Cloak: Transitioning States on Legacy Blockchains Using Secure and Publicly Verifiable Off-Chain Multi-Party Computation

Abstract: In recent years, the confidentiality of smart contracts has become a fundamental requirement for practical applications. While many efforts have been made to develop architectural capabilities for enforcing confidential smart contracts, a few works arise to extend confidential smart contracts to Multi-Party Computation (MPC), i.e., multiple parties jointly evaluate a transaction off-chain and commit the outputs on-chain without revealing their secret inputs/outputs to each other. However, existing solutions lack public verifiability and require O(n) transactions to enable negotiation or resist adversaries, thus suffering from inefficiency and compromised security. In this paper, we propose Cloak, a framework for enabling Multi-Party Transaction (MPT) on existing blockchains. An MPT refers to transitioning blockchain states by an publicly verifiable off-chain MPC. We identify and handle the challenges of securing MPT by harmonizing TEE and blockchain. Consequently, Cloak secures the off-chain nondeterministic negotiation process (a party joins an MPT without knowing identities or the total number of parties until the MPT proposal settles), achieves public verifiability (the public can validate that the MPT correctly handles the secret inputs/outputs from multiple parties and reads/writes states on-chain), and resists Byzantine adversaries. According to our proof, Cloak achieves better security with only 2 transactions, superior to previous works that achieve compromised security at O(n) transactions cost. By evaluating examples and real-world MPTs, the gas cost of Cloak reduces by 32.4% on average.