Blockchain Papers

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740 papersLast indexed Aug 31, 2026
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Nov 1, 2023·arXiv (Cornell University)
16 cites
healthAIChain: Improving security and safety using Blockchain Technology applications in AI-based healthcare systems

Naresh Kshetri, James Hutson, G. Revathy

Blockchain as a digital ledger for keeping records of digital transactions and other information, it is secure and decentralized technology. The globally growing number of digital population every day possesses a significant threat to online data including the medical and patients’ data. After bitcoin, blockchain technology has emerged into a general-purpose technology with applications in medical industries and healthcare. Blockchain can promote highly configurable openness while retaining the highest security standards for critical data of medical patients. Referred to as distributed record keeping for healthcare systems which makes digital assets unalterable and transparent via a cryptographic hash and decentralized network. The study delves into the security and safety improvement associated with implementing blockchain in AI-based healthcare systems. Blockchain-enabled AI tackles the existing issues related to security, performance efficiencies, and safety in healthcare systems. This study also examined the implementation of Artificial Intelligence (AI) in healthcare and medical industry, potential areas, open questions concerning the blockchain in healthcare systems. Finally, the article proposed an AI-based healthcare blockchain model (healthAIChain) to improve patients’ data and security.

Open access
3 source records
cs.CR
cs.AI
Artificial Intelligence in Healthcare and Education
Original source
Oct 29, 2023·arXiv (Cornell University)
3 cites
Web3 Meets AI Marketplace: Exploring Opportunities, Analyzing Challenges, and Suggesting Solutions

Peihao Li

Web3 and AI have been among the most discussed fields over the recent years, with substantial hype surrounding each field's potential to transform the world as we know it. However, as the hype settles, it's evident that neither AI nor Web3 can address all challenges independently. Consequently, the intersection of AI and Web3 is gaining increased attention, emerging as a new field with the potential to address the limitations of each. In this article, we will focus on the integration of web3 and the AI marketplace, where AI services and products can be provided in a decentralized manner (DeAI). A comprehensive review is provided by summarizing the opportunities and challenges on this topic. Additionally, we offer analyses and solutions to address these challenges. We've developed a framework that lets users pay with any kind of cryptocurrency to get AI services. Additionally, they can also enjoy AI services for free on our platform by simply locking up their assets temporarily in the protocol. This unique approach is a first in the industry. Before this, offering free AI services in the web3 community wasn't possible. Our solution opens up exciting opportunities for the AI marketplace in the web3 space to grow and be widely adopted.

Open access
2 source records
Big Data and Business Intelligence
Scientific Computing and Data Management
Data Quality and Management
Original source
Oct 28, 2023·arXiv
0 cites
FinBTech: Blockchain-Based Video and Voice Authentication System for Enhanced Security in Financial Transactions Utilizing FaceNet512 and Gaussian Mixture Models

Prof N. Jeenath Laila, Dr G. Tamilpavai

In the digital age, it is crucial to make sure that financial transactions are as secure and reliable as possible. This abstract offers a ground-breaking method that combines smart contracts, blockchain technology, FaceNet512 for improved face recognition, and Gaussian Mixture Models (GMM) for speech authentication to create a system for video and audio verification that is unmatched. Smart contracts and the immutable ledger of the blockchain are combined to offer a safe and open environment for financial transactions. FaceNet512 and GMM offer multi-factor biometric authentication simultaneously, enhancing security to new heights. By combining cutting-edge technology, this system offers a strong defense against identity theft and illegal access, establishing a new benchmark for safe financial transactions.

Open access
cs.CR
cs.AI
Original source
Oct 23, 2023·arXiv
0 cites
B^2SFL: A Bi-level Blockchained Architecture for Secure Federated Learning-based Traffic Prediction

Hao Guo, Collin Meese, Wanxin Li, Chien-Chung Shen · 5 authors

Federated Learning (FL) is a privacy-preserving machine learning (ML) technology that enables collaborative training and learning of a global ML model based on aggregating distributed local model updates. However, security and privacy guarantees could be compromised due to malicious participants and the centralized FL server. This article proposed a bi-level blockchained architecture for secure federated learning-based traffic prediction. The bottom and top layer blockchain store the local model and global aggregated parameters accordingly, and the distributed homomorphic-encrypted federated averaging (DHFA) scheme addresses the secure computation problems. We propose the partial private key distribution protocol and a partially homomorphic encryption/decryption scheme to achieve the distributed privacy-preserving federated averaging model. We conduct extensive experiments to measure the running time of DHFA operations, quantify the read and write performance of the blockchain network, and elucidate the impacts of varying regional group sizes and model complexities on the resulting prediction accuracy for the online traffic flow prediction task. The results indicate that the proposed system can facilitate secure and decentralized federated learning for real-world traffic prediction tasks.

