Blockchain Papers

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124 papersLast indexed Aug 31, 2026
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Mar 11, 2024·arXiv
1 cites
When Crypto Economics Meet Graph Analytics and Learning

Bingqiao Luo

Utilizing graph analytics and learning has proven to be an effective method for exploring aspects of crypto economics such as network effects, decentralization, tokenomics, and fraud detection. However, the majority of existing research predominantly focuses on leading cryptocurrencies, namely Bitcoin (BTC) and Ethereum (ETH), overlooking the vast diversity among the more than 10,000 cryptocurrency projects. This oversight may result in skewed insights. In our paper, we aim to broaden the scope of investigation to encompass the entire spectrum of cryptocurrencies, examining various coins across their entire life cycles. Furthermore, we intend to pioneer advanced methodologies, including graph transfer learning and the innovative concept of "graph of graphs". By extending our research beyond the confines of BTC and ETH, our goal is to enhance the depth of our understanding of crypto economics and to advance the development of more intricate graph-based techniques.

Open access
2 source records
cs.CE
Advanced Graph Neural Networks
Complex Network Analysis Techniques
Original source
Feb 6, 2024·arXiv (Cornell University)
7 cites
DEthna: Accurate Ethereum Network Topology Discovery with Marked Transactions

Chonghe Zhao, Yipeng Zhou, Shengli Zhang, Taotao Wang · 6 authors

In Ethereum, the ledger exchanges messages along an underlying Peer-to-Peer (P2P) network to reach consistency. Understanding the underlying network topology of Ethereum is crucial for network optimization, security and scalability. However, the accurate discovery of Ethereum network topology is non-trivial due to its deliberately designed security mechanism. Consequently, existing measuring schemes cannot accurately infer the Ethereum network topology with a low cost. To address this challenge, we propose the Distributed Ethereum Network Analyzer (DEthna) tool, which can accurately and efficiently measure the Ethereum network topology. In DEthna, a novel parallel measurement model is proposed that can generate marked transactions to infer link connections based on the transaction replacement and propagation mechanism in Ethereum. Moreover, a workload offloading scheme is designed so that DEthna can be deployed on multiple distributed probing nodes so as to measure a large-scale Ethereum network at a low cost. We run DEthna on Goerli (the most popular Ethereum test network) to evaluate its capability in discovering network topology. The experimental results demonstrate that DEthna significantly outperforms the state-of-the-art baselines. Based on DEthna, we further analyze characteristics of the Ethereum network revealing that there exist more than 50% low-degree Ethereum nodes that weaken the network robustness.

Open access
3 source records
Complex Network Analysis Techniques
Advanced Graph Neural Networks
Bioinformatics and Genomic Networks
Original source
Jan 1, 2024·Foundations of Data Science
1 cites
A topological approach for capturing high-order interactions in graph data with applications to anomaly detection in time-varying cryptocurrency transaction graphs

Umar Islambekov, Hasani Pathirana, Omid Khormali, Cüneyt Gürcan Akçora · 5 authors

Time-varying graphs are increasingly common in financial, social and biological data analysis applications. Feature extraction that efficiently encodes the complex structure of sparse, multi-layered, dynamic graphs presents computational and methodological challenges. In the past decade, topological data analysis has become a popular method of studying the shape of data. This is achieved by building an increasing sequence of simplicial complexes (called filtration) indexed by a scale parameter on top of the data to keep track of topological changes along with the filtration. This multi-scale summary, called persistence diagram (PD), is often vectorized to be used in machine learning algorithms. This paper introduces a topological approach to extract information on higher-order interactions encoded in persistence diagrams from graph data. Our framework has two main steps: first, we convert the graph into a higher-dimensional simplicial complex by adding structures such as triangles, tetrahedrons etc., and compute a PD using the so-called lower-star filtration which utilizes quantitative node attributes. Then, we vectorize the PD by averaging the associated Betti function over successive scale values of a one-dimensional grid using integration. A notable aspect of our procedure is that it avoids embedding a graph into a metric space. We show that the proposed vectorization summary is robust against input noise with respect to the $ L_1 $ 1-Wasserstein distance. In simulation studies, the proposed approach leads to improved change point detection rates and outperforms one of the state-of-the-art methods for anomaly detection in time-varying graphs. In real data application, our approach leads to up to a 20% gain in anomalous price prediction in the Ethereum cryptocurrency transaction network.

