Article

The Arwen Trading Protocols

Authors:

Sebastien Lipmann,

Sharon GoldbergAuthors Info & Claims

Financial Cryptography and Data Security: 24th International Conference, FC 2020, Kota Kinabalu, Malaysia, February 10–14, 2020 Revised Selected Papers

Pages 156 - 173

https://doi.org/10.1007/978-3-030-51280-4_10

Published: 10 February 2020 Publication History

Abstract

The Arwen Trading Protocols are layer-two blockchain protocols for traders to securely trade cryptocurrencies at a centralized exchange, without ceding custody of their coins to the exchange. Before trading begins, traders deposit their coins in an on-blockchain escrow where the agent of escrow is the blockchain itself. Each trade is backed by the coins locked in escrow. Each trade is fast, because it happens off-blockchain, and secure, because atomic swaps prevent even a hacked exchange from taking custody of a trader’s coins. Arwen is designed to work even with the “lowest common denominator” of blockchains—namely Bitcoin-derived coins without SegWit support. As a result, Arwen supports essentially all “Bitcoin-derived” coins e.g., BTC, LTC, BCH, ZEC, as well as Ethereum. Our protocols support Limit and RFQ order types, we implemented our RFQ protocol and it is available for use at arwen.io.

References

[1]

Etherdelta. https://etherdelta.com/

[2]

KuCoin: Download arwen to trade on KuCoin directly from your wallet. https://www.kucoin.com/page/arwen

[3]

Lightning daemon (LND). https://github.com/lightningnetwork/lnd

[4]

Raiden network. https://raiden.network/

[5]

Sparkswap. https://sparkswap.com/

[6]

Komodo. White paper, 3 June 2018

[7]

Baldwin, C.: Bitcoin worth \$72 million stolen from Bitfinex exchange in Hong Kong. Reuters, 3 August 2016

[8]

Barber S, Boyen X, Shi E, and Uzun E Keromytis AD Bitter to better—how to make bitcoin a better currency Financial Cryptography and Data Security 2012 Heidelberg Springer 399-414

[9]

Bloomberg. CoincheckHack: How to Steal \$500 Million in Cryptocurrency. Fortune, 31 January 2018

[10]

Buterin, V.: Bitfloor Hacked, \$250,000 Missing. Bitcoin Magazine, 5 September 2012

[11]

Decker C and Wattenhofer R Pelc A and Schwarzmann AA A fast and scalable payment network with bitcoin duplex micropayment channels Stabilization, Safety, and Security of Distributed Systems 2015 Cham Springer 3-18

[12]

DeMartino, I.: Mintpal hacked ‘considerable amount’ of vericoin stolen. Cointelegraph, 13 July 2014

[13]

Eskandari S, Moosavi S, and Clark J Bracciali A, Clark J, Pintore F, Rønne PB, and Sala M SoK: transparent dishonesty: front-running attacks on blockchain Financial Cryptography and Data Security 2020 Cham Springer 170-189

[14]

Gervais, A., Karame, G.O., Wüst, K., Glykantzis, V., Ritzdorf, H., Capkun, S.: On the security and performance of proof of work blockchains. In: Proceedings of the 2016 ACM SIGSAC Conference on Computer and Communications Security, pp 3–16. ACM (2016)

[15]

Green, M., Miers, I.: Bolt: anonymous payment channels for decentralized currencies. In: Proceedings of the 2017 ACM SIGSAC Conference on Computer and Communications Security, pp. 473–489. ACM (2017)

[16]

Heilman, E., Alshenibr, L., Baldimtsi, F., Scafuro, A., Goldberg, S.: Tumblebit: an untrusted bitcoin-compatible anonymous payment hub. In: Network and Distributed System Security Symposium (2017)

[17]

Heilman, E., Lipmann, S., Goldberg, S.: The arwen trade protocols (full version). IACR Cryptology ePrint Archive (2020)

[18]

Higgins, S.: Details of 5 Million Bitstamp Hack Revealed. Coindesk, 1 July 2015

[19]

Higgins, S.: Cryptsy threatens bankruptcy, claims millions lost in bitcoin heist. Coindesk, 15 January 2016

[20]

Higgins, S.: Bitcoin exchange youbit to declare bankruptcy after hack. Coindesk, 19 December 2017

[21]

Khalil, R., Gervais, A.: NOCUST-A Non-Custodial 2nd-Layer Financial Intermediary. IACR Cryptology ePrint Archive (2018)

[22]

Kraken. How long do digital assets/cryptocurrency deposits take?

[23]

Malavolta, G., Moreno-Sanchez, P., Schneidewind, C., Kate, A., Maffei, M.: Anonymous Multi-Hop Locks for Blockchain Scalability and Interoperability. In: Network and Distributed System Security Symposium (NDSS) (2019)

[24]

Maxwell, G.: CoinSwap:Transaction graph disjoint trustless trading. Bitcoin-talk (2013)

[25]

McCorry, P., Bakshi, S., Bentov, I., Miller, A., Meiklejohn, S.: Pisa: arbitration outsourcing for state channels. IACR Cryptology ePrint Archive (2018)

[26]

McCorry P, Heilman E, and Miller A Garcia-Alfaro J, Navarro-Arribas G, Hartenstein H, and Herrera-Joancomartí J Atomically trading with roger: gambling on the success of a hardfork Data Privacy Management, Cryptocurrencies and Blockchain Technology 2017 Cham Springer 334-353

[27]

Morris, D.Z.: BitGrailCryptocurrency Exchange Claims \$195 Million Lost to Hackers. Coindesk, 11 February 2018

