JUBILEE: Secure Debt Relief and Forgiveness
This addresses debt settlement inefficiencies for creditors and debtors by providing a novel, incentive-compatible solution, though it is incremental in applying secure computation to this domain.
The paper tackles the problem of debt relief and forgiveness by introducing JUBILEE, a secure computation mechanism that eliminates the need for trusted third parties, resulting in higher expected profits and success probability for debt settlements.
JUBILEE is a securely computed mechanism for debt relief and forgiveness in a frictionless manner without involving trusted third parties, leading to more harmonious debt settlements by incentivising the parties to truthfully reveal their private information. JUBILEE improves over all previous methods: - individually rational, incentive-compatible, truthful/strategy-proof, ex-post efficient, optimal mechanism for debt relief and forgiveness with private information - by the novel introduction of secure computation techniques to debt relief, the "blessing of the debtor" is hereby granted for the first time: debt settlements with higher expected profits and a higher probability of success than without using secure computation A simple and practical implementation is included for "The Secure Spreadsheet". Another implementation is realised using Raziel smart contracts on a blockchain with Pravuil consensus.