the first state and then party three can show a different acceptance signature to the ledger maintainer, who then checks that the hash of the signature differs from h3, and can penalize party one.
• Party three is also shown in the example as storing h2 in the state; this allows party three’s stake to be revoked and/reputation to be impugned if a second signature checkable by p3 but not matching h2 can be shown.
• the value hO is also shown with double arrow symbolizing returning the state to unlocked if it turns out that the original offer signature was one of more than one such signature issued by p1.
• Party two has issued a bid that was accepted, so the state transition allowed, once the signature is shown to the ledger, is from hoid2 to locked2, to indicate that the hold related to a bid signature was changed to locked because the bid was accepted.
• the hash of the acceptance h3 is included with the state, in case more than one acceptance is issued from the first state and then party three can show a different acceptance signature to the ledger maintainer, who then checks that the hash of the signature differs from h3, and can penalize party one and release party two from the locked2 state, as indicated by the double arrow already introduced.
• Party three is also shown in the example as storing hi in the state; this allows party two's stake to be revoked and/reputation to be impugned if a second signature checkable by p2 but not matching hi can be shown to the ledger maintainer.
• the value hO is also shown with double arrow symbolizing returning the state to unlocked (similar to how it could transition from hold in the previous state of party two) if it turns out that the original offer signature was one of more than one such signature issued by p1.
• An example optional cancel by party one is shown for clarity as a separate dotted line rectangle.
• the state can be identified by public key, pt, for instance, and is indicated as holds.
• the pre-image from the ladder related to k1 is shown as empty, so no applications off (though this could be part of a larger ladder as mentioned already above; and also the type of hash function can differ over the ladder, an inventive aspect that will be understood).
• party one and party two release f1(k1) and f1(k2), respectively, in a mutual reveal.
• nodes recording stake value with associated public keys where the respective owners of the recorded stake values have respective private keys; owners of stakes issuing offers signed with private keys corresponding to the public keys of their respective stakes; owners of stakes issuing bids, where the bids correspond to particular of the offers, the bids signed with respective private keys of the owner of the stake issuing the bids; owners of stakes issuing acceptances, where the acceptances corresponding to at least one bid made on a corresponding offer of the owner, signed with the acceptances signed with respective private keys of the offerer; owners of stakes choosing at least one node to communicate an offer to and to receive corresponding bids from responsive to a pair of value types to be traded by the respective owners; the choice of mapping from pairs to nodes being from a set determined by a procedure agreed by consensus; optional cross-check by an owner of the operation between of least two nodes selected for a pair;
• nodes providing signatures from owners to the consensus for inclusion in updating the state;
• nodes exchanging information among themselves to at least statistically discover stakes being used for more than one pair and reporting same to the consensus;
• establishing holding accounts by a first establishing cryptographic protocol aspect between the two parties, where a first holding account is on a first ledger and the respective value is to be swapped by the first party and a second holding account is on a second ledger and the respective value is to be swapped by the second party ” to mean any way whatsoever to create accounts and/or walletl D’s and/or addresses on a blockchain that have a private key that is shared between more than one entity, so that cooperation between the entities is used to create the signatures that move value from the holding accounts.
• box 2820 it may here be said that “establishing destination accounts by a second establishing cryptographic protocol aspect between the parties, where a first destination account is on the ledger of the second holding account and a second destination account is on the ledger of the first holding account” to mean any way whatsoever to create accounts and/or walletID’s and/or addresses on a blockchain for the swapped value to finally land in.
• the inventive swap system establishes the destination accounts using an aspect of the cryptographic protocol
• the destination accounts can be input by the parties themselves if so desired.
• the destination accounts could preexist in a way that each party has at least some control over its destination account.
• the swap system includes destination accounts to allow the values of the parties to be swapped and the manner of existence or creation of the destination accounts can vary as detailed above.
• box 2840 it may here be said that “providing that information allowing transfer of value from the holding accounts is secured by the first party from unilateral access by the second party and information allowing transfer of value from the holding accounts is secured by the second party from unilateral access by the first party ” to mean any way whatsoever to secure the holding accounts so that at least cooperation between the two parties is what allows the value to be moved to the respective destination accounts.
• box 2910 it may here be said that “staking by the first and the second party, where a first party stake is locked by images corresponding to at least a pre-image known to the second party and the second party stake is locked by at least one image corresponding to a pre-image known to that party” to mean any way whatsoever that the respective stakes are locked by keys or other cryptographic values not held by the respective parties, where the pre-image under whatever one-way function or the like is believed adequate to provide this means, since the image is easily computed from the pre-image by public function but finding a pre-image from an image is believed infeasible with modern cryptographic hash functions, for instance.
• a further result of the complete execution of a swap protocol includes the parties receiving return of at least a portion of their respective stakes" to mean whatever means by which the party whose stake was held during a transaction can obtain all of a part of it back, such as by being able to control it by the keys that formerly controlled it, once the transaction completes.
• box 2930 it may here be said that “optionally the first party and the second party communicate at least a portion of the protocol messages through at least one of a set of nodes’’ to mean whatever means by which the first and the second party communicate with each other include at least a portion of the communication at least in effect being known to if not being forwarded by at least one node.
• box 2950 it may here be said that “optionally the set of nodes determined as a proper subset of a larger set at least responsive to the selection of a first ledger and a second ledger " to mean any means whatsoever, such as special devices and/or algorithms and/or protocols that allow the particular nodes for a particular pair of chains to be determined, while it will be understood that a subset of that subset may be selected for use by the particular trading pair at least once they have found each other.
• box 2960 it may here be said that “optionally the nodes submitting signatures by the parties to at least one blockchain to update the state of the staking maintained by that blockchain including as locked and unlocked” to mean that the states related to staking maintained by a blockchain for the staking can be as limited as two states, locked and unlocked and that the states are changed by the blockchain responsive to signatures showing ownership of the particular accounts and/or walietID's and/or addresses on the blockchains, which are implemented by plural physical computer means under ideally separate control.
• the nodes computing hash structures including messages received and the nodes periodically supplying the hash roots to at least one blockchain and the hash structures and/or paths available for use in adjudicating when messages were received by the nodes from the parties to mean any type of so-called “Merkle tree” and/or time-stamping method or means whatsoever that allows the nodes to readily lock in the at least discrete blockchain time that a message was received the node, so that the such locked in time can be used for instance by third-parties that are to decide for instance, as will be appreciated, which of the two parties has stopped first, such as for the purpose of deciding which party shall at least have a stake what may here be called "impinged” to mean undesirably accessed and/or marked and/or burned.
• impinged to mean undesirably accessed and/or marked and/or burned.
• nodes detecting at least a single stake that is used in more than one message, which message type allows locking of a stake to be locked, and the nodes responsively providing signature evidence of this multiple use of a stake to at least a blockchain and the blockchain impinging the stake accordingly to mean any means and/or method whatsoever to that allows nodes to detect the improper use of a stake for more than one transaction, as evidenced by signatures from the owner of the stake, to be provided by the nodes to a blockchain in order to in some way provide evidence allowing the blockchain to impinge on the stake.
• nodes may be incentivized to perform such actions, and/or to make statistically significant test to discover such actions, such incentives including after the fact analysis and/or immediate reward.
• Figure 30A-B exemplary anti-blocking cryptographic protocols are shown in combination flowchart and protocol schematic, in accordance with the teachings of the invention.
• Figure 30A is the impinging on stake of the party missing deadlines for participating in the protocols properly;
• Figure SOB is wallet ID’s the returning of value to a party that funded a holding account when the counterparty did not fund the respective holding account.
• box 3010 it may here be said that “if a party disrupts at least one establishing protocol by providing a signed but improperly formed message as a protocol portion by the respective deadline for that protocol portion by that party, responsively the stake of that party is subject to impinging” to mean adjudication by independent adjudication parties and/or means is decided against one of the transacting parties if that party has signed a message and that message is not properly formed, as will be understood, meaning that it does not include a convincing proof as required, such as relative to data included in the message and/or data included in previous messages by the parties.
• box 3020 it may here be said that “if a party disrupts at least one establishing protocol by providing no message fora respective protocol portion by the respective deadline for that protocol portion by that party, then the stake of that party is subject to impinging” to mean that adjudication by independent adjudication parties and/or means is decided against one of the transacting parties if that party has not provided a message and that message by a deadline, as will be understood, meaning that the required message is absent; however, it will be appreciated that various measures, such as notification about the absence of the message may be provided and a limited extension of time automatically provided, are anticipated as provided in order to help the party get the message recorded.
• the absence of a signed receipt such as from a node to a party, can alert the party that message was not received; and, furthermore, when there are multiple nodes (such as being cross-checked as mentioned) when a node provides a message to multiple nodes presumably at least one of them would record it properly and also at least one of them would reach the party with a warning that a particular message was not received when expected.
• box 3060 it may here be said that “if a first one of the two parties supplies the respective value to the respective holding account by a respective deadline and a second one of the two parties fails to supply the respective value to the respective holding account by at least a respective deadline, then a majority of respective refund agents are to refund the principal and stake to the first of the two parties’’ to mean that by whatever means and/or method a quorum or other agreement between entities of whatever type, called here “refund agents,” provides the information sufficient to allow the value to be returned to the party that did provide the value to the holding account in the case that the other party did not provide the value to the holding account, at least not be the deadline of whatever type.
• Figure 31A-C exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for transaction negotiation are presented in accordance with aspects of the teachings of the invention.
• Figure 31 A is the initial offer
• Figure 31 B includes the bids by two example parties; and Figure 31C shows the corresponding accept by the party making the initial offer of one of the bids.
• the first party called Alex is shown holding a key 3121 to a stake that is in the “soft locked” configuration 3101 and Alex emitting an offer 3110 to swap, as indicated by dashed lines.
• the offer indicates the two types of value to be swapped, symbolically for clarity, as a square 3112 and a circle 3113, as will be used in some other figures as will be appreciated.
• the image 3131 under a hash or other suitable one-way function of the particular key 3121 Alex is shown holding for clarity.
• Two example parties of potentially more as indicated by the ellipsis, are called Bobbi and Charlie.
• both Bobbi and Chariie respond, as indicated by dot-dash lines, to Alex’s offer 3110 by respective bids, called “bid1” and “bid2” for clarity.
• the key included with bid1 3143 is the hash of the key 3133 Bobbi holds; the key with bid23144 is the hash of the key 3147 Charlie holds.
• Bobbi and Charlie Upon emitting the bids, Bobbi and Charlie have respective stake shown as soft locked, for instance 3147.
• Alex replies, shown as dot-dash-dash arrows, with an accept 3160 of bid1 , which is provided to Bobbi and Charlie.
• Bobbi’s stake as a result becomes locked with the hash of Alex’s key 3131 from the offer and/or the accept; Alex’s stake as a result becomes locked with the hash of Bobbi’s key 3143 from the bid1.
• Charlie’s stake is then in an unlocked configuration 3175.
• Figure 32A-C exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for transaction settlement are presented in accordance with aspects of the teachings of the invention.
• Figure 32A is the initial offer
• Figure 32B includes the bids by two example parties; and Figure 32C shows the corresponding accept by the party making the initial offer of one of the bids.
• a cryptographic protocol 3210 conducted between Alex and Bobbi is shown receiving a first 3131 and a second 3143 stake key, as already described with reference to Figure 31.
• the cryptographic protocol is also shown issuing two so-called “walletID’s” or addresses, one for each holding account of the swap 3225 and 3226, respectively, as will be understood; each holding account is controlled by cryptographic multi-sig between the parties, as indicated by the hollow keys, one key for the first value 3221 and a second key 3222 for the second value.
• protocol 3210 issues a proven commit 3212 to Alex and a proven commit 3214 to Bobbi. These convince each respective recipient, as also described elsewhere here, that the respective recovery nodes (also called here “refund agents”) control through a voting process the switches.
• Alex is convinced that he has received at least encrypted values 3212 that allow recovery nodes 3230 to decrypt and a majority or other predefined quorum of these nodes can control switch 3220 so that the value in holding address 3225 can be returned to Alex by release of a signature that the nodes 3230 can reconstruct.
• Bobbi is convinced that she has received at least encrypted values 3214 that allow recovery nodes 3232 to decrypt and a majority or other predefined quorum of these nodes can control switch 3221 so that the value in holding address 3226 can be returned to Alex by release of a signature that the nodes 3232 can reconstruct.
• Alex funds, using existing key 3231 to existing value of Alex, the holding wallet 3235, as indicated by the diagonal hatching.
• Bobbi funds, using existing key 3232 to existing value of Bobbi, the holding wallet 3236, as indicated by the horizontal hatching.
• information 3252 becomes available, as indicated by solid line arrow, to Alex and information 3254 becomes available to Bobbi, as a result of protocol 3210.
• This information allows Alex and Bobbi to be confident, such as by cryptographic proof or the like, that they can exchange that information with their respective counterparty to thereby allow the swap.
• the values funded as referenced in Figure 32B is transferred using transfer signatures on the respective ledgers, as follows: value 3235 is transferred to Bobbi and under key 3292; and value 3236 is transferred to Alex and under key 3291 , such representing the destination accounts of the respective parties.
• the keys for unlocking the stakes are released as follows: Alex’s stake is unlocked using the key 3143 from Bobbi; and Bobbi’s stake is unlocked using the key 3131 from Alex.
• the blockchain 3310 is shown as a series of blocks, as will be understood, with an example data portion 3310a shown as an enlarged portion 3310b of an example block, as a spreadsheet or the like, as will be understood. Additionally, matcher nodes 3330, are shown for additional clarity communicating with the blockchain, as described also elsewhere here.
• Wallet address Five example stakes are shown, each as a separate column. The rows are labeled: Wallet address, Public key, Stake amount, Locking hash image, Bid release deadline, Locked/Unlocked (y/n), and Burned (y/n).
• the first row is an ideally unique label or identifier or tag for the associated data, as will be understood.
• Public key sometimes is the wallet address, or sometimes a hash of the public key is a wallet address; however, in any event typically a public key allows those with the ability to sign to effect “transactions” against the wallet data, within the rules enforced by the blockchain, as will be understood.
• Stake amount is intended to indicate that in some example systems there are more than one amount of stake that can be held at a wallet address; presumably, larger value swaps with larger expected relative price changes over the settlement interval would be more likely to favor larger stake amounts; a single stake amount is also anticipated in some examples.
• Locking hash image can as described elsewhere here be the image under a believed hard to invert function of a secret unlocking key known to a counterparty.
• Bid release deadline is a time such as related to UTC and/or expressed in terms of block sequence numbers, and/or some combination or other variation.
• Locked is described elsewhere here; burned can be used to return value to the system and/or other entities, but typically removes it from control by the owner of the private key.
• the wallet address is shown as “X1 " and the public key as “pubkeya.”
• the next column, with “X2” and “pubkeyb” is intended to suggest the case where Alex has made an offer and Bobbi has accepted it.
• the stake amount agree is two, which is in accordance with anticipated practice typically expected to be reciprocal, but need not be. Both are locked and of not burned. The transaction is still pending, as both wallets are locked.
• the stake was burned such as because an offer was not followed up within deadline by a corresponding accept or a release of the bidders, such as symbolized by the typical example of an invalid/empty state such as the offer wallet being the bidder.
• the left column 3410 is a set of candidate refund agents. They each submit to the approval process 3420, shown as the first dashed box. In the example one does not gain approval and does not pass through; this line ends in a small block.
• the approved agents each have a single input to the next dashed box, called here “mixing” 3430. This can be a cascade of mixes, such were introduced by the present applicant and are well known in the art; each vertical box can be a mix.
• the output 3440 of the mix comprises items that were input by the approved agents, one per such agent; these items are shown for clarity as public keys k(), such as for instance secret powers of a fixed public generator in a discrete log system.
• pairs 3450 of counterparties conduct cryptographic protocols to determine mutually random values.
• Partyl first applies a one-way to y and provides the image to party2, who replies with a random value x and then partyl provides the pre-image y.
• Dashed box 3460 provides an example of how the values x and y are used to compute a random set of pseudonymous refund agents. The two values are added and the result reduced modulo the number subsets that can be selected between. Then the subset can be computed from the residue class determined, by well known algorithms. This is shown symbolically, though non-standardly for clarity, using j choose k notation, to indicate j items selected from the collection of m public keys.
• Parties 3510 Alex and Bobbi are shown communicating messages after they have locked on a swap.
• Each such message in the example from Alex to Bobbi, has a kind of tag and/or identifier, for clarity, shown as #x, followed by a signature the respective party, such as indicated by the tag.
• the example signature is on, such as by signing a hash and/or including the data itself as input to the signature functions, as will be understood, the identifier for concreteness and an optional layer of encryption protecting the message payload m can be removed in case of dispute but provides privacy otherwise.
• the message should be, for instance, a set of parameters in a canonical order and/ora so-called “non-interactive” proof that the parameters are properly formed.
• Such proofs sometimes referred to in the art, as will be understood, as “identifiable abort.” It is believed that by signing all the messages and including the non-interactive proofs of well-formedness and/or non-abort, a party that stops performing the protocol in a way that would stop the honest counterparty from proceeding will be revealed irrefutably as such. Then the stake of that aborting party can be burned and/or shared with the victim party.
• the messages have not only tags but corresponding deadlines, as will be understood.
• the matcher nodes 3520 provide a posting 3530 of the messages. These postings are hashed 3540, such as in a tree structure, to provide a kind of time stamp that is shown being placed on the blockchain 3550, as shown and will be understood.
• the party that does not provide the correctly tagged and signed message by the deadline in the protocol is revealed publicly and the time stamping on the blockchain proves that the proper message precursor was in fact available in time.
• Figure 36A-E exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for access tree structures are disclosed in accordance with aspects of the teachings of the invention.
• Figure 36A is an “AND” node;
• Figure 36B is an OR” node;
• Figure 36C is what can here be called here an “oblivious transfer” or “OT” node;
• Figure 36D is what can here be called a “range reduction” or “RR” node;
• Figure 36E is an access tree from root to leaves.