Open access
cs.CR
cs.AI
cs.DC
Original source
Oct 18, 2023·arXiv
0 cites
Cloud-Magnetic Resonance Imaging System: In the Era of 6G and Artificial Intelligence

Yirong Zhou, Yanhuang Wu, Yuhan Su, Jing Li · 8 authors

Magnetic Resonance Imaging (MRI) plays an important role in medical diagnosis, generating petabytes of image data annually in large hospitals. This voluminous data stream requires a significant amount of network bandwidth and extensive storage infrastructure. Additionally, local data processing demands substantial manpower and hardware investments. Data isolation across different healthcare institutions hinders cross-institutional collaboration in clinics and research. In this work, we anticipate an innovative MRI system and its four generations that integrate emerging distributed cloud computing, 6G bandwidth, edge computing, federated learning, and blockchain technology. This system is called Cloud-MRI, aiming at solving the problems of MRI data storage security, transmission speed, AI algorithm maintenance, hardware upgrading, and collaborative work. The workflow commences with the transformation of k-space raw data into the standardized Imaging Society for Magnetic Resonance in Medicine Raw Data (ISMRMRD) format. Then, the data are uploaded to the cloud or edge nodes for fast image reconstruction, neural network training, and automatic analysis. Then, the outcomes are seamlessly transmitted to clinics or research institutes for diagnosis and other services. The Cloud-MRI system will save the raw imaging data, reduce the risk of data loss, facilitate inter-institutional medical collaboration, and finally improve diagnostic accuracy and work efficiency.

Open access
eess.IV
cs.AI
physics.med-ph
Original source
Oct 18, 2023·arXiv (Cornell University)
5 cites
Live Graph Lab: Towards Open, Dynamic and Real Transaction Graphs with NFT

Zhen Zhang, Bingqiao Luo, Shengliang Lu, Bingsheng He

Numerous studies have been conducted to investigate the properties of large-scale temporal graphs. Despite the ubiquity of these graphs in real-world scenarios, it's usually impractical for us to obtain the whole real-time graphs due to privacy concerns and technical limitations. In this paper, we introduce the concept of {\it Live Graph Lab} for temporal graphs, which enables open, dynamic and real transaction graphs from blockchains. Among them, Non-fungible tokens (NFTs) have become one of the most prominent parts of blockchain over the past several years. With more than \$40 billion market capitalization, this decentralized ecosystem produces massive, anonymous and real transaction activities, which naturally forms a complicated transaction network. However, there is limited understanding about the characteristics of this emerging NFT ecosystem from a temporal graph analysis perspective. To mitigate this gap, we instantiate a live graph with NFT transaction network and investigate its dynamics to provide new observations and insights. Specifically, through downloading and parsing the NFT transaction activities, we obtain a temporal graph with more than 4.5 million nodes and 124 million edges. Then, a series of measurements are presented to understand the properties of the NFT ecosystem. Through comparisons with social, citation, and web networks, our analyses give intriguing findings and point out potential directions for future exploration. Finally, we also study machine learning models in this live graph to enrich the current datasets and provide new opportunities for the graph community. The source codes and dataset are available at https://livegraphlab.github.io.

Open access
2 source records
Blockchain Technology Applications and Security
Complex Network Analysis Techniques
Caching and Content Delivery
Original source
Oct 14, 2023·arXiv (Cornell University)
3 cites
A Framework for Empowering Reinforcement Learning Agents with Causal Analysis: Enhancing Automated Cryptocurrency Trading

Rasoul Amirzadeh, Dhananjay Thiruvady, Asef Nazari, Mong Shan Ee

Despite advances in artificial intelligence-enhanced trading methods, developing a profitable automated trading system remains challenging in the rapidly evolving cryptocurrency market. This research focuses on developing a reinforcement learning (RL) framework to tackle the complexities of trading five prominent altcoins: Binance Coin, Ethereum, Litecoin, Ripple, and Tether. To this end, we present the CausalReinforceNet~(CRN) framework, which integrates both Bayesian and dynamic Bayesian network techniques to empower the RL agent in trade decision-making. We develop two agents using the framework based on distinct RL algorithms to analyse performance compared to the Buy-and-Hold benchmark strategy and a baseline RL model. The results indicate that our framework surpasses both models in profitability, highlighting CRN's consistent superiority, although the level of effectiveness varies across different cryptocurrencies.

