The Covid-19 bear market presents the first acute market losses since active trading of Bitcoin began. This market downturn provides a timely test of the frequently expounded safe haven properties of Bitcoin. In this paper, we show that Bitcoin does not act as a safe haven, instead decreasing in price in lockstep with the S&P 500 as the crisis develops. When held alongside the S&P 500, even a small allocation to Bitcoin substantially increases portfolio downside risk. Our empirical findings cast doubt on the ability of Bitcoin to provide shelter from turbulence in traditional markets.
This paper describes a simulation study on security attacks over Distributed Ledger Technologies (DLTs). We specifically focus on attacks at the underlying peer-to-peer layer of these systems, that is in charge of disseminating messages containing data and transaction to be spread among all participants. In particular, we consider the Sybil attack, according to which a malicious node creates many Sybils that drop messages coming from a specific attacked node, or even all messages from honest nodes. Our study shows that the selection of the specific dissemination protocol, as well as the amount of connections each peer has, have an influence on the resistance to this attack.
Although there are many versions of blockchain technology today, it was first introduced in 2008 as the technology supporting Bitcoin, the first successful virtual currency system. Yet in and of itself, Blockchain technology is much more than the underpinning for Bitcoin (and other cryptocurrencies) and has found many applications beyond its initial purpose. The goal of this advanced primer is to review the current state of this technology and to discuss some of its advantages and drawbacks in settings beyond crypto-currencies.
Jan 1, 2020·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
H. Schöll, Roman Pomeshchikov, Manuel Pedro Rodríguez Bolívar
Distributed Ledger Technologies (DLTs) such as Blockchain have been heralded for their potential to fundamentally disrupt traditional industries and longstanding practices in private and public business-es. In the financial sectors, for example, quite a number of novel financial technology (fintech) services based on DLT/Blockchain have been introduced with cryptocur-rencies representing prominent cases. While the already highly regulated financial sectors have emerged as ear-ly targets for DLT/Blockchain induced disruption, a diverse set of other areas, such as healthcare record keeping, insurance record keeping, industrial and retail supply chain management, property registries, citizen identification systems, and voting systems to name a few, has also come into the focus of DLT/Blockchain innovation. These new types of services might be in need of both complementary and novel regulations for DLT/Blockchain-based services. Interestingly, smaller jurisdictions such as Bermuda, Gibraltar, Malta, and Liechtenstein were among the first to provide advice and regulation for DLT/Blockchain service provisions. The study compares these early regulatory approaches to each other and discusses the prospects of DLT/Blockchain service regulation based on the study’s findings. DLT/Blockchain service regulation appears to incorporate predominantly principle-based rather than rule-based regulations, which makes the regulation en-forcement a uniquely individual case-based task.
Konstantin D. Pandl, Scott Thiebes, Manuel Schmidt-Kraepelin, Ali Sunyaev
Developments in artificial intelligence (AI) and distributed ledger technology (DLT) currently lead to lively debates in academia and practice. AI processes data to perform tasks that were previously thought possible only for humans. DLT has the potential to create consensus over data among a group of participants in untrustworthy environments. In recent research, both technologies are used in similar and even the same systems. This can lead to a convergence of AI and DLT, which in the past, has paved the way for major innovations of other information technologies. Previous work highlights several potential benefits of a convergence of AI and DLT but only provides a limited theoretical framework to describe upcoming real-world integration cases of both technologies. In this research, we review and synthesize extant research on integrating AI with DLT and vice versa to rigorously develop a future research agenda on the convergence of both technologies. In terms of integrating AI with DLT, we identified research opportunities in the areas of secure DLT, automated referee and governance, and privacy-preserving personalization. With regard to integrating DLT with AI, we identified future research opportunities in the areas of decentralized computing for AI, secure data sharing and marketplaces, explainable AI, and coordinating devices. In doing so, this research provides a four-fold contribution. First, it is not constrained to blockchain but instead investigates the broader phenomenon of DLT. Second, it considers the reciprocal nature of a convergence of AI and DLT. Third, it bridges the gap between theory and practice by helping researchers active in AI or DLT to overcome current limitations in their field, and practitioners to develop systems along with the convergence of both technologies. Fourth, it demonstrates the feasibility of applying the convergence concept to research on AI and DLT.
