Kostas, along with Foteini Baldimtsi, Panagiotis Chatzigiannis, and Mahimna Kelkar, have released a new paper and experimental benchmarking library exploring compression techniques for cryptographic outputs via brute-force mining.
Kosta’s announcement: https://twitter.com/kostascrypto/status/1592371432415109121
Link to the Github: GitHub - MystenLabs/truncator: Cryptographic truncation via mining
Link to the paper: https://eprint.iacr.org/2022/1581.pdf
If we ever get Kostas on board here, I’ll transfer this topic into your name 
truncator
truncator is an experimental benchmarking library exploring compression techniques for cryptographic outputs via brute-force mining. It is part of the joint research project entitled “Truncator: Time-space Tradeoff of Cryptographic Primitives” by Foteini Baldimtsi (GMU & Mysten Labs), Konstantinos Chalkias (Mysten Labs), Panagiotis Chatzigiannis (Visa Research), and Mahimna Kelkar (Cornell University).
Paper
A 10-pager short paper is available here: Truncator short paper
Abstract
We’re presenting mining-based techniques to reduce the size of various cryptographic outputs without loss of security. Our approach can be generalized for multiple primitives, such as key generation, signing, hashing and encryption schemes, by introducing a brute-forcing step to provers/senders aiming at compressing submitted cryptographic material. As a result, in systems that we can tolerate sender’s work to be more demanding and time-consuming, we manage to optimize on verification, payload size and storage cost, especially when:
- receivers have limited resources (i.e. mobile, IoT);
- storage or data-size is financially expensive (i.e. blockchains, cloud storage and ingress cost);
- multiple recipients perform verification/decryption/lookup (i.e. blockchains, TLS certs, IPFS lookups).
Interestingly, mining can result in record-size cryptographic outputs, and we show that 5%-12% shorter hash digests and signatures are practically feasible even with commodity hardware. Obviously, the first thing that comes to mind is compressing addresses and transaction signatures in order to pay less gas fees in blockchain applications, but in fact even traditional TLS certificates and public keys, which are computed once and reused in every new connection, can be slightly compressed with this mining trick without compromising security. The effects of compressing once - then reuse at mass scale can be economically profitable in the long run for both the Web2 and Web3 ecosystems.
Our paradigm relies on a brute-force search operation in order to craft the primitive’s output such that it fits into fewer bytes, while the missing fixed bytes are implied by the system parameters and omitted from the actual communication. While such compression requires computational effort depending on the level of compression, this cost is only paid at the source (typically in blockchains consisting of a single party) which is rewarded by lowered transaction fees, and the benefits of the compression are enjoyed by the whole ecosystem. As a starting point, we show how our paradigm applies to some basic primitives (commonly used in blockchain applications), and show how security is preserved using a bit security framework. Surprisingly, we also identified cases where wise mining strategies require proportionally less effort than naive brute-forcing, an example is WOTS (and inherently SPHINCS) post-quantum signatures where the target goal is to remove or compress the Winternitz checksum part. Moreover, we evaluate our approach for several primitives based on different levels of compression which concretely demonstrates the benefits (both in terms of financial cost and storage) if adopted by the community.
Finally, as this work is inspired by the recent unfortunate buggy gas golfing software in Ethereum, where weakly implemented functions incorrectly generated addresses (hashes) with prefixed zeroes for gas optimization, resulting in millions of losses, we expect our Truncator approach to be naturally applied in the blockchain space as a secure solution to more succinct transactions, addresses and states.