Stateful Hash-based Digital Signature Schemes for Bitcoin Cryptocurrency

Abstract

Modern computing devices use classical algorithms such as Rivest Shamir Adleman (RSA) and Elliptic Curve Digital Signature Algorithm (ECDSA) for their security. The securities of these algorithms relied on the problem and difficulty of integer factorization and also calculating the Discrete Logarithm Problems. With the introduction of quantum computers, recent research is focusing on developing alternative algorithms which are supposed to withstand attacks from quantum computers. One of such alternatives is the Hash-based Digital Signature Schemes. Chosen hash-based signature schemes over classical algorithms is because their security is on the hash function used and that they are metaheuristic in nature. This research work presents basic analysis and the background understanding of Stateful Hash-based Signature Schemes, particularly the Lamport One-Time Signature Scheme, Winternitz One-Time Signature Scheme, and the Merkle Signature Scheme. The three schemes selected are stateful, hence has common features and are few-time hash-based signature schemes. The selected Stateful Hash-based Digital Signature Schemes were analyzed based on their respective key generation, signature generation, signature verification, and their security levels. Practical working examples were given for better understanding. With the analyses, Merkle Signature Scheme proves to be the best candidate to be used in the Bitcoin Proof of Work protocol because of its security and its advantage of signing many messages.