An Efficient, Secure & Delegable Micro-Payment System Vishwas Patil School of Technology and Computer.

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An Efficient, Secure & Delegable Micro-Payment System Vishwas Patil vtp@tifr.res.in http://www.ecom.tifr.res.in/~vtp School of Technology and Computer Science Tata Institute of Fundamental Research, Mumbai.

Vishwas Patil, TIFR.2/17 Outline of the Presentation Micro-Payments Importance and Applications Trade-offs between efficiency, security, privacy One-Way functions PayWord and others TESLA & SPKI / SDSI Our Proposal Inducing delegation into the system Protocol Analysis Security Risk Performance

Vishwas Patil, TIFR.3/17Micro-Payments Low intrinsic financial value Aim:- keep the cost of each transaction to a minimum possible value over aggregates so that the over-cost of such transactions can be proportionally reduced Current Approaches:- Advertisements Bulk subscriptions Identification of the user based on IP addresses and/or cookies etc. Existing Protocols for micro-payments:- PayWord, MilliCent, NetCard, NetBill, i KP On-line (costly) vs. Off-line (double-spending)

Vishwas Patil, TIFR.4/17 One-Way functions Def n. A mathematical function that converts a variable-length i/p to fixed-length o/p (called a hash value ), and it is hard to generate the original i/p string that hashes to a particular value (  one-way ) So, a one-way hash function is a mapping h from some set of words into itself such that: Given a word x, it is easy to compute h(x) Given a word y, it is not feasible to compute a word x such that y = h(x) A good one-way hash function is collision-free

Vishwas Patil, TIFR.5/17PayWord Credit-based off-line micro-payment scheme optimized for sequences of micro-payments The thrust of this scheme lies in minimizing the number of public- key operations required per payment and to achieve exceptional efficiency. It’s a tripartite mechanism involving BankB VendorV UserU payword is the smallest monetary unit it is vendor-specific and user-specific a chain of paywords w 1 … w n is generated using a one-way hash function h i.e. w i = h(w i+1 )

Vishwas Patil, TIFR.6/17 PayWord … Relationship between B, V, and U B  U U obtains C U = {B, U, A U, K U, E, I U } 1/Kb U  V U generates payword chain w 1 … w n with root w 0 U registers with V by sending M = {V, C U, w 0, D, I M } 1/Ku P = ( w i, i ) is the payment from U to V V  B V sends redemption messages to B at regular intervals

Vishwas Patil, TIFR.7/17 TESLA (Time Efficient Stream Loss-Tolerant Authentication) TESLA provides source authentication Sender and receiver of the data are loosely time-synchronized and uses an optional data-buffer for storage of packets temporarily TESLA-sender makes use of one-way hash chain values as encryption keys or keys for computation of MAC over the packets And the sender discloses the keys after a pre-determined time interval Also, because of delayed key disclosure one can achieve data confidentiality for sufficient time-period (thus gives us the temporary effect of asymmetric cryptography!) But cannot provide non-repudiation!

Vishwas Patil, TIFR.8/17 SPKI / SDSI (Simple PKI / Simple Distributed Security Infrastructure) It a distributed PKI in which every public-key enjoys the freedom of naming and authorization delegation locally, forming a functional trusted island (it’s a bottom-up design approach) Functional islands of this infrastructure can narrate other functional islands in local name/authorization bindings and serve each other their local name/authorization definitions as and when requested Features like grouping of principals and threshold certificates make the system expressive, manageable, and flexible Separation of name bindings from authorizations and allowing principals to further delegate the authorizations have distinct advantages over traditional PKIs (e.g. privacy, decentralization of authorizations etc.)

Vishwas Patil, TIFR.9/17 Design of our micro-payment system Aim:- To design a micro-payment scheme which is off-line, vendor-specific, secure, efficient, and allows a user to delegate its spending capability Design:- We chose PayWord, which is an efficient, off-line, vendor-specific and user-specific micro-payment scheme To allow a user to delegate the spending capability, we had to make the primitive monetary unit ( payword ) vendor-specific ( not user-specific) This modification to PayWord invites double-spending and theft of the payword s We employed TESLA to provide source-authentication and confidentiality to the payword s in transit And, SPKI provides the PKI services and delegation capability

Vishwas Patil, TIFR.10/17 Protocol stages

Vishwas Patil, TIFR.11/17 Multi-seed payword chains

Vishwas Patil, TIFR.12/17 Additional Protocol stages (when delegation is involved) User U, who owns 4 different payword chains, is delegating parts of the chain to Agent, Agent1, and Agent2; specifying their spending range Special care has to be taken while delegating the payword chains in parts; they have to be spent in the reverse order of their generation

Vishwas Patil, TIFR.13/17 Analysis (Security) Cryptographic support Asymmetric -> Symmetric TESLA Non-repudiation etc. SPKI Use of readily available self-authenticating hash values for data confidentiality and integrity Thus, we avoid separate encryption key generation and its distribution

Vishwas Patil, TIFR.14/17 Analysis (Risk) Use of same key for encryption and MAC computation might lead to cryptographic weaknesses of the protocol But we are interested in providing confidentiality to the paywords in transit V loosely time-synchronizes itself with U in TESLA framework, however it does not know the propagation delay of the time- synchronization request packet To remain of safer side, we take the full round-trip time of the packet Even if V loses one of the valid incoming payword packet, it can own its value on successfully receiving the next payword packet because of payword chain’s self-authenticating nature Therefore, V accepts such risk arising due to network errors TESLA buffer constraints Let the sender buffer the packets

Vishwas Patil, TIFR.15/17 Analysis (Performance) E – one unit encryption D – one unit decryption Fragmentation of payword chains Delegation of each payword sub-chain involves a pair of asymmetric key operation and such number of operations are linearly proportional to the depth of delegation

Vishwas Patil, TIFR.16/17Conclusion Its off-line, vendor-specific Secure Delegable Efficient Gives autonomy of spending An enabler for various e-commerce (Internet) applications

Vishwas Patil, TIFR.17/17References PayWord and MicroMint: Two Simple Micropayment Schemes, Ronald Rivest and Adi Shamir. In Security Protocols Workshop, pp.69-87, 1996. The TESLA Broadcast Authentication Protocol, Adrian Perig, Ran Canetti, J.D. Tygar, Dawn Song, In RSA CryptoBytes, 5, 2002. Certificate Chain Discovery in SPKI/SDSI, Dwaine Clarke, Jean- Emile Elien, Carl Ellison, Matt Fredette, Alexander Morcos, and Ronald Rivest, In Journal of Computer Security, 9(4), 2001. Password Authentication in Insecure Communication, Leslie Lamport, In Communications of ACM, 24(11): 770-772, 1981.

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