Open access
Topological and Geometric Data Analysis
Complex Network Analysis Techniques
Advanced Graph Neural Networks
Original source
Dec 9, 2023·International Journal of Computers and Applications
1 cites
HiFlow3: a hierarchical Web3-based federated learning framework

Venkata Raghava Kurada, P. Baruah

Federated Learning is susceptible to various kinds of attacks like Data Poisoning, Model Poisoning and Man in the Middle attack. We perceive Federated Learning as a hierarchical structure, a federation of nodes with validators as the head. The process of validation is done through consensus by employing Novelty Detection and Snowball protocol, to identify valuable and relevant updates while filtering out potentially malicious or irrelevant updates, thus preventing Model Poisoning attacks. The opinion of the validators is recorded in blockchain and trust score is calculated. In case of lack of consensus, trust score is used to determine the impact of validators on the global model. A hyperparameter is introduced to guide the model generation process, either to rely on consensus or on trust score. This approach ensures transparency and reliability in the aggregation process and allows the global model to benefit from insights of most trusted nodes. In the training phase, the combination of IPFS , PGP encryption provides : a) secure and decentralized storage b) mitigates single point of failure making this system reliable and c) resilient against man in the middle attack. The system is realized by implementing in python and Foundry for smart contract development. Global Model is tested against data poisoning by flipping the labels and by introducing malicious nodes. Results found to be similar to that of Flower.

Open access
2 source records
Privacy-Preserving Technologies in Data
Advanced Graph Neural Networks
Access Control and Trust
Original source
Dec 2, 2023·Annual Computer Security Applications Conference
10 cites
FraudLens: Graph Structural Learning for Bitcoin Illicit Activity Identification

Jack Nicholls, Aditya Kuppa, Nhien‐An Le‐Khac

Illicit activity in cryptocurrency has increased dramatically over the years. Bitcoin mechanics allow for users to mask their identity through obfuscation techniques. Much research has been published in the domain of identifying illicit activity in cryptocurrency, and in particular the emergence of Graph Neural Networks (GNNs) has shown great promise in this area. In this paper, we propose two graph preprocessing methods to improve performance and robustness of our node classification GNN models in identifying illicit transactions in the Bitcoin network. Our methods focus on graph restructuring through measuring the connectivity of nodes in a graph, and the similarity of the underlying features each node possesses. We demonstrate the graph restructuring methodologies on five GNN architectures and empirically show an improvement of evaluation metrics when compared against the unprocessed graph dataset. We compare our proposed methods against other imbalanced node classification techniques on a common graph dataset. This methodology has great opportunity in the transaction monitoring landscape for exchanges and financial institutions attempting to capture potential illicit activity taking place on their networks including money laundering.

Open access
Blockchain Technology Applications and Security
Advanced Graph Neural Networks
Complex Network Analysis Techniques
Original source
Nov 14, 2023·International Journal of Power Electronics and Drive Systems/International Journal of Electrical and Computer Engineering
2 cites
Graph embedding approach to analyze sentiments on cryptocurrency

Ihab Moudhich, Abdelhadi Fennan

This paper presents a comprehensive exploration of graph embedding techniques for sentiment analysis. The objective of this study is to enhance the accuracy of sentiment analysis models by leveraging the rich contextual relationships between words in text data. We investigate the application of graph embedding in the context of sentiment analysis, focusing on it is effectiveness in capturing the semantic and syntactic information of text. By representing text as a graph and employing graph embedding techniques, we aim to extract meaningful insights and improve the performance of sentiment analysis models. To achieve our goal, we conduct a thorough comparison of graph embedding with traditional word embedding and simple embedding layers. Our experiments demonstrate that the graph embedding model outperforms these conventional models in terms of accuracy, highlighting it is potential for sentiment analysis tasks. Furthermore, we address two limitations of graph embedding techniques: handling out-of-vocabulary words and incorporating sentiment shift over time. The findings of this study emphasize the significance of graph embedding techniques in sentiment analysis, offering valuable insights into sentiment analysis within various domains. The results suggest that graph embedding can capture intricate relationships between words, enabling a more nuanced understanding of the sentiment expressed in text data.

