Leveraging Proof-of-Stake to mitigate frauds in mobile roaming management

Abstract

Roaming fraud poses a significant vulnerability to mobile service providers (MSPs), particularly those who exploit the significant latency in the data exchange process of modern roaming management systems, leading to yearly losses in the billions of dollars. This chapter introduced a methodology named BlockRoam [21] that utilizes a revised PoS consensus algorithm and smart contracts within a blockchain framework to ensure the secure data flow between MSPs and mobile customers to manage roaming services. The proposed methodology can potentially decrease the duration needed for the exchange of information significantly, thus effectively addressing concerns related to roaming fraud. The comprehensive research illustrates that enhancing the security and efficiency of a PoS-based blockchain network may be achieved by providing incentives to encourage greater participation of users, such as subscribers, inside the network. Moreover, individuals utilizing these networks often participate in stake pools, such as those established by MSPs, to augment their financial gains. Consequently, a theoretical framework rooted in Stackelberg game theory is developed to optimize the economic profits of network users and the stake pool, thereby fostering increased user engagement. Additionally, a technique is proposed to guarantee the distinctiveness of the equilibrium in this particular game. The performance evaluation findings demonstrate that the economic model developed in the BlockRoam facilitates the generation of supplementary profits for MSPs while concurrently fostering more investment in the blockchain network.