• the “AND” node is shown abbreviated “AN” having two or more direct descendants (each of which may have any number of descendants as the root of a subtree, as will be understood generally here in this Figure 36), as indicated by the ellipsis.
• An example direct descendant 3670 is shown for clarity. The value associated with the descendants are shown as s through u. As an example of how such a node can be formed, the product of the direct descendants is shown, such as in a group, so that in some examples nothing about the value n of the AND node is known until all the descendant values are combined with the group operation, shown as in which case the value is fully revealed by forming the inverse and cancelling all factors but n.
• an OR node is shown, much as with the AND node just described. A difference being that each and every of the direct descendants has a value suitable to achieve the value n of the OR node.
• a set of values can be publicly associated with the node that are each a combined using the group operation, in a suitable group, of a random value with the actual node value, shown as tvs.
• an “oblivious transfer” or “OT’ node for short is shown.
• the issuer of the access structure does not know some aspect of the OT node; however, the receiver of the access structure knows an aspect unknown to the issuer.
• the issuer can provide the receiver with a value that the issuer can prove cryptographically has a 50% probability of being the desired value w and a 50% probability of being zero, as is well known in the cryptographic art and literature.
• the party providing the access structure is believed disadvantaged as it does not know whether or not the other party of the two has access to w.
• w can be an AND node in a subtree where the other node is a restriction or particular party, as will be described with reference to Figure 36 D-E.
• a “range restriction” or “RR” node for short is shown.
• Such a node has in the example a single descendant, which has a value, such as n, at least sometimes unknown to the receiver of the access structure, such as n.
• Protocols to demonstrate, typically by the issuer to the receiver, that the secret value n has a more limited range or distribution of possible values than previously known to the receiver are known, such as those described here and referring to E.F. Brickell, D. Chaum, I.B. Damgard, & J. van de Graaf, titled “Gradual and verifiable release of a secret,” appeared in Advances in Cryptology CRYPTO ' 87, Springer-Verlag, pp. 156-166.
• FIG. 36E a whole example access tree structure 3656 is shown.
• the so-called “root” 3690, “R” for short, is shown as a pentagon with one or more direct descendants. Ellipsis indicates that there may be many nodes forming a directed graph of nearly whatever shape; however, the leaves are shown as squares, such as 3680.
• a first type of leaf is can be regarded as an access rule in itself, shown as what may be called trustee party T, that has in the example for clarity received an encrypted value of key k, that is encrypted with encryption operator e, using key s; thus, the trustee would be contacted and provided s in order to allow it to provide the leaf value k,
• a second type of leaf can here be called a “commitment,” “C” for short, is shown as an encryption of a value committed to using a public key encryption system 3675 such as discrete log modulo a prime, as will be understood: /c A x(mod p).
• FIG. 37 exemplary detailed flowchart, cryptographic protocol, and block diagram for access tree structure traversal is provided in accordance with aspects of the teachings of the present invention.
• the process can be used to form an access tree; in other examples it can be used to attempt to compute the root value from leaves that have been issued.
• start box 3710 the process is shown as a loop. In some example executions only those steps that can be executed are and the other steps skipped over for that pass through; however, skipped steps may be executed in subsequent passes.
• Box 3720 shows the handling of an example AND node by either: determining n form the product of all the s through u, n*s*...*u i s » ...*u, as explained already with reference to Figure 36A; or by releasing the product n*s ⁇ .. e u in forming the tree.
• Box 3730 shows the handling of an example OR node by either: determining n form any one of the sn through un, as explained already with reference to Figure 36B; or by releasing the rrs,...,n » u in forming the tree.
• Box 3740 shows the handling of an example OT node by either: determining n form any one of the s through u node values that were revealed with some probability, as explained already with reference to Figure 36C; or by the issuer performing the oblivious transfer protocol to the recipient for each of the s through u node values with corresponding probabilities, as already explained with reference to Figure 36C and to be described with reference to Figure 38 A.
• Box 3750 shows the handling of an example RR node by either: performing the protocol as, already described with reference to Figure 36D; or by exhaustive search of the reduced key space that an execution of the protocol proves contains the key, also as already described with reference to Figure 36D.
• Box 3760 shows the handling of an example RR node by either: during issuing providing the trustee with an encrypted key e(s,/c); or by contacting the trustee and requesting k, such as would typically include checking of some condition and/or making some public notice by the trustee, as will be understood.
• Box 3770 shows the handling of an example C node by either: during issuing providing the commitment, and optionally cryptographically proving its correctness by the issuer to the recipient, as already described with reference to Figure 36E; or by verifying the so-called “opening” of the commitment, as is well known in the art.
• Box 3790 is a branch. If the root R has been computed, when the aim of the traversal repetitions is to find it, the branch follows the “yes" leg and completes the process; if the traversal instance is part of building a tree, then it completes only once the tree is completed.
• Figure 38A-B exemplary detailed cryptographic protocol, flowchart, and block diagrams for protocol examples provided in accordance with aspects of the teachings of the invention.
• Figure 38A is an oblivious transfer protocol for an OT node;
• Figure 38B is proof of encrypted share protocol.
• a first party is believed able to obliviously provide n to a second party, with probability 50%, but without the first party knowing whether the second party received n.
• the first party (on the left) is shown creating two values at random: a bit b and a residue z in the exponent group modulo a large prime p of a discrete log system, as will be understood; similarly, the second party also creates two random values from the same respective distributions, a and x.
• the first party sends r and r z to the second party (all numbers except bits are modulo p, as will be understood).
• the second party sends one of two pairs.
• the first is the generator g to the first random power x
• the second is a generator h to the power that is the image of the second random number u under a one-way function f (for convenience and completeness the preimages can be taken as group elements and images as elements in the exponent group)
• the third element is similarly the second generator to the power that is the image of the third random number v under the one-way function
• the fourth can be considered an encryption of the sum of the secret values s and x, known in the example to the first party, where encryption is by multiplication in the group by a generator raised to a what may be considered, as will be appreciated, as like a Diffie- Hell man key distribution power, the product to the node private key k and the image of the second random element; similarly, and finally, the fifth can be considered an encryption of the difference of the secret values, s and x, as again known in the example to the
• the second party provides a so-called “challenge” bit b that is until this point ideally unpredictable to the first party.
• the first party sends the first pre-image, u, that for the second element sent in the first message.
• the second party checks that the second element sent was formed properly from the generator h and the one-way function f of u.
• the second party also checks that the product of g s , which is known to the parties as mentioned, and the value that should be the g x , sent as the first element of the first message, does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fourth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• the first party sends the second pre-image, v, that for the third element sent in the first message.
• the second party checks that this third element sent was formed as the image properly from the generator and the one-way function f of v.
• the second party also checks that the quotient of g s and the value that should be the g x does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fifth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• the challenge bit is 2
• the value of x is revealed by the first party allowing the correct form of the first component of the first message to be checked, as shown, by the second party. While this case may or may not be needed, it is believed that at least it can help with analysis and is safe to include.
• Figure 39 exemplary detailed flowchart, cryptographic protocol, and block diagrams for overall swap systems and variations are illustrated in accordance with aspects of the teachings of the invention.
• At least two accounts each suitable for holding at least a respective conformant value and for control of the transfer of that value out of the respective account at least responsive to each of at least two respective controlling pieces of information to mean any means or method for maintaining accounts, such as on a distributed ledger or otherwise, whose value is controlled by the first and second parties, respectively.
• a first party and a second party each having joint custody of a first account; a first party and a second party each having joint custody of a second account to mean any means or method, such as cryptographic protocols where only through inputs of both parties are sufficient keys realized by the protocol and/or by smart-contract and/or logic built into a blockchain, and the configuration where both a first and second party information is needed to control each of the two accounts.
• the first party funds the first account with first value conformant to the first account and the second party funds the second account with second value conformant to the second account
• value is somehow transferred by whatever known means by the first party to the first account and by the second party to the second account.
• box 3960 it may here be said that “such that if the plural steps are substantially completed, the first party obtains access to the second value and the second party obtains access to the first value” to mean that resulting from the transfers of box 3950 each of the two parties is able to obtain control of and/or access to the respective value in the two accounts.
• Figure 36A-E exemplary detailed cryptographic protocol, flowchart, block diagram and blockchain data diagrams for access tree structures are disclosed in accordance with aspects of the teachings of the invention.
• Figure 36A is an “AND” node;
• Figure 36B is an OR” node;
• Figure 36C is what can here be called here an “oblivious transfer” or ⁇ node;
• Figure 36D is what can here be called a “range reduction” or “RR” node;
• Figure 36E is an access tree from root to leaves.
• the “AND” node is shown abbreviated “AN” having two or more direct descendants (each of which may have any number of descendants as the root of a subtree, as will be understood generally here in this Figure 36), as indicated by the ellipsis.
• An example direct descendant 3670 is shown for clarity. The value associated with the descendants are shown as s through u. As an example of how such a node can be formed, the product of the direct descendants is shown, such as in a group, so that in some examples nothing about the value n of the AND node is known until all the descendant values are combined with the group operation, shown as “ ⁇ ” in which case the value is fully revealed by forming the inverse and cancelling all factors but n.
• an OR node is shown, much as with the AND node just described. A difference being that each and every of the direct descendants has a value suitable to achieve the value n of the OR node.
• a set of values can be publicly associated with the node that are each a combined using the group operation, in a suitable group, of a random value with the actual node value, shown as ITS.
• an "oblivious transfer” or “OT” node for short is shown.
• the issuer of the access structure does not know some aspect of the OT node; however, the receiver of the access structure knows an aspect unknown to the issuer.
• the issuer can provide the receiver with a value that the issuer can prove cryptographically has a 50% probability of being the desired value w and a 50% probability of being zero, as is well known in the cryptographic art and literature.
• the party providing the access structure is believed disadvantaged as it does not know whether or not the other party of the two has access to w.
• w can be an AND node in a subtree where the other node is a restriction or particular party, as will be described with reference to Figure 36D-E.
• Such a node has in the example a single descendant, which has a value, such as n, at least sometimes unknown to the receiver of the access structure.
• Protocols to demonstrate, typically by the issuer to the receiver, that the secret value n has a more limited range or distribution of possible values than previously known to the receiver are known, such as those described here and referring to E.F. Brickell, D. Chaum, I.B. Damgard, & J. van de Graaf, titled "Gradual and verifiable release of a secret,” appeared in Advances in Cryptology CRYPTO ' 87, Springer-Verlag, pp. 156-166.
• FIG. 36E a whole example access tree structure 3665 is shown.
• the so-called “root” 3690, “R” for short, is shown as a pentagon with one or more direct descendants. Ellipsis indicate that there may be many nodes forming a directed graph of nearly whatever shape; however, the leaves are shown as squares, such as 3680.
• a first type of leaf is can be regarded as an access rule in itself, shown as what may be called trustee party 7, that has in the example for clarity received an encrypted value of key k , that is encrypted with encryption operator e, using key s; thus, the trustee would be contacted and provided s in order to allow it to provide the leaf value k.
• a second type of leaf can here be called a “commitment,” “C” for short, is shown as an encryption of a value committed to using a public key encryption system 3675 such as discrete log modulo a prime, as will be understood: /c A x(mod p).
• FIG. 37 exemplary detailed flowchart, cryptographic protocol, and block diagram for access tree structure traversal is provided in accordance with aspects of the teachings of the present invention.
• the process can be used to form an access tree; in other examples it can be used to attempt to compute the root value from leaves that have been issued.
• start box 3710 the process is shown as a loop. In some example executions only those steps that can be executed are and the other steps skipped over for that pass through; however, skipped steps may be executed in subsequent passes.
• Box 3720 shows the handling of an example AND node by either: determining n from the product of all the s through u, n*s*...*u / s*...*u, as explained already with reference to Figure 36A; or by releasing the product ITS*... ⁇ U in forming the tree.
• Box 3730 shows the handling of an example OR node by either: determining n from any one of the sn through un, as explained already with reference to Figure 36B; or by releasing the n*s,...,iTU in forming the tree.
• Box 3740 shows the handling of an example OT node by either: determining n from any one of the s through u node values that were revealed with some probability, as explained already with reference to Figure 36C; or by the issuer performing the oblivious transfer protocol to the recipient for each of the s through u node values with corresponding probabilities, as already explained with reference to Figure 36C and to be described with reference to Figure 38 A.
• Box 3750 shows the handling of an example RR node by either: performing the protocol as, already described with reference to Figure 36D; or by exhaustive search of the reduced key space that an execution of the protocol proves contains the key, also as already described with reference to Figure 36D.
• Box 3760 shows the handling of an example RR node by either: during issuing providing the trustee with an encrypted key e(s,k); or by contacting the trustee and requesting k, such as would typically include checking of some condition and/or making some public notice by the trustee, as will be understood.
• Box 3770 shows the handling of an example C node by either: during issuing providing the commitment, and optionaily cryptographically proving its correctness by the issuer to the recipient, as already described with reference to Figure 36E; or by verifying the so-called “opening" of the commitment, as is well known in the art.
• Box 3790 is a branch. If the root R has been computed, when the aim of the traversal repetitions is to find it, the branch follows the “yes” leg and completes the process; if the traversal instance is part of building a tree, then it completes only once the tree is completed.
• Figure 38A-B exemplary detailed cryptographic protocol, flowchart, and block diagrams for protocol examples provided in accordance with aspects of the teachings of the invention.
• Figure 38A is an oblivious transfer protocol for an OT node;
• Figure 38B is proof of encrypted share protocol.
• a first party is believed able to obliviously provide n to a second party, with probability 50%, but without the first party knowing whether the second party received n.
• the first party (on the left) is shown creating two values at random: a bit b and a residue z in the exponent group modulo a large prime p of a discrete log system, as will be understood; similarly, the second party also creates two random values from the same respective distributions, a and x.
• the first party sends rand r z to the second party (all numbers except bits are modulo p, as will be understood).
• the second party sends one of two pairs.
• the pair is g x , h x ; however, in case the random a- 1 , then the order of the pair is reversed, h x , g x .
• the second party can compute n in the case that both a ⁇ b and otherwise the second party is believed unable to recover n from this protocol. This is the oblivious aspect. So, if and only if b is equal a, then the second party can raise the first component of the second message to the x power and obtain the pre-image for the one-way function f, and then use that to get the image and then divide that out from the second component in order to recover n as shown.
• h k a single public key
• h k a single public key
• Both parties know the public keys of the nodes (or pseudonymous public keys).
• the first party is shown having a sort of public key, g s .
• the first is the generator g to the first random power x
• the second is a generator h to the power that is the image of the second random number u under a one-way function f (for convenience and completeness the preimages can be taken as group elements and images as elements in the exponent group)
• the third element is similarly the second generator to the power that is the image of the third random number v under the one-way function
• the fourth can be considered an encryption of the sum of the secret values s and x, known in the example to the first party, where encryption is by multiplication in the group by a generator raised to a what may be considered, as will be appreciated, as like a Diffie-Hellman key distribution power, the product to the node private key k and the image of the second random element; similarly, and finally, the fifth can be considered an encryption of the difference of the secret values, s and x, as again known in the example to
• the second party provides a so-called “challenge” bit b that is until this point ideally unpredictable to the first party.
• the first party sends the first pre-image, u, that for the second element sent in the first message.
• the second party checks that the second element sent was formed properly from the generator h and the one-way function f of u.
• the second party also checks that the product of g s , which is known to the parties as mentioned, and the value that should be the g x , sent as the first element of the first message, does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fourth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• the first party sends the second pre-image, v, that for the third element sent in the first message.
• the second party checks that this third element sent was formed as the image properly from the generator and the one-way function fof v.
• the second party also checks that the quotient of g s and the value that should be the g x does in fact form the correct power of g.
• This power should be the payload that was encrypted in the fifth element sent in the first message.
• the decryption of this payload is accomplished by the second party dividing out the generator h to a power. This power is computed as the public key raised to the image power.
• the value of x is revealed by the first party allowing the correct form of the first component of the first message to be checked, as shown, by the second party. While this case may or may not be needed, it is believed that at least it can help with analysis and is safe to include.
• At least two accounts each suitable for holding at least a respective conformant value and for control of the transfer of that value out of the respective account at least responsive to each of at least two respective controlling pieces of information to mean any means or method for maintaining accounts, such as on a distributed ledger or otherwise, whose value is controlled by the first and second parties, respectively.
• a first party and a second party each having joint custody of a first account; a first party and a second party each having joint custody of a second account to mean any means or method, such as cryptographic protocols where only through inputs of both parties are sufficient keys realized by the protocol and/or by smart-contract and/or logic built into a blockchain, and the configuration where both a first and second party information is needed to control each of the two accounts.
• the first party funds the first account with first value conformant to the first account and the second party funds the second account with second value conformant to the second account” to mean that value is somehow transferred by whatever known means by the first party to the first account and by the second party to the second account.
• the first party provides to the second party a series of information aspects revealing enough to allow the second party to obtain the value in the first account; the second party provides to the first party a series of information aspects revealing enough to allow the second party to obtain the value in the first account” to mean that information is passed between the parties in both directions and at multiple times such that after enough such transmissions the two parties each obtain enough information to gain enough control of the respective account, the first party of the second account and the second party of the first account.
• box 3960 it may here be said that "such that if the plural steps are substantially completed, the first party obtains access to the second value and the second party obtains access to the first value” to mean that resulting from the transfers of box 3950 each of the two parties is able to obtain control of and/or access to the respective value in the two accounts.
• Figure 40A-B exemplary detailed flowchart, cryptographic protocol, and block diagrams for variations and enhancements of the overall swap are provided in accordance with aspects of the teachings of the invention.
• Figure 40A is includes variants and also optional enhancements for commits and refunds;
• Figure 40 B includes an access tree steps and structure.
• a second variant swap obtaining access by at least one of the two parties in the form of information authorizing transfer of the value to an account at least potentially controlled by the one of the two parties” to mean that in another variant of the swap described with reference to Figure 39, the transfers from the first party to the second party are enough for an authorization to be released, such as a digital signature or other authenticated message, that instructs the account management system to transfer value from the first account to an account of the second party and/or an account controlled by the second party and/or an account otherwise selected or approved by the second party.