Open access
Topic Modeling
Sentiment Analysis and Opinion Mining
Advanced Graph Neural Networks
Original source
Nov 2, 2023·arXiv (Cornell University)
2 cites
Analysis of Information Propagation in Ethereum Network Using Combined Graph Attention Network and Reinforcement Learning to Optimize Network Efficiency and Scalability

Stefan Kambiz Behfar, Richard Mortier, Jon Crowcroft

Blockchain technology has revolutionized the way information is propagated in decentralized networks. Ethereum plays a pivotal role in facilitating smart contracts and decentralized applications. Understanding information propagation dynamics in Ethereum is crucial for ensuring network efficiency, security, and scalability. In this study, we propose an innovative approach that utilizes Graph Convolutional Networks (GCNs) to analyze the information propagation patterns in the Ethereum network. The first phase of our research involves data collection from the Ethereum blockchain, consisting of blocks, transactions, and node degrees. We construct a transaction graph representation using adjacency matrices to capture the node embeddings; while our major contribution is to develop a combined Graph Attention Network (GAT) and Reinforcement Learning (RL) model to optimize the network efficiency and scalability. It learns the best actions to take in various network states, ultimately leading to improved network efficiency, throughput, and optimize gas limits for block processing. In the experimental evaluation, we analyze the performance of our model on a large-scale Ethereum dataset. We investigate effectively aggregating information from neighboring nodes capturing graph structure and updating node embeddings using GCN with the objective of transaction pattern prediction, accounting for varying network loads and number of blocks. Not only we design a gas limit optimization model and provide the algorithm, but also to address scalability, we demonstrate the use and implementation of sparse matrices in GraphConv, GraphSAGE, and GAT. The results indicate that our designed GAT-RL model achieves superior results compared to other GCN models in terms of performance. It effectively propagates information across the network, optimizing gas limits for block processing and improving network efficiency.

Open access
3 source records
Advanced Graph Neural Networks
Complex Network Analysis Techniques
Blockchain Technology Applications and Security
Original source
Oct 24, 2023·Electronics
4 cites
Disentangled Prototypical Graph Convolutional Network for Phishing Scam Detection in Cryptocurrency Transactions

Seok-Jun Buu, Hae-Jung Kim

Blockchain technology has generated an influx of transaction data and complex interactions, posing significant challenges for traditional machine learning methods, which struggle to capture high-dimensional patterns in transaction networks. In this paper, we present the disentangled prototypical graph convolutional network (DP-GCN), an innovative approach to account classification in Ethereum transaction records. Our method employs a unique disentanglement mechanism that isolates relevant features, enhancing pattern recognition within the network. Additionally, we apply prototyping to disentangled representations, to classify scam nodes robustly, despite extreme class imbalances. We further employ a joint learning strategy, combining triplet loss and prototypical loss with a gamma coefficient, achieving an effective balance between the two. Experiments on real Ethereum data showcase the success of our approach, as the DP-GCN attained an F1 score improvement of 32.54%p over the previous best-performing GCN model and an area under the ROC curve (AUC) improvement of 4.28%p by incorporating our novel disentangled prototyping concept. Our research highlights the importance of advanced techniques in detecting malicious activities within large-scale real-world cryptocurrency transactions.