Jan 1, 2020·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Scott Thiebes, Niclas Kannengießer, Manuel Schmidt-Kraepelin, Ali Sunyaev
During the past decade, distributed ledger technology (DLT) has found its way into application areas outside finance, such as supply chain management, the Internet of Things, or health care. To this end, this novel technology phenomenon has recently also caught the attention of researchers and practitioners in genomics. Although various DLT-based data markets for genome data already exist or are in development, the potential of DLT in this context is far from exhausted, whereas the possible risks related to the application of DLT in genomics are not yet sufficiently known. In this work, we investigate the potential opportunities and challenges for the application of DLT in the field of genomics. Thus, we make an important contribution to the safe and socially acceptable use of DLT in this unique and highly relevant use context.
The rise of distributed ledger technologies, such as R3 Corda, Hyperledger Fabric and Ethereum, has lead to a surge of interest in digitalizing different forms of contractual cooperation. By allowing for ledgers of collaboration-critical data to be reliably maintained between stakeholders without intermediaries, these solutions might enable unprecedented degrees of automation across organizational boundaries, which could have major implications for supply chain integration, medical journal sharing and many other use cases. However, these technologies tend to break with prevailing business practices by relying on code-as-contracts and distributed consensus algorithms, which can impose disruptive requirements on contract language, cooperation governance and interaction privacy. In this paper, we show how our Exchange Network architecture could be applied to avoid these disruptors. To be able to reason about the adequacy of our architecture, we present six requirements for effective contractual collaboration, which notably includes negotiable terms and effective adjudication. After outlining the architecture and our implementation of it, we describe how the latter meets our requirements by facilitating (1) negotiation, (2) user registries, (3) ownership ledgers and (4) definition sharing, as well as by only replicating ledgers between stakeholder pairs. To show how our approach compares to other solutions, we also consider how Corda, Fabric and Ethereum meet our requirements. We conclude that digital negotiation and ownership could replace many proposed uses of code-as-contracts for better compatibility with current contractual practices, as well as noting that distributed consensus algorithms are not mandatory for digital cooperation.
Markus Lücking, Niclas Kannengieber, Maurice Kilgus, Till Riedel · 7 authors
Pollution-monitoring systems (PMSs) are used worldwide to sense environmental changes, such as air quality conditions or temperature increases, and to monitor compliance with regulations. However, organizations manage the environmental data collected by such PMSs in a centralized manner, which is why recorded environmental data are vulnerable to manipulation. Moreover, the analysis of pollution data often lacks transparency to outsiders, which may lead to wrong decisions regarding environmental regulations. To address these challenges, we propose a software design for PMSs based on distributed ledger technology (DLT) and the long-range (LoRa) protocol for flexible, transparent, and energy-efficient environment monitoring and data management. To design the PMS, we conducted a comprehensive requirements analysis for PMSs. We benchmarked different consensus mechanisms (e.g., BFT-SMaRt and Raft) and digital signature schemes (e.g., ECDSA and EdDSA) to adequately design the PMS and fulfill the identified requirements. On this basis, we designed and implemented a prototype PMS and evaluated it in the field. The evaluation shows the effectiveness of DLT-based PMSs that include portable low-energy sensor nodes and demonstrates the applicability of the proposed software design for PMSs in contexts other than air pollution.
Jan 1, 2020·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Florian Gräbe, Niclas Kannengießer, Sebastian Lins, Ali Sunyaev
Distributed Ledger Technology (DLT) enables a new way of inter-organizational collaboration via a shared and distributed infrastructure. Meanwhile, there is plenty of DLT designs (e.g., Ethereum, IOTA), which differ in their capabilities to meet use case requirements. A structured comparison of DLT designs is required to support the decision for an appropriate DLT design. However, existing criteria and processes are abstract or not suitable for an in-depth comparison of DLT designs. We select and operationalize DLT characteristics relevant for a comprehensive comparison of DLT designs. Furthermore, we propose a comparison process, which enables the structured comparison of a set of DLT designs according to application requirements. The proposed process is validated with a use case analysis of three use cases. We contribute to research and praxis by introducing ways to operationalize DLT characteristics and generate a process to compare different DLT designs accordingly to their suitability in a use case.
Jan 1, 2020·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Costs, risks and inefficiencies in Collaborative Networks (CNs) resulting from information asymmetries have been discussed in the scientific community for years. In this work, supply chain networks, as common representative of CNs, are used as object of investigation. Therein, problems and requirements of interorganizational information exchange are elaborated as well as the potential role Distributed Ledger Technology (DLT) could play to address them. As major challenge, convincing all relevant network partners to resolve asymmetric information by sharing sensitive data is identified. To face this issue, the value of shared information is prioritized as a motivational aspect. Finally, we propose a search process to systematically assess the benefits of information sharing in collaborative networks. To coordinate and implement this process regarding the derived requirements of CNs we propose system components based on DLT design patterns.
