Naman Goel, Cyril van Schreven, Aris Filos-Ratsikas, Boi Faltings
Blockchain based systems allow various kinds of financial transactions to be executed in a decentralized manner. However, these systems often rely on a trusted third party (oracle) to get correct information about the real-world events, which trigger the financial transactions. In this paper, we identify two biggest challenges in building decentralized, trustless and transparent oracles. The first challenge is acquiring correct information about the real-world events without relying on a trusted information provider. We show how a peer-consistency incentive mechanism can be used to acquire truthful information from an untrusted and self-interested crowd, even when the crowd has outside incentives to provide wrong informations. The second is a system design and implementation challenge. For the first time, we show how to implement a trustless and transparent oracle in Ethereum. We discuss various non-trivial issues that arise in implementing peer-consistency mechanisms in Ethereum, suggest several optimizations to reduce gas cost and provide empirical analysis.
We introduce DaiMoN, a decentralized artificial intelligence model network, which incentivizes peer collaboration in improving the accuracy of machine learning models for a given classification problem. It is an autonomous network where peers may submit models with improved accuracy and other peers may verify the accuracy improvement. The system maintains an append-only decentralized ledger to keep the log of critical information, including who has trained the model and improved its accuracy, when it has been improved, by how much it has improved, and where to find the newly updated model. DaiMoN rewards these contributing peers with cryptographic tokens. A main feature of DaiMoN is that it allows peers to verify the accuracy improvement of submitted models without knowing the test labels. This is an essential component in order to mitigate intentional model overfitting by model-improving peers. To enable this model accuracy evaluation with hidden test labels, DaiMoN uses a novel learnable Distance Embedding for Labels (DEL) function proposed in this paper. Specific to each test dataset, DEL scrambles the test label vector by embedding it in a low-dimension space while approximately preserving the distance between the dataset's test label vector and a label vector inferred by the classifier. It therefore allows proof-of-improvement (PoI) by peers without providing them access to true test labels. We provide analysis and empirical evidence that under DEL, peers can accurately assess model accuracy. We also argue that it is hard to invert the embedding function and thus, DEL is resilient against attacks aiming to recover test labels in order to cheat. Our prototype implementation of DaiMoN is available at https://github.com/steerapi/daimon.
Machine learning has recently enabled large advances in artificial intelligence, but these tend to be highly centralized. The large datasets required are generally proprietary; predictions are often sold on a per-query basis; and published models can quickly become out of date without effort to acquire more data and re-train them. We propose a framework for participants to collaboratively build a dataset and use smart contracts to host a continuously updated model. This model will be shared publicly on a blockchain where it can be free to use for inference. Ideal learning problems include scenarios where a model is used many times for similar input such as personal assistants, playing games, recommender systems, etc. In order to maintain the model's accuracy with respect to some test set we propose both financial and non-financial (gamified) incentive structures for providing good data. A free and open source implementation for the Ethereum blockchain is provided at https://github.com/microsoft/0xDeCA10B.
Tu Bui, Daniel Cooper, John Collomosse, Mark Bell · 11 authors
We present ARCHANGEL; a novel distributed ledger based system for assuring the long-term integrity of digital video archives. First, we describe a novel deep network architecture for computing compact temporal content hashes (TCHs) from audio-visual streams with durations of minutes or hours. Our TCHs are sensitive to accidental or malicious content modification (tampering) but invariant to the codec used to encode the video. This is necessary due to the curatorial requirement for archives to format shift video over time to ensure future accessibility. Second, we describe how the TCHs (and the models used to derive them) are secured via a proof-of-authority blockchain distributed across multiple independent archives. We report on the efficacy of ARCHANGEL within the context of a trial deployment in which the national government archives of the United Kingdom, Estonia and Norway participated.