Open access
Blockchain Technology Applications and Security
Spam and Phishing Detection
Advanced Graph Neural Networks
Original source
Oct 9, 2023·2023 IEEE 10th International Conference on Data Science and Advanced Analytics (DSAA)
1 cites
Are GNNs the Right Tool to Mine the Blockchain? The Case of the Bitcoin Generator Scam

Zhikun Yuen, Paula Branco, Aaron Chew, Guy-Vincent Jourdan · 6 authors

A Bitcoin Generator Scam (BGS) is a type of cyberattack in which scammers promise to provide individuals with free cryptocurrencies if they pay a mining fee. Although graph neural networks (GNNs) have been used for detecting other cryptocurrency frauds, the usefulness of these methods for BGS detection has not been studied. In this paper, we carry out extensive experiments to assess the use of both standard machine learning (ML) methods and GNNs to detect Bitcoin transactions associated with activities stemming from Bitcoin Generator Scams. We observe that the over-smoothing problem exists in GNNs designed for BGS detection and show that Random Walk Positional Encoding (RWPE) allows representing long-range interactions between far-away transactions in GNNs without causing over-smoothing. We show that the General, Powerful, Scalable (GPS) Graph Transformer with RWPE outperforms both GNN and ML based state-of-the-art fraud detection methods in Bitcoin Generator Scams. We also analyze the effectiveness of Breadth First Search (BFS) for graph sampling and show that it should not be used as it induces bias toward the subnetwork structure. We propose the Random First Search (RFS) sampling alternative and show that this is a more suitable solution.

Open access
Blockchain Technology Applications and Security
Big Data and Digital Economy
Advanced Graph Neural Networks
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
Sep 30, 2023·arXiv
0 cites
DURENDAL: Graph deep learning framework for temporal heterogeneous networks

Manuel Dileo, Matteo Zignani, Sabrina Gaito

Temporal Heterogeneous Networks (THNs) are evolving networks that characterize many real-world applications such as citation and events networks, recommender systems, and knowledge graphs. Forecasting THNs involves predicting future connections within a network that evolves over time and comprises diverse types of nodes and interactions with varying temporal dynamics. Although some Graph Neural Networks (GNNs) models have been successfully applied to forecast THNs, there is a lack of a general overview of how the message-passing computation could be extended to treat THNs. Moreover, most of the current solutions exhibit pitfalls in their training and evaluation strategies. Hence, in this work, we propose a graph deep learning framework for THN forecasting. Our framework decomposes the computation of a GNN layer into multiple components and introduces two different schemes to update embedding representations for THNs. This design allows the classification of existing solutions into special instances of our framework and highlights their potential limitations. We also extend the set of benchmarks for THNs by introducing two novel high-resolution temporal heterogeneous graph datasets derived from an emerging Web3 platform and a well-established e-commerce website. Overall, we conducted the first massive evaluation of THNs solutions over four temporal heterogeneous network datasets on two different future link prediction tasks using a fair newly introduced evaluation setting that considers the evolving nature of the data. Based on the limitations of existing solutions, we develop a new model that combines working techniques from previous models and leverages a new embedding update scheme. Experiments show the prediction power of our model compared to current solutions for link prediction in temporal graphs. Moreover, the experimental evaluation highlights the strengths and weaknesses of the different solutions and shows the effectiveness of our framework design.

Open access
3 source records
cs.LG
Traffic Prediction and Management Techniques
Machine Learning in Healthcare
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 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 11, 2023·arXiv (Cornell University)
11 cites
Advancing Federated Learning in 6G: A Trusted Architecture with Graph-based Analysis

Wenxuan Ye, Chendi Qian, Xueli An, Xueqiang Yan · 5 authors

Integrating native AI support into the network architecture is an essential objective of 6G. Federated Learning (FL) emerges as a potential paradigm, facilitating decentralized AI model training across a diverse range of devices under the co-ordination of a central server. However, several challenges hinder its wide application in the 6G context, such as malicious attacks and privacy snooping on local model updates, and centralization pitfalls. This work proposes a trusted architecture for supporting FL, which utilizes Distributed Ledger Technology (DLT) and Graph Neural Network (GNN), including three key features. First, a pre-processing layer employing homomorphic encryption is incorporated to securely aggregate local models, preserving the privacy of individual models. Second, given the distributed nature and graph structure between clients and nodes in the pre-processing layer, GNN is leveraged to identify abnormal local models, enhancing system security. Third, DLT is utilized to decentralize the system by selecting one of the candidates to perform the central server's functions. Additionally, DLT ensures reliable data management by recording data exchanges in an immutable and transparent ledger. The feasibility of the novel architecture is validated through simulations, demonstrating improved performance in anomalous model detection and global model accuracy compared to relevant baselines.

