Blockchain Papers

Guangsheng Yu, Xuan F. Zha, Xu Wang, Wei Ni · 7 authors

No abstract is available for this record.

Zoltán Lux, Dirk Thatmann, Sebastian Zickau, Felix Beierle

Authentication with username and password is becoming an inconvenient process\nfor the user. End users typically have little control over their personal\nprivacy, and data breaches effecting millions of users have already happened\nseveral times. We have implemented a proof of concept decentralized OpenID\nConnect Provider by marrying it with Self-Sovereign Identity, which gives users\nthe freedom to choose from a very large pool of identity providers instead of\njust a select few corporations, thus enabling the democratization of the highly\ncentralized digital identity landscape. Furthermore, we propose a verifiable\ncredential powered decentralized Public Key Infrastructure using distributed\nledger technologies, which creates a straightforward and verifiable way for\nretrieving digital certificates.\n

Vidal Attias, Luigi Vigneri, Vassil Dimitrov

Permissionless distributed ledgers provide a promising approach to deal with the Internet of Things (IoT) paradigm. Since IoT devices mostly generate data transactions and micropayments, distributed ledgers that use fees to regulate the network access are not an optimal choice. In this paper, we study a feeless architecture developed by IOTA and designed specifically for the IoT. Due to the lack of fees, malicious nodes can exploit this feature to generate an unbounded number of transactions and perform a denial of service attacks. We propose to mitigate these attacks through verifiable delay functions. These functions, which are non-parallelizable, hard to compute, and easy to verify, have been formulated only recently. In our work, we design a denial of service prevention mechanism which addresses network heterogeneity, limited node computational capabilities, and hardware-specific implementation optimizations. Verifiable delay functions have mostly been studied from a theoretical point of view, but little has been done in tangible applications. Hence, this paper can be considered as a pioneer work in the field, since it builds a bridge between this theoretical mathematical framework and a real-world problem.

Daniël Reijsbergen, Paweł Szałachowski, Junming Ke, Zengpeng Li · 5 authors

We present ProPoS, a Proof-of-Stake protocol dedicated, but not limited, to cryptocurrencies. ProPoS is a chain-based protocol that minimizes interactions between nodes through lightweight committee voting, resulting in a more simple, robust, and scalable proposal than competing systems. It also mitigates other drawbacks of previous systems, such as high reward variance and long confirmation times. ProPoS can support large node numbers by design, and provides probabilistic safety guarantees whereby a client makes commit decisions by calculating the probability that a transaction is reverted based on its blockchain view. We present a thorough analysis of ProPoS and report on its implementation and evaluation. Furthermore, our new technique of proving safety can be applied more broadly to other Proof-of-Stake protocols.

Daniël Reijsbergen, Paweł Szałachowski, Junming Ke, Zengpeng Li · 5 authors

We present Large-scale Known-committee Stake-based Agreement (LaKSA), a chain-based Proof-of-Stake protocol that is dedicated, but not limited, to cryptocurrencies. LaKSA minimizes interactions between nodes through lightweight committee voting, resulting in a simpler, more robust, and more scalable proposal than competing systems. It also mitigates other drawbacks of previous systems, such as high reward variance and long confirmation times. LaKSA can support large numbers of nodes by design, and provides probabilistic safety guarantees in which a client makes commit decisions by calculating the probability that a transaction is reverted based on its blockchain view. We present a thorough analysis of LaKSA and report on its implementation and evaluation. Furthermore, our new technique of proving safety can be applied more broadly to other Proof-of-Stake protocols.

