Usable optimistic fair exchange

Fairly exchanging digital content is an everyday problem. It has been shown that fair exchange cannot be achieved without a trusted third party (called the Arbiter). Yet, even with a trusted party, it is still non-trivial to come up with an efficient solution, especially one that can be used in a p2p file sharing system with a high volume of data exchanged. We provide an efficient optimistic fair exchange mechanism for bartering digital files, where receiving a payment in return for a file (buying) is also considered fair. The exchange is optimistic, removing the need for the Arbiter's involvement unless a dispute occurs. While the previous solutions employ costly cryptographic primitives for every file or block exchanged, our protocol employs them only once per peer, therefore achieving an O(n) efficiency improvement when n blocks are exchanged between two peers. Our protocol uses very efficient cryptography, making it perfectly suitable for a p-2-p file sharing system where tens of peers exchange thousands of blocks and they do not know beforehand which ones they will end up exchanging. Therefore, our system yields up to one-to-two orders of magnitude improvement in terms of both computation and communication (40s vs. 42min, 1.6MB vs. 200MB). Thus, for the first time, a provably secure (and privacy-respecting when payments are made using e-cash) fair exchange protocol can be used in real bartering applications (e.g., BitTorrent) [14] without sacrificing performance.