Open access
3 source records
cs.NI
cs.LG
Privacy-Preserving Technologies in Data
Original source
Sep 4, 2023·arXiv (Cornell University)
7 cites
Effective Illicit Account Detection on Large Cryptocurrency MultiGraphs

Zhihao Ding, J. Y. Shi, Qing Li, Jiannong Cao

Cryptocurrencies are rapidly expanding and becoming vital in digital financial markets. However, the rise in cryptocurrency-related illicit activities has led to significant losses for users. To protect the security of these platforms, it is critical to identify illicit accounts effectively. Current detection methods mainly depend on feature engineering or are inadequate to leverage the complex information within cryptocurrency transaction networks, resulting in suboptimal performance. In this paper, we present DIAM, an effective method for detecting illicit accounts in cryptocurrency transaction networks modeled by directed multi-graphs with attributed edges. DIAM first features an Edge2Seq module that captures intrinsic transaction patterns from parallel edges by considering edge attributes and their directed sequences, to generate effective node representations. Then in DIAM, we design a multigraph Discrepancy (MGD) module with a tailored message passing mechanism to capture the discrepant features between normal and illicit nodes over the multigraph topology, assisted by an attention mechanism. DIAM integrates these techniques for end-to-end training to detect illicit accounts from legitimate ones. Extensive experiments, comparing against 15 existing solutions on 4 large cryptocurrency datasets of Bitcoin and Ethereum, demonstrate that DIAM consistently outperforms others in accurately identifying illicit accounts. For example, on a Bitcoin dataset with 20 million nodes and 203 million edges, DIAM attains an F1 score of 96.55%, markedly surpassing the runner-up's score of 83.92%. The code is available at https://github.com/TommyDzh/DIAM.

Open access
3 source records
Blockchain Technology Applications and Security
Spam and Phishing Detection
Advanced Graph Neural Networks
Original source
Aug 4, 2023·Proceedings of the 29th ACM SIGKDD Conference on Knowledge Discovery and Data Mining
48 cites
Group-based Fraud Detection Network on e-Commerce Platforms

Jianke Yu, Hanchen Wang, Xiaoyang Wang, Zhao Li · 8 authors

Along with the rapid technological and commercial innovation on the e-commerce platforms, there are an increasing number of frauds that bring great harm to these platforms. Many frauds are conducted by organized groups of fraudsters for higher efficiency and lower costs, which are also known as group-based frauds. Despite the high concealment and strong destructiveness of group-based fraud, there is no existing research work that can thoroughly exploit the information within the transaction networks of e-commerce platforms for group-based fraud detection. In this work, we analyze and summarize the characteristics of group-based frauds, based on which we propose a novel end-to-end semi-supervised Group-based Fraud Detection Network (GFDN) to support such fraud detection in real-world applications. Experimental results on large-scale e-commerce datasets from Taobao and Bitcoin trading datasets show the superior effectiveness and efficiency of our proposed model for group-based fraud detection on bipartite graphs.

