Cryptology ePrint Archive: Report 2014/1011

Proof-of-Work as Anonymous Micropayment: Rewarding a Tor Relay

Alex Biryukov and Ivan Pustogarov

Abstract: In this paper we propose a new micropayments scheme which can be used to reward Tor relay operators. Tor clients do not pay Tor relays with electronic cash directly but submit proof of work shares which the relays can resubmit to a crypto-currency mining pool. Relays credit users who submit shares with tickets that can later be used to purchase improved service. Both shares and tickets when sent over Tor circuits are anonymous. The analysis of the crypto-currencies market prices shows that the proposed scheme can compensate significant part of Tor relay operator's expenses.

Category / Keywords: cryptographic protocols / Tor; Proof of Work; Crypto-currency; Micropayment; Mining pools

Original Publication (with major differences): 19th Financial Cryptography and Data Security Conference 2015

Date: received 24 Dec 2014, last revised 6 Feb 2015

Contact author: ivan pustogarov at uni lu

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Version: 20150206:170811 (All versions of this report)

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