IACR News item: 19 October 2015
Joseph Bonneau, Jeremy Clark, Steven Goldfeder
ePrint ReportWe can derive strong lower bounds on the computational min-entropy in each block: currently, at least 68 bits of min-entropy are produced every 10 minutes, from which one can derive over 32 near-uniform bits using standard extractor techniques. We show that any attack on this beacon would form an attack on Bitcoin itself and hence have a monetary cost that we can bound, unlike any other construction for a public randomness beacon in the literature. In our simplest construction, we show that a lottery producing a single unbiased bit is manipulation-resistant against an attacker with a stake of less than 50 bitcoins in the output, or about US$12,000 today. Finally, we propose making the beacon output available to smart contracts and demonstrate that this simple tool enables a number of interesting applications.
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