Ransomware 3.0: Enhancing Risk Management and Mitigation Options with Proof-of-Decryptability and Smart Contracts

Ransomware attacks have become increasingly sophisticated and dangerous, severely impacting individuals and businesses. Traditional ransomware payout models lack trust and security, leaving victims vulnerable to extortion even after paying the ransom. We proposes Ransomware 3.0, a novel blockchain-based ransomware framework that leverages zero-knowledge proofs and smart contracts to overcome these challenges. By integrating these cryptographic techniques, Ransomware 3.0 ensures secure and verifiable data recovery for victims while reducing the risk of data exposure or resale by ransomware attackers. This framework also introduces a contract-based multi-round payment scheme that allows victims to optimize their payout strategy based on the evolving value of their data over time. Counterintuitively, both attackers and victims are motivated to adopt the new model, as the victim is motivated to pay when uncertainty is reduced. We also explore the theoretical decision-making foundations of Ransomware 3.0, analyze its potential benefits and limitations, and discuss its implications for ransomware risk management and mitigation strategies. Index Terms—ransomware, ZKPs, smart contract