Distributed Ledger Technology (DLT) enables data storage in a decentralized manner among collaborating parties. The software architecture of such solutions encompasses models placed in the relevant architectural views. A lot of research is devoted to smart contracts and consensus algorithms, which are realized by distributed applications and can be positioned within the Logical view. However, we see the need to provide modeling support for the Deployment view of distributed ledger solutions. Especially since the chosen DLT framework has a significant impact on implementation and deployment. Besides, consistency between models and configuration deployment scripts should be ensured. So, we have applied Model-Driven Engineering (MDE) that allows on the transformation of models into more detailed models, source code, or tests. We have proposed Unified Modeling Language (UML) stereotypes and tagged values for distributed ledger deployment modeling and placed them in the UML Profile for Distributed Ledger Deployment. We have also designed the UML2Deployment model-to-code transformation for the R3 Corda DLT framework. A UML Deployment model is the source whereas a Gradle Groovy deployment script is the target of the transformation. We have provided the complete solution by incorporating the transformation into the Visual Paradigm modeling tool. Furthermore, we have designed a dedicated plug-in to validate generated deployment scripts. In the paper, we have shown how to design transformation for generating deployment scripts for the R3 Corda DLT framework with the ability to switch to another one.
Blockchain is a technology used with the series of users in peer-to-peer transactions to utilize the usability properties of the immutable data records. The distributed nature of this technology has given the wide acceptance to its range of applications in various sectors. Seeing the prospect of this new technology, we have chosen the field of human resource management as these data needs to be privacy preserving and confidential along with significant research value. Distributed ledger approach is a novel idea in this field of work specifically for the application of human resource records management. We have used a privacy preserving framework that provides a transparent system for human resource record management. Wallets are generated with organization id and outputting with public-private key pair along with privacy parameter mapping with hash. Keys are used to provide confidentiality, integrity and authentication. Smart contract uses distributed but converged decision with privacy level classification. Performance of the proposed work has been measured based on time, memory consumptions, failure point identification and read-write latencies. The analysis of the results confirms the efficiency of the system.
The success of the sustainable transformation of the energy sector, both in terms of planning and operation, relies on new entities, business models, and technologies. The shift from a relatively small number of centralized bulk producers and single direction energy flow to a decentralized multi-actor renewable system with a two-way flow of energy and multi-way flow of information needs to be accompanied by new technological solutions. Blockchain and other Distributed Ledger Technologies (DLT) represent a new technology for the energy sector, creating both opportunities and challenges for different aspects of energy systems, such as energy production, peer-to-peer (P2P) energy markets, green certificate registries, etc. Due to its decentralized nature and no need for intermediaries, DLT can facilitate energy democratization processes and decentralized energy production. In this paper, we present a systematic review of DLT principles, its theoretical background, and the most notable implementations, as well as an in-depth analysis of representative research projects and companies researching DLT use cases in the energy sector, taking into consideration technical aspects of DLT. We provide an insight into the benefits and limitations of DLT and identify technical challenges that need to be solved to enable widespread usage of DLT in energy systems. Additionally, we provide suggestions and guidelines for implementing DLT in different categories of use cases in the energy sector.
Tanvir Ferdousi, Don Gruenbacher, Caterina Scoglio
Distributed ledgers using blockchain have gained traction in the supply chain industry due to their unique features of immutability and transparency. They have given people the abilities to solve business problems which were impossible using traditional systems. The US beef cattle industry lacks adequate traceability as most of the farm owners consider such data confidential; possibly harming their businesses if exposed. This article attempts to solve this problem by proposing a smart contract-based supply chain framework using a permissioned blockchain network. This system supports anonymity for the users to protect identities and lets every user store their data locally, while ensuring that the changes are recorded in the chain with cryptographic proofs (hashes). The proposed framework also has methods for the users to perform business transactions and transfer animal-related data to new owners as required. In addition to that, smart contracts have been added to conduct anonymous surveys for data aggregation. The technical contribution of this article is in the system design on how users, data, and communications are handled to maintain data ownership and user privacy while ensuring immutability and confidentiality at different levels of data aggregation. This article also contains an evaluation of the system using integration tests where the outcomes meet the expected design requirements. The framework can be applied to the US beef cattle industry as well as other supply chains with minimal modifications.
