Cryptology ePrint Archive: Report 2019/595

In this work, we extend Monero expressiveness and interoperability while mitigating its scalability issues. We present \emph{Dual Linkable Spontaneous Anonymous Group Signature for Ad Hoc Groups (DLSAG)}, a novel linkable ring signature scheme that enables for the first time \emph{refund transactions} natively in Monero: DLSAG can seamlessly be implemented along with other cryptographic tools already available in Monero such as commitments and range proofs. We formally prove that DLSAG achieves the same security and privacy notions introduced in the original linkable ring signature~\cite{Liu2004} namely, unforgeability, signer ambiguity, and linkability. We have evaluated DLSAG and showed that it imposes even slightly lower computation and similar communication overhead than the current digital signature scheme in Monero, demonstrating its practicality. We further show how to leverage DLSAG to enable off-chain scalability solutions in Monero such as payment channels and payment-channel networks as well as atomic swaps and interoperable payments with virtually all cryptocurrencies available today. DLSAG is currently being discussed within the Monero community as an option for possible adoption as a key building block for expressiveness, interoperability, and scalability.