This article develops a cloud-based protocol for a constrained quadratic optimization problem involving multiple parties, each holding private data. The protocol is based on the projected gradient ascent on the Lagrange dual problem and exploits partially homomorphic encryption and secure communication techniques. Using formal cryptographic definitions of indistinguishability, the protocol is shown to achieve computational privacy. We show the implementation results of the protocol and discuss its computational and communication complexity. We conclude this article with a discussion on privacy notions.

We consider a problem where multiple agents participate in solving a quadratic optimization problem subject to linear inequality constraints in a privacy-preserving manner. Several variables of the objective function as well as the constraints are privacy-sensitive and are known to different agents. We propose a privacy-preserving protocol based on partially homomorphic encryption where each agent encrypts its own information before sending it to an untrusted cloud computing infrastructure. To find the optimal solution the cloud applies a gradient descent algorithm on the encrypted data without the ability to decrypt it. The privacy of the proposed protocol against coalitions of colluding agents is analyzed using the cryptography notion of zero knowledge proofs.