Open access
2 source records
cs.AI
cs.LG
Blockchain Technology Applications and Security
Original source
Oct 11, 2023·arXiv
0 cites
Energy Estimates Across Layers of Computing: From Devices to Large-Scale Applications in Machine Learning for Natural Language Processing, Scientific Computing, and Cryptocurrency Mining

Sadasivan Shankar

Estimates of energy usage in layers of computing from devices to algorithms have been determined and analyzed. Building on the previous analysis [3], energy needed from single devices and systems including three large-scale computing applications such as Artificial Intelligence (AI)/Machine Learning for Natural Language Processing, Scientific Simulations, and Cryptocurrency Mining have been estimated. In contrast to the bit-level switching, in which transistors achieved energy efficiency due to geometrical scaling, higher energy is expended both at the at the instructions and simulations levels of an application. Additionally, the analysis based on AI/ML Accelerators indicate that changes in architectures using an older semiconductor technology node have comparable energy efficiency with a different architecture using a newer technology. Further comparisons of the energy in computing systems with the thermodynamic and biological limits, indicate that there is a 27-36 orders of magnitude higher energy requirements for total simulation of an application. These energy estimates underscore the need for serious considerations of energy efficiency in computing by including energy as a design parameter, enabling growing needs of compute-intensive applications in a digital world.

Open access
cs.CY
cs.AI
Original source
Oct 11, 2023·arXiv
0 cites
The Implications of Decentralization in Blockchained Federated Learning: Evaluating the Impact of Model Staleness and Inconsistencies

Francesc Wilhelmi, Nima Afraz, Elia Guerra, Paolo Dini

Blockchain promises to enhance distributed machine learning (ML) approaches such as federated learning (FL) by providing further decentralization, security, immutability, and trust, which are key properties for enabling collaborative intelligence in next-generation applications. Nonetheless, the intrinsic decentralized operation of peer-to-peer (P2P) blockchain nodes leads to an uncharted setting for FL, whereby the concepts of FL round and global model become meaningless, as devices' synchronization is lost without the figure of a central orchestrating server. In this paper, we study the practical implications of outsourcing the orchestration of FL to a democratic setting such as in a blockchain. In particular, we focus on the effects that model staleness and inconsistencies, endorsed by blockchains' modus operandi, have on the training procedure held by FL devices asynchronously. Using simulation, we evaluate the blockchained FL operation by applying two different ML models (ranging from low to high complexity) on the well-known MNIST and CIFAR-10 datasets, respectively, and focus on the accuracy and timeliness of the solutions. Our results show the high impact of model inconsistencies on the accuracy of the models (up to a ~35% decrease in prediction accuracy), which underscores the importance of properly designing blockchain systems based on the characteristics of the underlying FL application.

Open access
cs.NI
cs.AI
cs.DC
Original source
Oct 10, 2023·arXiv
0 cites
BC4LLM: Trusted Artificial Intelligence When Blockchain Meets Large Language Models

Haoxiang Luo, Jian Luo, Athanasios V. Vasilakos

In recent years, artificial intelligence (AI) and machine learning (ML) are reshaping society's production methods and productivity, and also changing the paradigm of scientific research. Among them, the AI language model represented by ChatGPT has made great progress. Such large language models (LLMs) serve people in the form of AI-generated content (AIGC) and are widely used in consulting, healthcare, and education. However, it is difficult to guarantee the authenticity and reliability of AIGC learning data. In addition, there are also hidden dangers of privacy disclosure in distributed AI training. Moreover, the content generated by LLMs is difficult to identify and trace, and it is difficult to cross-platform mutual recognition. The above information security issues in the coming era of AI powered by LLMs will be infinitely amplified and affect everyone's life. Therefore, we consider empowering LLMs using blockchain technology with superior security features to propose a vision for trusted AI. This paper mainly introduces the motivation and technical route of blockchain for LLM (BC4LLM), including reliable learning corpus, secure training process, and identifiable generated content. Meanwhile, this paper also reviews the potential applications and future challenges, especially in the frontier communication networks field, including network resource allocation, dynamic spectrum sharing, and semantic communication. Based on the above work combined and the prospect of blockchain and LLMs, it is expected to help the early realization of trusted AI and provide guidance for the academic community.