Data are becoming the cornerstone of many businesses and entire systems infrastructure. Intelligent Transportation Systems (ITS) are no different. The ability of intelligent vehicles and devices to acquire and share environmental measurements in the form of data is leading to the creation of smart services for the benefit of individuals. In this paper, we present a system architecture to promote the development of ITS using distributed ledgers and related technologies. Thanks to these, it becomes possible to create, store and share data generated by users through the sensors on their devices or vehicles, while on the move. We propose an architecture based on Distributed Ledger Technologies (DLTs) to offer features such as immutability, traceability and verifiability of data. IOTA, a promising DLT for IoT, is used together with Decentralized File Storages (DFSes) to store and certify data (and their related metadata) coming from vehicles or by the users' devices themselves (smartphones). Ethereum is then exploited as the smart contract platform that coordinates the data sharing through access control mechanisms. Privacy guarantees are provided by the usage of distributed key management systems and Zero Knowledge Proof. We provide experimental results of a testbed based on real traces, in order to understand if DLT and DFS technologies are ready to support complex services, such as those that pertain to ITS. Results clearly show that, while the viability of the proposal cannot be rejected, further work is needed on the responsiveness of DLT infrastructures.
Jan 1, 2020·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Since the emergence of blockchain in 2008, today, we see a kaleidoscopic variety of applications built on distributed ledger technology (DLT), including applications for financial services, healthcare, or the Internet of Things. Yet, each application comes with specific requirements for DLT characteristics (e.g., high throughput, scalability). However, trade-offs between DLT characteristics restrict the development of a DLT design (e.g., Ethereum, IOTA) that fits all use cases’ requirements simultaneously. Consequently, separated DLT designs emerged, each specialized to suite dedicated application requirements. To enable the development of more powerful applications on DLT, such DLT islands must be bridged. However, knowledge on cross-chain technology (CCT) is scattered across scientific and practical sources. Therefore, we examine this diverse body of knowledge and provide comprehensive insights into CCT by synthesizing underlying characteristics, evolving patterns, and use cases. Our findings resolve existing contradictions in the literature and provide avenues for future research in an emerging scientific field.
Muhammad Fahad Zia, Mohamed Benbouzid, Elhoussin Elbouchikhi, S. M. Muyeen · 6 authors
Prosumer concept and digitilization offer the exciting potential of microgrid transactive energy systems at distribution level for reducing transmission losses, decreasing electric infrastructure expenditure, improving reliability, enhancing local energy use, and minimizing customers' electricity bills. Distributed energy resources, demand response, distributed ledger technologies, and local energy markets are integral parts of transaction energy system for emergence of decentralized smart grid system. Hence, this paper discusses transactive energy concept and proposes seven functional layers architecture for designing transactive energy system. The proposed architecture is compared with practical case study of Brooklyn microgrid. Moreover, this paper reviews the existing architectures and explains the widely known distributed ledger technologies (blockchain, directed acyclic graph, hashgraph, holochain, and tempo) alongwith their advantages and challenges. The local energy market concept is presented and critically analyzed for energy trade within a transactive energy system. This paper also reviews the potential and challenges of peer-to-peer and community-based energy markets. Proposed architecture and analytical review of distributed ledger technologies and local energy markets pave the way for advanced research and industrialization of transactive energy systems.
Weijun Lin, Xinghong Huang, Hui Fang, Victoria Wang · 9 authors
Increasingly, blockchain technology is attracting significant attentions in various agricultural applications. These applications could satisfy the diverse needs in the ecosystem of agricultural products, e.g., increasing transparency of food safety and IoT based food quality control, provenance traceability, improvement of contract exchanges, and transactions efficiency. As multiple untrusted parties, including small-scale farmers, food processors, logistic companies, distributors and retailers, are involved into the complex farm-to-fork pipeline, it becomes vital to achieve optimal trade-off between efficiency and integrity of the agricultural management systems as required in contexts. In this paper, we provide a survey to study both techniques and applications of blockchain technology used in the agricultural sector. First, the technical elements, including data structure, cryptographic methods, and consensus mechanisms are explained in detail. Secondly, the existing agricultural blockchain applications are categorized and reviewed to demonstrate the use of the blockchain techniques. In addition, the popular platforms and smart contract are provided to show how practitioners use them to develop these agricultural applications. Thirdly, we identify the key challenges in many prospective agricultural systems, and discuss the efforts and potential solutions to tackle these problems. Further, we conduct an improved food supply chain in the post COVID-19 pandemic economy as an illustration to demonstrate an effective use of blockchain technology.
