István András Seres

Mike Wu, Will McTighe, Kaili Wang et al.

A common misconception among blockchain users is that pseudonymity guarantees privacy. The reality is almost the opposite. Every transaction one makes is recorded on a public ledger and reveals information about one's identity. Mixers, such as Tornado Cash, were developed to preserve privacy through "mixing" transactions with those of others in an anonymity pool, making it harder to link deposits and withdrawals from the pool. Unfortunately, it is still possible to reveal information about those in the anonymity pool if users are not careful. We introduce Tutela, an application built on expert heuristics to report the true anonymity of an Ethereum address. In particular, Tutela has three functionalities: first, it clusters together Ethereum addresses based on interaction history such that for an Ethereum address, we can identify other addresses likely owned by the same entity; second, it shows Ethereum users their potentially compromised transactions; third, Tutela computes the true size of the anonymity pool of each Tornado Cash mixer by excluding potentially compromised transactions. A public implementation of Tutela can be found at https://github.com/TutelaLabs/tutela-app. To use Tutela, visit https://www.tutela.xyz.

István András Seres, Balázs Pejó, Péter Burcsi

Fuzzy Message Detection (FMD) is a recent cryptographic primitive invented by Beck et al. (CCS'21) where an untrusted server performs coarse message filtering for its clients in a recipient-anonymous way. In FMD - besides the true positive messages - the clients download from the server their cover messages determined by their false-positive detection rates. What is more, within FMD, the server cannot distinguish between genuine and cover traffic. In this paper, we formally analyze the privacy guarantees of FMD from three different angles. First, we analyze three privacy provisions offered by FMD: recipient unlinkability, relationship anonymity, and temporal detection ambiguity. Second, we perform a differential privacy analysis and coin a relaxed definition to capture the privacy guarantees FMD yields. Finally, we simulate FMD on real-world communication data. Our theoretical and empirical results assist FMD users in adequately selecting their false-positive detection rates for various applications with given privacy requirements.

Ferenc Béres, István András Seres, András A. Benczúr et al.

Ethereum is the largest public blockchain by usage. It applies an account-based model, which is inferior to Bitcoin's unspent transaction output model from a privacy perspective. Due to its privacy shortcomings, recently several privacy-enhancing overlays have been deployed on Ethereum, such as non-custodial, trustless coin mixers and confidential transactions. In our privacy analysis of Ethereum's account-based model, we describe several patterns that characterize only a limited set of users and successfully apply these quasi-identifiers in address deanonymization tasks. Using Ethereum Name Service identifiers as ground truth information, we quantitatively compare algorithms in recent branch of machine learning, the so-called graph representation learning, as well as time-of-day activity and transaction fee based user profiling techniques. As an application, we rigorously assess the privacy guarantees of the Tornado Cash coin mixer by discovering strong heuristics to link the mixing parties. To the best of our knowledge, we are the first to propose and implement Ethereum user profiling techniques based on quasi-identifiers. Finally, we describe a malicious value-fingerprinting attack, a variant of the Danaan-gift attack, applicable for the confidential transaction overlays on Ethereum. By incorporating user activity statistics from our data set, we estimate the success probability of such an attack.

Ferenc Beres, Istvan Andras Seres, Andras A. Benczur

Lightning Network (LN) is designed to amend the scalability and privacy issues of Bitcoin. It's a payment channel network where Bitcoin transactions are issued off chain, onion routed through a private payment path with the aim to settle transactions in a faster, cheaper, and private manner, as they're not recorded in a costly-to-maintain, slow, and public ledger. In this work, we design a traffic simulator to empirically study LN's transaction fees and privacy provisions. The simulator relies on publicly available data of the network structure and generates transactions under assumptions we attempt to validate based on information spread by certain blog posts of LN node owners. Our findings on the estimated revenue from transaction fees are in line with widespread opinion that participation is economically irrational for the majority of large routing nodes who currently hold the network together. Either traffic or transaction fees must increase by orders of magnitude to make payment routing economically viable. We give worst-case estimates for the potential fee increase by assuming strong price competition among the routers. We estimate how current channel structures and pricing policies respond to a potential increase in traffic, how reduction in locked funds on channels would affect the network, and show examples of nodes who are estimated to operate with economically feasible revenue. Even if transactions are onion routed, strong statistical evidence on payment source and destination can be inferred, as many transaction paths only consist of a single intermediary by the side effect of LN's small-world nature. Based on our simulation experiments, we quantitatively characterize the privacy shortcomings of current LN operation, and propose a method to inject additional hops in routing paths to demonstrate how privacy can be strengthened with very little additional transactional cost.