Open access
cs.NI
cs.AI
cs.LG
Original source
Oct 8, 2023·arXiv (Cornell University)
2 cites
Optimizing Large Language Models to Expedite the Development of Smart Contracts

Nii Osae Osae Dade, Margaret Lartey-Quaye, Emmanuel Teye-Kofi Odonkor, Paul Ammah

Programming has always been at the heart of technological innovation in the 21st century. With the advent of blockchain technologies and the proliferation of web3 paradigms of decentralised applications, smart contracts have been very instrumental in enabling developers to build applications that reside on decentralised blockchains. Despite the huge interest and potential of smart contracts, there is still a significant knowledge and skill gap that developers need to cross in order to build web3 applications. In light of this, we introduce MazzumaGPT, a large language model that has been optimised to generate smart contract code and aid developers to scaffold development and improve productivity. As part of this research, we outline the optimisation and fine-tuning parameters, evaluate the model's performance on functional correctness and address the limitations and broader impacts of our research.

Open access
2 source records
cs.SE
cs.AI
cs.CL
Original source
Oct 6, 2023·arXiv (Cornell University)
1 cites
Kick Bad Guys Out! Conditionally Activated Anomaly Detection in Federated Learning with Zero-Knowledge Proof Verification

Shanshan Han, Wenxuan Wu, Baturalp Buyukates, Weizhao Jin · 7 authors

Federated Learning (FL) systems are susceptible to adversarial attacks, such as model poisoning attacks and backdoor attacks. Existing defense mechanisms face critical limitations in deployments, such as relying on impractical assumptions (e.g., adversaries acknowledging the presence of attacks before attacking) or undermining accuracy in model training, even in benign scenarios. To address these challenges, we propose CustodianFL, a two-staged anomaly detection method specifically designed for FL deployments. In the first stage, it flags suspicious client activities. In the second stage that is activated only when needed, it further examines these candidates using Three-Sigma Rule to identify and exclude truly malicious local models from FL training. To ensure integrity and transparency within the FL system, CustodianFL integrates zero-knowledge proofs, enabling clients to cryptographically verify the server's detection process without relying on the server's goodwill. CustodianFL operates without unrealistic assumptions and avoids interfering with FL training in attack-free scenarios. It bridges the gap between theoretical advances in FL security and the practical demands of real FL systems. Experimental results demonstrate that CustodianFL consistently delivers performance comparable to benign cases, highlighting its effectiveness in identifying and eliminating malicious models with high accuracy.

Open access
4 source records
Adversarial Robustness in Machine Learning
Network Security and Intrusion Detection
Anomaly Detection Techniques and Applications
Original source
Oct 4, 2023·IEEE Transactions on Big Data
38 cites
zkFL: Zero-Knowledge Proof-Based Gradient Aggregation for Federated Learning

Zhipeng Wang, Nanqing Dong, Jiahao Sun, William J. Knottenbelt · 5 authors

Federated learning (FL) is a machine learning paradigm, which enables multiple and decentralized clients to collaboratively train a model under the orchestration of a central aggregator. FL can be a scalable machine learning solution in big data scenarios. Traditional FL relies on the trust assumption of the central aggregator, which forms cohorts of clients honestly. However, a malicious aggregator, in reality, could abandon and replace the client's training models, or insert fake clients, to manipulate the final training results. In this work, we introduce zkFL, which leverages zero-knowledge proofs to tackle the issue of a malicious aggregator during the training model aggregation process. To guarantee the correct aggregation results, the aggregator provides a proof per round, demonstrating to the clients that the aggregator executes the intended behavior faithfully. To further reduce the verification cost of clients, we use blockchain to handle the proof in a zero-knowledge way, where miners (i.e., the participants validating and maintaining the blockchain data) can verify the proof without knowing the clients' local and aggregated models. The theoretical analysis and empirical results show that zkFL achieves better security and privacy than traditional FL, without modifying the underlying FL network structure or heavily compromising the training speed.