The recent rapid development of artificial intelligence (AI, mainly driven by machine learning research, especially deep learning) has achieved phenomenal success in various applications. However, to further apply AI technologies in real-world context, several significant issues regarding the AI ecosystem should be addressed. We identify the main issues as data privacy, ownership, and exchange, which are difficult to be solved with the current centralized paradigm of machine learning training methodology. As a result, we propose a novel model training paradigm based on blockchain, named Galaxy Learning, which aims to train a model with distributed data and to reserve the data ownership for their owners. In this new paradigm, encrypted models are moved around instead, and are federated once trained. Model training, as well as the communication, is achieved with blockchain and its smart contracts. Pricing of training data is determined by its contribution, and therefore it is not about the exchange of data ownership. In this position paper, we describe the motivation, paradigm, design, and challenges as well as opportunities of Galaxy Learning.
In recent years, there is growing interest in the ways the European aviation industry can leverage the multi-source data fusion towards augmented domain intelligence. However, privacy, legal and organisational policies together with technical limitations, hinder data sharing and, thus, its benefits. The current paper presents the ICARUS data policy and assets brokerage framework, which aims to (a) formalise the data attributes and qualities that affect how aviation data assets can be shared and handled subsequently to their acquisition, including licenses, IPR, characterisation of sensitivity and privacy risks, and (b) enable the creation of machine-processable data contracts for the aviation industry. This involves expressing contractual terms pertaining to data trading agreements into a machine-processable language and supporting the diverse interactions among stakeholders in aviation data sharing scenarios through a trusted and robust system based on the Ethereum platform.
The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be attained by the novel and interdisciplinary combination of previously unrelated fields: model predictive control, deep learning, alternating direction method of multipliers (consensus-ADMM), mechanism design, secure multi-party computation, and zero-knowledge proofs. For the first time, this paper proves: - the feasibility of decentralising the central bank while securely preserving its independence in a decentralised computation setting - the benefits for price stability of combining mechanism design, provable security, and control theory, unlike the heuristics of previous stablecoins - the implementation of complex monetary policies on a stablecoin, equivalent to the ones used by central banks and beyond the current fixed rules of cryptocurrencies that hinder their price stability - methods to circumvent the impossibilities of Guaranteed Output Delivery (G.O.D.) and fairness: standing on truthfulness and faithfulness, we reach G.O.D. and fairness under the assumption of rational parties As a corollary, a decentralised artificial intelligence is able to conduct the monetary policy of a stablecoin, minimising human intervention.
Marc Jourdan, Sébastien Blandin, Laura Wynter, Pralhad Deshpande
The Bitcoin transaction graph is a public data structure organized as transactions between addresses, each associated with a logical entity. In this work, we introduce a complete probabilistic model of the Bitcoin Blockchain, setting the basis for follow-up AI applications on Bitcoin transactions. We first formulate a set of conditional dependencies induced by the Bitcoin protocol at the block level and derive a corresponding fully observed graphical model of a Bitcoin block. We then extend the model to include hidden entity attributes such as the functional category of the associated logical agent and derive asymptotic bounds on the privacy properties implied by this model. At the network level, we show evidence of complex transaction-to-transaction behavior and present a relevant discriminative model of the agent categories. Performance of both the block-based graphical model and the network-level discriminative model are evaluated on a subset of the public Bitcoin Blockchain.
Blockchain technology is growing everyday at a fast-passed rhythm and it is possible to integrate it with many systems, namely Robotics with AI services. However, this is still a recent field and there is not yet a clear understanding of what it could potentially become. In this paper, we conduct an overview of many different methods and platforms that try to leverage the power of blockchains into robotic systems, to improve AI services, or to solve problems that are present in the major blockchains, which can lead to the ability of creating robotic systems with increased capabilities and security. We present an overview, discuss the methods, and conclude the paper with our view on the future of the integration of these technologies.
Organisations are increasingly open to scrutiny, and need to be able to prove that they operate in a fair and ethical way. Accountability should extend to the production and use of the data and knowledge assets used in AI systems, as it would for any raw material or process used in production of physical goods. This paper considers collective intelligence, comprising data and knowledge generated by crowd-sourced workforces, which can be used as core components of AI systems. A proposal is made for the development of a supply chain model for tracking the creation and use of crowdsourced collective intelligence assets, with a blockchain based decentralised architecture identified as an appropriate means of providing validation, accountability and fairness.
