An Offline Delegatable Cryptocurrency System
This addresses a key security issue for users of decentralized cryptocurrencies, enabling safer offline transactions without third parties, though it is an incremental improvement on existing delegation methods.
The paper tackles the problem of double-spending risk in offline delegation for cryptocurrencies by proposing DelegaCoin, which uses trusted execution environments as decentralized virtual agents to secure transactions, achieving provable security and practical feasibility.
Blockchain-based cryptocurrencies, facilitating the convenience of payment by providing a decentralized online solution, have not been widely adopted so far due to slow confirmation of transactions. Offline delegation offers an efficient way to exchange coins. However, in such an approach, the coins that have been delegated confront the risk of being spent twice since the delegator's behaviour cannot be restricted easily on account of the absence of effective supervision. Even if a third party can be regarded as a judge between the delegator and delegatee to secure transactions, she still faces the threat of being compromised or providing misleading assure. Moreover, the approach equipped with a third party contradicts the real intention of decentralized cryptocurrency systems. In this paper, we propose \textit{DelegaCoin}, an offline delegatable cryptocurrency system to mitigate such an issue. We exploit trusted execution environments (TEEs) as decentralized "virtual agents" to prevent malicious delegation. In DelegaCoin, an owner can delegate his coins through offline-transactions without interacting with the blockchain network. A formal model and analysis, prototype implementation, and further evaluation demonstrate that our scheme is provably secure and practically feasible.