• an authorization to be released such as a digital signature or other authenticated message
• a commit key revealed from one of the two parties to the other of the two parties by completion of the information transfer steps to mean that a key and/or other controlling authentication information is revealed, from one party to the other party, by the series of transmissions; in some examples, for instance, this can be the pre-image of an image under a cryptographic one-way function and/or a public key that has been associated with a “stake” or “deposit” or “security” account to at least temporarily lock it and then, when it is known and/or a suitable signature made with it is shown, the account can be unlocked.
• “at least one node of an access tree allowing the other of the two parties to limit the key space search need to obtain access” to mean any cryptographic protocol proof, such as a so-called zero knowledge and/or minimum disclosure, that convinces the receiving party that the key information lies in a particular limited range or has a probability distribution that is more restrictive than before such a proof.
• any cryptographic protocol proof such as a so-called zero knowledge and/or minimum disclosure, that convinces the receiving party that the key information lies in a particular limited range or has a probability distribution that is more restrictive than before such a proof.
• “optionally at least one node allowing a pre-defined party to contribute to whether access can be obtained” to mean a node in an access tree that in some way indicates the party that can contribute the value needed for that node to provide access.
• the identity of the party can be obtained from the node definition; in other examples, as disclosed elsewhere here, the party may be identified only by pseudonym or otherwise unlinkably until a process is initiated to locate the party.
• FIG 41 an exemplary detailed cryptographic protocol, flowchart, and block diagrams for a probability-game release protocol is provided in accordance with aspects of the teachings of the invention.
• the first party is shown above the left side of the protocol and the second on the right; accordingly, as typical in the art, the arrows from the left show messages sent from the party first party to the second party and those to the right those sent by the second party to the first.
• each party has two secret exponents for two corresponding public keys and there are two agreed cryptographic functions and one main agreed parameter.
• the public keys are shown for each party: the g a for the first party and g b for the second party may be more ephemeral than the g 5 and g f , the other two public keys for the two parties, respectively.
• these can be a public generator g raised to the secret exponent power modulo a cryptographically-suitable prime as are well known.
• the function f ⁇ ) shown is believed useful in causing delay in computing in that is difficult for a party to reduce to below some level.
• Cryptographic functions with similar purposes are known in the art, such as under the rubric of “delay functions” or “sequential work.”
• delay functions or “sequential work.”
• the following work and its references are included here by reference as if copied in their entirety: Mohammad, Moran, and Vadhan, “Publicly Verifiable Proofs of Sequential Work,” 4th Conference on Innovations in Theoretical Computer Science, Berkeley, CA, January 2012.
• the delay is believed desirable to prevent a party from computing f before submitting the corresponding image under / inverse to the other party, at least within the agreed timing regime established for the protocol.
• the function /?() which can be taken to be a symmetric one-way function mapping group elements to group elements, for convenience here, is only an example way to produce a series of ideally at least likely generators of at least large subgroups with negligible probability of any multiplicative or other exploitable structure between the images of small integers.
• a distinguished image, such as h(1), may be defined to take any desirable value such as for compatibility with instances of other protocols, as will be appreciated for ultimate unlocking of value by the successful protocol completion case.
• the values h(1) s and h(1) f are the secret values to be exchanged; before the protocol, h(1) s may be known to partyl and h(1) t to party2; however, after successful completion of the protocol, both parties will know h(1) s and h(1) f . Proof that these values can be used to recover other values committed to in various ways depending on the type of commitment, as known in the art, such as using the so-called Chaum-Pedersen proof of equivalent exponents.
• the integer parameter k is used in the example as the agreed maximum number of instances that should occur in the simple example case where exactly one of the k instances is the what can here be called “matching value” guaranteed to yield the exchange of key values when it is selected by the iteration as will be described.
• Matching value the what can here be called “matching value” guaranteed to yield the exchange of key values when it is selected by the iteration as will be described.
• Many other variations and examples are anticipated, such as where there is more than one possible matching value within the k instances and/or where the number of instances is changed during the iteration process and/or where the instances are accumulated.
• the example of a pre-defined k with single match is described here.
• the message is believed ideally in some examples proved, such as by an explicit proof sub-protocol indicated, to be of the form of the example shown on the remaining portion of the arrow from partyl to party2.
• the payload of that arrow uses a permutation p, which is a random permutation of the integers from one up to k, that is chosen by partyl as a random secret key.
• p is a random permutation of the integers from one up to k, that is chosen by partyl as a random secret key.
• Each component of the vector of encryptions, performed in the example by exponentiation (modulo the agreed large prime as mentioned used throughout the example) with the secret key corresponding to the public key g a , already described, is of an image under h, as already described, of the respective index integer.
• the first payload element shown is the image of the integer p(1), which as will be understood can be any integer between one and k inclusive.
• the one-way function h is applied to what can here be called the “pre-image” p(1 ) to produce what can here be called the “image” h(p( 1 )); the resulting value is intended to be distinct and without known or exploitable structure relative to the other images as mentioned.
• the second component has the image under h() with pre-image p( 2), the additional k- 3 values are indicated by the ellipsis, and the final value is indicated as having pre-image p(k).
• the third message that shown sent from the part2 to partyl , it is similarly made up of a proof about its own k elements or components of the k- tuple following the proof in the message.
• each of these elements corresponds one-to-one with an element of the payload from partyl already described, and each component has been encrypted with the private key corresponding to the public key g b .
• the re-arranged order in which these elements are included in the message is believed ideally similar to the first permutation, a secret permutation chosen roughly independently and uniformly at random, but in this case by and known to the second party.
• a simple example is where all but one row is opened by the first party to the second party for inspection by the second party and the unopened row is used further; this simple approach can also be applied by the second party in proving to the first party, as will be understood, when the second party generates a number of response vectors.
• the odds of successfully cheating with such a single-selected-row proof is about one in the number of rows and this can it is believed advantageously be adjusted to be comparable or less attractive to the odds of getting caught in a later stage that is believed in some examples to be about one in k. Accordingly, it is believed that a simple open-all-but-one style cut-and-choose can be used here, if desired.
• example version of the first proof is where the counterparty, or a beacon or the like, instead chooses half of the rows to be opened completely by the first party to the second party.
• the first party provides a partition of the components of all remaining row vectors according to, for instance, the first unopened row, where each partition is to contain the same pre-image under h().
• the second party can then multiply (or otherwise combine depending on an available structure of the cryptosystem) all the elements of each partition.
• a table can be made from the result of the first proof and the first proof technique then applied to the resulting table after the second party permutes the position of the rows and also permutes within each row. With such proofs provision, as will readily be understood, would be made for the combined value of k ⁇ 1 ) to recover the exchanged value key, such as for instance and updating of the access proof or values to include the new product of images.
• the next section of the protocol is repeated potentially k times, and for each instance the value of j is increased by one, starting from 1 and ultimately reaching k in the example, as is indicated in pseudocode notation as was mentioned.
• Two messages are shown with arrows pointing towards each other. This notation is intended to indicate that each of the two parties is to send a message at about the same time to the other party.
• the resolution and/or accuracy and/or precision and/or synchronization of the timing of these messages is ideally believed coordinated by protocols known in the art of realtime systems. An example would be to use real-time clocks that are themselves coordinated by known techniques.
• the function f is selected, at least ideally, so that the amount of time believed at least needed to compute f is roughly at least within the differences in time available to the parties when messages are exchanged within the limits imposed under the coordination regimes, as mentioned.
• the first party forms the message from the /th component of the third message /c-tuple by including two powers and applying f inverse to the result.
• the first power is the inverse of a in the exponent, to cancel the a that should be present.
• the exponent a was already described when committed in the initial double-sided arrow and in forming the second message.
• the second exponent is the secret power s, as committed to in the initial double-sided arrow already described.
• the inverse of the function f shown as f ' ⁇ is then applied, with scope as indicated by square brackets “Q”.
• the second party forms the message from the /th component of the third message by including the two corresponding secret powers and applying ⁇ 1 to the result.
• the first power is the inverse of b in the exponent, to remove the b, as already described with reference to the double-sided arrow and the third message.
• the second exponent is the secret power t, as already described as committed to in the initial double-sided arrow.
• each party can check, as indicated by the pseudocode shown “if k(1) then done,” whether or not this is the secret that they can use to complete the release or if it is one of the other k- 1 that mean repeating.
• the way it is believed they can check is to remove their own exponent, a in the case of the partyl and b for party2, and then try the result to see if it opens the committed value already mentioned as known to each party.
• the h(1 ) is in another position in the third message’s vector and the protocol should be repeated, as indicated by the pseudocode “otherwise continue ‘for’ loop.”
• a proof can be included with each message of an iteration, not shown for clarity, allowing the party to rule out the case that the counterparty has formed the message improperly. If a party does not send within the agreed timing regime and/or sends an improperly formed message, such as with no proof or an invalid proof, then the receiving party should stop the iteration process and, ideally, the offending party can be subject to penalty, such as fine and/or reputation harm.
• a cryptographic protocol between two parties for conducting a fair exchange of at least temporarily secret values where the first party has a public key and corresponding secret exponent and the second party has a public key and corresponding secret exponent and the first party has a secret value at least temporarily kept from the second party and the second party has a secret value at least temporarily kept from the first party” to mean any setup where each of the parties has at least a public key and a private key and each has a secret kept from the other party at least until some point in the protocol.
• the first party proving to the second party that components of a first vector are each formed from a hidden permutation of members of a set of images to mean a cryptographic proof technique or the like whereby the first party can convince the second party, at least to a pre-arranged degree, that certain images are hidden in among a set of encrypted values, but which image is in which encrypted value remains a secret of the first party at least at this point in the protocol.
• the second party proving to the first party that components of a second vector are each formed from a hidden permutation of different elements of the first vector to mean any cryptographic proof technique used by the second party to adequately convince the first party that the second vector of encrypted values provided by the second party to the first party is of the correct or at least adequately the correct form.
• the first party proving to the second party, using the public key of the first party, that the secret kept from the second party is decryptable from a value supplied by the first party to the second party when a distinguished component of the initial vector is raised to a secret exponent of the first party to mean any suitable cryptographic proof that the vector is well formed at least in the sense that at least one of the elements when raised to a secret power corresponding to a public key of the second party will allow that first party to obtain the particular secret being kept by the first party from the second party usable to consummate the exchange of value.
• cryptographic proof can be used h (anywhere here to include both what are sometimes referred to as interactive and/or non-interactive proofs, whether they are based in whole or in part on computational assumptions and/or are statistically convincing and whether and to whatever extent and under what assumptions they provide privacy of inputs.
• the second party proving to the first party, using the public key of the second party, that the secret kept from the first party is decrypts ble from a value supplied by the second party to the first party when the same distinguished component of the initial vector is raised to a secret exponent of the second party to mean any suitable cryptographic proof by the second party to the first party that the vector is well formed at least in the sense that at least one of the elements when raised to a secret power corresponding to a public key of the first party will allow that first party to obtain the particular secret being kept by the second party from the first party usable to consummate the exchange of value.
• the first and second party conducting, for at least one corresponding component of the second vector, at a coordinated time per component of the second vector, an exchange of values, and until the of the second vector is the distinguished component to mean any suitable loop or repeat protocol structure or step or system where each of the two parties provides information to the other of the two parties and where that information is related to a one of the elements of the third message vector selected mainly by or mutually randomly for the particular iteration.
• the revealing includes a time delay by encryption arranged for that purpose" to mean that an amount of computation is believed built in to recovering the actual message content from the information exchanged that the amount of time to conduct that computation is arranged so that it is believed to take more time than would be needed to first conduct the computation, check the result, and then decide whether or not to send the information for that iteration to the counterparty so that it arrives in time according to the pre-arranged setup.
• the revealing includes a time delay that is caused by the speed of light in a configuration arranged for that purpose " to mean that the physical distance and/or believed minimal communication path length between participants is such that the amount of time taken for information to travel between the participants is adequate to prevent one party from receiving information about a particular iteration and then providing the information for that same iteration to the other party in time according to the pre-arranged rules to be accepted by that other party as properly sent by the one party.
• the proof that the first vector is a permutation of encryptions of the set of images including forming plural candidates by the prover and the choice of which of the candidates are opened outside control of the prover”
• the unopened candidates used in subsequent steps combined multiplicatively according to permutations supplied by the prover to mean a proof technique that, as mentioned with reference to Figure 42, includes combining elements from multiple vectors according to a partition schedule supplied by the counterparty once the particular vectors to be opened have been determined.
• proof that the second vector is a permutation of encryptions of the components of the first vector including forming plural candidates by the prover and the choice of which of the candidates are opened being outside the control of the prover to mean any cryptographic proof technique that opens many rows and the combines the remaining unopened rows as the output, where the combining is believed advantageously according to information not revealed to the counterparty until the selection of which rows have been opened.
• the unopened candidates used in subsequent steps combined multiplicatively according to permutations supplied by the prover to mean a proof technique that, as mentioned with reference to box 4340, includes combining elements from multiple vectors according to a partition schedule supplied by the counterparty once the particular vectors to be opened have been determined.
• the exchanged value secrets including keys that give control over stored value to mean that the information that each of the parties obtains when the iteration is of the distinguished component and the messages were properly formed then the parties each obtain keys or other information that gives them each access to the value that their respective counterparty has committed for the swap.
• the value of the stake substantially one part in k of the value of the stored value to mean coordination of two expected values so that at least a rational party will not be incentivized to cheat by improperly forming the communication of an iteration.
• the other party is believed to be able to detect this and even to offer evidence of it in the form of a signature supplied by the party on the message; so, it is believed that the party forming the improper message will lose the stake almost certainly as a consequence of sending the message.
• the left column 4410 is a set of candidate refund agents, each shown as a hexagon. They each submit to the approval process 4420, shown as the first dashed box vertical. In the example one candidate 4411 does not gain approval and does not pass through; this line ends in a small square. The approved agents each have a single input to the next dashed box, the first what is called here “mixing,” ml 4430.
• the output of this mix comprises items that were selected by approval 4420. These items are shown for clarity as lines that bring them each to a respective member of the first collection of intermediaries 4440, shown each as octagons though one or more in general may be the same entity.
• intermediaries 4440 are shown between mixes ml and m2. For clarity, m2 is shown as a dashed line only, without showing the example mix nodes as already shown and described with reference to mix 4430.
• One example refund agent is shown providing an input public key, denoted a.
• This can be taken to be, for instance, as will be understood, as a public key in a discrete log system where g is the generator and w is the exponent secret key.
• This value passes through the plural mix nodes, as indicated by the ellipsis, and emerges positioned for an intermediary 4444; which position has been obscured by the composition of the permutations of the mixes, as will be understood.
• the ellipsis between mix m2 and mix m/7-1 can represent a series of intermediaries alternating with mixes, ultimately including n mixes. As will be understood, if there are no other intermediaries, the two mixes can be merged, but more generally there can be any number of mixes and intermediaries intermingled, where n- 1 intermediaries would for instance make up an orderly alternating pattern.
• the example value b passes through the plural mixes and intermediaries, as indicated by the ellipsis, and emerges in an example position 4455.
• This value is then shown emerging from mix mn 4460 at a randomized location and entering posting 4470 as k(p).
• pairs 4490 of counterparties conduct cryptographic protocols to determine mutually random values.
• An example similar to what has already been described with reference to Figure 34, believed known in the prior art, is provided here for concreteness: partyl first applies a one-way function to r and provides the image under that function to party2, who replies with a random value s and then partyl provides the pre-image r; similarly, PartyS first applies a one-way to u and provides the resulting image to party4, who replies with a random value vand then partyS provides the pre-image u.
• Dashed box posting 4470 indicates the results of the mixing being made available for use by counterparties and the like as k(i), i between 1 and m inclusive.
• the multiple planes are intended to indicate that multiple instances of the preceding can be used to compute multiple complete sets of refund agent 4410 pseudonyms; or, alternatively, larger collections that have higher multiplicities of agents can be used knowing that there may be some duplication, which will depend statistically on the actual sizes of subsets drawn, as will be understood.
• Dashed box 4480 provides an example of how the values rand s are used to compute a random set of pseudonymous refund agents, similar to what has already been described with reference to Figure 34.
• the two values are added and the result reduced modulo the number subsets that can be selected between.
• the subset can be computed from the residue class determined, by well known algorithms. This is shown symbolically, though non- standardly for clarity, using j choose k notation, to indicate j items selected from the collection of m public keys.
• Figure 45A is one example description of insertion of intermediaries between providers and users; and Figure 45B is a second example description of insertion of intermediaries between providers and users.
• plural providers each having at least a public key and users being able to encrypt messages for decryption by the providers” to mean any way to allow users to obtain public keys that can be used to encrypt data that can then be decrypted ultimately by an anonymous one of the providers, with cooperation of at least one intermediary party.
• re-encrypting the public keys, the output of one mix, by one or more intermediate entities to mean any way to modify the public key received originally from a provider entity so that it is no longer recognizable by the provider entity and the decryption of values encrypted with it is no longer readily performed by the provider entity.
• the one or more intermediate entities providing the re-encrypted public keys as input to a second mix operated by mix nodes to mean encryption of public keys so that keys of the party doing the encryption would apparently be needed to decrypt items that are later encrypted by the re-encrypted public keys.
• plural providers each having at least a public key and users being able to encrypt messages for decryption by the providers” to mean public keys that can be used to encrypt messages and where decryption of the messages requires cooperation of at least one such provider.
• Figure 46A is the funding of two respective holding accounts
• Figure 46B is a swap by releasing control of the respective holding accounts
• Figure 46C is a swap releasing respective signatures for value transfer or a payment release one of the signatures to a payee; and 46D is a swap releasing one signature for value transfer and the other to holding account or a payment release one of the signatures to a payee and the other to a holding account.
