From 895e24872de95acf255e0746b42f0661697e7f9a Mon Sep 17 00:00:00 2001
From: Christian Grothoff <christian@grothoff.org>
Date: Sun, 12 Jul 2020 18:19:17 +0200
Subject: initial import of thesis-dold

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+\chapter{Future Work}\label{chapter:future-work}
+We now discuss future work that builds upon the results presented so far.
+
+
+\subsection*{Standard Model}
+Our current instantiation of the Taler protocol relies heavily on hash
+functions.  Since the result by Canetti and others \cite{canetti2004random}
+about the theoretical impossibility of securely instantiating protocols that
+rely on the random oracle assumption for their security, a vast amount of
+literature has been devoted to find instantiations of interesting protocols in
+the standard model \cite{koblitz2015random}.  The Taler protocol syntax could
+likely be also instantiated securely in the standard model, based existing on
+blind signature schemes in the standard model.  The trade-off however is that
+while removing the random oracle assumption, typically other less well known
+assumptions must be made.
+
+\subsection*{Post-Quantum security}
+The possibility of post-quantum computers breaking the security of established
+cryptographic primitives has lately received a lot of attention from
+cryptographers.  While currently most schemes with post-quantum security are impractical,
+it might be worthwhile to further investigate their application to e-cash, based
+on existing work such as \cite{zhang2018new}.
+
+\subsection*{Applications to network incentives}
+Some peer-to-peer networking protocols (such as onion routing
+\cite{dingledine2004tor}) do not have inherent incentives and rely on
+volunteers to provide infrastructure.  In future work, we want to look at
+adding incentives in the form of Taler payments to a peer-to-peer networking
+platform such as GNUnet.
+
+\subsection*{Smart(er) Contracts and Auctions}
+Contract terms in Taler are relatively limited.  There are some interesting
+secure multiparty computations, such as privacy-preserving auctions
+\cite{brandt2006obtain} that could be offered by exchanges as a fixed smart
+contract.  This would allow a full privacy-preserving auction platform, as
+current auction protocols only output the winner of a privacy-preserving
+auction but do not address the required anonymous payments.
+
+
+\subsection*{Backup and Sync}\label{sec:future-work-backup-sync}
+Synchronization of wallets between multiple devices is a useful feature, but a
+na\"ive implementation endangers privacy.  A carefully designed protocol for
+backup and synchronization must make sure that the hosting service for the
+wallet's data cannot collaborate with the exchange and merchants to deanonymize
+users or transactions.  Thus when spending coins for a payment, devices should
+not have to synchronously talk to their backup/sync provider.  This creates the
+challenge of allocating the total available balance to individual devices in a
+way that fits the customer's spending pattern, and only require synchronous
+communication at fixed intervals or when really necessary to re-allocate coins.
+
+Another possible approach might be to use Private Information Retrieval (PIR)
+\cite{goldberg2007improving} to access backup and synchronization information.
+
+
+\subsection*{Machine-Verified Proofs}
+We currently model only a subset of the GNU Taler protocol formally, and proofs
+are handwritten and verified by humans.  A tool such as CryptoVerif
+\cite{blanchet2007cryptoverif} can allow a higher coverage and computer-checked
+proofs, and would allow protocol changes to be validated in shorter time.
+
+\subsection*{Coin Restrictions / ``Taler for Children''}
+By designating certain denominations for different purposes, GNU Taler could be
+used to implement a very simple form of anonymous credentials
+\cite{paquin2011u,camenisch2004signature}, which then could be used to
+implement a Taler wallet specifically aimed at children, in order to teach them
+responsible and autonomous spending behavior, while granting them privacy and
+at the same time preventing them from making age-inappropriate purchases
+online, as the discretion of parents.
+
+%\subsection*{gnunet-blockchain / deployment of the full stack payment system}
+%=> no, talk more about integration with real banks, KYC
+%
+%\subsection*{P2P payments}
+%
+%\subsection*{NFC Wallet}
+%
+%\subsection*{large, scaleable deployment}
+%I.e. sharding, db replication, load balancer(s)
+%
+%\subsection*{Hardware security module for exchange}
+%
+%\subsection*{Bitcoin/Blockchain integration}
+%
+%\subsection*{UX study and improvements}
+%(including tracking/planning of spending)
+%
+%\subsection*{News Distribution}
+
+\chapter{Conclusion}\label{chapter:conclusion}
+
+% sources and inspirations
+% https://www.bis.org/publ/arpdf/ar2018e5.pdf
+% https://www.bis.org/publ/qtrpdf/r_qt1709f.pdf
+% http://andolfatto.blogspot.com/2015/02/fedcoin-on-desirability-of-government.html
+
+% mention eKrona/Riksbank
+
+% bessere ueberleitung
+% effizienz!
+% freie software / commons
+% scalability of blockchains
+% expand on some ideas such as naiveity of blockchains
+% 3 areas for currencies
+
+
+% einleitung: we introduced two systems that solve/address core problems for
+% banking (consensus, transactions, ...) "geld ist kein selbstzweck"
+% reason for having money is: ...
+
+% central banks are the only tool that we know that works
+
+% geld ist politisch, macht, verantwortung, gesellschaften aufbauen oder ruinieren
+% apolitical solution impossible
+
+This book presented GNU Taler, an efficient protocol for
+value-based electronic payment systems with focus on security and
+privacy.  While we believe our approach to be socially and economically beneficial, a
+technological impact analysis is in order prior to adopting new
+systems that have broad economic and socio-political implications.
