re-add conclusion and discussion parts, misc FIXMEs addressed
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@ -231,11 +231,8 @@ major irredeemable problems inherent in their designs:
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Bitcoin also lacks anonymity, as all Bitcoin transactions are recorded
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for eternity, which can enable identification of users. Anonymous
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payment systems based on BitCoin such as CryptoNote~\cite{cryptonote}
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(Monero), Zerocash~\cite{zerocash} (ZCash) and BOLOT~\cite{BOLT}
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% FIXME: exacerbate is very strong, lots of people wouldn't believe
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% this claim, it only exacerbates certain aspects (money laundering)
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% and computational/storage cost.
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exacerbate Bitcoin's design issues. These systems exploit the
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(Monero), Zerocash~\cite{zerocash} (ZCash) and BOLT~\cite{BOLT}
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exacerbate the design issues we mention above. These systems exploit the
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blockchain's decentralized nature to escape anti-money laundering
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regulation~\cite{molander1998cyberpayments} as they provide anonymous,
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disintermediated transactions.
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@ -1148,14 +1145,11 @@ perfectly balanced in between frontend and backend. Nevertheless,
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these experimental results show that computing-related business costs
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will only marginally contribute to the operational costs of the Taler
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payment system.
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% FIXME: Say that storage costs dominated? Are storage costs comparable
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% for a self hosted system? Didn't we reduce the storage costs with the
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% key generation trick?
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\section{Discussion}
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% \subsection{Well-known attacks}
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\subsection{Well-known attacks}
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Taler's security is largely equivalent to that of Chaum's original
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design without online checks or the cut-and-choose revelation of
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@ -1181,7 +1175,7 @@ actually facilitates voluntary cooperation between the exchange and
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criminals~\cite{sander1999escrow} and where the state could
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deanonymize citizens.
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%\subsection{Offline Payments}
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\subsection{Offline Payments}
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Chaum's original proposals for anonymous digital cash avoided the need
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for online interactions with the exchange to detect double spending by
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@ -1192,19 +1186,19 @@ may be infeasible in practice. Furthermore, a customer may
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accidentally deanonymize himself, for example by double-spending a
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coin after restoring from backup.
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%\subsection{Merchant Tax Audits}
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%
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%For a tax audit on the merchant, the exchange includes the business
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%transaction-specific hash in the transfer of the traditional
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%currency. A tax auditor can then request the merchant to reveal
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%(meaningful) details about the business transaction ($\mathcal{D}$,
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%$a$, $p$, $r$), including proof that applicable taxes were paid.
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%
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%If a merchant is not able to provide theses values, he can be
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%subjected to financial penalties by the state in relation to the
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%amount transferred by the traditional currency transfer.
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\subsection{Merchant Tax Audits}
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% \subsection{Cryptographic proof vs. evidence}
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For a tax audit on the merchant, the exchange includes the business
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transaction-specific hash in the transfer of the traditional
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currency. A tax auditor can then request the merchant to reveal
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(meaningful) details about the business transaction ($\mathcal{D}$,
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$a$, $p$, $r$), including proof that applicable taxes were paid.
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If a merchant is not able to provide theses values, they can be
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subjected to financial penalties by the state in relation to the
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amount transferred by the traditional currency transfer.
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\subsection{Cryptographic proof vs. evidence}
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In this paper we have use the term ``proof'' in many places as the
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protocol provides cryptographic proofs of which parties behave
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@ -1221,7 +1215,7 @@ the participants have to disclose their core secrets.
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%We performed some initial performance measurements for the various
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%operations on our exchange implementation. The main conclusion was that
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%the computational and bandwidth cost for transactions described in
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%this paper is smaller than $10^{-3}$ cent/transaction, and thus
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%this paper is smaller than $10^{-2}$ cent/transaction, and thus
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%dwarfed by the other business costs for the exchange. However, this
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%figure excludes the cost of currency transfers using traditional
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%banking, which a exchange operator would ultimately have to interact with.
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@ -1229,29 +1223,30 @@ the participants have to disclose their core secrets.
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%aggregating multiple transfers to the same merchant.
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%\section{Conclusion}
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\section{Conclusion}
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%We have presented an efficient electronic payment system that
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%simultaneously addresses the conflicting objectives created by the
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%citizen's need for privacy and the state's need for taxation. The
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%coin refreshing protocol makes the design flexible and enables a
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%variety of payment methods. The current balance and profits of the
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%exchange are also easily determined, thus audits can be used to ensure
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%that the exchange operates correctly. The libre implementation and open
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%protocol may finally enable modern society to upgrade to proper
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%electronic wallets with efficient, secure and privacy-preserving
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%transactions.
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We have presented an efficient electronic payment system that
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simultaneously addresses the conflicting objectives created by the
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citizen's need for privacy and the state's need for taxation. The
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coin refreshing protocol makes the design flexible and enables a
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variety of payment methods. The current balance and profits of the
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exchange are also easily determined, thus audits can be used to ensure
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that the exchange operates correctly. The free software
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implementation and open protocol may finally enable modern society to
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upgrade to proper electronic wallets with efficient, secure and
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privacy-preserving transactions.
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% commented out for anonymized submission
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%\subsection*{Acknowledgements}
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\subsection*{Acknowledgements}
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%This work was supported by a grant from the Renewable Freedom Foundation.
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% FIXME: ARED?
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We thank people (anonymized).
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%This work benefits from the financial support of the Brittany Region
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%(ARED 9178) and a grant from the Renewable Freedom Foundation.
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%We thank Tanja Lange, Dan Bernstein, Luis Ressel and Fabian Kirsch for feedback on an earlier
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%version of this paper, Nicolas Fournier for implementing and running
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%some performance benchmarks, and Richard Stallman, Hellekin Wolf,
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%Jacob Appelbaum for productive discussions and support.
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\newpage
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\bibliographystyle{alpha}
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\bibliography{taler,rfc}
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