• the first holding account 4605 is shown with joint custody between partyl using joint partial key 4632 and party2 using joint partial key 4634. Both partial keys are believed needed to move value from the account 4605, however, party 1 is assumed here to have moved the value shown by the diagonal hatch into the custody account 4605, which account is shown with dashed lines.
• the second holding account 4607 is shown with joint custody between party! using joint partial key 4644 and party2 using joint partial key 4642. Both partial keys are believed needed to move value from the account 4607, however, party 2 is assumed here to have moved the value shown by the horizontal hatch into the custody account 4607, which account is shown with dot-dash lines.
• the party2 now has a key 4635 that controls the ability to move value from the first holding account 4605, for example obtained by a mutual release protocol such as those described elsewhere here, for instance a mutual release protocol that fairly exchanges values committed to by the respective parties, as will be understood.
• party! now has a key 4637 that controls the ability to move value from the second holding account 4607, also for instance obtained by a mutual release protocol that fairly exchanges values committed to by the respective parties, as will be understood.
• first holding account 4615 and the second holding account 4617 are shown with value having been removed by first signature 4664 and second signature 4668. Accordingly, the value is shown in solid-line accounts, to distinguish from holding accounts, being accounts of the recipients of the value: party2 received the value in 4635 and has (in the example shown unilateral) control over moving all or part of it using signing key 4652, as will be understood; party3 received the value in 4636 and has (in the example shown unilateral) control over moving all or part of its using signing key 4657, as will be understood.
• partyS can in some examples be simply another name for partyl , which is believed would be consistent with a swap between party! and party2, as described in detail variously elsewhere here. However, it will be appreciated that partyS can also be a true third party, distinct from party! and party2.
• party three can be the payee and/or owner of the destination account of a payment made to party3 by partyl .
• the type of value, or the choice of ledger can be that selected and/or requested and/or determined by partyS; however, the type of value, or the choice of ledger, available to partyl may differ. Accordingly, the swap with party2 allows partyl to translate and/or trade and/or swap the value type held into the value type for partyS.
• a swap releasing one signature for value transfer and the other to a holding account or a payment release one of the signatures to a payee and the other to a holding account is shown.
• one portion of the transfer is by providing access directly to a holding account, which it is believed might not be as desirable for a third party, since checking that the former counterparties might not be able to have some ongoing access to the account is believed at least cumbersome and/or difficult and/or infeasible in some examples.
• the second portion of the transfer, that using the signature 4668 to move the value to account 4656 shown as for example exclusively controlled by partyS may be more practical and/or desirable.
• party2 receives value by obtaining control over holding 4605 shown dashed by key 4535; while party3, that may be the second party to a swap or the third party receiving payment, has control over account 4656 shown solid-line by key 4659, which obtained value from holding 4617, shown dot-dash, by signature 4668.
• Figure 47A is a swap between two parties; and Figure 47B includes options and swaps between parties as well as for payments to third parties.
• the first committed value giving access to the value in the first joint custody account and the second committed value giving access to the value in the second joint custody account to mean that in some way, such as by cryptographic signing keys and/or digital credentials and/or third party cooperation, the values committed to, respectively, give access to the joint custody accounts.
• the first and the second party mutually releasing, at least to each other, information opening the first commitment to the second party and the second commitment to the first party to mean any way whatsoever that allows the parties to, with protection of whatever kind against one party releasing while the other party does not, mutually release the values committed to in effect to each other and/or otherwise so that the effect of such release is achieved.
• the second value controlled transferred to a third party by the second committed value at least including a signature transferring value from the second joint custody account to an account designated by the third party “to mean any way whatsoever that the signature transferring value to what may be called here “party3” or the "third party” is in effect a payment or other kind of value transfer to a party that was, at least optionally, not one of the two parties to the underlying swap or exchange, as will be understood.
• the second value controlled transferred to the first party by the committed value being a signature transferring from the second joint custody account to an account controlled by the first party” to mean that in some examples the beneficiary of the transfer is the first party, at least generally the party or group of parties or interests or the like that participated in transferring the value to the second party through the holding account arrangement, as will be understood. Accordingly, this case differs from that described with reference to box 4760 in that the third party is one of the original parties.
• the first value controlled transferred to the second party by the committed value at least including signing information for controlling the first joint custody account “to mean any means or method for transferring information related to the first joint custody account including by the first party to the second party where the information is related to the committed information and where the information in effect gives control of transfers out of the first custody account to the second party.
• the first value transferred to the second party by providing a signature formed using the signing information controlling the first joint custody account transferred to the second party to mean any way to provide a signature or the like related to the first custody account that in effect by whatever means or method causes and/or allows value to be transferred from the first custody account to an account controlled by and/or associated with the second party or related parties.
• FIG. 48 exemplary detailed cryptographic protocol, block diagram and ledger data diagrams for value swap and payment are presented in accordance with aspects of the teachings of the invention.
• the timeline is shown across the top with times t 1 and t 2 indicated, such as block heights and/or real times, and also by descending dashed lines for clarity, as will be appreciated.
• the first party, partyl is shown controlling wallets on two blockchains, C 1 and C 3 ; similarly, party2 is controlling wallets on the chains to its right, C 2 and C 3 ; where C 3 is the same blockchain used by both partyl and party2.
• shown shown is block 4810 on chain C 1 including wallet si after ti and before t 2 .
• partyl that can be called “payer” is to pay a party5 that can be called “payee,” not shown for clarity, by transferring an amount V 2 on C 2 to d 2 .
• the block 4830 of blockchain C 3 is shown containing the following exemplary values: the what may be called “stake” z for the transaction; the images under one-way f of hi and /?2, used for unlocking the value z on settlement; a public key, formed for instance as the secret key power x of the generator g in the Diffie-Hellman discrete log group, as will be understood; the integer one, used as a tag to indicate that this is the first of the two related wallets on C3 so its parameters are the first set in the list to be described; and the image under hash function h() of the parameters, defined by the equal sign and shown for clarity as h.
• the exemplary parameters include: the first and second times, ti and t ⁇ , respectively; indication of first blockchain cr, the value vi to be moved on the first blockchain; the source address $1 on the first blockchain; the destination address di on the first blockchain; indication of second blockchain C 2 ; the value V 2 to be moved on the second blockchain; the source address S 3 on the second blockchain; and the destination address d 2 on the second blockchain.
• the messages sent between partyl and party2 are shown in two collections, those 4850 sent before time ti and those sent after the transaction closes 4855.
• the first collection includes agreements on values including the parameters and two cryptographic proofs.
• the parameters agreed shown are: the backing amount z, the hash of the parameters, h, as defined in 4830, the two one-way function images used for locking, f(hi ) and l(/? ⁇ ) as well as the public keys, g * and g y , as shown in the respective blocks of C 3 .
• the first proof, from partyl, shown provided downward in the plane of the figure, to party2, is that a value provided is the encryption under e of the secret exponent x of partyl along with the parameters h. In some examples this can be using the techniques introduced with reference to Figure 38B; this is believed to allow the “refund agent” or the like to decrypt with e, if time tz has already passed and the value vi not arrived at di, to access x and use it to move the value z to the possession of party2 and/or optionally to d 2 .
• the second proof, from party2, shown provided upwards, to partyl is that a value provided is the encryption under e of the secret exponent y of party2 along with the parameters h.
• this release will not be allowed by C 3 until time t ⁇ has passed, at least not for party2 if partyl has a corresponding wallet on C 3 ; this is believed to advantageously allow the payee to supply the respective encryption proved to the respective party3 and/or party4 who should then by whatever means cause all or part of the value vto be converted from C3 so that it can appear as V 2 on and be transferred on blockchain C 2 to d 2 .
• the payer can supply a version of the respective proof or proofs to the payee along with a proof by ci or C2 that v is locked in a wallet referenced by the parameters in the hash related to the particular proof.
• a first and a second party agree on parameters, including: a backing value, a first time and a second time, a first and second public key, a first amount from a first ledger and its source and destination wallets, and a second ledger amount and its source and destination wallets” to mean that the parties agree on a set of values as indicated and described also with reference to the exemplary embodiment of Figure 49.
• the first party provides substantial cryptographic proof to the second party that a third party has private key information related to the first public key information and related to the parameters” to mean any kind of zero knowledge and/or minimum disclosure and/or other technique for giving from one party to another party any statistical and/or cryptographic confidence, and to whatever extent that confidence is agreed low or high, conviction and/or certainty about a fact, such as whether a particular public key can be used to decrypt a message and that the result of such decryption will be a value or values that are committed to and/or known to the parties, such as a private key and a hash of parameters.
• the second party provides substantial cryptographic proof to the first party that a fourth party has private key information related to the second public key information and related to the parameters ” to mean again, for instance, that a particular public key, such as of a fourth party and as described further for instance with reference to Figure 44, can be used to decrypt a message and that the result of such decryption will be a value or values that are committed to and/or known to the parties, such as a private key and a hash of parameters.
• the first party before the first time, to provide the backing along with the parameters and the first public key to the third ledger
• the first party in effect locks up some sort of agreed value on a blockchain ledger in such a way that it can primarily be unlocked only once the second party agrees, such as by providing a pre-image or other value that can be checked by that blockchain ledger as having come from that second party (or the fourth party(s) agree by providing something that could have mainly only come from that fourth party, such as a signature using a private key committed to by the first party).
• the second party before the first time, to provide the backing along with the parameters and the second public key to the third ledger ” to mean that the second party in effect locks up some sort of agreed value on a blockchain ledger in such a way that it can primarily be unlocked only once the first party agrees, such as by providing a pre-image or other value that can be checked by that blockchain ledger as having come from that second party (or the fourth party(s) agree by providing something that could have mainly only come from that fourth party, such as a signature using a private key committed to by the second party).
• the first party, before the second time, to transfer the first value on the first ledger from the first source wallet to the destination wallet to mean any way that the first party can affect the first ledger to move the value between the accounts in a way that conforms to the parameters.
• the second party, before the second time, to transfer the second value on the second ledger from the source wallet to the destination wallet to mean any way that the second party performs or other ensures the occurrence of that conforms to the transfer described and/or indicated in the parameters.
• a wallet on the third ledger is provided with a private value corresponding to the public value, then that wallet is freed of parameters” to mean that a wallet on the third ledger in effect unlocks or otherwise allows the use of the value once it has received the private value; some examples include pre-images to images that are believed one-way functions; other examples include signatures or the like that evidence possession of and/or access to certain values.
• public information related to unlocking one wallet on the third ledger at least in some scenarios, such as the mutual unlocking in the expected case, is replicated on both ledgers so that if one is unlocked by this means the other is as well by the rule, for instance, that both pre-images must be shown to unlock either one.
• the third party requests that at least a portion of the value in the first wallet on the third ledger be refunded to the second wallet on the third ledger” to mean that the third party who obtains the private key information, such y, is to use it to sign a request to move the locked value and/or a portion of it, from the account of the party that did not complete the transaction, when that party is the second party, according to the parameters.
• the fourth party requests that at least a portion of the value in the second wallet on the third ledger be refunded to the first wallet on the third ledger” to mean that the third party who obtains the private key information, such x, is to use it to sign a request to move the locked value and/or a portion of it, from the account of the party that did not complete the transaction, when that party is the first party, according to the parameters.
• FIG. 50 an exemplary detailed combination cryptographic protocol diagram, block diagram, flowchart and blockchain diagram for an immediate value transfer system with translation and variations will now be described in detail and in accordance with aspects of the teachings of the invention.
• a timeline is shown across the top; the three ledgers are shown with various wallet states horizontally, with the third ledger shown in portions on two rows; and counterparties are shown pictoriaily and distinguished by numbers.
• time t is positioned at a point horizontally across the top, as indicated by the dotted vertical line.
• the three ledgers are labeled c3, d and c2, respectively, where example blocks 5010 and 5020 of c3 appear on different rows for clarity.
• the first ledger, d is intended to be where the first party 5050, partyl , places the value v1 5035 that party is to move to a wallet 5045 of the second party.
• the second ledger, c2 is where the second party 5060, party2, is to move value v2 from a wallet of party2 to 5040 the wallet of party three, party3, that is to be in effect the recipient of the payment. It is expected that d and c2 are in general different, such as various currencies or "tokenized assets,” and so partyl is in effect paying partyS in a medium that party2 uses but is exchanging for the medium of d used to make the transfer to party2 by partyl .
• the third ledger, c3, is where party2 and partyS commit value v and to the parameters of the payment from partyl to partyS generally. More specifically, in the example, first partyl commits value z and reveals a public key g y for which it has typically exclusive access to the secret signing key y, such as in a discrete log system as are well known. It is this public key that then, in the example, signs the block 5025 committed by party2, thereby tying the two wallets together.
• the tying together could also be achieved it is believed if the first wallet is formed after the first party knows the second c3 wallet information; however, in the example, the advantage of the arrangement shown is believed to be that partyl is able to get the commitment on the ledger and available for checking by partyS before the particular party2 has been found, identified and/or locked in.
• partyl and party2 can agree before the posting to coordinate the transactions without the signature being in the second block, but for instance with an unsigned pointer in the first block to the second block.
• partyl and party2 are shown receiving control back of their respective values v after the expected case confirmation of the entire transaction.
• PartyS is also shown there receiving the value d2 on the ledger, in the expected case, but in some cases may receive vor a portion of it instead as will be described.
• the first ledger is where partyl is to transfer from wallet 5035 containing s1 the value v1 to the wallet 5045 of party2 so that it contains d2.
• party2 5060 is associated with wallet s2 and transfers the value v2 to wallet d2 5040 associated with party three, as indicated 5047.
• party three receives the translated value v2 that partyl is paying to partyS on the ledger of and into the wallet of party3.
• the lower dashed arrow 5095 to party three on the right of the dotted line indicates that in other scenarios it may occur that party3 is to be compensated on c3, as will be explained.
• the third ledger c3 is shown with three example kinds of wallet state.
• the wallets of partyl and party2 are shown with the original backing value v in them and without additional data, to indicate that each party can at this point access the value in their respective wallet; the value is no longer what may be called “locked up” or “backing” the transaction to party3.
• the first state of the wallet 5015 of partyl on c3 in block 5010 is shown with five example values: z, g y , v2, d2, t.
• z is the backing value that is believed ideally in excess of the anticipated value of d2 by some margin to allow for various contingencies, as will be described.
• the wallet contains the public key g y as mentioned that allows signatures to be made by partyl and checked by anyone with access to c3.
• the actual value that partyl wishes to pay party3 is shown as v2.
• the wallet 5040 into which the value is to be paid to party3 is d2.
• the deadline time for the transaction, t shown explicitly here can in some examples it is believed be implicit, such as a function of the so-called “block height” or realtime creation of the block 5010.
• the second example wallet state 5025 for the third ledger in the second example block 5020 on c3 is show as including four values: z, g y , sig(g y , h), h.
• the backing value z has already been described and is shown also stored here as a value in this wallet of party2.
• the public key has already been described and its representation is simply copied here as will be understood; however, in some examples so-called key fingerprints could it is believed be used instead.
• h is a hash image under a function with the same name, h, or other cryptographic operation or even the identity function binding a set of parameters for the transactions, as will be understood.
• the next four parameters are for the first ledger, d , where value v ⁇ is to be transferred by partyl from source walled s1 to destination wallet d1.
• the last four parameters are for the second ledger, c2, where value v2 is to be transferred by party2 from source walled s2 to destination wallet d2 5040.
• two additional flows of value are shown dashed line.
• value vor a portion thereof is taken dashed-line 5080 from partyl and provided to partyS.
• value v or a portion thereof is taken dashed line 5090 from party2 on ledger c3 to partyt on ledgers.
• first partyl commits to pay partyS by posting on c3 as shown.
• party3 obtains from ledger c3 authenticated information, shown as dot-dash line 5075, related to the wallet 5015 of partyl that includes the amount v2, destination account c/2, and optionally time t. This is believed to be in some examples an adequate “proof of payment’’ or at least a near equivalent that partyS can use in interacting with partyl, as will be understood.
• party two is shown forming block 5020 on c3 that can be interpreted as accepting partyl ’s proposition of party2 transferring v2 to d2 in exchange for v1 being provided by partyl to cf1.
• party2 has committed value z to the transaction and it is believed only receives it back after completing its part of the transaction; if it fails to complete its part, all or part of this value is sent 5090 back to partyl , as will be described.
• the two wallets 5015 and 5025 of c3 shown are linked by gx , and also by the signature, with that of partyl being the initiator because it has formed the signature and thereby agreed in effect to the second wallet 5025 as being tied to the first 5015.
• This signature also allows partyl to check and then binds partyl to the parameters of h, as already described.
• Paryl and party2 can, in some examples, have found each other willing to make this arrangement through a bulletin-board matcher-node arrangement, as has already be described earlier.
• partyl moves vl to d1 and party2 moves v2 to d2 and party3 learns 5075 that the value is present and the whole transaction completes at least for instance because by time t both c3 wallets 5015 and 5025 are unlocked, as shown right of the vertical dotted line as described.
• party3 finds it has not received value v2 in d2 by time t, then what may here also be called an “adjudicator 1 ’ or multiple such parties, can be contacted by partyS to resolve the matter; similarly, if party2 finds that it has not received value ⁇ A in wallet d1 , presumably a default by partyl , then party2 may contact one or more adjudicators.
• value can be moved on c3 in favor of the calling party (note that partyS is not shown having a wallet on c3 though it can have such a wallet and/or another party may translate the value to a wallet that it does have, as will be understood).
• An adjudicator can be determined for this transaction in a predefined manner, as will be appreciated, such as by an indication being included in the wallet 5015 or by choice of one of the parties; however, the choice is believed more resistant to manipulation if the adjudicator is selected in a manner at least partly outside the control of the parties to the transaction.
• the adjudicator can be a pseudonym entry in the final output batch that is a function of the ledger hash or random at a predefined time, such as at the block height of the initiating block 5010 as just one example.
• multiple or subsequent pseudonyms can be selected in a similar manner, such as in case of non-response and/or for corroboration and/or for redundancy.