Open access
Imbalanced Data Classification Techniques
Spam and Phishing Detection
Advanced Graph Neural Networks
Original source
Jul 31, 2023·Complex & Intelligent Systems
16 cites
MT$$^2$$AD: multi-layer temporal transaction anomaly detection in ethereum networks with GNN

Beibei Han, Yingmei Wei, Qingyong Wang, Francesco Maria De Collibus · 5 authors

Abstract In recent years, a surge of criminal activities with cross-cryptocurrency trades have emerged in Ethereum, the second-largest public blockchain platform. Most of the existing anomaly detection methods utilize the traditional machine learning with feature engineering or graph representation learning technique to capture the information in transaction network. However, these methods either ignore the timestamp information and the transaction flow direction information in transaction network or only consider single transaction network, the cross-cryptocurrency trading patterns in Ethereum are usually ignored. In this paper, we introduce a Multi-layer Temporal Transaction Anomaly Detection (MT $$^2$$ <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"> <mml:msup> <mml:mrow/> <mml:mn>2</mml:mn> </mml:msup> </mml:math> AD) model in Ethereum network with graph neural network. Specifically, for a given Ethereum token transaction network, we first extract its initial features including the structure subgraph and edge’s feature. Then, we model the temporal information in subgraph as a series of network snapshots according to the timestamp on each edge and time window. To capture the cross-cryptocurrency trading patterns, we combine the snapshots from multiple token transactions at a given timestamp, and we consider it as a new combined graph. We further use the graph convolution encoder with attention mechanism and pooling operation on this new graph to obtain the graph-level embedding, and we transform the anomaly detection on dynamic multi-layer Ethereum transaction networks as a graph classification task with these graph-level embeddings. MT $$^2$$ <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"> <mml:msup> <mml:mrow/> <mml:mn>2</mml:mn> </mml:msup> </mml:math> AD can integrate the transaction structure feature, edge’s feature and cross-cryptocurrency trading patterns into a framework to perform the anomaly detection with graph neural networks. Experiments on three real-world multi-layer transaction networks show that the proposed MT $$^2$$ <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"> <mml:msup> <mml:mrow/> <mml:mn>2</mml:mn> </mml:msup> </mml:math> AD (0.8789 Precision, 0.9375 Recall, 0.4987 FbMacro and 0.9351 FbWeighted) can achieve the best performance on most evaluation metrics in comparison with some competing approaches, and the effectiveness in consideration of multiple tokens is also demonstrated.

Open access
2 source records
Network Security and Intrusion Detection
Complex Network Analysis Techniques
Anomaly Detection Techniques and Applications
Original source
Jul 21, 2023·Electronics
21 cites
Graph Embedding-Based Money Laundering Detection for Ethereum

Jiayi Liu, Changchun Yin, Hao Wang, Xiaofei Wu · 7 authors

The number of money laundering crimes for Ethereum and the amount involved have grown exponentially in recent years. However, previous studies related to anomaly detection for Ethereum usually consider multiple types of financial crimes as a whole, ignoring the apparent differences between money laundering and other malicious activities and lacking a more granular detection targeting money laundering. In this paper, for the first time, we propose an improved graph embedding algorithm specifically for money laundering detection called GTN2vec. By mining Ethereum transaction records, the algorithm comprehensively considers the behavioral patterns of money launderers and structural information of transaction networks and can automatically extract features of money laundering addresses. Specifically, we fuse the gas price and timestamp from the transaction records into a new weight and set appropriate return and exploration parameters to modulate the sampling tendency of random walk to characterize the money laundering nodes. We construct the dataset using real Ethereum data and evaluate the effectiveness of GTN2vec on the dataset by various classifiers such as random forest. The experimental results show that GTN2vec can accurately and effectively extract money laundering account features and significantly outperform other advanced graph embedding methods.

Open access
Crime, Illicit Activities, and Governance
Advanced Graph Neural Networks
HIV, Drug Use, Sexual Risk
Original source
Jul 17, 2023·Zenodo (CERN European Organization for Nuclear Research)
0 cites
Graph embeddings for blockchain-induced networks

Máté Szőke

In recent years, the rapid growth of blockchain technology has sparked massive curiosity and transformed various industries. Among the numerous blockchain platforms, Ethereum has gathered significant attention for its decentralized applications and smart contracts. Understanding Ethereum and its network interactions is a challenging task but with various methods at our disposal, such as graph embeddings, we gain valuable insight into its operations. Graph embeddings are powerful techniques in the realm of data representation, which have become a focal point in analyzing complex structures. By capturing the essence of graph’s structure and semantics, embeddings enable efficient analysis of vast networks. In the context of blockchain-induced networks, graph embeddings offer effective insights into the behavior and dynamics of transactions and addresses. In my Bachelor’s thesis, conducted under the guidance and support of Dr. Ferenc Beres and Marcell Nagy, I aim to explore the connection between graph embeddings and blockchain-induced networks from Ethereum with a binary classification problem on certain Ethereum accounts’ network interactions as graphs. Additionally, I analyze graph-level properties and employ dimensionality reduction techniques to visualize these networks in the embedding space.

