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Risk Balance in Exchange Protocols Yanjing Wang Joint work with - - PowerPoint PPT Presentation

Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion Risk Balance in Exchange Protocols Yanjing Wang Joint work with Mohammad Torabi Dashti Center voor Wiskunde en Informatica, Amsterdam


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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Risk Balance in Exchange Protocols

Yanjing Wang Joint work with Mohammad Torabi Dashti Center voor Wiskunde en Informatica, Amsterdam ASIAN’07, Dec 09 2007

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Contents

1

Introduction

2

Game Abstraction of Exchange Protocols

3

Analysis of Protocol Game

4

Example

5

Conclusion

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Exchange Protocols Aim at establishing successful exchanges of electronic goods between two or more parties.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Exchange Protocols Aim at establishing successful exchanges of electronic goods between two or more parties. Fairness is a crucial requirement.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Exchange Protocols Aim at establishing successful exchanges of electronic goods between two or more parties. Fairness is a crucial requirement. No fair deterministic asynchronous exchange protocols without TTP [Even,Yacobi 1980].

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Exchange Protocols Aim at establishing successful exchanges of electronic goods between two or more parties. Fairness is a crucial requirement. No fair deterministic asynchronous exchange protocols without TTP [Even,Yacobi 1980]. Other methods are based on gradual release of information or gradual increase of privilege may approximate fairness.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Example of 2-party Exchange Protocols with TTP 1. A → TTP : h(s)

where h is a hash function and s ∈ SA

2. B → TTP : SET

where SET = {h(x)|x ∈ SB}

3. TTP → A, B : h(s)

if h(s) ∈ SET

TTP → A, B : ⊥

if h(s) SET

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Example of 2-party Exchange Protocols with TTP 1. A → TTP : h(s)

where h is a hash function and s ∈ SA

2. B → TTP : SET

where SET = {h(x)|x ∈ SB}

3. TTP → A, B : h(s)

if h(s) ∈ SET

TTP → A, B : ⊥

if h(s) SET

We assume the third party can be compromised by paying some cost.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Example of 2-party Exchange Protocols with TTP 1. A → TTP : h(s)

where h is a hash function and s ∈ SA

2. B → TTP : SET

where SET = {h(x)|x ∈ SB}

3. TTP → A, B : h(s)

if h(s) ∈ SET

TTP → A, B : ⊥

if h(s) SET

We assume the third party can be compromised by paying some cost. The players have risks when the other party compromises the third party. One party may cause more damage to the other by compromising the TTP .

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Introduction to Exchange protocols

Example of 2-party Exchange Protocols with TTP 1. A → TTP : h(s)

where h is a hash function and s ∈ SA

2. B → TTP : SET

where SET = {h(x)|x ∈ SB}

3. TTP → A, B : h(s)

if h(s) ∈ SET

TTP → A, B : ⊥

if h(s) SET

We assume the third party can be compromised by paying some cost. The players have risks when the other party compromises the third party. One party may cause more damage to the other by compromising the TTP . We want to know the expected behaviors of rational agents if they can compromise the TTP by paying a cost.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Basic Game Theory

In a game we have Players, Strategies and Utilities. Prisoner’s dilemma A\B Stay silent Betray Stay silent 1,1

  • 2,3

Betray 3,-2

  • 1,-1

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Basic Game Theory

In a game we have Players, Strategies and Utilities. Prisoner’s dilemma A\B Stay silent Betray Stay silent 1,1

  • 2,3

Betray 3,-2

  • 1,-1

The solutions of the game are the expected behavior of rational agents. Nash equilibrium Strategy pair (SA, SB) is a Nash equilibrium if A is making the best decision A can, given B’s decision, and B is making the best decision B can, taking into account A’s decision.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Basic Game Theory

In a game we have Players, Strategies and Utilities. Prisoner’s dilemma A\B Stay silent Betray Stay silent 1,1

  • 2,3

Betray 3,-2

  • 1,-1

The solutions of the game are the expected behavior of rational agents. Nash equilibrium Strategy pair (SA, SB) is a Nash equilibrium if A is making the best decision A can, given B’s decision, and B is making the best decision B can, taking into account A’s decision.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Protocol as Strategic Game

Players : A, B Strategies:

Honest (to do everything according to the protocol) Dishonest (to compromise TTP by paying a cost)

Utilities are as follows:

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Protocol as Strategic Game

Players : A, B Strategies:

Honest (to do everything according to the protocol) Dishonest (to compromise TTP by paying a cost)

Utilities are as follows: Protocol Game Given a two-party exchange protocol Prot with a TTP , the strategic game G(Prot) is defined as follows: A\B

HB DHB HA

gA

B − gA A , gB A − gB B

−rA

A , rB A − cB

DHA

rA

B − cA, −rB B

rA

B − rA A − cA, rB A − rB B − cB

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Protocol as Strategic Game

gy

x is y’s evaluation of the goods that x wants to exchange;

ry

x is y’s evaluation of the risk that x has, if the TTP is

compromised by the opponent of x; cx is the cost x pays to compromise the TTP . Protocol Game Given a two-party exchange protocol Prot with a TTP , the strategic game G(Prot) is defined as follows: A\B

HB DHB HA

gA

B − gA A , gB A − gB B

−rA

A , rB A − cB

DHA

rA

B − cA, −rB B

rA

B − rA A − cA, rB A − rB B − cB

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Simplified Protocol game SG(Prot)

Simplified Protocol Game A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Simplified Protocol game SG(Prot)

ρ > 1 is a fixed exchange rate.