• adjudicators can determine which of the two cases pertain by determining whether by time t the appropriate value was in fact in c/1 or d2. If it was in both, then the transaction is believed to completed normally, as has already been described. But if it is in not in d2, then the decision should it is believed be in favor of partyS over partyl as indicated by arrow 5080. If value is in d2 but not in d1 , then a decision should it is believed be in favor of party2 over partyS as indicated by arrow 5090, which can also be understood as emanating from wallet 5015 as with arrow 5080.
• a wallet on a third ledger populated by a first a public key, a value, a destination wallet address on a second ledger, and a time to mean that a blockchain and/or other ledger type includes a so- called “wallet” information portion that encodes values including a public key, backing value amount, a destination wallet address optionally on a second ledger and optionally a time however encoded, whether implicitly or explicitly.
• a third party checking third ledger authentication information that the first party is to at least cause transfer of an amount in favor of the second wallet on the second ledger to mean any verification by a third party and/or another related party that informs the third party that the backing value is in effect locked or held or escrowed on the third ledger in favor of the second wallet.
• the first party forming a signature designating a second party to populate a second wallet on the third ledger that includes: the public key of the first wallet on the third ledger, a first wallet address on a first ledger to receive an indicated first value, and the same second destination wallet address on the second ledger and the same time
• the first party forms a public key signature and/or other suitable digital authentication to indicate that the first party is in accord with or otherwise supports the second wallet information on the third ledger.
• transferring by the first party on the first ledger in favor of the second wallet on the first ledger the amount before the time and transferring by the second party in favor of the second wallet on the second ledger the amount before the time to mean any means or method whereby transferring of value in effect caused by the first party in favor of the second party on the first ledger and any means or method whereby transferring of value in effect caused by the second party in favor of the second wallet on the second ledger.
• the adjudication party deciding that the third ledger is to transfer the value from the first wallet on the third ledger to the second wallet on the third ledger” to mean that however suitable adjudication party or parties are selected and accredited and authenticated, when requested by the second party and if it is determined that the first party did not transfer to the second party, but the second party did transfer to the second address, then value from the first party should be transferred in favor of the second party.
• the adjudication party decides that the third ledger should transfer the value on the third ledger from the first wallet to a third wallet selected by the third party" to mean that however suitable adjudication party or parties are selected and accredited and authenticated, when a decision is rendered that the second wallet on the second ledger has not been properly funded by the established time, then the adjudication decision is that value should be transferred from the first party to the third party.
• Figure 52A and 52B a combination cryptographic protocol diagram, block diagram, and flow chart for a cryptographic pre-defined value exchange protocol in accordance with aspects of the present invention.
• Figure 52A shows the overall cryptographic protocols and exemplary formulas;
• Figure 52B is a flowchart for aspects of the operation of Figure 52A.
• the diagram is arranged temporally from top to bottom, with the first and second party shown labeled “A” and “B,” respectively. While the principal parties A and B can each be comprised of multiple entities in some examples, for clarity in presentation such possibilities are rarely mentioned. Elsewhere here the protections against at least one of the parties being able to easily and/or covertly contact and communicate with the refund agents has been addressed, since this can in some examples facilitate various types of abuses, such as have been mentioned and as will be understood. For instance, but without limitation, a quorum of refund agents, optionally and adaptively along with one or more parties, can be able to allow refund. In some examples, for instance, but without limitation, conditions can be based on information outside the cryptographic protocols, such as prices and/or market events, and are believed advantageous, without limitation, for such uses as various forward and/or futures contracts or the like.
• the various shapes and various lines are included for clarity in exposition and suggest particular functions and/or uses, but without limitation.
• the ovals are intended for clarity to suggest accounts with the party controlling the respective account shown within the oval.
• the hexagons are intended for clarity to suggest joint custody accounts created by the cryptographic protocol between the parties.
• the solid lines with arrowheads represent potential transfers of value on the respective ledgers from the one account at the tail to the other at the arrowhead end.
• the dashed lines, with arrowhead are also for transfer of value, typically to suggest such transfers related to refund.
• Labels accompany various lines to indicate for clarity the types of parties and/or conditions related to more than one party that allow in some examples the value transfer corresponding to the line.
• a party name such as A or B
• each party is shown freely able to fund a respective holding account: A can use A * to fund h_A and B can use 6 * to fund hJB.
• the remaining four transfers including transferring from h__A to B_d , h__B to A_d, h_A to AJF, and hJB to B_f, as shown, are each enabled by the cryptographic operation recovering the respective signatures, using the operation R, shown as X, Y, V, and W, respectively.
• the example cryptographic operation shown, without loss of generality, are the dividing of the respective signature reconstruction among “n” entities, shown as Hq.i, where q varies for the choice of X, Y, V, and W, and / varies for the multiplicity of the number of entities the respective division is among.
• R ⁇ C_H1.1, C_H2.1,...CJHn.1) recovers the signature X from the quorum of the ⁇ ” parties, H1 through Hn, where these parties are, in some examples, instances of the party holding the public key H k as already described with reference for instance to Figure 21 A.
• a cryptographic value exchange protocol between at least two parties establishing at least two joint custody accounts to mean whatever system and/or technique for at least two parties to exchange value, such as on ledgers and/or blockchains, where the one party starts with one value and the other party with the other value and at the end of the successful exchange control of the values is substantially interchanged between the parties.
• the cryptographic protocol establishing at least one digital signature, the digital signature sufficient to move value from at least one of the joint custody accounts to an account selectable by one of the parties, and the digital signature encrypted so that it can be decrypted once at least one joint custody account meets a pre-defined condition to mean that cryptographically at least one digital signature or other authentication technique is realized, in some form of protected state, that allows transferor moving of all or part of the vaiue out from at least one of the joint custody accounts to an account that can be chosen in advance and/or the choice modified by one of the parties, and only once a pre-defined condition on the value stored in at least one of the joint custody accounts is satisfied is the signature or the like in effect released so that it can be used to effect the transfer out from the joint custody account; examples include consensus of a set of nodes operating the blockchain on which the ledger is maintained, consensus of a potentially partly or fully different set of nodes, and/or a cryptographic proof.
• the pre-defined condition including at least that a first of the joint custody accounts has a pre-defined value present during at least one of a pre-defined set of block heights and the signature to transfer substantially that value from the second joint custody account to mean that the condition determines that of the accounts has sufficient value in it at least at some time or during some time interval, where the time interval can be in some examples, but is not limited to, the discrete times sometimes referred to as “block heights" to suggest the number of blocks in a blockchain since its genesis event, for instance, and in other examples can relate to calendar and/or clock time, as will be understood, and in other examples to time defined by events in asynchronous systems and/or their state.
• the pre-defined value storage condition including substantially zero value present in the first joint custody account during at least a pre-defined set of block heights and the transfer substantially refunding the second party from the second joint custody account to mean that, independent of whatever may relate to box 5270, and by whatever type of means or method including those mentioned with reference to box 5270, the value is absent the joint custody account sufficiently however defined so that the signature is released to allow the transfer from the other of the two accounts back in effect to the party that funded that account.
• Figure 53A is a transfer from one account to another account
• Figure 53B is transferring from at least a second account to a third account
• Figure 53C is verifiable fair exchange with pre-arranged and delegated and escrowed transfers.
• At least two of the parties capable of conducting at least a protocol portion that transfers value from the first of the at least two accounts to the at least second of the two accounts to mean that at least two of the parties are enabled by a cryptographic protocol to cause a transfer from one account to a second account, in whatsoever manner.
• a quorum of the agents provided by the parties with agent information enabling transfer of value from at least one account to mean that the cryptographic protocol allows the parties to use the agent information, that is any suitable information responsive to plural agents, to empower whatever quora of the agents defined and/or modified, to transfer.
• the parties are capable of transferring from a second account to a third account” to mean that the parties can hand over from one of the parties to another party, possibly an unrelated party, the value in one of the accounts.
• the cryptographic protocol substantially ensuring that if one such transfer occurs then either party can ensure that both transfers occur to mean that the protocol allows the parties to verify, at least to a degree of certainty and/or at least based on cryptographic assumptions, as will be understood by those of skill in the art, that the transfers are in effect linked in a manner that provides for one to complete if the other completes.
• the cryptographic protocol providing at least one party the ability to make any transfer from a one of the accounts to mean that the cryptographic protocol can, at a certain stage and/or under certain conditions and/or when in a certain state, allow a party to be provided enough additional information for that party to in effect at least make a transfer from that particular account.
• the party can in effect “control” that account from that point.
• the cryptographic protocol transferring value from at least one account to an account controlled by one of the parties to mean that the cryptographic protocol can allow a transfer to an account that is under control of one party, for instance once of the parties to the protocol.
• the cryptographic protocol enabling, by provision of agent information, a quorum of agents to transfer from at least one of the accounts to an account substantially controlled by one of the parties” to mean that agent subsets satisfying a quorum rule can be sufficient to cause a transfer accounts of the parties to an account controlled fully by one of the parties.
• At least one account has plural sources of value” to mean that in some examples at least one of the accounts can be the destination account in more than one transfer that involves more than one distinct source accounts.
• at least one account has plural destinations that its value can be transferred to by the parties using the cryptographic protocols" to mean that the cryptographic protocol allows at least a one of the accounts to be the source account in more than one transfer and that at least two of these transfers have distinct destination accounts.
• At least one account has plural destinations its value can be transferred to by a quorum of agents using the agent information" to mean that the cryptographic protocol can allow agents to make more than one at least alternative transfer with one of the accounts serving as source account and the at least more than one accounts serving as destination accounts.
• At least one account can be increased in value by a first of the parties" to mean that an account, such as what is sometimes called a “margin” account, can have more than one what is sometimes referred to as a “call” that requires additional transfer to it as a destination.
• the at least one account that can be increased can be decreased in value by the cooperation of at least two of the parties using the cryptographic protocol” to mean that the account that can be the destination of more than one transfer can also be the source of at least one transfer, allowed the parties by the protocol, when at least two of the parties or a quorum of the parties as will be understood applies more generally elsewhere here but has been omitted from explicit reference for clarity, back to the account from which at least some of the plural transfers were sourced from.
• the cryptographic protocols let the two parties transfer from an account to one of at least two predetermined accounts” to mean that the cryptographic protocols provide for “or” functionality in the sense that there can be two or more possible destinations for transfers with a particular account as source and the protocols can provide for control that choice.
• the cryptographic protocol ensures that only one of the two transfer pairs it enables can be conducted” to mean that, with reference to box 5484, that the transfers allowed by the protocol can, in some examples, be made to conform to an example rule providing for mutual exclusion; however, other restrictions and/or limitation, such as with respect to amount, timing, multiplicity of occurrences and/or multiplicity of destinations are anticipated.
• the cryptographic protocols provide the two parties the ability to transfer from an account whose value can be decreased by the first party to the one of at least two predetermined accounts" to mean that it is anticipated that the examples referred to in the description of boxes 5485 and 5460 and 5470.
• box 5495 it may here be said that “optionally the cryptographic protocols let the two parties transfer from an account whose value is changed exactly once during the cryptographic protocol to at least two predetermined accounts” to mean that an account that is the destination in an example such as that already described with reference to box 5485 can be allowed by the protocol to be transferred to two or more different accounts.
• Figures 55A-55G are combination cryptographic protocol diagrams and notational exemplary elements in accordance with aspects of teachings of the invention.
• Figure 55A is ledger account with multiple input and output transfers and curly-bracket notation introduced;
• Figure 55B is a party funded account transferred to a planned account by parties;
• Figure 55C is an account transferred to a planned account by agents;
• Figure 55D shows account openings to a party by parties and by agents;
• Figure 55E shows account openings to everyone by parties and by agents;
• Figure 55F is the transfer to a party both by an agent and by parties;
• Figure 55G is multiple coordinated transfers.
• a general key to transfer line type conventions at least for purposes of Figures 55A- 57D is provided for clarity as will be appreciated, as follows:
• the transfer can here be called “unplanned” and shown in some diagrams as dotted line with arrowhead entering a ledger account circle.
• the ledger account from which the value is to be transferred from is known in advance and can be built into the underlying cryptographic protocols, then the line in some examples can be shown as solid with an arrowhead and be called here a “planned origin” transfer.
• the transfer is made by what can be called a “quorum of agents” a single dashed line can be used.
• FIG. 55A a ledger account with multiple input and output transfers and curly-bracket notation introduced, is shown.
• the what can here be called an “account” is symbolized as a circle.
• the input and output transfers and their possible multiplicity are shown, as already described.
• the curly bracket notation shown can be defined as follows: there is an optional name field as a first item within the brackets, in the example “x” that can be shown in pointy brackets “ ⁇ >“ elsewhere in the diagrams for clarity.
• the vertical bar “j” may be used to separate the party names; when cooperation through the protocol, the comma may be used as a separator; such as in the example, “partyl and so forth.
• a majority or other quorum rule is implicitly and/or anticipated.
• a quorum can be shown using the quorum notation “(a,b,...,c),” where the parenthesis “()” indicate that a quorum of the agents named are necessary and sufficient.
• a single party can be sufficient to cause the transfer, in which case the rule is just that party name, which can be referred to here as a “unilateral” transfer.
• FIG. 55B a party funded account transferred to a planned account by parties is shown.
• the solid arrow indicates the transfer.
• the optional party capable of making the transfer is shown; however this can be considered shorthand for convenience for the curly brace notation with that singleton party at least included (in some examples there may be implicit agent quora, as will be understood, to allow the transaction to complete and/or to reverse it if it has not met criteria to complete).
• FIG 55C is an account transferred to a planned account by agents is shown, which is similar to that already described with reference to Figure 55B, but the transfer is affected by a quorum of agents, such as may be denoted “(a,b,...,c).”
• Figure 55D an account opening to a party by parties and by agents are shown.
• the solid small circle can be used here to indicate the case, already defined earlier, where information sufficient to readily compute signatures allowing transfers out of an account is provided to a party by the cryptographic protocols and/or by a quorum of agents, Oslo shown.
• Figure 55E it shows account openings to everyone by parties and by agents.
• Much as Figure 55D allowed a party to gain access to a key that lets signatures be made to move value from a specific account, here that information is in effect made widely available or public.
• the objective of this can be, it is believed, the advantageous making completely unfit for transfer to of an account that is to be left out of subsequent protocol parts.
• Figure 56A is a mutual transfer between two parties;
• Figure 56B is an account that can both be added to by one party and that can be refunded by mutual agreement of a second party;
• Figure 56C is one party providing value to a second party, secured by value from the first party that the first party can increase and cooperation of both parties can decrease;
• Figure 56D is one party providing value to a second party, secured by value from the first party that the second party can increase and cooperation of both parties can decrease.
• x has the ability to transfer the value to y, since the two of them have conducted the cryptographic protocol that was capable of generating that same signature instance. (It will be appreciated that in examples where multiple instances of cryptographic protocols are conducted, involving different accounts and participants, participation in an earlier instance may not lead to an ability of the participants to in effect collude to override the protocol.)
• y has the ability to make the transfer to x, as also indicated. With more than two participants, such as will be described with reference to Figure 57B, information known to multiple participants may be needed and shown, for instance, using vertical bar notation as already mentioned.
• the agents are illustrated here in the curly bracket notation.
• the transfer back to x shows that there is an implicit agent ability to conduct the transfer, only to the predefined account of x as will be appreciated, and the particular set of agents is called out as “a” and “b” and so on ail the way up to “c” in the example.
• the agent list can be acknowledged but not further detailed such as can be shown by “ ⁇ () ⁇ ” for simplicity and is often omitted for clarity as elsewhere and as will be appreciated.
• a second party providing value to a first party, secured by value from the first party that the first party can increase and cooperation of both parties can decrease is shown.
• the leftmost two accounts are similar to those described elsewhere here, with funding by respective parties and the “refund” agents option of they are not both funded, indicated as “ ⁇ () ⁇ " but for clarity optionally as mentioned.
• the cryptographic protocols shown include two all/nothing transfer sets, as already described, each respectively indicated by the same number of cross line segments.
• the first set provides to x the value input by y; and the first set also provides the value input by x to the concentric circle account that x can increase and the cooperation of x and y in the protocol can decrease back to x, all as already described.
• the second set of transfers is to be accomplished; however, only one of the two transfers, according to the rule enforced by the cryptographic protocol, as mentioned and will be understood.
• the choice of which destination is by mutual agreement; however, in some optional variants and included in the example shown, agents can be provided agent information as will be understood as sufficient for them to make the transfer should the parties not agree.
• the recipients of the second set are shown, in the example for clarity, as prearranged accounts controlled by the respective parties; however, control over the concentric account could also be transferred, such as would be shown using the solid small circle and as described earlier with reference to Figure 55B.
• a second party providing value to a first party, secured by value from the first party, where the second party can increase the value provided and the first party can decrease the value provided, and cooperation of both parties can determine if the securing value is returned to the first party or provided to the second party.
• the value x obtains from y can be adjusted upwards by y and downwards by x; once the whole thing closes, one of the parties is to get the securing value as before. Accordingly, the concentric circle account is between y and x this time, as shown.
• Figures 57A-57C further cryptographic diagrammatic and notational example combinations of exemplary elements in accordance with aspects of the invention are shown and described.
• Figure 57A is one party handing over its role to a third party while maintaining a second party;
• Figure 57B is a mutual rotation transfer between three parties;
• Figure 57C is a mutual transfer or non-transfer decided at a later time;
• Figure 57D is one party escrowing a second amount for a third party and offering a second party a first amount to transfer a related amount to a third party that will unlock the escrow.
• x handing over its role with respect to an account to a third party z, while maintaining a second party y as the other party in the joint control of the account handed over.
• the curly brace notation shows what may here be called the “handover”: in the first expression x can unilaterally transfer from the account but x and y are able to move the value in a coordinated manner through a cryptographic protocol along with other transfers with the same number of crosses, as already explained elsewhere here. Also shown are the agents, q, that may have an additional ability to make the transfer in general.
• z and y create a joint custody account with the same rules (typically in the example for clarity) as the original account on the left.
