Detecting Privileged Parties on Ethereum

The promise of smart contracts (computer programs running on a decentralized virtual computer) lies in the ability to execute agreements without the risk of interference by powerful intermediaries. However, in practice, many smart contracts reintroduce privileged parties on the application layer. They are programmed to enforce that certain functions can only be executed by the owners of defined accounts. We propose and validate a method to detect such privileged parties from binary smart contract code on the Ethereum platform. Our open-source implementation, Ethpector, can be used to verify claims about “zero-trust,” reveal ownership structures, forensically analyze networks of virtual shell organizations, and may support auditors when testifying ownership of intangible assets on Ethereum held by conventional legal entities.