Research Article
System-Wide Security for Offline Payment Terminals
@INPROCEEDINGS{10.1007/978-3-030-90022-9_6, author={Nikolay Ivanov and Qiben Yan}, title={System-Wide Security for Offline Payment Terminals}, proceedings={Security and Privacy in Communication Networks. 17th EAI International Conference, SecureComm 2021, Virtual Event, September 6--9, 2021, Proceedings, Part II}, proceedings_a={SECURECOMM PART 2}, year={2021}, month={11}, keywords={Blockchain Off-chain interaction Smart contract Offline payment}, doi={10.1007/978-3-030-90022-9_6} }- Nikolay Ivanov
Qiben Yan
Year: 2021
System-Wide Security for Offline Payment Terminals
SECURECOMM PART 2
Springer
DOI: 10.1007/978-3-030-90022-9_6
Abstract
Most self-service payment terminals require network connectivity for processing electronic payments. The necessity to maintain network connectivity increases costs, introduces cybersecurity risks, and significantly limits the number of places where the terminals can be installed. Leading payment service providers have proposed offline payment solutions that rely on algorithmically generated payment tokens. Existing payment token solutions, however, require complex mechanisms for authentication, transaction management, and most importantly, security risk management. In this paper, we presentVolgaPay, a blockchain-based system that allows merchants to deploy secure offline payment terminal infrastructure that does not require collection and storage of any sensitive data. We design a novel payment protocol which mitigates security threats for all the participants ofVolgaPay, such that the maximum loss from gaining full access to any component by an adversary incurs only a limited scope of harm. We achieve significant enhancements in security, operation efficiency, and cost reduction via a combination of polynomial multi-hash chain micropayment channels and blockchain grafting for off-chain channel state transition. We implement theVolgaPaypayment system, and with thorough evaluation and security analysis, we demonstrate thatVolgaPayis capable of delivering a fast, secure, and cost-efficient solution for offline payment terminals.