Open access
3 source records
Privacy-Preserving Technologies in Data
Cryptography and Data Security
Stochastic Gradient Optimization Techniques
Original source
Oct 2, 2023·arXiv
0 cites
Combining Deep Learning and GARCH Models for Financial Volatility and Risk Forecasting

Jakub Michańków, Łukasz Kwiatkowski, Janusz Morajda

In this paper, we develop a hybrid approach to forecasting the volatility and risk of financial instruments by combining common econometric GARCH time series models with deep learning neural networks. For the latter, we employ Gated Recurrent Unit (GRU) networks, whereas four different specifications are used as the GARCH component: standard GARCH, EGARCH, GJR-GARCH and APARCH. Models are tested using daily logarithmic returns on the S&P 500 index as well as gold price Bitcoin prices, with the three assets representing quite distinct volatility dynamics. As the main volatility estimator, also underlying the target function of our hybrid models, we use the price-range-based Garman-Klass estimator, modified to incorporate the opening and closing prices. Volatility forecasts resulting from the hybrid models are employed to evaluate the assets' risk using the Value-at-Risk (VaR) and Expected Shortfall (ES) at two different tolerance levels of 5% and 1%. Gains from combining the GARCH and GRU approaches are discussed in the contexts of both the volatility and risk forecasts. In general, it can be concluded that the hybrid solutions produce more accurate point volatility forecasts, although it does not necessarily translate into superior VaR and ES forecasts.

Open access
q-fin.RM
cs.AI
cs.LG
Original source
Oct 2, 2023·arXiv (Cornell University)
0 cites
EX-Graph: A Pioneering Dataset Bridging Ethereum and X

Qian Wang, Zhang Zhen, Zemin Liu, Shengliang Lu · 6 authors

While numerous public blockchain datasets are available, their utility is constrained by an exclusive focus on blockchain data. This constraint limits the incorporation of relevant social network data into blockchain analysis, thereby diminishing the breadth and depth of insight that can be derived. To address the above limitation, we introduce EX-Graph, a novel dataset that authentically links Ethereum and X, marking the first and largest dataset of its kind. EX-Graph combines Ethereum transaction records (2 million nodes and 30 million edges) and X following data (1 million nodes and 3 million edges), bonding 30,667 Ethereum addresses with verified X accounts sourced from OpenSea. Detailed statistical analysis on EX-Graph highlights the structural differences between X-matched and non-X-matched Ethereum addresses. Extensive experiments, including Ethereum link prediction, wash-trading Ethereum addresses detection, and X-Ethereum matching link prediction, emphasize the significant role of X data in enhancing Ethereum analysis. EX-Graph is available at \url{https://exgraph.deno.dev/}.

Open access
2 source records
Blockchain Technology Applications and Security
Advanced Graph Neural Networks
Complex Network Analysis Techniques
Original source
Oct 2, 2023·arXiv (Cornell University)
73 cites
Large Language Model-Powered Smart Contract Vulnerability Detection: New Perspectives

Sihao Hu, Tiansheng Huang, Fatih İlhan, Selim Furkan Tekin · 5 authors

This paper provides a systematic analysis of the opportunities, challenges, and potential solutions of harnessing Large Language Models (LLMs) such as GPT-4 to dig out vulnerabilities within smart contracts based on our ongoing research. For the task of smart contract vulnerability detection, achieving practical usability hinges on identifying as many true vulnerabilities as possible while minimizing the number of false positives. Nonetheless, our empirical study reveals contradictory yet interesting findings: generating more answers with higher randomness largely boosts the likelihood of producing a correct answer but inevitably leads to a higher number of false positives. To mitigate this tension, we propose an adversarial framework dubbed GPTLens that breaks the conventional one-stage detection into two synergistic stages $-$ generation and discrimination, for progressive detection and refinement, wherein the LLM plays dual roles, i.e., auditor and critic, respectively. The goal of auditor is to yield a broad spectrum of vulnerabilities with the hope of encompassing the correct answer, whereas the goal of critic that evaluates the validity of identified vulnerabilities is to minimize the number of false positives. Experimental results and illustrative examples demonstrate that auditor and critic work together harmoniously to yield pronounced improvements over the conventional one-stage detection. GPTLens is intuitive, strategic, and entirely LLM-driven without relying on specialist expertise in smart contracts, showcasing its methodical generality and potential to detect a broad spectrum of vulnerabilities. Our code is available at: https://github.com/git-disl/GPTLens.

