Whispers on Ethereum: Blockchain-based Covert Data Embedding Schemes

Shaoyuan Liu, Zhi Fang, Feng Gao, Bakh Khoussainov, Zijian Zhang, Jiamou Liu, Liehuang Zhu

Abstract: The Ethereum cryptocurrency system becomes prevalent with the increasing number of daily transactions. It is a high-quality channel to secretly transfer information because senders and recipients are pseudonymous and transactions are tamper-resistant. Several existing covert channels have been designed for several years. However, most of the existing covert channels can either be detected by their special patterns or have low embedding rate. In this paper, we first use the VALUE field of a transaction in the Ethereum system to construct a HMAC-based multiple-bit embedding (HMAC-based MBE) scheme. We further proposed a Hash-based multiple-bit embedding (Hash-based MBE) scheme to enhance the covertness. Theoretical and experimental analysis show that both schemes have either higher embedding rate or better covertness than that of the existing works.