Luca Foschini, Andrea Gavagna, Giuseppe Martuscelli, Rebecca Montanari

Hyperledger Fabric, created and supported by the Linux Foundation and IBM, is one of the most popular open-source blockchain permissioned platforms that has been already used in many industrial scenarios. One of the main characteristics of this platform is that it provides a smart contract system that relies on general-purpose languages instead of an ad hoc one. In fact, a chaincode in the Fabric platform (the equivalent of the Ethereum smart contract) is a software program which encapsulates the business logic for the creation and modification of logical assets in the ledger that can be written in different general-purpose programming languages (currently Java, Go, and Node.js). This paper analyses the transaction performance of the Fabric platform by identifying at a fine-grained degree level the factors that most contribute to the overall overhead. In particular, we focus on how the transaction latency is affected by the programming language adopted for implementing the chaincode and by varying the number of participating endorser peers. Finally, the paper shows a thorough test assessment aimed at evaluating the impact of the different chaincode implementation on performance overhead. As it emerges from our experimental results, Go is the most performing programming language.

フランソワ ボネ, François Bonnet, カンタン ブラマス, Quentin Bramas · 6 authors

In public distributed ledger technologies (DLTs), such as Blockchains, nodes can join and leave the network at any time. A major challenge occurs when a new node joining the network wants to retrieve the current state of the ledger. Indeed, that node may receive conflicting information from honest and Byzantine nodes, making it difficult to identify the current state. In this paper, we are interested in protocols that are stateless, i.e., a new joining node should be able to retrieve the current state of the ledger just using a fixed amount of data that characterizes the ledger (such as the genesis block in Bitcoin). We define three variants of stateless DLTs: weak, strong, and probabilistic. Then, we analyze this property for DLTs using different types of consensus.

Ivan Homoliak, Larangeira, Mario, Peresini, Martin, Szalachowski, Pawel

Distributed ledger systems (i.e., blockchains) have received a lot of attention. They promise to enable mutually untrusted participants to execute transactions while providing the immutability of the data and censorship resistance. Although decentralized ledgers are a disruptive innovation, as of today, they suffer from scalability, privacy, or governance issues. Therefore, they are inapplicable for many important use cases, where interestingly, centralized ledger systems might gain adoption. Unfortunately, centralized ledgers have also drawbacks, e.g., a lack of efficient verifiability or a higher risk of censorship and equivocation. In this paper, we present AQUAREUM, a novel framework for centralized ledgers removing their main limitations. By a unique combination of a trusted execution environment (TEE) with a public blockchain, AQUAREUM provides publicly verifiable non-equivocating censorship-evident private and high-performance ledgers. AQUAREUM is integrated with a Turing-complete virtual machine (e.g., EVM), allowing arbitrary transaction processing logic, such as transfers or client-specified smart contracts. AQUAREUM is fully implemented and can process over 400 transactions per second on a commodity PC. Furthermore, we modeled AQUAREUM using the Universal Composability framework and proved its security.

Pascal Lafourcade, Marius Lombard-Platet

No abstract is available for this record.

Sourav Das, Nitin Awathare, Ling Ren, Vinay J. Ribeiro · 5 authors

Proof-of-Work~(PoW) based blockchains typically allocate only a tiny fraction (e.g., less than 1% for Ethereum) of the average interarrival time~($\mathbb{I}$) between blocks for validating transactions. A trivial increase in validation time~($τ$) introduces the popularly known Verifier's Dilemma, and as we demonstrate, causes more forking and increases unfairness. Large $τ$ also reduces the tolerance for safety against a Byzantine adversary. Solutions that offload validation to a set of non-chain nodes (a.k.a. off-chain approaches) suffer from trust issues that are non-trivial to resolve. In this paper, we present Tuxedo, the first on-chain protocol to theoretically scale $τ/\mathbb{I} \approx 1$ in PoW blockchains. The key innovation in Tuxedo is to separate the consensus on the ordering of transactions from their execution. We achieve this by allowing miners to delay validation of transactions in a block by up to $ζ$ blocks, where $ζ$ is a system parameter. We perform security analysis of Tuxedo considering all possible adversarial strategies in a synchronous network with end-to-end delay $Δ$ and demonstrate that Tuxedo achieves security equivalent to known results for longest chain PoW Nakamoto consensus. Additionally, we also suggest a principled approach for practical choices of parameter $ζ$ as per the application requirement. Our prototype implementation of Tuxedo atop Ethereum demonstrates that it can scale $τ$ without suffering the harmful effects of naive scaling in existing blockchains.