Open access
4 source records
Blockchain Technology Applications and Security
Cybercrime and Law Enforcement Studies
Artificial Intelligence in Law
Original source
Sep 29, 2023·arXiv
0 cites
Probabilistic Sampling-Enhanced Temporal-Spatial GCN: A Scalable Framework for Transaction Anomaly Detection in Ethereum Networks

Stefan Kambiz Behfar, Richard Mortier, Jon Crowcroft

The rapid growth of the Ethereum network necessitates advanced anomaly detection techniques to enhance security, transparency, and resilience against evolving malicious activities. While there have been significant strides in anomaly detection, they often fall short in capturing the intricate spatial-temporal patterns inherent in blockchain transactional data. This study presents a scalable framework that integrates Graph Convolutional Networks (GCNs) with Temporal Random Walks (TRW) specifically designed to adapt to the complexities and temporal dynamics of the Ethereum transaction network. Unlike traditional methods that focus on detecting specific attack types, such as front-running or flash loan exploits, our approach targets time-sensitive anomalies more broadly—detecting irregularities such as rapid transaction bursts, anomalous token swaps, and sudden volume spikes. This broader focus reduces reliance on pre-defined attack categories, making the method more adaptable to emerging and evolving malicious strategies. To ground our contributions, we establish three theoretical results: (1) the effectiveness of TRW in enhancing GCN-based anomaly detection by capturing temporal dependencies, (2) the identification of weight cancellation conditions in the anomaly detection process, and (3) the scalability and efficiency improvements of GCNs achieved through probabilistic sampling. Empirical evaluations demonstrate that the TRW-GCN framework outperforms state-of-the-art Temporal Graph Attention Networks (TGAT) in detecting time-sensitive anomalies. Furthermore, as part of our ablation study, we evaluated various anomaly detection techniques on the TRW-GCN embeddings and found that our proposed scoring classifier consistently achieves higher accuracy and precision compared to baseline methods such as Isolation Forest, One-Class SVM, and DBSCAN, thereby validating the robustness and adaptability of our framework.

Open access
2 source records
cs.LG
cs.AI
cs.CR
Original source
Sep 27, 2023·arXiv
0 cites
Hedging Properties of Algorithmic Investment Strategies using Long Short-Term Memory and Time Series models for Equity Indices

Jakub Michańków, Paweł Sakowski, Robert Ślepaczuk

This paper proposes a novel approach to hedging portfolios of risky assets when financial markets are affected by financial turmoils. We introduce a completely novel approach to diversification activity not on the level of single assets but on the level of ensemble algorithmic investment strategies (AIS) built based on the prices of these assets. We employ four types of diverse theoretical models (LSTM - Long Short-Term Memory, ARIMA-GARCH - Autoregressive Integrated Moving Average - Generalized Autoregressive Conditional Heteroskedasticity, momentum, and contrarian) to generate price forecasts, which are then used to produce investment signals in single and complex AIS. In such a way, we are able to verify the diversification potential of different types of investment strategies consisting of various assets (energy commodities, precious metals, cryptocurrencies, or soft commodities) in hedging ensemble AIS built for equity indices (S&P 500 index). Empirical data used in this study cover the period between 2004 and 2022. Our main conclusion is that LSTM-based strategies outperform the other models and that the best diversifier for the AIS built for the S&P 500 index is the AIS built for Bitcoin. Finally, we test the LSTM model for a higher frequency of data (1 hour). We conclude that it outperforms the results obtained using daily data.

Open access
q-fin.PM
cs.AI
cs.LG
Original source
Sep 26, 2023·ACM Transactions on Knowledge Discovery from Data
3 cites
From Asset Flow to Status, Action and Intention Discovery: Early Malice Detection in Cryptocurrency