Simplified Protocol Game A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Simplified Protocol game SG(Prot)

ρ > 1 is a fixed exchange rate.

g is the objective value of the goods to be exchanged. Simplified Protocol Game A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Simplified Protocol game SG(Prot)

ρ > 1 is a fixed exchange rate.

g is the objective value of the goods to be exchanged. a (b) is the risk of A (B) if the opponent compromises the TTP . Simplified Protocol Game A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Simplified Protocol game SG(Prot)

ρ > 1 is a fixed exchange rate.

g is the objective value of the goods to be exchanged. a (b) is the risk of A (B) if the opponent compromises the TTP . c is the cost of compromising the TTP . Simplified Protocol Game A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Expected behavior of the protocol

Nash equilibria of simplified protocol games as the expected behaviors of the rational agents when executing the protocols. Notation

∆ = |a − b| and ∆U(SA, SB) = |UtilityA(SA, SB) − UtilityB(SA, SB)| ∆−condition

An exchange protocol Prot satisfies ∆-condition iff ∆ < (1 − 1

ρ)g in

SG(Prot). Such a protocol Prot is called risk-balanced.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Main result

Theorem For any risk-balanced protocol Prot, there are Nash equilibria in SG(Prot), and for each such Nash equilibrium (SA, SB) the following holds:

∆U(SA, SB) < (ρ − 1 ρ)g.

Sketch of the proof

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Main result

A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Sketch of the proof

1

Under the ∆−condition, ∆U(HA, HB) = 0 < (ρ − 1

ρ)g;

∆U(DHA, DHB) < (ρ − 1

ρ)g.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Main result

A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Sketch of the proof

1

Under the ∆−condition, ∆U(HA, HB) = 0 < (ρ − 1

ρ)g;

∆U(DHA, DHB) < (ρ − 1

ρ)g.

2

Under the ∆−condition, (HA, DHB) and (DHA, HB) are not the Nash equilibria of SG(Prot).

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Main result

A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

Sketch of the proof

1

Under the ∆−condition, ∆U(HA, HB) = 0 < (ρ − 1

ρ)g;

∆U(DHA, DHB) < (ρ − 1

ρ)g.

2

Under the ∆−condition, (HA, DHB) and (DHA, HB) are not the Nash equilibria of SG(Prot).

3

Either (HA, HB) or (DHA, DHB) is a N.E. of SG(Prot).

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Main result

Theorem For any risk-balanced protocol Prot, there are Nash equilibria in SG(Prot), and for each such Nash equilibrium (SA, SB) the following holds:

∆U(SA, SB) < (ρ − 1 ρ)g.

Sketch of the proof

1

Under the ∆−condition, ∆U(HA, HB) = 0 < (ρ − 1

ρ)g;

∆U(DHA, DHB) < (ρ − 1

ρ)g.

2

Under the ∆−condition, (HA, DHB) and (DHA, HB) are not the Nash equilibria of SG(Prot).

3

Either (HA, HB) or (DHA, DHB) is a N.E. of SG(Prot).

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

An example protocol

A secret comparison protocol based on [Teepe 06]

  • 1. A → Γ : (fprov, A, B, ω), where ω = h(I, ℵ, A, B)
  • 2. B → Γ : (fverif, A, B, ΩB), where ΩB = {h(i, ℵ, A, B) | i ∈ EB}
  • 3. Γ checks if ω ∈ ΩB. If yes, then Γ ↓  : ω, else Γ ↓  : ⊥.
  • 4. A, B fetch the result from .

Requirements G1 Only if both A and B know I, then A learns that B knows I, and likewise for B. G2 By means of the protocol, only A and B, and no one else, may learn that A or B know I. G3 By means of the protocol, no one learns I. G4 B learns that A knows I, iff A learns that B knows I (which is “fairness”).

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

An example protocol

A secret comparison protocol based on [Teepe 06]

  • 1. A → Γ : (fprov, A, B, ω), where ω = h(I, ℵ, A, B)
  • 2. B → Γ : (fverif, A, B, ΩB), where ΩB = {h(i, ℵ, A, B) | i ∈ EB}
  • 3. Γ checks if ω ∈ ΩB. If yes, then Γ ↓  : ω, else Γ ↓  : ⊥.
  • 4. A, B fetch the result from .

