Fundamental Pricing of Utility Tokens

We propose a framework for the fundamental valuation of utility tokens. Our model endogenizes the velocity of circulation of tokens and yields a pricing formula that is fully microfounded. According to our model, tokens are valuable because they have to be immediately accessible when the services are needed, a requirement...

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2-Step Multi-Client Quadratic Functional Encryption from Decentralized Function-Hiding Inner-Product

In this paper, we present a multi-client quadratic functional encryption (MCQFE) scheme from function-hiding inner-product (FHIP). The main challenge in such construction is that all the clients require the access to the master secret key of the underlying FHIP scheme, which clearly breaches the security. To overcome this challenge, we...

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Multi-Client Inner-Product Functional Encryption in the Random-Oracle Model

Multi-client functional encryption (MCFE) is an extension of functional encryption (FE) in which the decryption procedure involves ciphertexts from multiple parties. In this paper, we consider MCFE schemes supporting encryption labels, which allow the encryptor to limit the amount of possible mix-and-match that can take place during the decryption. This...

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Efficient Lattice-Based Inner-Product Functional Encryption

In the recent years, many research lines on Functional Encryption (FE) have been suggested and studied regarding the functionality, security, or efficiency. These studies include quadratic FE, multi-client FE, function-hiding FE, dynamic FE and much more. Nevertheless, an open problem on a basic functionality, the single-input inner-product (IPFE), remains: can...

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Helicopter Money and CBDCs: Are DLTs the perfect infrastructure for monetary policies in a time of crisis?

The nascent economic crisis is highlighting the need to rely on creative policy responses. Helicopter money appears to be one of the few untried monetary tool. Central Bank Digital Currencies (CBDCs) based on Distributed Ledger Technologies (DLTs) would provide the optimal infrastructure to implement such stimulus policy.

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Practical solutions to save bitcoins applied to an identity system proposal

In a recent work by Augot et al. (2017), a scheme is proposed to build an identity system on top of the Bitcoin network. However, this proposal incurs very high costs since Bitcoin transactions require heavy fees. The current work introduces modifications to their scheme to make it more cost...

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Cryptocurrencies, Currency Competition, and the Impossible Trinity

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a risk-adjusted martingale. We call the...

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Some simple Bitcoin Economics

In a novel model of an endowment economy, we analyze coexistence and competition between traditional fiat money (Dollar) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can trade consumption goods in either currency or hold on to currency for speculative purposes....

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