Embedding Tamper-Resistant, Publicly Verifiable Random Number Seeds in Permissionless Blockchain Systems

Many blockchain processes require pseudo-random numbers. This is especially true of blockchain consensus mechanisms that aim to fairly distribute the opportunity to propose new blocks between the participants in the system. The starting point for these processes is a source of randomness that participants cannot manipulate. This paper proposes two methods for embedding random number seeds in a blockchain data structure to serve as inputs to pseudo-random number generators. Because the output of a pseudo-random number generator depends deterministically on its seed, the properties of the seed are critical to the quality of the eventual pseudo-random number produced. Our protocol, B-Rand, embeds random number seeds that are
confidential
,
tamper-resistant
,
unpredictable
,
collision-resistant
, and
publicly verifiable
as part of every transaction. These seeds may then be used by transaction owners to participate in processes in the blockchain system that require pseudo-random numbers. Both the Single Secret and Double Secret B-Rand protocols are highly scalable with low space and computational cost, and the worst case is linear in the number of transactions per block.