PARScoin: A Privacy-preserving, Auditable, and Regulation-friendly Stablecoin

Amirreza Sarencheh; Aggelos Kiayias; Markulf Kohlweiss

Paper 2023/1908

PARScoin: A Privacy-preserving, Auditable, and Regulation-friendly Stablecoin

Amirreza Sarencheh

, The University of Edinburgh, IOG

Aggelos Kiayias

, The University of Edinburgh, IOG

Markulf Kohlweiss, The University of Edinburgh, IOG

Abstract

Stablecoins are digital assets designed to maintain a consistent value relative to a reference point, serving as a vital component in Blockchain, and Decentralized Finance (DeFi) ecosystem. Typical implementations of stablecoins via smart contracts come with important downsides such as a questionable level of privacy, potentially high fees, and lack of scalability. We put forth a new design, PARScoin, for a Privacy-preserving, Auditable, and Regulation-friendly Stablecoin that mitigates these issues while enabling high performance both in terms of speed of settlement and for scaling to large numbers of users as our performance analysis demonstrates. Our construction is blockchain-agnostic and is analyzed in the Universal Composition (UC) framework, offering a secure and modular approach for its integration into the broader blockchain ecosystem.

Metadata

Available format(s): PDF
Category: Applications
Publication info: Published elsewhere. Minor revision. 23rd International Conference on Cryptology And Network Security (CANS 2024)
Keywords: Stablecoin Privacy Regulation Auditing DeFi Cryptography Transaction fee Scalability Universal Composition
Contact author(s): Amirreza Sarencheh @ ed ac uk
Aggelos Kiayias @ ed ac uk
Markulf Kohlweiss @ ed ac uk
History: 2024-12-24: last of 2 revisions; 2023-12-12: received; See all versions
Short URL: https://ia.cr/2023/1908
License: CC BY

BibTeX

@misc{cryptoeprint:2023/1908,
      author = {Amirreza Sarencheh and Aggelos Kiayias and Markulf Kohlweiss},
      title = {{PARScoin}: A Privacy-preserving, Auditable, and Regulation-friendly Stablecoin},
      howpublished = {Cryptology {ePrint} Archive, Paper 2023/1908},
      year = {2023},
      url = {https://eprint.iacr.org/2023/1908}
}