+
+Currencies serve three key functions in society:~\cite{mankiw2010macroeconomics}
+\begin{enumerate}
+\item As a unit for measurement of value,
+\item a medium of exchange, and
+\item a store of value.
+\end{enumerate}
+How do the various methods measure up to these requirements?
+
+\section{Cryptocurrencies vs. Central-Bank-Issued Currencies}
+
+\begin{figure}
+\centering
+\includegraphics[width=\textwidth]{diagrams/bitcoin-market-price.png}
+  \caption[Historical market price of Bitcoin.]{Historical market price (in
+  USD) of Bitcoin across major exchanges (Source:~\url{https://blockchain.com}).}
+\label{fig:volatility}
+\end{figure}
+
+Cryptocurrencies generally fail to achieve the required stability to serve as a
+reasonable unit of measurement (Figure~\ref{fig:volatility}).  The volatility
+of cyptocurrencies is caused by a combination of a lack of institutions that
+could intervene to dampen fluctuations and a comparatively limited liquidity
+in the respective
+markets.  The latter is exacerbated by the limited ability of decentralized
+cryptocurrencies to handle large transaction volumes, despite their extreme
+levels of resource consumption.  As a result, the utility of decentralized
+cryptocurrencies is limited to highly speculative investments and to the
+facilitation of criminal transactions.
+
+With respect to privacy, completely decentralized cryptocurrencies
+provide either too much or too little anonymity.  Transparent
+cryptocurrencies create the spectre of discriminatory pricing, while
+especially for privacy-enhanced cryptocurrencies the lack of
+regulation creates an attractive environment for fraud and criminal
+activity from tax evasion to financing of terrorism.
+
+These problems are easily addressed by combining the register (or
+ledger) with a central bank providing a regulatory framework and
+monetary policy, including anti-money-laundering and
+know-your-customer enforcement.  
+
+\section{Electronic Payments}
+
+Day-to-day payments using registers are expensive and inconvenient.
+Using a register requires users to {\em identify} themselves to {\em
+  authorize} transactions, and the use of register-based banking
+systems tends to be more expensive than the direct exchange of
+physical cash.  However, with the ongoing digitalization of daily life
+where a significant number of transactions is realized over networks,
+some form of electronic payments remain inevitable.
+
+The current alternative to (centrally banked) electronic cash are a
+payment systems under full control of oligopoly companies such as
+Google, Apple, Facebook or Visa.  The resulting oligopolies are
+anti-competitive. In addition to excessive fees, they sometimes even
+refuse to process payments with certain types of legal businesses,
+which then are often ruined due to lack of alternatives.  Combining
+payment services with companies where the core business model is
+advertising is also particularly damaging for privacy.  Finally, the
+sheer size of these companies creates systemic risks, just as their
+global scale creates challenges for regulation.
+
+As GNU Taler is free software, even without backing by a central bank,
+Taler would not suffer from these drawbacks arising from the use of
+proprietary technology.
+
+Furthermore, Taler-style electronic cash comes
+with some unique benefits:
+\begin{itemize}
+  \item improved income transparency compared to cash and traditional
+    Chaum-style e-cash,
+  \item anonymity for payers,
+  \item avoidance of enticement towards consumer debt --- especially
+    compared to credit cards, and
+  \item support of new business models and Internet security
+    mechanisms which require (anonymous) micro-transactions.
+\end{itemize}
+
+Central banks are carefully considering what might be the right
+technology to implement an electronic version of their centrally
+banked currency, and with Taler we hope to address most of their concerns.
+Nevertheless, all electronic payment systems, including Taler even
+when backed by central-bank-issued currencies, come with their own
+inherent set of risks:~\cite{riksbank2017riksbank}
+
+\begin{itemize}
+  \item increased risk of a bank run: in a banking crisis,
+    as it is easier to withdraw large amounts of digital
+    cash quickly --- even from remote locations;
+  \item increased volatility due to foreign holdings that would
+    not be as easily possible with physical cash;
+  \item increased risk of theft and disruption: while physical
+    cash can also be stolen (and likely with much less effort), it is
+    difficult to transport in volume~\cite{force2015money}, the
+    risk is increased with computers because attacks scale \cite{hammer2018billion}, and
+    generally many small incidents are socially preferable over a
+    tiny number of very large-scale incidents; and
+  \item unavailability in crisis situations without electricity and Internet
+    connectivity.
+\end{itemize}
+
+
+We believe that in the case of Taler, some of the risks mentioned
+above can be mitigated:
+\begin{itemize}
+ \item Volatility due to foreign holdings and the resulting increased
+   risk of bank runs can be reduced by putting limits on the amount of
+   electronic coins that customers can withdraw.  Limiting the
+   validity periods of coins is another method that can help
+   disincentivize the use of Taler as a value store.
+ \item The use of open standards and reference implementations enables
+   white-hat security research around GNU Taler, which together with
+   good operational security procedures and the possibility of
+   competing providers should reduce the risks from attacks.
+ \item GNU Taler can co-exist with physical cash, and might even
+   help revive the use of cash if it succeeds in reducing credit
+   card use online thereby eliminating a key reason for people to
+   have credit cards.
+\end{itemize}
+
+Unlike cryptocurrencies, Taler does not prescribe a solution for monetary
+policy or just taxation, as we believe these issues need to be subject to
+continuous political debate and cannot be ``solved'' by simplistic algorithms.
+What we offer to society is an open and free (as in free speech) system with
+mechanisms to audit merchants' income, instead of proprietary systems
+controlled by a few oligopoly companies.
+
-- 
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