Ling Cheng, Feida Zhu, Yong Wang, Ruicheng Liang · 5 authors

Cryptocurrency has been subject to illicit activities probably more often than traditional financial assets due to the pseudo-anonymous nature of its transacting entities. An ideal detection model is expected to achieve all three critical properties of (I) early detection, (II) good interpretability, and (III) versatility for various illicit activities. However, existing solutions cannot meet all these requirements, as most of them heavily rely on deep learning without interpretability and are only available for retrospective analysis of a specific illicit type. To tackle all these challenges, we propose Intention-Monitor for early malice detection in Bitcoin (BTC), where the on-chain record data for a certain address are much scarcer than other cryptocurrency platforms. We first define asset transfer paths with the Decision-Tree based feature Selection and Complement (DT-SC) to build different feature sets for different malice types. Then, the Status/Action Proposal Module (S/A-PM) and the Intention-VAE module generate the status, action, intent-snippet, and hidden intent-snippet embedding. With all these modules, our model is highly interpretable and can detect various illegal activities. Moreover, well-designed loss functions further enhance the prediction speed and model's interpretability. Extensive experiments on three real-world datasets demonstrate that our proposed algorithm outperforms the state-of-the-art methods. Furthermore, additional case studies justify our model can not only explain existing illicit patterns but can also find new suspicious characters.

Open access
3 source records
cs.LG
cs.AI
Blockchain Technology Applications and Security
Original source
Sep 21, 2023·arXiv (Cornell University)
2 cites
BitCoin: Bidirectional Tagging and Supervised Contrastive Learning based Joint Relational Triple Extraction Framework

Luyao He, Zhongbao Zhang, Sen Su, Yuxin Chen

Relation triple extraction (RTE) is an essential task in information extraction and knowledge graph construction. Despite recent advancements, existing methods still exhibit certain limitations. They just employ generalized pre-trained models and do not consider the specificity of RTE tasks. Moreover, existing tagging-based approaches typically decompose the RTE task into two subtasks, initially identifying subjects and subsequently identifying objects and relations. They solely focus on extracting relational triples from subject to object, neglecting that once the extraction of a subject fails, it fails in extracting all triples associated with that subject. To address these issues, we propose BitCoin, an innovative Bidirectional tagging and supervised Contrastive learning based joint relational triple extraction framework. Specifically, we design a supervised contrastive learning method that considers multiple positives per anchor rather than restricting it to just one positive. Furthermore, a penalty term is introduced to prevent excessive similarity between the subject and object. Our framework implements taggers in two directions, enabling triples extraction from subject to object and object to subject. Experimental results show that BitCoin achieves state-of-the-art results on the benchmark datasets and significantly improves the F1 score on Normal, SEO, EPO, and multiple relation extraction tasks.

Open access
2 source records
cs.CL
cs.AI
Advanced Graph Neural Networks
Original source
Sep 19, 2023·arXiv
0 cites
Mean Absolute Directional Loss as a New Loss Function for Machine Learning Problems in Algorithmic Investment Strategies

Jakub Michańków, Paweł Sakowski, Robert Ślepaczuk

This paper investigates the issue of an adequate loss function in the optimization of machine learning models used in the forecasting of financial time series for the purpose of algorithmic investment strategies (AIS) construction. We propose the Mean Absolute Directional Loss (MADL) function, solving important problems of classical forecast error functions in extracting information from forecasts to create efficient buy/sell signals in algorithmic investment strategies. Finally, based on the data from two different asset classes (cryptocurrencies: Bitcoin and commodities: Crude Oil), we show that the new loss function enables us to select better hyperparameters for the LSTM model and obtain more efficient investment strategies, with regard to risk-adjusted return metrics on the out-of-sample data.

Open access
q-fin.CP
cs.AI
cs.LG
Original source
Sep 18, 2023·arXiv (Cornell University)
0 cites
Adaptive Liquidity Provision in Uniswap V3 with Deep Reinforcement Learning

Haochen Zhang, Xi Chen, Lin F. Yang

Decentralized exchanges (DEXs) are a cornerstone of decentralized finance (DeFi), allowing users to trade cryptocurrencies without the need for third-party authorization. Investors are incentivized to deposit assets into liquidity pools, against which users can trade directly, while paying fees to liquidity providers (LPs). However, a number of unresolved issues related to capital efficiency and market risk hinder DeFi's further development. Uniswap V3, a leading and groundbreaking DEX project, addresses capital efficiency by enabling LPs to concentrate their liquidity within specific price ranges for deposited assets. Nevertheless, this approach exacerbates market risk, as LPs earn trading fees only when asset prices are within these predetermined brackets. To mitigate this issue, this paper introduces a deep reinforcement learning (DRL) solution designed to adaptively adjust these price ranges, maximizing profits and mitigating market risks. Our approach also neutralizes price-change risks by hedging the liquidity position through a rebalancing portfolio in a centralized futures exchange. The DRL policy aims to optimize trading fees earned by LPs against associated costs, such as gas fees and hedging expenses, which is referred to as loss-versus-rebalancing (LVR). Using simulations with a profit-and-loss (PnL) benchmark, our method demonstrates superior performance in ETH/USDC and ETH/USDT pools compared to existing baselines. We believe that this strategy not only offers investors a valuable asset management tool but also introduces a new incentive mechanism for DEX designers.

