Public blockchain networks using proof of work (PoW)-based consensus protocols are considered as a promising platform for decentralized resource management with financial incentive mechanisms. In order to maintain a secured, universal state of the blockchain, PoW-based consensus protocols financially incentivize the nodes in the network to compete for the privilege of block generation through cryptographic puzzle solving. For rational consensus nodes, i.e., miners with limited local computational resources, offloading the computation load for PoW to the cloud/fog providers (CFPs) becomes a viable option. In this paper, we study the interaction between the CFPs and the miners in a PoW-based blockchain network using a game theoretic approach. In particular, we propose a lightweight infrastructure of the PoW-based blockchains, where the computation-intensive part of the consensus process is offloaded to the cloud/fog. We formulate the computation resource management in the blockchain consensus process as a two-stage Stackelberg game, where the profit of the CFP and the utilities of the individual miners are jointly optimized. In the first stage of the game, the CFP sets the price of offered computing resource. In the second stage, the miners decide on the amount of service to purchase accordingly. We apply backward induction to analyze the subgame perfect equilibria in each stage for both uniform and discriminatory pricing schemes. For uniform pricing where the same price applies to all miners, the uniqueness of the Stackelberg equilibrium is validated by identifying the best response strategies of the miners. For discriminatory pricing where the different prices are applied, the uniqueness of the Stackelberg equilibrium is proved by capitalizing on the variational inequality theory. Further, the real experimental results are employed to justify our proposed model.
The mining process in blockchain requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to the high computing power and energy needed. In this paper, we, for the first time, consider edge computing as an enabler for mobile blockchain. In particular, we study edge computing resource management and pricing to support mobile blockchain applications in which the mining process of miners can be offloaded to an edge computing service provider. We formulate a two-stage Stackelberg game to jointly maximize the profit of the edge computing service provider and the individual utilities of the miners. In the first stage, the service provider sets the price of edge computing nodes. In the second stage, the miners decide on the service demand to purchase based on the observed prices. We apply the backward induction to analyze the sub-game perfect equilibrium in each stage for both uniform and discriminatory pricing schemes. For the uniform pricing where the same price is applied to all miners, the existence and uniqueness of Stackelberg equilibrium are validated by identifying the best response strategies of the miners. For the discriminatory pricing where the different prices are applied to different miners, the Stackelberg equilibrium is proved to exist and be unique by capitalizing on the Variational Inequality theory. Further, the real experimental results are employed to justify our proposed model.
Remo Manuel Frey, Pascal BĂŒhler, Alexander Gerdes, Thomas Hardjono · 6 authors
In light of digitalization, customers increasingly share private data through their online behaviors and actions. Yet, customers have become reluctant to share data due to privacy concerns. From a psychological perspective, a reduction of users' perceived risks should result in a higher willingness to share sensitive data. The development of blockchain-supported, multi-part computation thereby represents an interesting novel empirical context to study such willingness to disclose personal data, as such technologies involve a privacy-preserving approach that could not only technically solve privacy issues but also ought to address precisely the user's risk perception. Therefore, we conducted an online experiment with 420 participants to examine the willingness to disclose personal data dependent on different privacy protection mechanisms. A deception based experiment allowed to measure not only user intention, but also real user behavior. Surprisingly, our results demonstrate that participants shared similar amounts of personal data for blockchain-supported approaches and standard privacy policies. Even though an aversion to the blockchain system due to its novelty and potentially perceived complexity was not detected. Furthermore, we found that the willingness to share data increased significantly specifically for technically affine people when they were presented with the opportunity to monetize their data. We further discuss the effects of privacy awareness and whether prior knowledge of blockchain technology had a supporting effect for user acceptance.
