Aleš Kozubík University of Žilina – Faculty of Management Science and Informatics – Department of the Mathematical Methods and Operations Research, Univerzitná 8215/1, 010 26 Žilina, Slovak Republic DOI: https://doi.org/10.31410/ITEMA.2018.507 2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, […]
The article is devoted to the theoretical justification of the need to introduce criminal law prohibitions on criminal encroachments in the sphere of cryptocurrency turnover in Russia. The author analyzes the principles and grounds for the criminalization of such acts in connection with their increased public danger. The article examines the prerequisites, grounds and justification for criminalizing criminal offenses in the field of cryptocurrency turnover, problems of applying current criminal law provisions to acts committed using cryptocurrency, examines the opinions of law enforcement officials, prosecutors and the court, relating to the category of cases considered. The author's position on problematic issues is presented.
Digital assets can serve several functions. Some digital assets, such as Bitcoin or Litecoin, are widely regarded as decentralized stores of value or mediums of exchange due to certain common economic features that support these functions; these are sometimes referred to as “pure cryptocurrencies.” Other digital assets, such as Monero or Zcash, are a subset of pure cryptocurrencies that also possess certain features designed to enhance transaction privacy and confidentiality (“privacy-focused coins”). Beyond pure cryptocurrencies and privacy-focused coins, there exists a broad array of general purpose digital assets (“platform coins”), such as Ethereum, NEO and Ravencoin, which are designed to facilitate various peer-to-peer activity, from decentralized software applications to “smart” contracts to digital collectibles, such as CryptoKitties. Platform coins also enable the creation of new digital assets called “tokens”, which are described further herein.
The digital asset market extends beyond the assets themselves. As this industry continues to grow, it has captured the attention of retail and institutional investors alike, including asset managers seeking to develop investment strategies and products involving these emerging assets and companies. Some strategies resemble early-stage growth strategies, featuring long-term investments either directly in certain digital assets or in start-up ventures developing complementary goods and services for the industry. Other strategies include hedge fund strategies, such as long/short funds, which often use derivatives, or arbitrage strategies, which seek to capitalize on the price fragmentation across the hundreds of global online exchanges.
This chapter outlines the current U.S. regulatory framework applicable to cryptocurrency and other digital asset investment funds (“digital asset funds”) offered to U.S. investors and how those regulatory considerations affect fund structuring decisions.
The cryptocurrency is a phenomenon of a modern payment system, however it is still unclear whether it is a new kind of currency at all. Most often, there are claims that this is just a financial pyramid. However, such statements do not explain the nature of cryptocurrency. In fact, from technical point of view, the cryptocurrency is simply a data chain, in which the first link contains information about its origin («mining»), and all subsequent ones - on the transition from one owner to another. This means that in the economic sense the cryptocurrency is the «bill of exchange», which is accompanied by a number of «transfer inscriptions» - «endorsements.» Nevertheless, banknotes are simple banker’s bills of exchange too. Therefore, cryptocurrency could become a new global currency if several specific requirements were fulfilled.
blockchain-the-invisible-technology-thats-changing-the-wor [https://perma.cc/59QL-QDLJ](providing an introduction to the structure and usage of blockchain technology
The objective of this thesis was to find solutions for reusing waste heat from cryptocurrency mining process to supply the heating demand in Finnish detached house. The focus of the study was on identifying and proposing suitable and optimal technologies to integrate systems. The proposed technologies were tested in a practical case to strengthen its capabilities and possibilities. Since mining cryptocurrency creates a lot of waste heat and Finland requires a lot of heating supply in cold period, this study provided useful information and optimal solutions for this problem. \n \nTo achieve its objective, this study reviewed the Finnish heating system and market, and provided information about heating and cooling technologies. Then, the concept of cryptocurrency and its mining process were introduced to give a brief understanding of the problem. Later, integrating solutions were analyzed from existing strategies and innovative suggestions. The practical case was the Hyrsylä Co-housing project in Lohja. The targets were to calculate the building heating demand by IDA ICE and identify the possible number of mining rigs to supply the heating demand of the project. Some practical solutions were suggested to avoid the overheating problem in the summer. \n \nAs a result of this project, three possible solutions were presented for using the waste heat from cryptocurrency mining process and sufficient information related to heating and cooling technologies, cryptocurrency concept and mining technologies. It was possible to reuse heat from two mining rigs to supply the domestic hot water consumption in the project.
