Paper 2024/1181

AQQUA: Augmenting Quisquis with Auditability

Abstract

We propose AQQUA: a digital payment system that combines auditability and privacy. AQQUA extends Quisquis by adding two authorities; one for registration and one for auditing. These authorities do not intervene in the everyday transaction processing; as a consequence, the decentralized nature of the cryptocurrency is not disturbed. Our construction is account-based. An account consists of an updatable public key which functions as a cryptographically unlinkable pseudonym, and of commitments to the balance, the total amount of coins spent, and the total amount of coins received. In order to participate in the system a user creates an initial account with the registration authority. To protect their privacy, whenever the user wants to transact they create unlinkable new accounts by updating their public key and the total number of accounts they own (maintained in committed form). The audit authority may request an audit at will. The user must prove in zero-knowledge that all their accounts are compliant to specific policies. We formally define a security model capturing the properties that a private and auditable digital payment system should possess and we analyze the security of AQQUA under this model.