Open access
2 source records
cs.AI
FinTech, Crowdfunding, Digital Finance
Blockchain Technology Applications and Security
Original source
Sep 18, 2023·arXiv (Cornell University)
20 cites
Efficient Avoidance of Vulnerabilities in Auto-completed Smart Contract Code Using Vulnerability-constrained Decoding

André Storhaug, Jingyue Li, Tianyuan Hu

Auto-completing code enables developers to speed up coding significantly. Recent advances in transformer-based large language model (LLM) technologies have been applied to code synthesis. However, studies show that many of such synthesized codes contain vulnerabilities. We propose a novel vulnerability-constrained decoding approach to reduce the amount of vulnerable code generated by such models. Using a small dataset of labeled vulnerable lines of code, we fine-tune an LLM to include vulnerability labels when generating code, acting as an embedded classifier. Then, during decoding, we deny the model to generate these labels to avoid generating vulnerable code. To evaluate the method, we chose to automatically complete Ethereum Blockchain smart contracts (SCs) as the case study due to the strict requirements of SC security. We first fine-tuned the 6-billion-parameter GPT-J model using 186,397 Ethereum SCs after removing the duplication from 2,217,692 SCs. The fine-tuning took more than one week using ten GPUs. The results showed that our fine-tuned model could synthesize SCs with an average BLEU (BiLingual Evaluation Understudy) score of 0.557. However, many codes in the auto-completed SCs were vulnerable. Using the code before the vulnerable line of 176 SCs containing different types of vulnerabilities to auto-complete the code, we found that more than 70% of the auto-completed codes were insecure. Thus, we further fine-tuned the model on other 941 vulnerable SCs containing the same types of vulnerabilities and applied vulnerability-constrained decoding. The fine-tuning took only one hour with four GPUs. We then auto-completed the 176 SCs again and found that our approach could identify 62% of the code to be generated as vulnerable and avoid generating 67% of them, indicating the approach could efficiently and effectively avoid vulnerabilities in the auto-completed code.

Open access
4 source records
Blockchain Technology Applications and Security
Advanced Malware Detection Techniques
cs.CR
Original source
Sep 15, 2023·International Journal of Information Security
30 cites
Vulnsense: efficient vulnerability detection in ethereum smart contracts by multimodal learning with graph neural network and language model

Phan The Duy, Nghi Hoang Khoa, Nguyen Huu Quyen, Le Cong Trinh · 7 authors

This paper presents VulnSense framework, a comprehensive approach to efficiently detect vulnerabilities in Ethereum smart contracts using a multimodal learning approach on graph-based and natural language processing (NLP) models. Our proposed framework combines three types of features from smart contracts comprising source code, opcode sequences, and control flow graph (CFG) extracted from bytecode. We employ Bidirectional Encoder Representations from Transformers (BERT), Bidirectional Long Short-Term Memory (BiLSTM) and Graph Neural Network (GNN) models to extract and analyze these features. The final layer of our multimodal approach consists of a fully connected layer used to predict vulnerabilities in Ethereum smart contracts. Addressing limitations of existing vulnerability detection methods relying on single-feature or single-model deep learning techniques, our method surpasses accuracy and effectiveness constraints. We assess VulnSense using a collection of 1.769 smart contracts derived from the combination of three datasets: Curated, SolidiFI-Benchmark, and Smartbugs Wild. We then make a comparison with various unimodal and multimodal learning techniques contributed by GNN, BiLSTM and BERT architectures. The experimental outcomes demonstrate the superior performance of our proposed approach, achieving an average accuracy of 77.96\% across all three categories of vulnerable smart contracts.

Open access
4 source records
Blockchain Technology Applications and Security
Crime, Illicit Activities, and Governance
Cybercrime and Law Enforcement Studies
Original source