The article is devoted to the study of legal resources, within the framework of information objects, the provision of Russian legislation. There are several approaches to the designation of the legal nature of detachments. The conclusion is that bloksn should not be considered as a separate information object. From the position of information law, offered primarily as a kind of information technology, on the basis of which there is a collection, processing, storage and transmission of information. From a legal point of view, the notebook can also be viewed as a decentralized distributed database ("ledger") of all confirmed transactions made with respect to certain assets, within the scope of which cryptographic algorithms lie. In the majority of cases, the block system should be considered as an information system, which is a register of information, as well as information processing technologies, including the formation and storage of accurate, specific data, confirming the totality of property and other rights and obligations of their holders, and allowing for electronic payments and other legally significant actions.
A device-to-device (D2D) underlying cellular network is pervasive to support various wireless applications. However, due to the dramatic increase of data transmission in the network with limited amount of wireless resource, a few users may be required to temporarily disconnect from the network to avoid the interruption of data transmission in the whole network. A critical issue of determining the user access in D2D underlying networks is the authenticity of channel state information (CSI), and usually, a user with a higher CSI can be allocated a larger amount of wireless resource or have a higher probability of staying in the network. In this paper, we propose a blockchain consensus-based scheme to verify the authenticity of CSI and add the users who intentionally advocate a higher value of CSI into a fraud chain. Also, we consider both the cross-tier interference caused by a mobile user and the presence of a user in the fraud chain to determine the access of a user. The analysis results show that our proposed user access scheme can enhance the network performance by efficiently controlling the use access in mobile applications.
The existing multi-prover interactive proof framework suffers from incompleteness in terms of soundness and zero-knowledge that is not completely addressed in the literature. The problem is that the existing definitions of what is local, entangled and no-signalling are not rich enough to capture the full generality of multi-prover interaction. In general, existing proofs do not take into account possible changes in locality either during a protocol's execution or when protocols are composed together. This is especially problematic for zero-knowledge, as composing commitments is the only known way of achieving zero-knowledge outside of some NP-intermediate languages.
In this work, we introduce the locality hierarchy for multiparty (multi-round) interaction, and for the first time a complete definition of multi-round multiparty no-signalling distributions and strategies. Within this framework, we define the locality of a protocol which involves the provers, verifiers, simulators and distinguishers. We show that an existing protocol for NEXP [BFL90] and a zero-knowledge variant we introduce are sound in a local sense, but are zero-knowledge in a sense that is even stronger than usually understood. All prior claims of zero-knowledge proofs in the multi-prover model were actually incorrect. Finally, we present similar constructions for entangled and no-signalling prover sets for NEXP and EXP based on [IV12] and [KRR14] using new multi-prover commitment schemes.
Radio Frequency Identification (RFID) technology has been expanded to be used in different fields that need automatic identifying and verifying of tagged objects without human intervention. RFID technology offers a great advantage in comparison with barcodes by providing accurate information, ease of use and reducing of labour cost. These advantages have been utilised by using passive RFID tags. Although RFID technology can enhance the efficiency of different RFID applications systems, researchers have reported issues regarding the use of RFID technology. These issues are making the technology vulnerable to many threats in terms of security and privacy. Different RFID solutions, based on different cryptography primitives, have been developed. Most of these protocols focus on the use of passive RFID tags. However, due to the computation feasibility in passive RFID tags, these tags might be vulnerable to some of the security and privacy threats. , e.g. unauthorised reader can read the information inside tags, illegitimate tags or cloned tags can be accessed by a reader. Moreover, most consideration of reserchers is focus on single tag authentication and mostly do not consider scenarios that need multi-tag such as supply chain management and healthcare management. Secret sharing schemes have been also proposed to overcome the key management problem in supply chain management. However, secret sharing schemes have some scalability limitations when applied with high numbers of RFID tags. This work is mainly focused on solving the problem of the security and privacy in multi-tag RFID based system. In this work firstly, we studied different RFID protocols such as symmetric key authentication protocols, authentication protocols based on elliptic curve cryptography, secret sharing schemes and multi-tag authentication protocols. Secondly, we consider the significant research into the mutual authentication of passive RFID tags. Therefore, a mutual authentication scheme that is based on zero-knowledge proof have been proposed . The main object of this work is to develop an ECC- RFID based system that enables multi-RFID tags to be authenticated with one reader by using different versions of ECC public key encryption schemes. The protocol are relied on using threshold cryptosystems that operate ECC to generate secret keys then distribute and stored secret keys among multi RFID tags. Finally, we provide performance measurement for the implementation of the proposed protocols.
The article analyzes the current problems of the formation of local budgets and systematizes proposals on the prospects of financial decentralization in the context of the need for reforming the power system in Ukraine. The priority directions of the management of public finances are defined: substantiated formation, transparent distribution and redistribution and effective use, which will promote effective management of budgetary funds in the country. It is proved that the improvement of the legal and institutional framework of the system of intergovernmental financing will contribute to the implementation of effective budget reforms.
