Analysis of Digital Knapsack Based Sealed Bid Auction

TL;DR

This paper analyzes a digital sealed bid auction protocol based on the knapsack problem, discussing its limitations and potential applications despite known security issues.

Contribution

It provides an analysis of a knapsack-based auction protocol, highlighting its limitations and proposing solutions for practical auction scenarios.

Findings

The protocol has limitations in detecting bidder ties.

Malicious participant behavior poses challenges.

The knapsack system can be used in specific auction contexts.

Abstract

The need of totally secure online auction has led to the invention of many auction protocols. But as new attacks are developed, auction protocols also require corresponding strengthening. We analyze the auction protocol based on the well-known mathematical public-key knapsack problem for the design of asymmetric public-key knapsack trapdoor cryptosystem. Even though the knapsack system is not cryptographically secure, it can be used in certain auction situations. We describe the limitations of the protocol like detecting and solving the tie between bidders, malicious behavior of participants and also selection of price set by the seller and offer solutions.