Amir Dembo, Sreeram Kannan, Ertem Nusret Tas, David Tse · 7 authors

Nakamoto invented the longest chain protocol, and claimed its security by analyzing the private double-spend attack, a race between the adversary and the honest nodes to grow a longer chain. But is it the worst attack? We answer the question in the affirmative for three classes of longest chain protocols, designed for different consensus models: 1) Nakamoto's original Proof-of-Work protocol; 2) Ouroboros and SnowWhite Proof-of-Stake protocols; 3) Chia Proof-of-Space protocol. As a consequence, exact characterization of the maximum tolerable adversary power is obtained for each protocol as a function of the average block time normalized by the network delay. The security analysis of these protocols is performed in a unified manner by a novel method of reducing all attacks to a race between the adversary and the honest nodes.

Prateek Pandey, Ratnesh Litoriya

No abstract is available for this record.

Prashant Pardeshi

One of the alternatives to proof-of-work (PoW) consensus protocols is proof-of- stake (PoS) protocols, which address its energy and cost related issues. But they suffer from the nothing-at-stake problem; validators (PoS miners) are bound to lose nothing if they support multiple blockchain forks. Tendermint, a PoS protocol, handles this problem by forcing validators to bond their stake and then seizing a cheater’s stake when caught signing multiple competing blocks. The seized stake is then evenly distributed amongst the rest of validators. However, as the number of validators increases, the benefit in finding a cheater compared to the cost of monitoring validators reduces, weakening the system’s defense against the problem. Previous work on TontineCoin addresses this problem by utilizing the concept of tontines. A tontine is an investment scheme in which each participant receives a portion of benefits based on their share. As the number of participants in a tontine decreases, individual benefit increases, which acts as a motivation for participants to eliminate each other. Utilizing this feature in TontineCoin ensures that validators (participants of a tontine) are highly motivated to monitor each other, thus strengthening the system against the nothing-at-stake problem. This project implements a prototype of Tendermint using the Spartan Gold codebase and develops TontineCoin based on it. This implementation is the first implementation of the protocol, and simulates and contrasts five different normal operations in both the Tendermint and TontineCoin models. It also simulates and discusses how a nothing-at-stake attack is handled in TontineCoin compared to Tendermint.

Andrew Cullen, Pietro Ferraro, William H. Sanders, Luigi Vigneri · 5 authors

In the Internet of Things (IoT) domain, devices need a platform to transact seamlessly without a trusted intermediary. Although distributed ledger technologies (DLTs) could provide such a platform, blockchains, such as Bitcoin, were not designed with IoT networks in mind, hence are often unsuitable for such applications: they offer poor transaction throughput and confirmation times, put stress on constrained computing and storage resources, and require high transaction fees. In this article, we consider a class of IoT-friendly DLTs based on directed acyclic graphs, rather than a blockchain, and with a reputation system in the place of Proof of Work (PoW). However, without PoW, the implementation of these DLTs requires an access control algorithm to manage the rate at which nodes can add new transactions to the ledger. We model the access control problem and present an algorithm that is fair, efficient, and secure. Our algorithm represents a new design paradigm for DLTs in which concepts from networking are applied to the DLT setting for the first time. For example, our algorithm uses distributed rate setting, which is similar in nature to transmission control used in the Internet. However, our solution features novel adaptations to cope with the adversarial environment of DLTs in which no individual agent can be trusted. Our algorithm guarantees utilization of resources, consistency, fairness, and resilience against attackers. All of these are achieved efficiently and with regard for the limitations of IoT devices. We perform extensive simulations to validate these claims.