Eman M. Abou-Nassar, Abdullah M. Iliyasu, Passent Elkafrawy, Oh-Young Song · 6 authors
Today, internet and device ubiquity are paramount in individual, formal and societal considerations. Next generation communication technologies, such as Blockchains (BC), Internet of Things (IoT), cloud computing, etc. offer limitless capabilities for different applications and scenarios including industries, cities, healthcare systems, etc. Sustainable integration of healthcare nodes (i.e. devices, users, providers, etc.) resulting in healthcare IoT (or simply IoHT) provides a platform for efficient service delivery for the benefit of care givers (doctors, nurses, etc.) and patients. Whereas confidentiality, accessibility and reliability of medical data are accorded high premium in IoHT, semantic gaps and lack of appropriate assets or properties remain impediments to reliable information exchange in federated trust management frameworks. Consequently, We propose a Blockchain Decentralised Interoperable Trust framework (DIT) for IoT zones where a smart contract guarantees authentication of budgets and Indirect Trust Inference System (ITIS) reduces semantic gaps and enhances trustworthy factor (TF) estimation via the network nodes and edges. Our DIT IoHT makes use of a private Blockchain ripple chain to establish trustworthy communication by validating nodes based on their inter-operable structure so that controlled communication required to solve fusion and integration issues are facilitated via different zones of the IoHT infrastructure. Further, C# implementation using Ethereum and ripple Blockchain are introduced as frameworks to associate and aggregate requests over trusted zones.
IoT devices have some special characteristics, such as mobility, limited performance, and distributed deployment, which makes it difficult for traditional centralized access control methods to support access control in current large-scale IoT environment. To address these challenges, this paper proposes an access control system in IoT named fabric-iot, which is based on Hyperledger Fabric blockchain framework and attributed based access control (ABAC). The system contains three kinds of smart contracts, which are Device Contract (DC), Policy Contract (PC), and Access Contract (AC). DC provides a method to store the URL of resource data produced by devices, and a method to query it. PC provides functions to manage ABAC policies for admin users. AC is the core program to implement an access control method for normal users. Combined with ABAC and blockchain technology, fabric-iot can provide decentralized, fine-grained and dynamic access control management in IoT. To verify the performance of this system, two groups of simulation experiments are designed. The results show that fabric-iot can maintain high throughput in large-scale request environment and reach consensus efficiently in a distributed system to ensure data consistency.
Blockchain, a form of distributed ledger technology has attracted the interests of stakeholders across several sectors including healthcare. Its' potential in the multi-stakeholder operated sector like health has been responsible for several investments, studies, and implementations. Electronic Health Records (EHR) systems traditionally used for the exchange of health information amongst healthcare stakeholders have been criticised for centralising power, failures and attack-points with exchange data custodians. EHRs have struggled in the face of multi-stakeholder and system requirements while adhering to security, privacy, ethical and other regulatory constraints. Blockchain is promising amongst others to address the many EHR challenges, primarily trustless and secure exchange of health information amongst stakeholders. Many blockchain-in-healthcare frameworks have been proposed; some prototyped and/or implemented. This study leveraged the PRISMA framework to systematically search and evaluate the different models proposed; prototyped and/or implemented. The bibliometric and functional distribution of all 143 articles from this study were presented. This study evaluated 61 articles that discussed either prototypes or pilot or implementations. The technical and architectural analysis of these 61 articles for privacy, security, cost, and performance were detailed. Blockchain was found to solve the trust, security and privacy constraints of traditional EHRs often at significant performance, storage and cost trade-offs.
Noshina Tariq, Ayesha Qamar, Muhammad Asim, Farrukh Aslam Khan
The Internet of Things (IoT) has penetrated its roots in almost every domain of life. Smart healthcare is one of the major domains that extensively uses IoT infrastructures and solutions. IoT-based smart healthcare systems have immensely added value to the healthcare domain with the use of wearable and mobile devices. This leads to a substantial use of health data sharing for the improved, accurate, and timely diagnosis. However, smart healthcare systems are highly vulnerable to several security breaches and various malignant attacks, such as privacy leakage, tempering, forgery, etc. Recently, the blockchain technology emerged as a propitious solution against such breaches and challenges. This paper presents an up-to-date survey on different challenges and open issues faced in smart healthcare due to the traditional security measures along with the security requirements of such domains. It also amalgamates the potentials of blockchain technology as a promising security measure, highlights potential challenges in the healthcare domain, and provides an analysis of different blockchain-based security solutions.