• the handover z has the information needed to make the transfer (as an example result of the cryptographic protocol setting up the new account for clarity), while the coordinated transfer out of the account on the right is now involving z and y.
• the quorum of agents remains unchanged, for clarity in the example.
• the first party x transfers the value in the upper account circle to the second party y, as indicated.
• the second party y transfers the value in the middle account to z.
• z transfers the lower account to x.
• the vertical bar notation is used to show that even one of the parties should not have enough information to make a transfer that benefits themselves; the two parties other than the beneficiary have, between them, information that is sufficient to make the transfer.
• “xjz” is shown needed for the transfer to y
• y ⁇ x” is shown needed for the transfer to z
• zjy is shown needed for the transfer to x.
• agents can break the stalemate, as indicated on the various transfer curly braces.
• agents may only be provided for one set of transfers; in still other examples, one or the other party may be required to cooperate with certain again combinations.
• the first party funds the upper account and the second party funds the lower account, as already explained for other example cryptographic protocols, so if both are not funded, then the one that is funded can be returned by an agent quorum as shown.
• the first party has also, in some examples, funded or otherwise made available an escrow or security deposit or guarantor of a more conventional nature that the third party can simply claim if the agreed amount is not made available to z, with a linked transfer shown as the one-cross coordinated transfers, by a time that is predefined or otherwise agreed and/or adjusted by the x and z.
• Figures 58A-58I are further combination cryptographic protocol diagrams and notational exemplary elements in accordance with aspects of teachings of the invention.
• Figure 58A is a generic transfer from a ledger account to the benefit of a party;
• Figure 58B is transfer between two joint accounts;
• Figure 58C is transfer of value from a joint account to account of a party;
• Figure 58D is transfer of control from a joint account to a party;
• Figure 58E is transfer by agents from a joint account to the benefit of a party;
• Figure 58F is an example of multiple transfers in and out;
• Figure 58G is shows overlap between agent quora;
• Figure 58H is a notation for describing transfers between accounts;
• Figure 581 is an exemplary two- ledger coordinated AND.
• FIG. 58A a generic transfer from a ledger account to the benefit of a party is shown.
• the circle is a notation that can here be used to indicate an account on a ledger whose authentication information has been formed at least in part by cooperation of parties in conducting a cryptographic protocol, giving the parties at least joint control over the account.
• the beneficiary of the transfer is shown as party x in the example for clarity.
• FIG. 58C shown is transfer of value from a joint account to account of a party.
• the hollow-circle line end out is intended to indicate that the account transferred to is pre-arranged.
• such an account can be created by means other than joint custody; it can also be created by joint custody or otherwise that is at least to some extent independent of or irrelevant to the particular description of the source account.
• FIG 58D transfer of control from a joint account to a party is shown.
• the box-end arrow notation can be used to symbolize the transfer of at least some information that the first party had related to control over the account to party v. This is believed to allow v to transfer value from the account and even to take overuse of the account more generally. The counterparty it is believed would after the transfer have not access to control over the account without cooperation of the party v.
• One example advantage of the approach is believed that the number of on-chain transfers can be reduced.
• a transfer by what can be called here “agents,” or sometimes more specifically “refund agents,” as already described elsewhere here, from a joint account to the benefit of a party is shown.
• Party u as the recipient of the dashed arrow is intended to indicate that the account symbolized was not, or likely not, or not necessarily, created by the cryptographic protocol that created the authenticator for the account on the left.
• the dashed arrow is intended to indicate that a quorum of agents have provided the parts of or acted to reconstruct the signature or other authentication that moves the value from the account to the benefit of the party u.
• the refund agent it is believed at least potentially advantageous for the refund agent to have what may here be called a “third-party-checkable proof’ that ensures that the refund should be made; however, the absence of such a proof in some examples may not mean that a refund should not be made.
• a so-called zero-knowledge and/or minimum- disclosure and/or snark proof as are well known in the art, that a particular first account did have the particular value in it and a particular second account did not have value in it, and where the proof relates to particular so-called “block heights" or times in the discrete time of the ledgers and/or realtime.
• proof of refundability is shown as “p” in the figure for clarity, but is implicit as an option in all instances of refund herein.
• the proof of refundability can be provided by the party who would benefit from the refund, by third parties with or without incentives, by the ledger(s) themselves, and/or by the refund agents separately or cooperatively.
• a proof of refundability can it is believed aid the refund agents in their reputation in speeding their decisions; discounts or other incentives can it is believed be offered by the agents in case they have suitable proof.
• FIG 58F shown is an example of multiple transfers in and out of an account as well as general input to the account.
• the dotted arrow in in intended to indicate that any entity that knows the account identifier can, as is believed typical of ledger system, transfer in to the that account; what entity transfers in might not even be known, let alone pre-arranged.
• Other input types shown are the generic inputs already described with reference to Figure 58A and the agent transfer as already described with reference to Figure 58E. Any number of transfers in and/or out are anticipated. Two already described example types of transfers out are shown, one the generic and the other the agent.
• FIG 58H an exemplary notation for describing cryptographic protocols related to transfers between ledger accounts, as will be appreciated, is shown in a generic and/or definitional example form.
• Four example what may here be called “fields” are shown, each separated by semicolons
• Each field can be optional in some examples and each field can have at least one default value and each field can appear in whatever order.
• the fields are grouped between delimiting curly braces “ ⁇ ” in some cases for clarity.
• the first field shown is shown in what may be called a “schematic” for, that is the content items are described rather than shown. It includes what may here be called two G, overlap “line” identifiers separated by “operators.” When instantiated, the line identifiers can be symbols that if shown in the diagrams can be set off in pointy brackets “ ⁇ r>”; in other examples the symbolic notation can be placed near the relevant diagrams and/or stand alone.
• Example operators are the logical connectives from first-order predicate calculus: “ ⁇ ” for AND; “v” for OR, as will be understood. Parenthesis can be used to show order of precedence and/or operation, as will be understood.
• the second field shown is also in schematic and it shows a list of parties to the cryptographic protocol. Two are shown as a comma separated list, but the ellipsis indicates potentially more.
• the second field shown is also in schematic and it shows a list of parties to the cryptographic protocol, typically identified by single-letter variable style names for clarity. Two are shown as a comma separated list, but the ellipsis indicates potentially more.
• the third field shown is an example of a list of agents. Three are shown explicitly as “a,” “b” and after the ellipsis “c”; however any number can appear as will be understood. Moreover, a so-called “monotonic” formula can also indicate the combinations of the agents that are necessary and sufficient, a generalization that is anticipated and will be understood can be applied to any of the agent protocols of the present application.
• the agent list is set off in parenthesis.
• the agents can be shown explicitly or implicitly. A majority or other quorum is often implied, as already mentioned with reference to Figure 58G for instance.
• the fourth field shown is an example of transfer type symbols.
• the following examples are illustrated: “DO (HDD”
• the solid triangles are ordinary arrowheads, the first shown, forward facing, is a transfer by the parties and is the default; the last shown, left-pointing, represents an agent transfer, typically a kind of refund or reversal more generally.
• the second and third are circles, as already described earlier with reference to Figure 58B and Figure 58C, these are believed sub-cases or variants of the solid forward arrow: in the one case the transfer is to a beneficiary that is not controlled by the cryptographic protocol, while in the other case it was created by and would at least initially be controlled by the protocol.
• the hollow square indicates that an account formerly controlled by the cryptographic protocol can be transferred by releasing control to a party, as already explained with reference to Figure 58D.
• FIG. 581 is an exemplary two-ledger coordinated AND introductory of the symbolic and diagrammatic, for clarity as will be appreciated.
• the common rule portion is shown as “ ⁇ r ⁇ s; r, s ⁇ ” and two different ledgers are shown, The arrows are labeled “ ⁇ r>” and “ ⁇ s>”, respectively.
• the two transfers are each for a separate respective ledger and between two accounts, one pair created by the cryptographic protocol and one pair mixed with cryptographically created source but destination shown as not necessarily controlled by the same parties.
• the accounts are labeled in this introductory diagram by ledgers via labels L1 and L2; however, such labelling is omitted elsewhere for clarity as will be appreciated.
• the different legs need not have exactly the same formulas, even though they have common portions.
• the upper transfer is of the type already described with reference to Figure 5B, while the lower illustrates that described with reference to Figure 58C.
• the upper leg, ⁇ r> is shown as of what is called “transfer type” in the symbolic notation as being between two accounts created by essentially the same protocol, indicated by “D”, but also as what may be called “transferring backwards” under control of refund agents, as indicated by “D”.
• Figure 59A is an exemplary arrangement related to a basic swap
• Figure 59B is an exemplary arrangement related to a handover between parties
• Figure 59C is an account that can at least be increased from time to time by one party
• Figure 59D is an exemplary collateralized loan or repo.
• FIG. 59A an exemplary arrangement related to a basic swap is first shown and described to illustrate the notation and for clarity in exposition, as will be appreciated.
• Two accounts are indicated as circles; two arrows out from the respective accounts are labeled rand s; refund dashed arrows point back to the parties x and y.
• the formula, shown for clarity labeling both lines, is: ⁇ r ⁇ s; x, y; (a,b,...c) ⁇ .
• the lines have a single crossing short segment to indicate that they are coordinated, which is also indicated by the conjunction in the formula.
• both x and y are to fund the respective accounts, as indicated by the dotted line. If one is funded but the other is not in time or otherwise according to whatever agreed rule, not shown for clarity, a majority of the refund agents, shown as (a,f>,...,c), as already described, are to provide the partial keys so that the refund transfer can occur. For the parties x and y to make the transfer (whether to another account and/or by transfer of control, as explained elsewhere here) they are both to agree in a fair exchange, as also described elsewhere here.
• FIG 59C an account that can at least be increased from time to time by one party is shown.
• the dotted arrows from x to the account show that at least x and in the example, it is anticipated that any party can move value in from time to time, as suggested by the ellipsis and the “?” in the curly braces as a party.
• the arrows, such as by the option described with reference to Figure 58C, below show an optional capability for y to refund to x, even from time to time as indicated by the ellipsis and y in the curly braces.
• FIG 59D an exemplary collateralized loan or repo is shown.
• the term collateral is called out for clarity but without limitation in the upper circle; similarly, the term principal is called out for clarity but without limitation in the lower circle.
• the former is contributed by x, the “borrower” in loan terminology, and the later by y, the “lender” again in loan terminology.
• the leftmost two circles just mentioned and the arrows in and out of them, are believed essentially similar to those already described here with reference to swaps, such as described with reference to Figure 59A.
• the “cross" of the outgoing arrows is shown here as an AND symbol, as already mentioned with reference to Figure 58H, for clarity to distinguish from the disjunctive in the remaining portion of the present figure.
• the final temporal phase includes the outflow from the two accounts on the left (apart from any reversal mentioned earlier).
• Two what may here be called “scenarios” as will be understood are indicated disjunctively: (a) collateral back to borrower and principal back to lender; or collateral to lender.
• the notation shows these as u (r A t) v s” to indicate that either both are returned or the transfer indicated by arrow s made.
• Figure 60A is an exemplary arrangement related to futures contract
• Figure 60B is an exemplary arrangement related to options contract
• Figure 60C is an exemplary three-way swap
• Figure 60D an exemplary arrangement related to cross-currency payments.
• FIG. 60A an exemplary arrangement related to futures contracts is shown.
• the arrangement and operation is similar to that already described with reference to Figure 59A.
• An example difference is that both accounts are shown, using the double-concentric circle notation, as call accounts as already described with reference to Figure 59C; however the additional arrows in and out on the left are not shown for clarity.
• An example use can be as follows: at each of plural pre-arranged times a so-called “marked to market” occurs and one of x or y can be required to increase the balance in the respective account; at a predetermined time the values are in effect swapped to the counterparties.
• the accounts can additionally include a small hollow-circle, as already described with reference to Figure 59B as optionally included without being shown explicitly for clarity, allow a party (with cooperation of the other party, which cooperation can it is believed at least be committed to if not provided at least partly in advance) to hand-over an account to a third party.
• a balance is required of both parties sometimes referred to as a “minimum margin.”
• the differences in the mark to market from one period to the next are believed typically reflected in margin calls requiring one or the other party to increase the value in the account. If the minimum margin amounts are both additionally included in the respective accounts, and the accounts are swapped at the predetermined expiration of the contract, it is believed that each party will receive at least the minimum margin plus whatever compensation for the marked to market, the net cumulative marked to market.
• FIG. 60B an exemplary arrangement related to options contracts is shown.
• a first difference between the configuration already described with reference to Figure 60A is the optional compensation from one party, x in the example, to the other party y, for entering into the contract.
• a second difference is the presence of the disjunctive option for the transfers to go to the opposite parties.
• the lines are marked, for clarity, using the predicate calculus operators as already introduced with reference to Figure 57H: the swap-like transfers are shown with the single carrot and what can here be called “straight through” transfers, xto x and y to y, with double carrots.
• the pair of alternative transfers emanating from a circle are shown with an inverted carrot or disjunction symbol.
• the parties fund. There may also be calls to increase their balances and/or they may take some profits (not shown for clarity), such as related to marked to market. At a predetermined time, such as can be called “expiration” of the option, either the parties provide the balances to the counterparties (swap) or they provide them to themselves, straight through.
• Expiration of the option
• either the parties provide the balances to the counterparties (swap) or they provide them to themselves, straight through.
• Figure 60C an exemplary three-way swap is shown.
• the transfer of value is what can here be called “round robin,” x to y and y to z and z to x.
• the transfers are similar to those already described with reference to Figure 59B, apart from the round-robin nature.
• one exemplary way to arrange the control over the transfers is a pair of parties, what can here be called the “source” and “destination” parties; a believed an alternate example, shown here, has the non-source and non-destination party sharing control with the source party in each case, indicated symbolically as r ⁇ s ⁇ t; x, y, z.
• escrow identification The information coordinating the existence of the escrow, the release of the escrow, or the transfer of the escrow amount to z, can be referred to here as “escrow identification” and/or “escrow linking” information.
• Figure 61 A is a flowchart for allowing the creation and provision of partial keys
• Figure 61 B shows allowing the creation of a transfer signature
• Figure 64C is a flowchart for allowing transfer of previously undisclosed information.
• the cryptographic protocol at least cooperating in creating a first public key corresponding to a first ledger account to mean that at least a first of the at least two parties and at least a second of the at least two parties conducting a cryptographic protocol that allows them to create what can be called a public key, or other authentication enabling information, as mentioned with reference to Figure 65, box 6810, for a first ledger account.
• the corresponding what may be called private key information related to the public key can be kept secret by the cryptographic protocol from the at least two parties at least acting unilaterally, at least for some time, giving the cryptographic protocol in effect some control over when and how the private key information can and/or will be used.
• the cryptographic protocol at least cooperating in creating a plurality of partial transfer signatures related to the ledger account public key of the first ledger account to mean that the cryptographic protocol uses the secrets that it has developed in creating the public key, already mentioned with reference to box 6410, to create secret-shares of a transfer signature for at least a transfer with the first account on the first ledger as the source account.
• the plural partial transfer signatures allowed by the cryptographic protocol to be encrypted such that substantially these keys are decryptable using keys at least including those of at least a first collection of refund agents to mean that the secret shares, already mentioned with reference to box 6420, are encrypted by cryptographic protocols for refund agents, such as for instance using public keys at least corresponding to refund agents (whether or not which particular refund agent associated with which specific public key is known to the parties performing the protocol or the agents; in effect the agents are anticipated to be anonymous but with corresponding public key; the keys can, it is anticipated, also be mapped by additional parties to arrive at the form used by the protocol).
• a first quorum rule determines the selections of partial transfer signatures that are sufficient to develop at least a transfer signature for transferring value from the first ledger account corresponding to the first public key to at least a different ledger account on the first ledger” to mean the partial transfer keys were formed, such as described with reference to Figure 6430, so that the subsets sufficient to reconstruct the transfer signature are defined by what is called here a quorum rule.
• the cryptographic protocol allowing cooperation of the at least two parties to form at least one transfer signature with the first ledger account as the source account of the transfer to mean that a transfer signature is allowed to be formed by cooperation of the parties with the cryptographic protocol such that at least neither party alone obtains the transfer signature.
• the parties can, however, agree on the transfer signature parameters, including the destination account, as part of cooperating with the cryptographic protocol.
• the cryptographic protocol allowing previously undisclosed information known to at least one of the at least two parties to the cryptographic protocol to be made known to at least a different party to the cryptographic protocol, this previously undisclosed information unknown initially to the at least a different party to the cryptographic protocol” to mean that secret information developed by cooperation of the parties and the cryptographic protocol, such as has been mentioned with reference to Figure 61 A, can be made available to one of the parties by cooperation of other parties, such as the counterparty in case of two parties to the cryptographic protocol.
• box 6470 it may be said that “such that when the previously undisclosed information is known to the at least a different party to the cryptographic protocol, the at least a different party to the cryptographic protocol enabled to form at least one transfer signature having the first ledger account as source account of the corresponding transfer” to mean that enough information is obtained so that when combined with the information known to that party, the party is believed able to create at least a transfer signature with the first account as source account of the transfer and with destination account and/or accounts chosen by that party.
• Figures 62A-62E a combination flow-chart and block diagram for exemplary aspects of forming of signatures, accounts, partial keys and quora of the cryptographic protocols in accordance with aspects of the present invention will be described.
• Figure 62A is a flowchart for allowing the selection of transfer signatures
• Figure 62B shows allowing the uncontrolled creation of a destination account
• Figure 62C is a flowchart for allowing the creation of a second ledger account
• Figure 62D is a flowchart for allowing the creation and provision of a second set of partial keys
• Figure 62E shows a flowchart for allowing overlap in refund agent quora.
• a value when a value is determined by a cryptographic protocol, as will be appreciated, it can in effect be the output of a mainly irreversible process, such as a so-called one-way function, so that no party can choose the result (parties may repeat all or part of the protocol to "mine” for a particular value, but this is not a practical way to reach a single desired value that has been selected in advance, as the typical number of random candidates before the desired value is believed infeasibly large for useful cases).
