Statistical privacy-preserving message broadcast for peer-to-peer networks.

Privacy concerns are widely discussed in research and society in general. For the public infrastructure of financial blockchains, this discussion encompasses the privacy of the originator of a transaction broadcasted on the underlying peer-to-peer network. Adaptive diffusion is an approach to expose an alternative source of a message to attackers. However, this approach assumes an unsuitable attacker model and a non-realistic network model for current peer-to-peer networks on the Internet. We transform adaptive diffusion into a new statistical privacy-preserving broadcast protocol for realistic current networks. We model a class of unstructured peer-to-peer networks as organically growing graphs and provide models for other classes of such networks. We show that the distribution of shortest paths can be modelled using a normal distribution [Formula: see text]. We determine statistical estimators for µ, σ via multivariate models. The model behaves logarithmic over the number of nodes n and proportional to an inverse exponential over the number of added edges per node k. These results facilitate the computation of optimal forwarding probabilities during the dissemination phase for maximum privacy, with participants having only limited information about network topology.

Unobtrusive monitoring: Statistical dissemination latency estimation in Bitcoin's peer-to-peer network.

The cryptocurrency system Bitcoin uses a peer-to-peer network to distribute new transactions to all participants. For risk estimation and usability aspects of Bitcoin applications, it is necessary to know the time required to disseminate a transaction within the network. Unfortunately, this time is not immediately obvious and hard to acquire. Measuring the dissemination latency requires many connections into the Bitcoin network, wasting network resources. Some third parties operate that way and publish large scale measurements. Relying on these measurements introduces a dependency and requires additional trust. This work describes how to unobtrusively acquire reliable estimates of the dissemination latencies for transactions without involving a third party. The dissemination latency is modelled with a lognormal distribution, and we estimate their parameters using a Bayesian model that can be updated dynamically. Our approach provides reliable estimates even when using only eight connections, the minimum connection number used by the default Bitcoin client. We provide an implementation of our approach as well as datasets for modelling and evaluation. Our approach, while slightly underestimating the latency distribution, is largely congruent with observed dissemination latencies.