In 2008, following the outbreak of the global financial crisis, a new trading system emerged that was made possible by cryptographically-produced currencies. Among them, the most popular digital cryp-tocurrency is undoubtedly the Bitcoin. This alternative way of trading quickly captured the interest of both businesses and consumers. Combined with a general lack of confidence towards financial institu-tions, central governments, and the effect of capital controls imposed across several countries, Bitcoins begun being used extensively for funds transfer across borders and general payments. How-ever, it is unclear whether the use of Bitcoins is extensive enough so as to lead to complete or partial disintermediation of monetary transactions, and whether users understand how the technology works and what are the inherit risks of this alternative payment mechanism. This paper addresses these ques-tions through a survey-based study, conducted within the Greek context, where capital controls are still active and awareness regarding cryptocurrencies seems to be on the rise. Our findings show that despite that end-users of Bitcoin are somewhat concerned with regards to security issues, they are nevertheless interested in its use for identifying new business opportunities and bypassing residency-based measures, such as capital controls.
The article addresses some aspects of finance, a sufficiently complicated economic category that is insufficiently developed in modern scientific literature. According to the author, the holistic view of the finance is closely related to the study of genetic and functional aspects of finance, their interdependence and interaction. The author made an attempt to look on the finance from the genetic point of view. The finance as an economic category is considered from different perspectives: as the object and subject of utilization (consumption), in terms of its nature, its role as a subject in social reproduction, as well as its functionality. As a synthetic economic category, the finance is connected with definite steps of the reproduction process at all levels of the economy, represents a complex of economic relations in terms of formation, distribution, re-distribution and use of centralized and decentralized funds as well as non-fund forms of accumulation in the process of establishment, distribution, re-distribution and use of the gross domestic product and the national income of the state.
Bitcoin is a decentralized digital currency, which works peer-to-peer without a centralized repository, and is accepted as a form of payment all around the world. The âpublic ledgerâ, which registers transactions, is known as the block chain. A conventional ledger records bills and notes which are used by an organization, but in the case of Bitcoin these are simply data âentriesâ in the Blockchain sequence. Business Intelligence (BI), according to Investpedia, refers to the procedural and technical infrastructure that collect, store and analyses the data produced by a field of activities or by an individual company. BI is meant to take in all the data being generated by a business and present easy to digest performance measures and trends that will inform management decisions. The paper shows the BI steps and procedures that will help a Bitcoin user, owner or broker make the best decision possible in order to maximize their profits and financial security.
The article discusses issues related to the use of cryptocurrency in the world and in Russia. In particular, the author conducted a statistical study of the market volume, basic trends in the use of cryptocurrencies. Examines the main approaches to attract citizens to use crypto currencies for payment services, and also analyzes the problems faced by Russian business in this area.
Open access
Economic and Technological Developments in Russia
Security, Politics, and Digital Transformation
Digitalization and Economic Development in Agriculture
Marcelo Battesini, Carla Lourenço Tavares de Andrade, Marismary Horsth De Seta
Health Surveillance carries out a set of actions to prevent health risks related to the consumption of products and the provision of services under the Unified Health System (SUS). The implementation of Health Surveillance actions relies heavily on the federal funding policy, which induces its decentralization. This text aims to analyze the federal funding of Health Surveillance to States and Municipalities from the scheduled onlendings in the period 2005-2012. Among the main results are the increase of per capita values, steady at around the mean value of R$ 1.25/inhabitant/year; the increased number of municipalities that agreed to carry out strategic actions; and a stable trend in the proportions of each federated entity at around 50% to Municipalities, 25% to state federated entities and 20% to the Central Public Health Laboratories (LACENs). Results show that the adoption of unified nationwide per capita values caused distortions that indicate inequity among state territories, pointing to the need to clarify the concept of equity in financing under the National Health Surveillance System and to broaden the discussion on the currently used allocation criteria.
Halal supply chains are vulnerable due to their credence quality attributes, importance of maintaining halal integrity throughout the supply chain, need to avoid doubt, lack of control of food norms, and sensitivity of the Muslim consumer towards halal. These vulnerabilities make halal supply chains complex to design, manage, and optimise. Transparency of halal supply chains is needed in order to ensure trust and authenticity of a halal brand. The principle of a shared database that is safe, open and verifiable without a central operator is an attractive proposition to embed trust and authenticity for halal food, cosmetics, home care, and pharmaceuticals.