Open access
Graph theory and applications
Complex Network Analysis Techniques
Advanced Graph Neural Networks
Original source
May 18, 2023·arXiv (Cornell University)
0 cites
Chainlet Orbits: Topological Address Embedding for the Bitcoin Blockchain

Poupak Azad, Barış Coşkunuzer, Murat Kantarcıoğlu, Cüneyt Gürcan Akçora

The rise of cryptocurrencies like Bitcoin, which enable transactions with a degree of pseudonymity, has led to a surge in various illicit activities, including ransomware payments and transactions on darknet markets. These illegal activities often utilize Bitcoin as the preferred payment method. However, current tools for detecting illicit behavior either rely on a few heuristics and laborious data collection processes or employ computationally inefficient graph neural network (GNN) models that are challenging to interpret. To overcome the computational and interpretability limitations of existing techniques, we introduce an effective solution called Chainlet Orbits. This approach embeds Bitcoin addresses by leveraging their topological characteristics in transactions. By employing our innovative address embedding, we investigate e-crime in Bitcoin networks by focusing on distinctive substructures that arise from illicit behavior. The results of our node classification experiments demonstrate superior performance compared to state-of-the-art methods, including both topological and GNN-based approaches. Moreover, our approach enables the use of interpretable and explainable machine learning models in as little as 15 minutes for most days on the Bitcoin transaction network.

Open access
2 source records
cs.CR
cs.LG
Blockchain Technology Applications and Security
Original source
Mar 24, 2023·Frontiers in Blockchain
9 cites
Data depth and core-based trend detection on blockchain transaction networks

Jason Zhu, Arijit Khan, Cüneyt Gürcan Akçora

Blockchains are significantly easing trade finance, with billions of dollars worth of assets being transacted daily. However, analyzing these networks remains challenging due to the sheer volume and complexity of the data. We introduce a method named InnerCore that detects market manipulators within blockchain-based networks and offers a sentiment indicator for these networks. This is achieved through data depth-based core decomposition and centered motif discovery, ensuring scalability. InnerCore is a computationally efficient, unsupervised approach suitable for analyzing large temporal graphs. We demonstrate its effectiveness by analyzing and detecting three recent real-world incidents from our datasets: the catastrophic collapse of LunaTerra, the Proof-of-Stake switch of Ethereum, and the temporary peg loss of USDC - while also verifying our results against external ground truth. Our experiments show that InnerCore can match the qualified analysis accurately without human involvement, automating blockchain analysis in a scalable manner, while being more effective and efficient than baselines and state-of-the-art attributed change detection approach in dynamic graphs.

Open access
4 source records
Complex Network Analysis Techniques
Blockchain Technology Applications and Security
Data Stream Mining Techniques
Original source
Jan 1, 2023·Sensors
23 cites
Graph Learning-Based Blockchain Phishing Account Detection with a Heterogeneous Transaction Graph