Artificial intelligence (AI) is the core technology of technological revolution and industrial transformation. As one of the new intelligent needs in the AI 2.0 era, financial intelligence has elicited much attention from the academia and industry. In our current dynamic capital market, financial intelligence demonstrates a fast and accurate machine learning capability to handle complex data and has gradually acquired the potential to become a "financial brain". In this work, we survey existing studies on financial intelligence. First, we describe the concept of financial intelligence and elaborate on its position in the financial technology field. Second, we introduce the development of financial intelligence and review state-of-the-art techniques in wealth management, risk management, financial security, financial consulting, and blockchain. Finally, we propose a research framework called FinBrain and summarize four open issues, namely, explainable financial agents and causality, perception and prediction under uncertainty, risk-sensitive and robust decision making, and multi-agent game and mechanism design. We believe that these research directions can lay the foundation for the development of AI 2.0 in the finance field.
This paper describes the deployment and implementation of a blockchain to improve the security, knowledge, intelligence and collaboration during the inter-agent communication processes in restrict domains of the Internet Infrastructure. It is a work that proposes the application of a blockchain, platform independent, on a particular model of agents, but that can be used in similar proposals, once the results on the specific model were satisfactory.
It is undeniable that artificial intelligence (AI) and blockchain concepts are spreading at a phenomenal rate. Both technologies have distinct degree of technological complexity and multi-dimensional business implications. However, a common misunderstanding about blockchain concept, in particular, is that blockchain is decentralized and is not controlled by anyone. But the underlying development of a blockchain system is still attributed to a cluster of core developers. Take smart contract as an example, it is essentially a collection of codes (or functions) and data (or states) that are programmed and deployed on a blockchain (say, Ethereum) by different human programmers. It is thus, unfortunately, less likely to be free of loopholes and flaws. In this article, through a brief overview about how artificial intelligence could be used to deliver bug-free smart contract so as to achieve the goal of blockchain 2.0, we to emphasize that the blockchain implementation can be assisted or enhanced via various AI techniques. The alliance of AI and blockchain is expected to create numerous possibilities.
Saurabh Raje, Shyamal Vaderia, Neil Wilson, Rudrakh Panigrahi
This paper describes the design and development of a decentralized firewall system powered by a novel malware detection engine. The firewall is built using blockchain technology. The detection engine aims to classify Portable Executable (PE) files as malicious or benign. File classification is carried out using a deep belief neural network (DBN) as the detection engine. Our approach is to model the files as grayscale images and use the DBN to classify those images into the aforementioned two classes. An extensive data set of 10,000 files is used to train the DBN. Validation is carried out using 4,000 files previously unexposed to the network. The final result of whether to allow or block a file is obtained by arriving at a proof of work based consensus in the blockchain network.
Financial portfolio management is the process of constant redistribution of a\nfund into different financial products. This paper presents a\nfinancial-model-free Reinforcement Learning framework to provide a deep machine\nlearning solution to the portfolio management problem. The framework consists\nof the Ensemble of Identical Independent Evaluators (EIIE) topology, a\nPortfolio-Vector Memory (PVM), an Online Stochastic Batch Learning (OSBL)\nscheme, and a fully exploiting and explicit reward function. This framework is\nrealized in three instants in this work with a Convolutional Neural Network\n(CNN), a basic Recurrent Neural Network (RNN), and a Long Short-Term Memory\n(LSTM). They are, along with a number of recently reviewed or published\nportfolio-selection strategies, examined in three back-test experiments with a\ntrading period of 30 minutes in a cryptocurrency market. Cryptocurrencies are\nelectronic and decentralized alternatives to government-issued money, with\nBitcoin as the best-known example of a cryptocurrency. All three instances of\nthe framework monopolize the top three positions in all experiments,\noutdistancing other compared trading algorithms. Although with a high\ncommission rate of 0.25% in the backtests, the framework is able to achieve at\nleast 4-fold returns in 50 days.\n
Morpheo is a transparent and secure machine learning platform collecting and analysing large datasets. It aims at building state-of-the art prediction models in various fields where data are sensitive. Indeed, it offers strong privacy of data and algorithm, by preventing anyone to read the data, apart from the owner and the chosen algorithms. Computations in Morpheo are orchestrated by a blockchain infrastructure, thus offering total traceability of operations. Morpheo aims at building an attractive economic ecosystem around data prediction by channelling crypto-money from prediction requests to useful data and algorithms providers. Morpheo is designed to handle multiple data sources in a transfer learning approach in order to mutualize knowledge acquired from large datasets for applications with smaller but similar datasets.
