Paper 2020/533

Anonymous Lottery in the Proof-of-Stake Setting

Foteini Baldimtsi and Varun Madathil and Alessandra Scafuro and Linfeng Zhou

Abstract

When Proof-of-Stake (PoS) underlies a consensus protocol, parties who are eligible to participate in the protocol are selected via a public selection function that depends on the stake they own. Identity and stake of the selected parties must then be disclosed in order to allow verification of their eligibility, and this can raise privacy concerns. In this paper, we present a modular approach for addressing the identity leaks of selection functions, decoupling the problem of implementing an anonymous selection of the participants, from the problem of implementing others task, e.g. consensus. We present an ideal functionality for anonymous selection that can be more easily composed with other protocols. We then show an instantiation of our anonymous selection functionality based on the selection function of Algorand.