Smart contracts, a feature of “Bitcoin 2.0” technologies such as Ethereum, could empower criminals with sophisticated trustless collaboration means, the prestigious MIT Technology Review reports.
Cornell University professors Ari Juels and Elaine Shi, with University of Maryland researcher Ahmed Kosba, present several cyber-crime scenarios enabled by smart contracts in the recently published paper “The Ring of Gyges: Using Smart Contracts for Crime.”
The Ring of Gyges is a mythical magical ring mentioned in Plato’s Republic which grants its owner the power to become invisible at will. Of course, criminals wearing the invisibility ring would commit all sorts of crimes beyond the reach of law enforcement.
Shi joined the Computer Science Department at Cornell University in August 2015. Shi was recently awarded a large National Science Foundation (NSF) research grant for cyber-security research, Bitcoin Magazine reported in July. Shi, formerly at the University of Maryland and the Maryland Cybersecurity Center, researches cryptocurrencies and “smart contracts” – computer programs that can automatically execute the terms of a contract.
“We illuminate the extent to which these new cryptocurrencies, by enabling criminal activities to be conducted anonymously and with minimal trust assumptions, may fuel new criminal ecosystems,” note the researchers. “Specifically, we show how what we call criminal smart contracts (CSCs) can facilitate leakage of confidential information, theft of cryptographic keys, and various real-world crimes (murder, arson, terrorism).”
The examples developed by the researchers work on the recently launched smart contract platform Ethereum.
For example, malicious agents could anonymously hire hackers to compromise a website by creating a smart contract that, upon automatic verification that an agreed code string has been added to the hacked website, pays the hackers a reward in cryptocurrency. The method doesn’t require that the two criminal parties trust each other.
Similarly, self-executing smart contracts could be used in “assassination markets.” Criminals could place a smart contract for the assassination of a target, and the contract could pay the murderer automatically upon verification (for example by automatically scanning news wires) that the target has been murdered at an agreed place and time. Again, the method doesn’t require that the criminals trust each other.
Original post: https://bitcoinmagazine.com/21626/future-smart-contracts-positive-social-innovation-criminal-activity/