Jaehyeon Kim, Sejong ­Lee, Yushin Kim, Se-young Ahn · 5 authors

Recently, cybercrimes that exploit the anonymity of blockchain are increasing. They steal blockchain users' assets, threaten the network's reliability, and destabilize the blockchain network. Therefore, it is necessary to detect blockchain cybercriminal accounts to protect users' assets and sustain the blockchain ecosystem. Many studies have been conducted to detect cybercriminal accounts in the blockchain network. They represented blockchain transaction records as homogeneous transaction graphs that have a multi-edge. They also adopted graph learning algorithms to analyze transaction graphs. However, most graph learning algorithms are not efficient in multi-edge graphs, and homogeneous graphs ignore the heterogeneity of the blockchain network. In this paper, we propose a novel heterogeneous graph structure called an account-transaction graph, ATGraph. ATGraph represents a multi-edge as single edges by considering transactions as nodes. It allows graph learning more efficiently by eliminating multi-edges. Moreover, we compare the performance of ATGraph with homogeneous transaction graphs in various graph learning algorithms. The experimental results demonstrate that the detection performance using ATGraph as input outperforms that using homogeneous graphs as the input by up to 0.2 AUROC.

Open access
Blockchain Technology Applications and Security
Spam and Phishing Detection
Advanced Graph Neural Networks
Original source
Jan 1, 2023·IEEE Access
18 cites
Graph Neural Network-Based Bitcoin Transaction Tracking Model

Zhiyuan Li, En-Han He

In recent years, with the rapid development of the digital economy, digital currencies such as Bitcoin and Ethereum have become increasingly popular among the public. Tracking and regulating digital currency transactions have become a challenging technology for the healthy development of the digital economy. That is because blockchain and peer-to-peer networks are the underlying technologies of digital currencies. Blockchain transaction has some new features, such as stronger anonymity and distributed storage. Therefore, it is difficult for the regulatory system to track the transaction relationships among users. Recent studies have shown that the accuracy, time, and space costs of transaction tracking, as well as the trade-offs between them, still need to be improved. In this article, we propose a new blockchain transaction tracking model called BT2(Bitcoin Transaction Tracking Model). BT2first combines an improved sampling aggregation algorithm with a graph neural network. And then, it exploits an inductive aggregation method to effectively generate rich node embeddings for a small number of unobserved nodes. Next, the node embedding vectors are used to generate edge information among nodes through message-passing functions. Finally, we can use the edge information to obtain the relations among Bitcoin accounts. This paper evaluates the model on the real-world dataset and explores the impact of various parameters, such as network depth and iteration time, etc. From the experimental results, the model’s average AUC (area under the ROC curve) can reach up to 0.93, and the average accuracy is 86%. The numerical results indicate that the performance of BT2is better than the state of art methods.

Open access
2 source records
Blockchain Technology Applications and Security
Advanced Graph Neural Networks
Data Stream Mining Techniques
Original source
Dec 15, 2022·Digital Communications and Networks
30 cites
Adaptive multi-channel Bayesian graph attention network for IoT transaction security

Zhaowei Liu, Dong Yang, Shenqiang Wang, Hang Su

With the rapid advancement of 5G technology, the Internet of Things (IoT) has entered a new phase of application and is rapidly becoming a significant force in promoting economic development. Due to the vast amounts of data created by numerous 5G IoT devices, the Ethereum platform has become a tool for the storage and sharing of IoT device data, thanks to its open and tamper-resistant characteristics. So, Ethereum account security is necessary for the Internet of Things to grow quickly and improve people's lives. By modeling Ethereum transaction records as a transaction network, the account types are well identified by the Ethereum account classification system established based on Graph Neural Networks (GNNs). This work first investigates the Ethereum transaction network, Surprisingly, experimental metrics reveal that the Ethereum transaction network is neither optimal nor even satisfactory in terms of accurately representing transactions per account. This flaw may significantly impede the classification capability of GNNs, which is mostly governed by their attributes. This work proposes an Adaptive Multi-channel Bayesian Graph Attention Network (AMBGAT) for Ethereum account classification to address this difficulty. AMBGAT uses attention to enhance node features, estimate graph topology structure that conforms to the ground truth, and efficiently extract node features pertinent to downstream tasks. An extensive experiment with actual Ethereum transaction data demonstrates that AMBGAT obtains competitive performance in the classification of Ethereum accounts while accurately anticipating the graph's topology.

Open access
Blockchain Technology Applications and Security
Advanced Graph Neural Networks
Brain Tumor Detection and Classification
Original source