Abstract This paper argues that many soâcalled digital technologies can be construed as notational technologies, explored through the example of Monegraph, an art and digital asset management platform built on top of the blockchain system originally developed for the cryptocurrency bitcoin. As the paper characterizes it, a notational technology is the performance of syntactic notation within a field of reference, a technologized version of what Nelson Goodman called a ânotational system.â Notational technologies produce abstracted entities through positive and reliable, or constitutive, tests of socially acceptable meaning. Accordingly, this account deviates from typical narratives of blockchains (usually characterized as Turing or state machines), instead demonstrating that blockchain technologies are effective at managing digital assets because they produce abstracted identities through the performance of notation. Since notational technologies rely on configurations of socially acceptable meaning, this paper also provides a philosophical account of how blockchain technologies are socially embedded.
Open access
Blockchain Technology Applications and Security
Neuroethics, Human Enhancement, Biomedical Innovations
Abstract A blockchain can be considered a technological phenomenon that is made up of different interconnected and autonomous systems. Such systems are referred to here as cyberâphysical systems: complex interconnections of cyber and physical components. When cyberâphysical systems are interconnected, a new whole consisting of a system of systems is created by the autonomous systems and their intercommunication and interaction. In a blockchain, individual systems can independently make decisions on joint information transactions. The decisionâmaking procedures needed for this are executed based on faultâtolerant communication and voting and consensus procedures, while the results of these decisionâmaking procedures are stored in distributed ledgers. Due to the intercommunication, interaction, and independent decision making by autonomous systems, the new whole of a blockchain is a complex entity. Complexity science rather than the usual reductionist scientific approach can help us better understand the behaviour of the new and continuously developing whole of a blockchain as a technological phenomenon.
David Froelicher, Patricia Egger, João Så Sousa, Jean Louis Raisaro · 8 authors
Abstract Current solutions for privacy-preserving data sharing among multiple parties either depend on a centralized authority that must be trusted and provides only weakest-link security (e.g., the entity that manages private/secret cryptographic keys), or leverage on decentralized but impractical approaches (e.g., secure multi-party computation). When the data to be shared are of a sensitive nature and the number of data providers is high, these solutions are not appropriate. Therefore, we present U n L ynx , a new decentralized system for efficient privacy-preserving data sharing. We consider m servers that constitute a collective authority whose goal is to verifiably compute on data sent from n data providers. U n L ynx guarantees the confidentiality, unlinkability between data providers and their data, privacy of the end result and the correctness of computations by the servers. Furthermore, to support differentially private queries, U n L ynx can collectively add noise under encryption. All of this is achieved through a combination of a set of new distributed and secure protocols that are based on homomorphic cryptography, verifiable shuffling and zero-knowledge proofs. U n L ynx is highly parallelizable and modular by design as it enables multiple security/privacy vs. runtime tradeoffs. Our evaluation shows that U n L ynx can execute a secure survey on 400,000 personal data records containing 5 encrypted attributes, distributed over 20 independent databases, for a total of 2,000,000 ciphertexts, in 24 minutes.
The article presents the results of a study of a business-engineering project for a commercial bank. The technique of the international standard of business analysis practice BABOK GUIDE v3 (SWOT-Analysis) is used to identify internal and external factors that affect the organization. The commercial bank «Home Credit» was chosen as the object of the study. The aim of the research is to achieve the leading position of a commercial bank among the world's credit institutions by developing a program for the transformation of the enterprise architecture segment. Business process «Lending« was subject to reengineering and reoriented to increase the share of solvent customers through the implementation of the Masterchain platform in the organization's activities. The potential results from the introduction of the «Blockchain» into the business process «Lending» are defined.