• a mainly irreversible process such as a so-called one-way function
• the cryptographic protocol allowing at least two of the parties to cooperate in creating a public key corresponding to a second ledger account to mean that the at least two parties are allowed to determine a public key or the like to be associated with a second ledger account.
• the second ledger account can be on the first ledger and/or on a second ledger different from the first ledger.
• second account can for instance be created in a manner similar to that already described with reference to Figure 62A; in some other non-limiting examples that second account can for instance be created in a manner similar to that already described with reference to Figure 62B.
• the cryptographic protocol at least cooperating in creating a second plurality of partial transfer signatures related to at least a public key of the second ledger account to mean, similar to that already described with reference to Figures 61 A-C, box 6420, here for a second set of partial transfer signatures, as will be understood.
• the second plural partial transfer signatures allowed by the cryptographic protocol to be encrypted such that substantially these keys can be decrypted at least in part by refund agents using keys at least including those of a second collection of refund agents to mean, similar to that already described with reference to Figures 61 A-C, box 6430, here for a second set of partial transfer signatures, as will be understood.
• box 6560 it may be said that “such that a second quorum rule determines the selections of the second partial transfer signatures that are sufficient to develop at least a transfer signature for transfer from the second ledger account to at least a ledger account different from the first ledger account and different from the second ledger account” to mean similar to that already described with reference to Figures 61 A-C, box 6440, here for a second set of partial transfer signatures, as will be understood.
• the principle that majorities overlap is well known; it is believed advantageous for refund agents subsets that are selected to allow related refunds to be coordinated by refund agents in the intersection of the sets, for instance so that the actions are coordinated and/or not hidden from each other. For instance, it is anticipated that one refund should in some example configurations not be conducted if another refund is also conducted, for example when the two refund scenarios are mutually exclusive. Accordingly, all refund rules for related transaction portions are believed at least potentially advantaged by rules that ensure overlap.
• the amount of overlap can, for instance, be specified by a minimum size of the overlap. It will however be appreciated overlap can be substantially enough if, for instance it is large enough for almost all cases and/or if the trustworthiness of the refund agents varies the amount of overlap may be reduced if those in a particular overlap are more trustworthy.
• the cryptographic protocol allowing at least a first of the at least two parties to provide first previously undisclosed information, related to the first ledger account, to at least a second of the at least two parties” to mean that at least one of the at least two parties can provide to at least a second of the at least two parties “previously undisclosed information” allowed by the cryptographic protocol, thereby presumably giving the second party enough cumulative combined information to allow, at least in some example scenarios described here, the second party to move value from the first account.
• the cryptographic protocol allowing the at least second of the at least two parties to provide second previously undisclosed information, related to the second ledger account, to the at least first of the at least two parties to mean that the protocol allows the second of the parties access to information for provision to the first of the parties that, thereby presumably giving the first of the parties enough cumulative combined information to allow, at least in some example scenarios described here, the first party to move value from the second account.
• Boxes 6610 and 6620 are similar but with different parties and accounts, as will be appreciated.
• box 6630 it may be said “such that the at least first of the at least two parties substantially prevented from readily and without penalty obtaining the second previously undisclosed information, unless the second of the at least two parties substantially allowed by the at least first of the at least two parties to readily obtain the first previously undisclosed information” to mean that each of the two parties allows the other of the two (or each of the three or more parties and/or in whatever groupings and/or configurations), what may be referred to as a “mutual allowance,” to obtain the respective previously undisclosed information.
• box 6650 it may be said “such that the combination of the second previously undisclosed information when known to the at least first of the at least two parties substantially allows the at least first of the at least two parties to promulgate a transfer signature with a second ledger account as source account” to mean much as already described with reference to box 6640, but in this case for the second of the at least two parties as the recipient of the information and the first ledger account as the source account.
• Figure 64A is a flowchart for allowing handover of accounts
• Figure 64B shows a flowchart for allowing use of attesting by other parties
• Figure 67C is a flowchart for allowing attesting parties to be pre-determined.
• the cryptographic protocol allowing the designation of at least a third ledger account by cooperation of at least a third party with at least a second of the two parties to mean that at least a third party, potentially not initially included in the at least two parties, of the at least two parties to the cryptographic is able to participate in a cryptographic protocol with at least the second of the at least two parties to develop an account public key
• the cryptographic protocol allowing a transfer from the first ledger account to the third ledger account to mean that value can be moved between the first ledger account and the third ledger account by cooperation of at least the first of the at least two parties and the second of the at least two parties.
• the cryptographic protocol responsive to cryptographic authentication by at least a quorum of parties from a third collection of parties attesting that at least one party conducting the cryptographic protocol has deviated from following the cryptographic protocol to mean that at least a predefined quorum, optionally within a larger set of potential participants, has provided at least self-authenticating information or the like to attest that one or more parties to the cryptographic protocol have deviated from, or what may also be called violated, the cryptographic protocol.
• deviations include, but are not limited to, not posting or otherwise making at least certain information available by a required time and/or block height, information that is authenticated as contained in a cryptographic commitment that when opened does not verify, and/or that insufficient or no value was transferred to a particular ledger account.
• the third collection of parties in effect predetermined to mean that the third parties are able to form a single value and/or a value from a small enough or structured enough set that the cryptographic protocol can take the attestation from the third parties as input and be responsive to that input.
• the quorum of parties from a third collection of box 6750 can develop a value that the cryptographic protocol takes “in effect” as compelling enough proof that a particular account was not funded by a time certain and the cryptographic protocol can release a refund signature or the like in that case.
• Other examples include allowing an option contract to be exercised in one of more than one potential ways and/or more generally allowing a branch of a graph of transfers to be followed.
• a cryptographic protocol between at least two parties using at least one ledger, the at least one ledger comprised of ledger accounts, with transfers between the ledger accounts performed according to transfer signatures authenticatable using public keys associated with the respective ledger accounts, and with the cryptographic protocol able to allow parties to create public keys corresponding to ledger accounts of the at least one ledger to mean a cryptographic protocol conducted (in whatever portions or parts or phases or segments, to whatever extent parallel or serial, homogenous or involving subsets, based on computational assumption and/or not with statistical properties and/or incorporating elements with physical properties) by two or more parties (or whatever entities of whatever type, human, legal/organizational construct and/or automaton) interacts with and/or has some relation with one or more ledgers.
• the ledgers can, for instance but without limitation be secured by blockchains and/or multiparty computations and/or trusted hardware, or the like, as are well known.
• the ledgers can be homogenous or heterogenous and/or hierarchically or otherwise organized, such as for instance also including so-called side chains, para-chains and sharding.
• Ledgers are typically said to sharing include accounts, or separately controlled registers or stores of value or the like, whether as numbers and/or other symbols and/or formulas or the like.
• Each account has one or more information items associated with it for the purposes of showing ownership and/or other rights with respect to an account or collection of accounts however organized, in some examples so-called public keys and/or other data are associated with an account (such as also a hash or fingerprint or other compression of a public key) at least for the purpose of allowing ownership or other rights to the account to be shown and/or associated with requests related to an account.
• transfer of values between accounts are initiated by presenting what may be called generally signatures related to public key of the account, to mean any kind of authentication of rights (whether consumed, ephemeral, and/or enduring) to authorize the transfer from at least one account to at least one account.
• the so-called public key of an account can be created in whole or in part by a cryptographic protocol, as is known; in such cases, the parties to the protocol may retain information allowing them to make certain signatures related to the public keys (or in an inventive step, to use novel protocols to make signatures at least not immediately known to them).
• the cryptographic protocol at least cooperating in creating a first public key corresponding to a first ledger account to mean that the cryptographic protocol is involved in the creation of a public key or other authentication information related to an account on the at least one ledger.
• Such protocols are known, as will be appreciated, and referenced elsewhere here. Additional cooperation and/or participation in the creation of the public key corresponding to the ledger account, such as associating a suitable key, once it has been created by a protocol involving two or more parties, with a blockchain can, for instance, include cooperation of constituents of the blockchain.
• the cryptographic protocol at least cooperating in creating a second public key corresponding to a second ledger account to mean a similar cooperation as just described with reference to box 6820, but involving a different account, a potentially at least different ledger, and one or more different parties, as will be understood.
• the cryptographic protocol allowing at least a first of at least two parties to provide first previously undisclosed information, related to the first ledger account, to at least a second of the at least two parties
• the cryptographic protocol allowing at least a first of at least two parties to provide first previously undisclosed information, related to the first ledger account, to at least a second of the at least two parties
• the cryptographic protocol allowing the at least second of the at least two parties to provide second previously undisclosed information, related to the second ledger account, to the at least first of the at least two parties to mean a similar provision as just described with reference to box 6840, but involving a different account and one or more different parties, as will be understood.
• box 6870 it may be said that “such that the combination of the second previously undisclosed information when known to the at least first of the at least two parties substantially allows the at least first of the at least two parties to promulgate a transfer signature with a second ledger account as source account” to mean a similar allowance as just described with reference to box 6860, but involving a different account and different parties, as will be understood.
• box 6880 it may be said “such that at least the first of the at least two parties substantially prevented from readily and without penalty obtaining the second previously undisclosed information, unless the second of the at least two parties substantially allowed by the at least first of the at least two parties to readily obtain the first previously undisclosed information’’ to mean that there are impediments imposed on the first party and/or the first party has limited capability to obtain the second previously undisclosed information without allowance by the first of the at least two parties for the second of the at least two parties to obtain the first previously undisclosed value.
• the use of the term substantially is intended to include, for instance but without limitation, options where the information could be had by an amount of computation and/or by an amount of luck and/or by an act of compromise by a number of parties and/or by corruption of parties and so forth.
• options where the information could be had by an amount of computation and/or by an amount of luck and/or by an act of compromise by a number of parties and/or by corruption of parties and so forth.
• By readily obtaining can be meant for instance that there is at least one at least mainly known approach to obtaining that is likely enough at last and with resources affordable, such as time and computation.
• By without penalty it can be meant for instance but without limitation that there is no special fee or other adverse and/or inhibitory and/or costly and/or slowing effect on the party, other than what may be regarded as the “cost of doing business” and/or otherwise would be incurred at least with similar probability in other cases as well.
• Figures 66A-66D a combination flow-chart and block diagram for exemplary aspects of fair exchange by and evidence of abort of the cryptographic protocols in accordance with aspects of the present invention will be described.
• Figure 66A is a flowchart for allowing verifiable exchange;
• Figure 66B shows allowing verification that abort will result in fairness;
• Figure 66C shows allowing verification that abort will result in evidence;
• Figure 66D shows a flowchart for allowing the development of evidence and penalty for abort.
• the cryptographic protocol allowing the at least two parties to make an exchange of the first previously undisclosed information and the second previously undisclosed information ’ to mean that each of the two parties allows the other of the two (or each of the three or more parties and/or in whatever groupings and/or configurations), what may be referred to as “mutual allowance,” to obtain the respective previously undisclosed information.
• the first party verifiably substantially obtains the second transfer signature information item if and only if the second party substantially obtains the first transfer signature information to mean that the at least two parties and/or other parties are able to verify, at least with some probability and under some acceptable assumptions, that the previously undisclosed information that is to be made available will allow the respective party or parties to readily obtain the “transfer signature information," which information at least readily allows provision of the authenticatable transfer order to the ledger.
• the cryptographic protocol allowing at least each of the at least two parties to at least substantially verify that the exchange, if aborted by one of the two parties, leaves each of the at least two parties, at least with substantially similar probability, and at least with substantially similar amounts of computation, to arrive at the respective transfer signature information
• the at least two parties can check and/or confirm and/or audit and/or otherwise obtain some reasonable verification of the what may be called “fairness" of the exchange as described with reference to box 6910 above.
• the cryptographic protocol allowing the at least two parties at least to substantially verify in advance that if the exchange were to be aborted by at least one of the at least two parties, at least some evidence would result that the cryptographic protocol was substantially aborted by the at least one aborting party to mean that the verification, such as already described with reference to Figure 66B above, that a party aborting, and/or otherwise stopping and/or being stopped, would leave some evidence, such as a digital signature and/or a commitment that if opened would reveal a value that should have been but was not used in an exchange message and/or an inability to form a proof, whether interactive and/or noninteractive, that the participation was correct according to protocol and/or to values that are or are to become public and/or known to the parties.
• the cryptographic protocol allowing the evidence authenticated by at least one of the at least two parties that has aborted the cryptographic protocol to be developed by at least a different one of the at least two parties to the cryptographic protocol to mean that the evidence mentioned earlier in the present Figure 66 can be obtained by and put in a form that can convincingly be shown, for example even used as input to the cryptographic protocol, by at least one of the parties that has been disadvantaged by the abortion of the protocol by at least one other party.
• Examples of such penalty include without limitation: the withholding of value, withholding a portion of value, and/or access to further instances and/or opportunities to obtain value, as well as making a mark against a reputation of and/or inhibiting a further transaction aspect or portion or subsequent related activity by and/or destroying all or a part of value owned or controlled or escrowed by the party or parties receiving the penalty.
• all or part of a penalty and/or more than the penalty extracted and/or a different kind of compensation can in some examples be provided to the counterparties who may have been harmed or disadvantaged in some way by the aborting and/or the protocol step not completing.
• FIG. 67 a combination flow-chart and block diagram for an exemplary alternate variation on an exchange cryptographic protocol in accordance with aspects of the present invention will be described.
• the cryptographic protocol providing for multiple rounds to mean as will be understood that the cryptographic protocol can allow one or more rounds to be conducted, where a round will be understood to mean a repetition or repeat or instantiation similar to be not necessarily the same as a previous or potential future round.
• one or the first of a series of rounds may turn out to be enough, a priori or dynamically, to complete or detect abortion of the protocol by one or more parties; in other examples, for instance, without limitation, there may be a predetermined number of repetitions with stopping at an intermediate round when one of those completes the protocol or always completing the fixed number.
• the provisions for at least one round by the cryptographic protocol including allowing each of at least two parties to provide authentication of a committed contribution to the at least one round in advance of the at least one round to mean that parties supply cryptographically derived values, as well as possibly other values, at least to each other, as part of setting up for a round.
• a commitment is used here to suggest that the cryptographic values are subject to what may be called “opening” and/or “verification,” to establish that they had in effect locked in or otherwise constrained the values to be opened.
• Non-limiting examples of commitments are images under one way functions that are later opened by revealing the corresponding pre-image, values that have not been signed have their cryptographic signature (with bijective signature schemes, such as RSA) as in effect the value that can be revealed in opening, and as just another example a typical symmetrically-encrypted message has the message as an opening value.
• the opening of a commitment can be by so- called zero-knowledge or minimum disclosure proof, whether interactive or non-interactive, where even only a portion and/or selection among one or more otherwise hidden value is shown as the value opened.
• the provision for at least one round to allow for coordinated exchange, between the at least two parties, of delay encrypted contributions to that round to mean that values, at least two and at least each from at least a different one of the at least two parties, in at least one round, are sent from the one party to the other party and vice versa with two properties.
• the first property is that both values are encrypted with, or otherwise include, what is known in the art as a delay function and/or delay encryption and/or iterated encryption so that the amount of time to decrypt one of them is believed increased above a certain amount of time.
• the second property is that the timing of the sending is believed to be such that the messages arrive at the counterparty each within the same agreed time interval or what can be called a window (this as will be understood assumes that the clocks of the counterparties are synchronized, which can be done to an agreed degree adequate for the tolerances here, especially as the delay is long enough, as will be understood).
• the combination of the two properties is believed to provides assurance that parties should send before they can decrypt what they will receive. Additional parties and/or monitoring entities can be required to be sent to as well, providing it is believed evidence if the sending is not done according to agreed timing and/or later also allowing what was sent to be opened or otherwise checked.
• box 7060 it may be said that “such that at least a part of the information to be exchanged during at least one round allowing verification of consistency between at least one committed contribution by a party and the information to be revealed by that party in completing the round without aborting the round by that party” to mean that the “committed contribution" for a round are checkable as corresponding to the information the party reveals to the at least one other party to the round as a consequence of completing the round. It is believed that this ensures that parties are not able to contribute improperly formed information to a round without a significant chance that such information will be revealed as inconsistent with previous commitments by that party.
• the exclusive or operation can be included and blinded by exclusive-or’ing a blinding value in and then exclusive-or’ing it out again afterwards.
• the blinding values can be provided by one or more orchestrators, whereas in other examples the pseudonymous parties can create the blinding factors; however, if the factors are provided and the instructions are audited, then the orchestrator can provide the same value when it is required more than once.
• any number of parties can participate in any number of computations that are connected through any number of intermediate values. It is therefore contemplated that the appended claims will cover any such modifications or embodiments that fall within the scope of the invention.
• a cryptographic multiparty computation system including: establishing digital pseudonyms for each of a set of respective hardware devices; determining a set of operations; assigning the operations determined to respective pseudonyms established; so that which hardware device is assigned which operation is substantially hidden by the establishing of the digital pseudonyms; so that which hardware device is assigned which operation is substantially unmanipulatable by the determining of the set of operations; the hardware devices, using the respective digital pseudonyms and corresponding to the respective operations, receiving inputs under the digital pseudonyms and providing outputs responsive to the respective inputs; and so that at least some of the hardware devices remain unlinkable by at least some of the hardware devices.
• At least one instruction at one position includes determining at least one substantially unpredictable blinding value and providing it to at least two other instructions at at least two other instruction positions.
• a system for performing a computation by plural nodes including: defining a graph of operations (including an inherent labelling); posting by nodes, substantially untraceably, of public key(s); establishing a mapping, substantially unpredictable between operations and public keys; nodes performing one or more operations mapped to them; nodes using public keys, at least of other nodes, to send messages for performing the operations; nodes using public keys, at least including their own, to receive messages for performing the operations; and so that the computation of the graph is performed without the particular nodes performing the particular functions being readily reachable by other than by the corresponding nodes of the graph.
• mapping being known to the nodes on a substantially need to know basis.
• the third nodes creating substantially unpredictable wire keys and sending them to a fourth set of nodes mapped unpredictably to them.