Andrew Cullen, Pietro Ferraro, William H. Sanders, Luigi Vigneri · 5 authors

In the Internet of Things (IoT) domain, devices need a platform to transact\nseamlessly without a trusted intermediary. Although Distributed Ledger\nTechnologies (DLTs) could provide such a platform, blockchains, such as\nBitcoin, were not designed with IoT networks in mind, hence are often\nunsuitable for such applications: they offer poor transaction throughput and\nconfirmation times, put stress on constrained computing and storage resources,\nand require high transaction fees. In this work, we consider a class of\nIoT-friendly DLTs based on directed acyclic graphs, rather than a blockchain,\nand with a reputation system in the place of Proof of Work (PoW). However,\nwithout PoW, implementation of these DLTs requires an access control algorithm\nto manage the rate at which nodes can add new transactions to the ledger. We\nmodel the access control problem and present an algorithm that is fair,\nefficient and secure. Our algorithm represents a new design paradigm for DLTs\nin which concepts from networking are applied to the DLT setting for the first\ntime. For example, our algorithm uses distributed rate setting which is similar\nin nature to transmission control used in the Internet. However, our solution\nfeatures novel adaptations to cope with the adversarial environment of DLTs in\nwhich no individual agent can be trusted. Our algorithm guarantees utilisation\nof resources, consistency, fairness, and resilience against attackers. All of\nthis is achieved efficiently and with regard for the limitations of IoT\ndevices. We perform extensive simulations to validate these claims.\n

Andrew Cullen, Pietro Ferraro, William H. Sanders, Luigi Vigneri · 5 authors

Distributed Ledger Technologies (DLTs) (the agnostic term for blockchain) are a potential solution for many pressing issues arising in the Internet of Things (IoT) domain. These issues include facilitating secure transactions between IoT devices and immutably recording data. Most DLT architectures were not designed with IoT in mind and consequentially do not satisfy the requirements of many IoT applications. However, the relatively new class of Directed Acyclic Graph (DAG) based DLTs show great promise for IoT networks. These DLTs require the rate at which transactions are issued and disseminated to be explicitly managed in order to ensure fairness among users. We present a congestion control algorithm for these DLTs, which optimises dissemination rate and guarantees that all nodes receive the same information and have fair access even in a dishonest environment, subject to the computing limitations of nodes. Our algorithm takes inspiration from well-known areas of networking research, such as QoS, and TCP. However, an important distinction between the DLT setting and traditional networks is the unique nature of traffic in DLT networks and the fact that nodes cannot trust familiar feedback measurements, such as packet acknowledgements or congestion notifications. Our solution realises a decentralised congestion control algorithm for DLTs without the need for trust among nodes.

Christian Gorenflo

With the release of Satoshi Nakamoto's Bitcoin system in 2008 a new decentralized computation paradigm, known as blockchain, was born. Bitcoin promised a trading network for virtual coins, publicly available for anyone to participate in but owned by nobody. Any participant could propose a transaction and a lottery mechanism decided in which order these transactions would be recorded in a ledger with an elegant mechanism to prevent double spending. The remarkable achievement of Nakamoto's protocol was that participants did not have to trust each other to behave correctly for it to work. As long as more than half of the network participants adhered to the correct code, the recorded transactions on the ledger would both be valid and immutable. 
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\nEthereum, as the next major blockchain to appear, improved on the initial idea by introducing smart contracts, which are decentralized Turing-complete stored procedures, thus making blockchain technology interesting for the enterprise setting. However, its intrinsically public data and prohibitive energy costs needed to be overcome. This gave rise to a new type of systems called permissioned blockchains. With these, access to the ledger is restricted and trust assumptions about malicious behaviour have been weakened, allowing more efficient consensus mechanisms to find a global order of transactions. One of the most popular representatives of this kind of blockchain is Hyperledger Fabric. While it is much faster and more energy efficient than permissionless blockchains, it has to compete with conventional distributed databases in the enterprise sector.
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\nThis thesis aims to mitigate Fabric's three major shortcomings. First, compared to conventional database systems, it is still far too slow. This thesis shows how the performance can be increased by a factor of seven by redesigning the transaction processing pipeline and introducing more efficient data structures. Second, we present a novel solution to Fabric's intrinsic problem of a low throughput for workloads with transactions that access the same data. This is achieved by analyzing the dependencies of transactions and selectively re-executing transactions when a conflict is detected. Third, this thesis tackles the preservation of private data. Even though access to the blockchain as a whole can be restricted, in a setting where multiple enterprises collaborate this is not sufficient to protect sensitive proprietary data. Thus, this thesis introduces a new privacy-preserving blockchain protocol based on network sharding and targeted data dissemination. It also introduces an additional layer of abstraction for the creation of transactions and interaction with data on the blockchain. This allows developers to write applications without the need for low-level knowledge of the internal data structure of the blockchain system. In summary, this thesis addresses the shortcomings of the current generation of permission blockchain systems.