Cryptocurrency and blockchain technologies are recently gaining wide adoption since the introduction of Bitcoin, being distributed, authority-free, and secure. Proof of Work (PoW) is at the heart of blockchain's security, asset generation, and maintenance. Although simple and secure, a hash-based PoW like Bitcoin's puzzle is often referred to as âuselessâ, and the used intensive computations are considered âwasteâ of energy. A myriad of Proof of âsomethingâ alternatives have been proposed to mitigate energy consumption; however, they either introduced new security threats and limitations, or the âworkâ remained far from being really âusefulâ. In this work, we introduce Proof of eXercise (PoX): a sustainable alternative to PoW where an eXercise is a real world matrix-based scientific computation problem. We provide a novel study of the properties of Bitcoin's PoW, the challenges of a more ârationalâ solution as PoX, and we suggest a comprehensive approach for PoX.
Oct 1, 2017·2017 4th International Scientific-Practical Conference Problems of Infocommunications. Science and Technology (PIC S&T), Kharkov, Ukraine, 2017, pp. 456-459
In the work, a comparative correlation and fractal analysis of time series of Bitcoin crypto currency rate and community activities in social networks associated with Bitcoin was conducted. A significant correlation between the Bitcoin rate and the community activities was detected. Time series fractal analysis indicated the presence of self-similar and multifractal properties. The results of researches showed that the series having a strong correlation dependence have a similar multifractal structure.
Petra Isenberg, Christoph Kinkeldey, JeanâDaniel Fekete
We contribute a visual exploration system for analyzing the behavior of individual entities exchanging Bitcoins. Bitcoin is a cryptocurrency, popular for allowing pseudonymous financial transactions. The Bitcoin blockchain is the public ledger of the Bitcoin system holding data on millions of individual transactions between pseudonymous addresses. These addresses belong to individual entities such as people, services, or enterprises. Understanding how the Bitcoin system is used, however, is difficult because it is unclear which addresses belong to the same entities. Our tool addresses this
problem by clustering addresses and displaying transaction detail for individual entities
Abstract This paper argues that the practical implementation of blockchain technology can be considered an institution of property similar to legal institutions. Invoking Penner's theory of property and Hegel's system of property rights, and using the example of bitcoin, it is possible to demonstrate that blockchain effectively implements all necessary and sufficient criteria for property without reliance on legal means. Blockchains eliminate the need for a thirdâparty authority to enforce exclusion rights, and provide a system of universal access to knowledge and discoverability about the property rights of all participants and how the system functions. The implications of these findings are that traditional property relations in society could be replaced by or supplemented with blockchain models, and implemented in new domains.
The 2008 financial crisis had scattered incredulity around the globe regarding traditional financial systems, which made investors and non-financial customers turn to other alternative such as digital banking systems. The existence and development of blockchain technology make cryptocurrency in recent years believably become a complete alternative to traditional ones. Bitcoin is the world's first peer-to-peer and decentralized digital cash system initiated by Nakamoto [1]. Though being the most prominent cryptocurrency, Bitcoin has not been a legal trading currency in various countries. Its exchange rate has appeared to be an exceptionally high-risk portfolio with extreme volatility, which requires a more detailed evaluation before making any decision. This paper utilizes knowledge of statistics for financial time series and machine learning to (i) fit the parametric distribution and (ii) model and forecast the volatility of Bitcoin returns, and (iii) analyze its correlation to other financial market indicators. The fitted parametric time series model significantly outperforms other standard models in explaining the stylized facts and statistical variances in the behavior of Bitcoin returns. The model forecast also outperforms some machine learning methodologies, which would benefit policy makers, banks and financial investors in trading activities for both long-term and short-term strategies.
MarĂa Claudia Solarte-VĂĄsquez, Katrin Nyman-Metcalf
Abstract Smart contracting (SC) is a proactive proposal to operationalize the relational contract theory for the upgrade and improvement of legally relevant exchange. The dynamic institutional environment of the European Union (EU) is a suitable framework for this proposal. SC addresses the interests of the business management, law and information technology practices with a perspective of influence in digital exchange, communication processes and other human and human-machine interactions. This position paper restates the advantages of the concept by highlighting the practical transition pathway SC offers to moderate the growing haste towards the embeddedness of exchange in automated and distributed models. This theoretical contribution supports the systematization of the proactive and legal design research field, and explains the characterization, operationalization and specification of the SC concept.