• a cryptographic protocol system comprised of at least two parties and at least two blockchains
• the improvement comprising: the at least two parties create a public key for each of at least a respective first and a second chain, where the corresponding private keys are secret from the two parties unilaterally; transfer of value made to the first public key on the first chain and separate value transfer made to the second public key on the second chain; the at least first and second parties create jointly blocked transfer signatures for at least each of the two public keys; the at least first and second parties mutually release blocking on the at least two signatures so that neither party obtains substantial advantage in unblocking unilaterally; and the at least first party obtains value on the second chain and the second party obtains value on the first chain.
• the improvement comprising: more than two parties compute the public keys and release the signatures for two wallet IDs.
• the improvement comprising: more than two walletIDs are created.
• the improvement comprising: more than two walletIDs are created on more than two blockchains.
• each of a set of entities has a respective public key and there are conditions for making decryptions related to the public key available to allow at least one party to check and/or recover a secret under at least a condition, including: a first party verifiably dividing a secret into shares according to a threshold and encrypting each share with a respective one of the public keys of the set; a selection of the encryptions, of a quantity below the threshold, optionally being made for decryption in a way that at least is not significantly manipulatable by the first party providing the decryption of the selected encryptions to the second party; the second party verifying substantially that the decryptions were properly formed; and in case the respective condition applies, at least a quorum of the entities of the set of entities decrypting the encryptions and making the decryptions available to at least the second party. 36. In the system of 35, the first and the second party conducting an atomic swap and the secret being at least sufficient to recover the value locked up if the counterparty does not participate
• each of a set of entities has a respective public key and each entity is to under a condition make decryptions related to the public key available to allow at least one party to recover a secret under the condition, including: a first party verifiably dividing a secret into shares and encrypting each share with a respective one of the public keys of the set; the second party verifying that the shares were properly formed; and provisions, in case the condition applies, for at least a quorum of the entities of the set of entities decrypting the encryptions and making the decryptions available to at least the second party.
• the first and the second party conducting an atomic swap and the secret being at least sufficient to recover the value related to the second party that is locked up if the first party does not participate properly in the atomic swap.
• a cryptographic system for swapping cryptographic items of value between at least two parties including: a first party and a second party each respectively lock up a fixed amount with a respective public key, a' and b ⁇ a first and a second lockup, for which each party knows a respective private key, a and b: a first party signs with a and makes available to other parties a signed offer that includes at least an identifier, x, and the value definitions, c and d, to be swapped; the second party signs, with b, and provides to the first party, an accept that includes x, c and d, the first party and the second party coordinately release signatures signed by a and b respectively, for transition to first phase of x and public keys C'and D' for jointly controlled accounts, the accounts to hold the value c and d, respectively; the first party transfers value c to C' and the second party transfers value d to D' ⁇ the first party secret-shares keys, for transfer of the value c in C'
• the second party secret-shares unlock keys, for transfer of value d in D'to an account F supplied by the first party, to a set of nodes substantially unpredictable to the second party and at least substantially proofs to this effect provided to the first party; and the first party and the second party coordinately releasing signatures signed with a and b , respectively, for finality of x and signatures authorizing transfer of c from C'to E ⁇ a suitable account supplied by the second party, and transfer of d from D to F, a suitable account supplied by the first party.
• the nodes at least attempt to return the value c to the first party and the value d to the second party.
• a cryptographic swap protocol including: at least a first and a second party jointly computing public keys for a pair of holding accounts, transfer signatures from the holding accounts and secret sharing of the transfer signatures to a number of nodes, the at least two parties being substantially convinced that the public keys require secrets of both the first and the second party to make corresponding transfer signatures; the at least two parties being substantially convinced that desired transfer signatures have been secret-shared to a number of nodes so that at least combination patterns of those nodes agreed by the first and second party can substantially recover the transfer signatures; and the first and second party exchanging keys substantially sufficient to allow them to determine the transfer signatures.
• a cryptographic protocol for swap of value from a first chain to a second chain an authenticated offer emitted by a first party; an authenticated acceptance emitted by a second party; at least an authenticated closing emitted by the first party and including information related to the offer and acceptance; joint computation between the first and at least the second party of a set of shares for transfer of a first value and a second value from jointly controlled destinations; a portion of the shares for transfer of the first value substantially verifiably offline key transferred to plural nodes; a portion of the shares for transfer of the second value substantially verifiably offline key transferred to plural nodes; the first and second party transferring value to the respective jointly controlled destinations; and at least one of the first and second parties transferring value from joint control to control by the opposite party that transferred that value to joint control.
• wallets with value balances on a ledger have respective associated public keys, including: receiving a first signature of first public key corresponding to the public key of a wallet, where the first signature at least characterizes a second one-way image; changing the wallet state to locked; at least including the characterization of the second one-way image in the wallet state on the blockchain ledger; changing responsively the wallet state on the blockchain ledger to a penalty state, if and when a second signature verifiable with the first public key received, the signature characterizing at least a one-way image distinct from the first and the second one-way image; and changing responsively the wallet state to unlocked, if and when at least a qualified one of a corresponding authentication checkable with the second one-way image received.
• the one-way image comprising at least the public key of a digital signature scheme.
• the one-way image comprising the image under a hash function.
• a transaction system with a ledger readable by multiple parties and multiple parties able to make multiple offers and multiple replies to the offers including: at least one offer including a digital signature on transaction parameters; at least on acceptance including a digital signature on transaction parameters and the information signed related to the at least one offer; recording hash information on a ledger responsive to the offer and to at least one acceptance; such that the state of parties can be maintained by presenting at most a single signature per state update.
• a transaction system of 61 including at least a pre-image of a substantially one-way function releasing at least one state transition on the ledger for at least one party.
• the pre-images readily checkable against the ledger; the pre-images in encrypted form readily checkable by the respective counter-parties; and where the two pre-images are mutually released by the two parties.
• a system of multiple hardware nodes where at least some of the nodes forming a series of states by consensus, including: nodes recording stake value with associated public keys, where the respective owners of the recorded stake values have respective private keys; owners of stakes issuing offers signed with private keys corresponding to the public keys of their respective stakes; owners of stakes issuing bids, where the bids correspond to particular of the offers, the bids signed with respective private keys of the owner of the stake issuing the bids; and owners of stakes issuing acceptances, where the acceptances corresponding to at least one bid made on a corresponding offer of the owner, signed with the acceptances signed with respective private keys of the offerer.
• the consensus of nodes issuing at least from time to time a procedure whereby at least an owner is to compute at least responsive to the particular value type pair to be traded by the owner, a set of nodes the owner is to communicate with about with respect to the particular value type pair to be traded.
• a swap system between two values stored on respective first and second distributed ledgers the system: establishing holding accounts by an aspect of a cryptographic protocol between two parties, where a first holding account is on the first distributed ledger and the respective value is to be swapped by the first party and a second holding account is on the second distributed ledger and the respective value is to be swapped by the second party; wherein a first destination account is on the second distributed ledger of the second holding account and a second destination account is on the first distributed ledger of the first holding account; establishing transfer signatures by another aspect of the establishing cryptographic protocol between the two parties, where a first transfer signature transfers value on the first distributed ledger from the first holding account to the second destination account and a second transfer signature transfers value on the second distributed ledger from the second holding account to the first destination account; such that information allowing transfer of value from the holding accounts is secured by the first party from unilateral access by the second party and information allowing transfer of value from the holding accounts is secured by the second party from unilateral access by the first party; and such that
• the swap system as in any one of 81-84 including: staking by the first and the second party to facilitate swapping of the two values, where a first party stake is locked by an image corresponding to a pre-image known to the second party and a second party stake is locked by an image corresponding to a pre-image known to the first party, a further result of the complete execution of the cryptographic protocol including the parties receiving return of at least a portion of their respective stakes.
• the swap system as in any one of 81-85, including: establishing refund transfer signatures by still yet another and further aspect of the establishing cryptographic protocol between the two parties, where a first refund transfer signature transfers value on the first distributed ledger from the first holding account to a refund account of the first party via refund agents and a second refund transfer signature transfers value on the second distributed ledger from the second holding account to a refund account of the second party via the refund agents.
• the swap system as in 86 including: if a first one of the two parties supplies the respective value to the respective holding account by a respective deadline and a second one of the two parties fails to supply the respective value to the respective holding account by at least a respective deadline, then a majority of the refund agents are to refund the value and stake to the first one of the two parties.
• the swap system as in 87 including that if a party disrupts at least one establishing cryptographic protocol by the absence of a message for a respective protocol portion by the respective deadline for that protocol portion by that party, then the stake of that party is subject to impinging.
• the system as in 85 including: that the first party and the second party communicate at least a portion of the protocol messages through at least one of a set of nodes, the nodes submitting signatures by the parties to at least one blockchain to update a state of the staking.
• the system of 92 including: the nodes computing hash structures including messages received and the nodes periodically supplying the hashes to at least one blockchain and the hashes available for use in adjudicating when messages were received by the nodes from the parties.
• the system of 85 including: that the first party and the second party communicate at least a portion of protocol messages through at least one of a set of nodes, the nodes detecting at least a single stake that is used in more than one message that can be locked and the nodes then providing signature evidence of the multiple use of the at least single stake to at least a blockchain and the blockchain impinging the at least single stake accordingly.
• a system for value swap where at least two accounts each suitable for holding at least a respective conformant value and for control of the transfer of that value out of the respective account at least responsive to each of at least two respective controlling pieces of information, including: a first party and a second party each having joint custody of a first account; a first party and a second party each having joint custody of a second account; the first party funds the first account with first value conformant to the first account; the second party funds the second account with second value conformant to the second account; the first party provides to the second party a series of information aspects revealing enough to allow the second party to obtain the value in the first account; the second party provides to the first party a series of information aspects revealing enough to allow the second party to obtain the value in the first account; plural transfers, substantially divided into more than one step, of information between the first party and the second party and of information between the second party and the first party; the first party at least being able to check, before participating in the next step, at least the validity of the transfer from the second party
• the obtaining of access by at least one of the two parties in the form of substantially obtaining the controlling information for the account of the other of the two parties.
• a cryptographic protocol between two parties for conducting a fair exchange of at least temporarily secret values where the first party has a public key and corresponding secret exponent and the second party has a public key and corresponding secret exponent and the first party has a secret value at least temporarily kept from the second party and the second party has a secret value at least temporarily kept from the first party, including: the first party substantially convincing the second party that components of a first vector are each formed from a hidden permutation of members of a set of images; the second party substantially convincing the first party that components of a second vector are each formed from a hidden permutation of different elements of the first vector; the first party proving to the second party, using the public key of the first party, that the secret kept from the second party is decryptable from a value supplied by the first party to the second party when a distinguished component of the initial vector is raised to a secret exponent of the first party; the second party proving to the first party, using the public key of the second party, that the secret kept from the first party is decrypt
• the proof that the first vector is a permutation of encryptions of the set of images including forming plural candidates by the prover and the choice of which of the candidates are opened outside the control of the prover.
• the proof that the second vector is a permutation of encryptions of the components of the first vector including forming plural candidates by the prover and the choice of which of the candidates are opened outside the control of the prover.
• each party in a cryptographic protocol, including: each party forming an encrypted message and sending to each other party such that to receive and decrypt the encrypted message sent by other parties, each party is believed to take longer than a party is to wait after sending before accepting a message received.
• a system with plural providers each having at least a public key and users being able to encrypt messages for decryption by the providers including: mixing the public keys of the providers by a mix operated by mix nodes; re-encrypting the public keys output by one mix, by one or more intermediate entities; the one or more intermediate parties providing the re-encrypted public keys to a second mix operated by mix nodes; mixing the public keys received from the one or more intermediate entities by a mix operated by mix nodes; such that users do not know how to contact at least some providers that they select without involving plural intermediate nodes.
• a first and a second party agree on parameters, including: a backing value, a first time and a second time, first and second public key information, a first amount corresponding to a first ledger and its source and destination wallets, and a second amount corresponding to a second ledger and its source and destination wallets;
• the first party substantially provides cryptographic proof to the second party that a third party has private key information related to at least a portion of the first public key information and related to at least some of the parameters;
• the second party substantially provides cryptographic proof to the first party that a fourth party has private key information related to at least a portion of the first public key information and related to at least some of the parameters;
• the first party before the first time, to have established the backing along with the parameters and the first public key to a wallet of the third ledger;
• the second party before the first time, to have established the backing along with
• a transfer of value from a first party to a third party through a second party where the second party is to translate value from the first party to the third party before a predetermined time, and where the transfer from the first party to the third party is committed with value on a third ledger including: the first party populating a first wallet on a third ledger that includes at least substantially a public key, a value, a destination wallet address on a second ledger and at least implicitly the predetermined time; the third party checking authentication information from the third ledger to ensure that it indicates that the first party is committed to transfer an amount to the second wallet on the second ledger; the first party providing a digital signature including designating a second party to populate a second wallet on the third ledger that includes the public key of the first wallet on the third ledger, a first wallet address on a first ledger to receive an indicated first value, and the same second destination wallet address on the second ledger and the same at least implicit time; the first party to transfer on the first ledger to the second wallet on the first
• a cryptographic value exchange protocol including at least two parties establishing at least two joint custody accounts and the protocol establishing at least one digital signature for at least one of the joint custody accounts, the digital signature being sufficient to move value out from the at least one of the joint custody accounts to an account selectable by one of the parties, and the digital signature encrypted so that it can be decrypted once at least one of the joint custody accounts meets a pre-defined value storage condition.
• the pre-defined value storage condition including that a first of the joint custody accounts has a pre-defined value present during at least one of a pre-defined set of block heights and the digital signature such that value is transferred out from the second joint custody account to an account selectable by the first party.
• the pre-defined value storage condition including substantially zero value in the first joint custody account during at least a predefined set of block heights and the value to be transferred to an account selectable by the second party and the transfer substantially a refund to the second party from the second joint custody account.
• 141 In a cryptographic protocol between at least two parties and including at least one ledger and at least two ledger accounts and a plurality of agents: at least two of the parties capable of conducting at least a protocol portion that transfers value from the first of the at least two accounts to the at least second of the two accounts; a quorum of the agents provided by the parties with agent information enabling transfer of value from at least one account; and such that the agent information sufficient to transfer only to predetermined accounts.
• the protocol of 141 wherein: the parties are capable of transferring from a third account to a fourth account; and the cryptographic protocol substantially ensuring that if one such transfer occurs then either party can ensure that both transfers occur.
• the protocol of 141, 142, 143, or 144 wherein: the cryptographic protocol providing at least one party the ability to make any transfer from a one of the accounts.
• the protocol of 141, 142, 143, 144, 145 or 146 wherein: the cryptographic protocol enabling, by provision of agent information, a quorum of agents to transfer from at least one of the accounts to an account substantially controlled by one of the parties.
• the protocol of 157 wherein: the cryptographic protocols provide the two parties the ability to transfer from an account whose value is changed exactly once during the cryptographic protocol to at least two predetermined accounts.
• 160 The protocol of 159, wherein: they cryptographic protocol such that if less than three transfers of value to the three predetermined accounts by a predetermined time, then all three contributions are enabled to be refunded at least by the agents.
• 161 The protocol of 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153 or 156, wherein: a second pair of transfers enabled by the cryptographic protocol and the cryptographic protocol ensuring that only one of the two transfer pairs can be conducted.
• the protocol of 162 wherein: the cryptographic protocol ensures that if a third party with a predetermined account is transferred to by the second party before a predetermined time and the transfer is linked to an escrow account, evidence is obtained by at least the first party that the third party received the funds corresponding to the escrow account.
• a cryptographic protocol between at least two parties and using at least one ledger the ledger comprised of ledger accounts with transfers of value between ledger accounts being performed according to digitally authenticated messages from parties, including: the cryptographic protocol at least cooperating in creation of at least one ledger account authenticator; the cryptographic protocol at least cooperating in creation of a plurality of partial signatures; each partial signature encrypted by the cryptographic protocols at least for decryption by one of plural refund agents; and a quorum of the partial signatures being sufficient to develop at least an authenticator for transferring value from the at least one ledger account to at least a predetermined ledger account controlled by a first one of the two parties,
• the cryptographic protocol of 165 including: the cryptographic protocol at least cooperating in creation of a second transfer signature permitting transfer of value to a second ledger account; and the second ledger account substantially controlled by a second one of the at least two parties.
• the cryptographic protocol of 165 or 166 including: the cryptographic protocol providing a first of the at least two parties information that party can be provided to the second of the at least two parties; the information at least previously secret from the second of the two parties; and so that with provision of the information the second of the two parties substantially provided the ability to at least create at least one authenticator for transfer of value from the first account.
• the cryptographic protocol of 165, 166 or 167 including: the cryptographic protocol between the at least two parties at least cooperating in creating in addition to the first account, a second account.
• the cryptographic protocol of 168 wherein: the cryptographic protocol permits at least a fair exchange of secrets between the at least two parties; so that both a second of the at least two parties substantially likely to be able to substantially readily obtain value from the corresponding first account as a first transfer of value and a first of the at least two parties substantially likely to be able to substantially readily obtain value as a second transfer of value from the corresponding second account.
• the cryptographic protocol of 169 wherein the cryptographic protocol permits the second transfer of value to a third ledger account, different from the first and the second ledger accounts, so that the third ledger account is substantially controlled by at least a third party.
• the cryptographic protocol of 170 wherein: the cryptographic protocol permits including information as part of the transfer to the third party account; and the information linking to an escrow account.
• the cryptographic protocol of 172 wherein: the cryptographic protocol permits the second of the at least two parties to be able to refund at least portions of the added value to the first party.
• the cryptographic protocol of 174 wherein: the cryptographic protocol allowing at least cooperation of the first party and the second party to transfer value that was jointly controlled by the first party and the second party to the replacement account jointly controlled by the second party and the third party.
• a party can provide information allowing refund to a second party.
• a refund agent having, in addition to an encrypted partial key, a proof of refundability related to the refund decision.

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• 2021
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