[28]

Möser M, Eyal I, and Gün Sirer E Clark J, Meiklejohn S, Ryan PYA, Wallach D, Brenner M, and Rohloff K Bitcoin covenants Financial Cryptography and Data Security 2016 Heidelberg Springer 126-141

[29]

Narula, N.: The Importance of Layer 2, 27 May 2018

[30]

Keep Network. tBTC A Decentralized Redeemable BTC-backed ERC-20 Token (2019)

[31]

Pagnia, H., Gärtner, F.C.: On the impossibility of fair exchange without a trusted third party. Technical report, TTUD-BS-1999-02, Darmstadt University of Technology (1999)

[32]

Poelstra, A.: Scriptless Scripts (2018)

[33]

Poon, J., Buterin, V.: Plasma: scalable autonomous smart contracts (2017)

[34]

Poon, J., Dryja, T.: The bitcoin lightning network (2016)

[35]

Prestwich, J.: Summa.One: Cross-chain Auctions via Bitcoin Double Spends (2018)

[36]

Rizzo, P.: Poloniex Loses 12.3% of its Bitcoins in Latest Bitcoin Exchange Hack. Coindesk, 5 March 2014

[37]

Russell, J.: Korean crypto exchange coinrail loses over \$40m in tokens following a hack. Techcrunch, 10 June 2018

[38]

Spilman, J.: [bitcoin-development] anti dos for tx replacement, 20 April 2013

[39]

Teutsch, J., Reitwießner, C.: A scalable verification solution for blockchains (2017)

[40]

TierNolan. Re: Alt chains and atomic transfers. Bitcoin-talk, 21 May 2013

[41]

Warren, W.: Front-running, Griefing and the Perils of Virtual Settlement (2017)

[42]

Wikipedia. Mt. Gox

[43]

Zamyatin, A., Harz, D., Lind, J., Panayiotou, P., Gervais, A., Knottenbelt, W.: XCLAIM: trustless, interoperable, cryptocurrency-backed assets. In: IEEE Security and Privacy. IEEE (2019)

[44]

Zhao, W.: Crypto exchange zaif hacked in \$60 million bitcoin theft. Coindesk, 20 September 2018

Cited By

Xue YJin DHerlihy M(2023)Invited Paper: Fault-tolerant and Expressive Cross-Chain SwapsProceedings of the 24th International Conference on Distributed Computing and Networking10.1145/3571306.3571388(28-37)Online publication date: 4-Jan-2023
https://dl.acm.org/doi/10.1145/3571306.3571388
Minaei MChatzigiannis PJin SRaghuraman SKumaresan RZamani MMoreno-Sanchez P(2023)Unlinkability and Interoperability in Account-Based Universal Payment ChannelsFinancial Cryptography and Data Security. FC 2023 International Workshops10.1007/978-3-031-48806-1_24(367-384)Online publication date: 1-May-2023
https://dl.acm.org/doi/10.1007/978-3-031-48806-1_24
Baldimtsi FMiers IZhang X(2021)Anonymous SidechainsData Privacy Management, Cryptocurrencies and Blockchain Technology10.1007/978-3-030-93944-1_17(262-277)Online publication date: 8-Oct-2021
https://dl.acm.org/doi/10.1007/978-3-030-93944-1_17

Index Terms

The Arwen Trading Protocols
1. Social and professional topics

Index terms have been assigned to the content through auto-classification.

Recommendations

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image Guide Proceedings

Financial Cryptography and Data Security: 24th International Conference, FC 2020 , Kota Kinabalu, Malaysia, February 10–14, 2020 Revised Selected Papers

Feb 2020

688 pages

ISBN:978-3-030-51279-8

DOI:10.1007/978-3-030-51280-4

Editors:
Joseph Bonneau
New York University, New York City, NY, USA
,
Nadia Heninger
University of California, La Jolla, CA, USA

© International Financial Cryptography Association 2020.

Publisher

Springer-Verlag

Berlin, Heidelberg

Publication History

Published: 10 February 2020

Qualifiers

Article

Contributors

Other Metrics

View Article Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

3
Total Citations
View Citations
0
Total Downloads

Downloads (Last 12 months)0
Downloads (Last 6 weeks)0

Reflects downloads up to 16 Nov 2024

Other Metrics

View Author Metrics

Citations

Cited By

Xue YJin DHerlihy M(2023)Invited Paper: Fault-tolerant and Expressive Cross-Chain SwapsProceedings of the 24th International Conference on Distributed Computing and Networking10.1145/3571306.3571388(28-37)Online publication date: 4-Jan-2023
https://dl.acm.org/doi/10.1145/3571306.3571388
Minaei MChatzigiannis PJin SRaghuraman SKumaresan RZamani MMoreno-Sanchez P(2023)Unlinkability and Interoperability in Account-Based Universal Payment ChannelsFinancial Cryptography and Data Security. FC 2023 International Workshops10.1007/978-3-031-48806-1_24(367-384)Online publication date: 1-May-2023
https://dl.acm.org/doi/10.1007/978-3-031-48806-1_24
Baldimtsi FMiers IZhang X(2021)Anonymous SidechainsData Privacy Management, Cryptocurrencies and Blockchain Technology10.1007/978-3-030-93944-1_17(262-277)Online publication date: 8-Oct-2021
https://dl.acm.org/doi/10.1007/978-3-030-93944-1_17

View Options

View options

Login options

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

Get this Publication

Media

Figures

Other

Tables

View Table of Contents