Rakshit Agrawal, Luca de Alfaro, Vassilis Polychronopoulos
Many prediction problems can be phrased as inferences over local neighborhoods of graphs. The graph represents the interaction between entities, and the neighborhood of each entity contains information that allows the inferences or predictions. We present an approach for applying machine learning directly to such graph neighborhoods, yielding predicitons for graph nodes on the basis of the structure of their local neighborhood and the features of the nodes in it. Our approach allows predictions to be learned directly from examples, bypassing the step of creating and tuning an inference model or summarizing the neighborhoods via a fixed set of hand-crafted features. The approach is based on a multi-level architecture built from Long Short-Term Memory neural nets (LSTMs); the LSTMs learn how to summarize the neighborhood from data. We demonstrate the effectiveness of the proposed technique on a synthetic example and on real-world data related to crowdsourced grading, Bitcoin transactions, and Wikipedia edit reversions.
An interesting research problem in our age of Big Data is that of determining provenance. Granular evaluation of provenance of physical goods--e.g. tracking ingredients of a pharmaceutical or demonstrating authenticity of luxury goods--has often not been possible with today's items that are produced and transported in complex, inter-organizational, often internationally-spanning supply chains. Recent adoption of Internet of Things and Blockchain technologies give promise at better supply chain provenance. We are particularly interested in the blockchain as many favoured use cases of blockchain are for provenance tracking. We are also interested in applying ontologies as there has been some work done on knowledge provenance, traceability, and food provenance using ontologies. In this paper, we make a case for why ontologies can contribute to blockchain design. To support this case, we analyze a traceability ontology and translate some of its representations to smart contracts that execute a provenance trace and enforce traceability constraints on the Ethereum blockchain platform.
Marc Solanas, Julio Hernandez-Castro, Debojyoti Dutta
More users and companies make use of cloud services every day. They all expect a perfect performance and any issue to remain transparent to them. This last statement is very challenging to perform. A user's activities in our cloud can affect the overall performance of our servers, having an impact on other resources. We can consider these kind of activities as fraudulent. They can be either illegal activities, such as launching a DDoS attack or just activities which are undesired by the cloud provider, such as Bitcoin mining, which uses substantial power, reduces the life of the hardware and can possibly slow down other user's activities. This article discusses a method to detect such activities by using non-intrusive, privacy-friendly data: billing data. We use OpenStack as an example with data provided by Telemetry, the component in charge of measuring resource usage for billing purposes. Results will be shown proving the efficiency of this method and ways to improve it will be provided as well as its advantages and disadvantages.
In this paper, we discuss the method of Bayesian regression and its efficacy for predicting price variation of Bitcoin, a recently popularized virtual, cryptographic currency. Bayesian regression refers to utilizing empirical data as proxy to perform Bayesian inference. We utilize Bayesian regression for the so-called "latent source model". The Bayesian regression for "latent source model" was introduced and discussed by Chen, Nikolov and Shah (2013) and Bresler, Chen and Shah (2014) for the purpose of binary classification. They established theoretical as well as empirical efficacy of the method for the setting of binary classification. In this paper, instead we utilize it for predicting real-valued quantity, the price of Bitcoin. Based on this price prediction method, we devise a simple strategy for trading Bitcoin. The strategy is able to nearly double the investment in less than 60 day period when run against real data trace.