Jinzhi Lu, Xiaochen Zheng, Zhenchao Hu, Huisheng Zhang · 5 authors

Model-based Systems Engineering (MBSE) has been widely utilized to formalize system artifacts and facilitate their development throughout the entire lifecycle. During complex system development, MBSE models need to be frequently exchanged across stakeholders. Concerns about data security and tampering using traditional data exchange approaches obstruct the construction of a reliable marketplace for digital assets. The emerging Distributed Ledger Technology (DLT), represented by blockchain, provides a novel solution for this purpose owing to its unique advantages such as tamper-resistant and decentralization. In this paper, we integrate MBSE approaches with DLT aiming to create a decentralized marketplace to facilitate the exchange of digital engineering assets (DEAs). We first define DEAs from perspectives of digital engineering objects, development processes and system architectures. Based on this definition, the Graph-Object-Property-Point-Role-Relationship (GOPPRR) approach is used to formalize the DEAs. Then we propose a framework of a decentralized DEAs marketplace and specify the requirements, based on which we select a Directed Acyclic Graph (DAG) structured DLT solution. As a proof-of-concept, a prototype of the proposed DEAs marketplace is developed and a case study is conducted to verify its feasibility. The experiment results demonstrate that the proposed marketplace facilitates free DEAs exchange with a high level of security, efficiency and decentralization.

Yongge Wang

Ethereum Research team has proposed a family of Casper blockchain consensus protocols for Ethereum 2.0. It has been shown in the literature that Casper Friendly Finality Gadget (Casper FFG) for Ethereum 2.0's beacon network cannot achieve liveness property in partially synchronous networks such as the Internet environment. The ``Correct-by-Construction'' family of Casper blockchain consensus protocols (CBC Casper) has been proposed as a finality gadget for the future release of Ethereum 2.0 blockchain. Unfortunately, neither constructive finality rule nor satisfactory liveness property has been obtained for CBC Casper, and it is commonly believed that CBC Casper could not achieve liveness property in asynchronous networks. This paper provides the first probabilistic CBC Casper protocol that achieves liveness property against $t=\lfloor \frac{n-1}{3}\rfloor$ Byzantine participants in complete asynchronous networks. The seminal work by Fisher, Lynch, and Paterson (FLP) shows that there does not exist a deterministic BFT protocol in complete asynchronous networks against a single failure. Existing BFT protocols for complete asynchronous networks are all probabilistic which are based either on individual coin-flipping or on common coin-flipping. This paper proposes the first secure and deterministic leaderless blockchain BFT protocol XP against $t=\lfloor \frac{n-1}{3}\rfloor$ Byzantine participants in complete asynchronous networks. This result does not contradict with FLP's impossibility results since XP leverages the total order properties of candidate blocks in blockchains (similar properties may not hold for general BFT application scenarios).

Yongge Wang

Ethereum Research team has proposed a family of Casper blockchain consensus protocols for Ethereum 2.0. It has been shown in the literature that Casper Friendly Finality Gadget (Casper FFG) for Ethereum 2.0's beacon network cannot achieve liveness property in partially synchronous networks such as the Internet environment. The "Correct-by-Construction" family of Casper blockchain consensus protocols (CBC Casper) has been proposed as a finality gadget for the future release of Ethereum 2.0 blockchain. Unfortunately, neither constructive finality rule nor satisfactory liveness property has been obtained for CBC Casper, and it is commonly believed that CBC Casper could not achieve liveness property in asynchronous networks. This paper provides the first probabilistic CBC Casper protocol that achieves liveness property against (n-1)/3 Byzantine participants in complete asynchronous networks.

