🤖 AI Summary
This paper addresses the distributed average consensus problem under rational agents, jointly ensuring incentive compatibility and privacy preservation. We propose a novel framework integrating mechanism design with encrypted control: an incentive-compatible mechanism guarantees agents truthfully follow the protocol; additive homomorphic encryption combined with Shamir’s secret sharing enables fully encrypted iterative updates, provably concealing all agents’ initial values; and under the secure multi-party computation model, simulation-based proofs establish resilience against colluding adversaries. To our knowledge, this is the first work to systematically incorporate mechanism design theory into encrypted control, thereby achieving dual provable guarantees—behavioral trustworthiness against rational adversaries and rigorous data privacy. The framework bridges game-theoretic incentives with cryptographic security, offering a foundational approach for privacy-preserving distributed optimization in adversarial, self-interested settings.
📝 Abstract
We propose a protocol based on mechanism design theory and encrypted control to solve average consensus problems among rational and strategic agents while preserving their privacy. The proposed protocol provides a mechanism that incentivizes the agents to faithfully implement the intended behavior specified in the protocol. Furthermore, the protocol runs over encrypted data using homomorphic encryption and secret sharing to protect the privacy of agents. We also analyze the security of the proposed protocol using a simulation paradigm in secure multi-party computation. The proposed protocol demonstrates that mechanism design and encrypted control can complement each other to achieve security under rational adversaries.