The Ring of Gyges

Abstract

Thanks to their anonymity (pseudonymity) and elimination of trusted intermediaries, cryptocurrencies such as Bitcoin have created or stimulated growth in many businesses and communities. Unfortunately, some of these are criminal, e.g., money laundering, illicit marketplaces, and ransomware. Next-generation cryptocurrencies such as Ethereum will include rich scripting languages in support of smart contracts, programs that autonomously intermediate transactions. In this paper, we explore the risk of smart contracts fueling new criminal ecosystems. 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).