Hangyu Tian, Kaiping Xue, Xinyi Luo, Shaohua Li · 8 authors

Inspired by Bitcoin, many different kinds of cryptocurrencies based on blockchain technology have turned up on the market. Due to the special structure of the blockchain, it has been deemed impossible to directly trade between traditional currencies and cryptocurrencies or between different types of cryptocurrencies. Generally, trading between different currencies is conducted through a centralized third-party platform. However, it has the problem of a single point of failure, which is vulnerable to attacks and thus affects the security of the transactions. In this paper, we propose a distributed cryptocurrency trading scheme to solve the problem of centralized exchanges, which can achieve secure trading between different types of cryptocurrencies. Our scheme is implemented with smart contracts on an Ethereum blockchain and deployed on an Ethereum test network. In addition to implementing transactions between individual users, our scheme also allows transactions among multiple users. The experimental result proves that the cost of our scheme is acceptable.

Zhu Jian, Kai Hu, Mamoun Filali, Jean-Paul Bodeveix · 5 authors

Smart contracts are the artifact of the blockchain that provide immutable and verifiable specifications of physical transactions. Solidity is a domain-specific programming language with the purpose of defining smart contracts. It aims at reducing the transaction costs occasioned by the execution of contracts on the distributed ledgers such as the Ethereum. However, Solidity contracts need to adhere safety and security requirements that require formal verification and certification. This paper proposes a method to meet such requirements by translating Solidity contracts to Event-B models, supporting certification. To that purpose, we define a restrained Solidity subset and a transfer function which translates Solidity contracts to Event-B models. Then we take advantage of Event-B method capabilities to refine models at different levels of abstraction to verify Solidity contracts' properties. And we can verify the generated proof obligations of the Event-B model with the help of the Rodin platform.

Jonathan Lee, Kirill Nikitin, Srinath Setty

This paper introduces a new approach to reduce end-to-end costs in large-scale replicated systems built under a Byzantine fault model. Specifically, our approach transforms a given replicated state machine (RSM) to another RSM where nodes incur lower costs by delegating state machine execution: an untrusted prover produces succinct cryptographic proofs of correct state transitions along with state changes, which nodes in the transformed RSM verify and apply respectively.To realize our approach, we build Piperine, a system that makes the proof machinery profitable in the context of RSMs. Specifically, Piperine reduces the costs of both proving and verifying the correctness of state machine execution while retaining liveness-a distinctive requirement in the context of RSMs. Our experimental evaluation demonstrates that, for a payment service, employing Piperine is more profitable than naive reexecution of transactions as long as there are > 104nodes. When we apply Piperine to ERC-20 transactions in Ethereum (a real-world RSM with up to 105nodes), it reduces per-transaction costs by 5.4× and network costs by 2.7×.

Sean Bowe, Alessandro Chiesa, Matthew Green, Ian Miers · 6 authors

Ledger-based systems that support rich applications often suffer from two limitations. First, validating a transaction requires re-executing the state transition that it attests to. Second, transactions not only reveal which application had a state transition but also reveal the application's internal state.We design, implement, and evaluate ZEXE, a ledger-based system where users can execute offline computations and subsequently produce transactions, attesting to the correctness of these computations, that satisfy two main properties. First, transactions hide all information about the offline computations. Second, transactions can be validated in constant time by anyone, regardless of the offline computation.The core of ZEXE is a construction for a new cryptographic primitive that we introduce, decentralized private computation (DPC) schemes. In order to achieve an efficient implementation of our construction, we leverage tools in the area of cryptographic proofs, including succinct zero knowledge proofs and recursive proof composition. Overall, transactions in ZEXE are 968 bytes regardless of the offline computation, and generating them takes less than 1min plus a time that grows with the offline computation.We demonstrate how to use ZEXE to realize privacy-preserving analogues of popular applications: private user-defined assets and private decentralized exchanges for these assets.