Uneven risk A severe defect of the protocol is the uneven risk distribution that it

  • induces. If A compromises Γ, the amount of harm to B is not

proportional to the harm caused to A when Γ is compromised by B.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

An example protocol

A secret comparison protocol based on [Teepe 06]

  • 1. A → Γ : (fprov, A, B, ω), where ω = h(I, ℵ, A, B)
  • 2. B → Γ : (fverif, A, B, ΩB), where ΩB = {h(i, ℵ, A, B) | i ∈ EB}
  • 3. Γ checks if ω ∈ ΩB. If yes, then Γ ↓  : ω, else Γ ↓  : ⊥.
  • 4. A, B fetch the result from .

Uneven risk A\B

HB DHB HA (ρ − 1)g, (ρ − 1)g −a, ρa − c DHA ρb − c, −b ρb − a − c, ρa − b − c

where b = |ΩB| · g >> g = a when |ΩB| >> 1. If ρb − c > (ρ − 1)g then DHA is the dominating strategy of A then the difference between expected utilities is not bounded by a reasonable small number.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

A Risk-balanced Protocol

Intuitive idea behind the protocol 1. A → B :

blindA(I)

2. B → A :

signB(blindA(I))

3. A :

unblindA(signB(blindA(I))) = signB(I)

4. A → Γ : x = signB(I) 5. B → Γ : y = {signB(i)|i ∈ EB} 6.

Γ : Comapare x and members of y

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

A Risk-balanced Protocol

Intuitive idea behind the protocol 1. A → B :

blindA(I)

2. B → A :

signB(blindA(I))

3. A :

unblindA(signB(blindA(I))) = signB(I)

4. A → Γ : x = signB(I) 5. B → Γ : y = {signB(i)|i ∈ EB} 6.

Γ : Comapare x and members of y

Risk-balanced If Γ is not compromised, then the protocol satisfies G4. The amount of expected harm to a cheated B would be limited and proportional to the damage that B could cause to A if Γ was compromised by B, and vice versa. Rational A and B will end up with similar utilities.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Summary

We study the behavior of rational agents in exchange protocols which rely on trustees. We allow malicious parties to compromise the trustee by paying a cost and, thereby, present a game analysis that advocates exchange protocols which induce balanced risks

  • n the participants. If risk-balanced condition holds then, the

difference between participants’ utilities is limited to a factor independent of the TTP’s trustworthiness. We also present a risk-balanced protocol for fair confidential secret comparison.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Future works

Continue the exploration of the conceptual meaning of balancing risk. Study more concrete examples. TTP would always learn whether the exchange was successful or not. Hiding this information from TTP remains to be studied. A drawback of the protocol is its communication costs and the computation burden. Equivalent protocols with less, and evenly distributed, computation and communication costs are thus desirable.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Other game theoretical approaches to protocol Analysis

1

  • L. Buttyan and J. Hubaux. Toward a formal model of fair

exchange: a game theoretic approach. Technical Report SSC/1999/39, EPFL, Lausanne, 1999.

2

  • L. Buttyan, J. Hubaux, and S. Capkun. A formal model of

rational exchange and its application to the analysis of syverson protocol. J. Computer Security, 12(3-4):551 87, 2004.

3

  • J. Halpern and V. Teague. Rational secret sharing and

multiparty computation: extended abstract. In Proceedings of the thirty-sixth annual ACM symposium on Theory of computing, pages 623-632. ACM Press, 2004.

4

  • K. Imamoto, J. Zhou, and K. Sakurai. An evenhanded certified

email system for contract signing. In ICICS 05, volume 3783

  • f LNCS, pages 13. Springer, 2005.

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

Thank you for your attention!

Yanjing Wang Risk Balance in Exchange Protocols

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Introduction Game Abstraction of Exchange Protocols Analysis of Protocol Game Example Conclusion

A Risk-balanced Protocol

  • 1. B generates n and (α, ¯

α) and then computes π = h(ω1, · · · , ωℓ),

where ωj = h(i¯

α j mod n), when EB = {i1, · · · , iℓ}.

  • 2. B → A : α, n
  • 3. A generates a random number λ < n such that gcd(λ, n) = 1.
  • 4. A → B : (I · λα) mod n
  • 5. B → A : (I · λα)¯

α mod n, π

  • 6. A computes ((I · λα)¯

αλ−1) mod n = I¯ α mod n. Then A lets

ω = h(I¯

α mod n).

  • 7. A → Γ : [fprov, A, B, ω, π]K(AΓ)
  • 8. B → Γ : [fverif, A, B, ΩB]K(BΓ), where ΩB = {ω1, · · · , ωℓ}
  • 9. Γ checks whether π corresponds to ΩB. If yes then

Γ checks whether ω ∈ ΩB. If yes, then Γ ↓  : ω, and A, B fetch the result from .

else

Γ ↓  : ⊥, and A, B fetch the result from .

Yanjing Wang Risk Balance in Exchange Protocols