In this paper, we propose BAN-GZKP that optimizes the best to date secure lightweight and energy efficient authentication scheme, BANZKP, designed for WBAN networks. BANZKP is vulnerable to several security attacks such as the replay attack, DDoS attacks at sink and redundancy information crack. Also BANZKP needs an end-to-end authentication which is not compliant with the human body postural mobility. Our scheme, BAN-GZKP, improves both the security and postural mobility resilience of BANZKP. In order to fix the security vulnerabilities of BANZKP, BAN-GZKP uses a novel random key allocation. Moreover, BAN-GZKP uses a hop-by-hop authentication scheme which makes it tolerant to postural mobility. We further prove the reliability of our scheme to various attacks including those to which BANZKP is vulnerable. Furthermore, via extensive simulations we prove that our scheme, BAN-GZKP, outperforms BANZKP in terms of reliability to human body postural mobility for various network parameters (end-to-end delay, number of packets exchanged in the network, number of transmissions). We compared both schemes using representative convergecast strategies with various transmission rates and human postural mobility. When our BAN-GZKP scheme is used the percentage of packets received increases by 34.06%, the end-to-end-delay reduces by 36.02% and the number of transmissions reduces by 8.75% with respect to the case when BANZKP is used. Moreover, BAN-GZKP uses only a three-phase authentication which is optimal in the class of ZKP protocols. Finally, it is important to mention that BAN-GZKP has no additional cost in terms memory, computational complexity or energy consumption compared to BANZKP.
Mehrdad Salimitari, Mainak Chatterjee, Murat YĂŒksel, Eduardo L. Pasiliao
It is predicted that cryptocurrencies will play an important role in the global economy. Therefore, it is prudent for us to understand the importance and monetary value of such cryptocurrencies, and strategize our investments accordingly. One of the ways to obtain cryptocurrency is via mining. As solo mining is not possible because of the computational requirements, pool mining has gained popularity. In this paper, we focus on Bitcoin and its pools. With more than 20 pools in the network of Bitcoin and other cryptocurrencies, it becomes challenging for a new miner to decide the pool he must join such that the profit is maximized. We use prospect theory to predict the profit that a specific miner, given his hash rate power and electricity costs, is expected to make from each pool. A utility value is calculated for each pool based on its recent performance, hash rate power, total number of the pool members, reward distribution policy of the pool, electricity fee in the new miner's region, pool fee, and the current Bitcoin value. Then, based on these parameters during a certain time duration, the most profitable pool is found for that miner. We show how the utility values from a pool varies with electricity fee and dollar equivalent of a Bitcoin. To find the accuracy of our predictions, we mine Bitcoin by joining 5 different pools- AntPool, F2Pool, BTC.com, Slushl'ool, and BatPool. Using an Antminer 55 for each pool, we mine Bitcoin for 40 consecutive days. Results reveal that our prospect theoretic predictions are consistent with what we actually mine; however predictions using expected utility theory are not as close.
Open access
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
Lee Thomas, Chao Long, Pete Burnap, Jianzhong Wu · 5 authors
An electricity supply smart contract was developed and demonstrated to perform pre-time-of-use price negotiation between demand and generation and post-time-of-use settlement and payment. The smart contract was demonstrated with 1000 loads/generators with usages simulated using lognormal probability distributions. It combines payment of deposit, negotiation of price based on estimates, settlement based on actual usage and enactment of payments using crypto-currency. The settlement procedure rewards customers that adjusted to balance the system. The smart contract was written in the solidity programming language and implemented with a simulated Ethereum blockchain using testrpc and go-ethereum. In the example test case, a price was agreed, settled and payment enacted.