VRaaS: Verifiable Randomness as a Service on Blockchains

Web3 applications, such as on-chain games, NFT minting, and leader elections necessitate access to unbiased, unpredictable, and publicly verifiable randomness. Despite its broad use cases and huge demand, there is a notable absence of comprehensive treatments of on-chain verifiable randomness services. To bridge this, we offer an extensive formal analysis of on-chain verifiable randomness services. We present the first formalization of on-chain verifiable randomness in the blockchain setting by introducing the notion of Verifiable Randomness as a Service (VRaaS). We formally define VRaaS using an ideal functionality $\mathcal{F}\text{VRaaS}$ in the Universal Composability model. Our definition not only captures the core features of randomness services, such as unbiasability, unpredictability, and public verifiability, but also accounts for many other crucial nuances pertaining to different entities involved, such as smart contracts. Within our framework we study a generic design of Verifiable Random Function (VRF)-based randomness service - where the randomness requester provides an input on which the randomness is evaluated as VRF output. We show that it does satisfy our formal VRaaS definition. Furthermore, we show that the generic protocol captures many real-world randomness services like Chainlink VRF and Supra dVRF. Moreover, we investigate the minimalism of the frame-work. Towards that, first we show that, the two transactions in-built in our framework are actually necessary for any randomness service to support the essential qualities. We also discover practical vulnerabilities in other designs such as Algorand beacon, Pyth VRF and Band VRF, captured within our framework.