Decentralized, and convertible Virtual Currency (VC) is an open-source, peer-to-peer (P2P) system that has no central administrating authority, monitoring, or oversight . It is cryptocurrency that is composed of cryptography that is extremely difficult to counterfeit . Examples are Bitcoin, or Etherum (ETH). It is traded by individuals using pseudonyms . The value of Bitcoin is not regulated by government, but by the principle of supply and demand . It has lower risk than conventional currency against regulatory systems because it does not rely on hierarchical human organization; rather, the currency focuses on “mining” computers . Regulation mandates for registration, and the licensing of the Financial Technology (FinTech) businesses operated by VCs. VC has benefits of increasing efficiency of transactions and alternatively buffering the failures of the government-issued currency, but has attracted the potential for misuse through crimes such as financing terrorists or drug dealing. Unleashing decentralized VC exposes the potential for crimes. Uniform coordination of Global Financial Regulatory Standards (GFRS) aims to maximize virtues of decentralized VC and minimize vices; however, it is vague. The project argues why decentralized VCs are security, and their virtues and vice. Next, what are regulations in the United States (U.S.) and European Community (EC). Internationally, the project reviews Basel Architecture, and Financial Action Task Force on Money Laundering (FATF). Also, it tests Dodd-Frank Act for regulation; and what limits of adopting GFRS. By discussing, the project aims to measure barriers of adopting FATF, or GFRS.
Author Jiří Málek acknowledges the financial support of Czech Science Foundation with grant GAČR 18-05244S “Innovative Approaches to Credit Risk Management” and Institutional support IP 100040/1020. Author Tran van Quang is grateful for the financial support of grant GAČR 18-05244S “Innovative Approaches to Credit Risk Management” of Czech Science Foundation.
The emergence of Bitcoin heralded the era of crypto and digital currencies designed for use in the general economy. But are these new currencies considered money and is current Canadian law adequate to accommodate them as money? What You Need To Know Cryptocurrency denotes a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the execution of payment transactions on a decentralized network. "Money" is an element in definitions that determine the scope of a few statutes. As well, unlike property in general, money passes to a taker in good faith for value free of all adverse claims. Currency legislation in Canada does not define "money." Specific statutes may focus on national sovereign money but do not restrict the meaning of the term otherwise. The use of private currencies is legally recognized; however, whether a given cryptocurrency is money depends on whether its features meet the elements set out in case law and literature. Hence, a general recognition of cryptocurrency as money will not be appropriate. What ought to be considered is the adoption of amendments to the Currency Act, as well as other statutes, clarifying that money need not necessarily be limited to official national currencies.
Verifiable computation (VC) protocols enable clients to outsource computations to untrusted servers in the cloud without compromising the integrity of the computation. Although cryptographic approaches for verifiable computation were mostly of theoretical interest in the past, there has been great progress in the area during the past few years. In particular, efficient constructions for Zero-Knowledge Succinct Non-interactive ARguments of Knowledge (zk-SNARKs) were proposed and adopted in practice. These techniques enable an untrusted server to prove the correctness of computations in zero-knowledge using a succinct proof that can be verified efficiently by the client. This thesis aims at addressing some challenges in such VC protocols, and developing practical protocols for cryptocurrency applications. The challenges we address include the proof computation overhead at the prover's side, and the level of expertise expected from the programmers to write secure and efficient programs for VC. More specifically, current protocols require the programmer to carefully express the computation as an arithmetic circuit, in a way that minimizes the proof computation overhead and prevents malicious behavior by the prover, which is a non-trivial task. To address the above challenges, we present a framework that aims to reduce the proof computation overhead, and offer more programmability to non-specialist developers, while automating the task of circuit minimization through a combination of techniques. The framework includes new circuit-friendly algorithms for frequent operations, which achieve constant to asymptotic savings over algorithms used in previous compilers. In addition, we explore and optimize cryptographic primitives that have efficient arithmetic circuit representations. Furthermore, we explore different settings where VC can be used in practice. We present the design of Hawk, a system for privacy-preserving smart contracts. Hawk enables custom decentralized applications in the smart contract setting to run verifiably on top of a public blockchain system, while not revealing the participants' inputs to the network. To achieve practical performance, Hawk relies on a special party per contract (a manager) that is only trusted for posterior privacy, but not for correctness. Finally, we explore how VC techniques and smart contracts could enable practical crimes in the future, which highlights the importance of working on countermeasures.