Cryptology ePrint Archive: Report 2021/1193

JUBILEE: Secure Debt Relief and Forgiveness

David Cerezo Sánchez

Abstract: 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.

Category / Keywords: applications / secure computation, mechanism design, debt forgiveness

Date: received 15 Sep 2021

Contact author: david at calctopia com

Available format(s): PDF | BibTeX Citation

Version: 20210917:091057 (All versions of this report)

Short URL: ia.cr/2021/1193


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