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Scalable Distributed Random Number Generation Based on Homomorphic Encryption

Generating a secure source of publicly-verifiable randomness could be the single most fundamental technical challenge on a distributed network, especially in the blockchain context. Many current proposals face serious problems of scalability and security issues. We present a protocol which can be implemented on a blockchain that ensures unpredictable, tamper-resistant, scalable and publicly-verifiable outcomes. The main building blocks of our protocol are homomorphic encryption (HE) and verifiable random functions (VRF). The use of homomorphic encryption enables mathematical operations to be performed on encrypted data, to ensure no one knows the outcome prior to being generated. The protocol requires O(n) elliptic curve multiplications and additions as well as O(n) signature signing and verification operations, which permits great scalability. We present a comparison between recent approaches to the generation of random beacons.