Lucian Trestioreanu, Wazen M. Shbair, Flaviene Scheidt de Cristo, Radu State
With the growing adoption of Distributed Ledger Technologies and the subsequent scaling of these networks, there is an inherent need for efficient and resilient communication used by the underlying consensus and replication mechanisms. While resilient and efficient communication is one of the main pillars of an efficient blockchain network as a whole, the Distributed Ledger Technology is still relatively new and the task of scaling these networks has come with its own challenges towards ensuring these goals. New content distribution concepts like Information Centric Networking, of which Named Data Networking is a worthy example, create new possibilities towards achieving this goal, through in-network caching or built-in native multicasting, for example. We present and evaluate XRP-NDN Overlay, a solution for increasing the communication efficiency for consensus-validation based blockchains like the XRP Ledger. We experiment by sending the XRP Ledger consensus messages over different Named Data Networking communication models and prove that our chosen model lowers the number of messages at node level to minimum necessary, while maintaining or improving blockchain performance by leveraging the possibilities offered by an overlay such as specific communication mechanisms.
Non-Fungible Tokens (NFTs) are non-interchangeable assets, usually digital art, which are stored on the blockchain. Preliminary studies find that female and darker-skinned NFTs are valued less than their male and lighter-skinned counterparts. However, these studies analyze only the CryptoPunks collection. We test the statistical significance of race and gender biases in the prices of CryptoPunks and present the first study of gender bias in the broader NFT market. We find evidence of racial bias but not gender bias. Our work also introduces a dataset of gender-labeled NFT collections to advance the broader study of social equity in this emerging market.
Karolis Zilius, Tasos Spiliotopoulos, Aad van Moorsel
The rise in adoption of cryptoassets has brought many new and inexperienced investors in the cryptocurrency space. These investors can be disproportionally influenced by information they receive online, and particularly from social media. This paper presents a dataset of crypto-related bounty events and the users that participate in them. These events coordinate social media campaigns to create artificial "hype" around a crypto project in order to influence the price of its token. The dataset consists of information about 15.8K cross-media bounty events, 185K participants, 10M forum comments and 82M social media URLs collected from the Bounties(Altcoins) subforum of the BitcoinTalk online forum from May 2014 to December 2022. We describe the data collection and the data processing methods employed and we present a basic characterization of the dataset. Furthermore, we discuss potential research opportunities afforded by the dataset across many disciplines and we highlight potential novel insights into how the cryptocurrency industry operates and how it interacts with its audience.
Informally, a distributed system is grassroots if it is permissionless and can have autonomous, independently-deployed instances - geographically and over time - that may interoperate voluntarily once interconnected. More formally, in a grassroots system the set of all correct behaviors of a set of agents P is strictly included in the set of the correct behaviors of P when they are embedded within a larger set of agents P' ⊃ P. Grassroots systems are potentially important as they may allow communities to conduct their social, economic, civic, and political lives in the digital realm solely using their members' networked computing devices (e.g., smartphones), free of third-party control, surveillance, manipulation, coercion, or rent seeking (e.g., by global digital platforms such as Facebook or Bitcoin). Client-server/cloud computing systems are not grassroots, and neither are systems designed to have a single global instance (Bitcoin/Ethereum with hardwired seed miners/bootnodes), and systems that rely on a single global data structure (IPFS, DHTs). An example grassroots system would be a serverless smartphone-based social network supporting multiple independently-budding communities that can merge when a member of one community becomes also a member of another. Here, we formalize the notion of grassroots distributed systems; describe a grassroots dissemination protocol for the model of asynchrony and argue its safety, liveness, and being grassroots; extend the implementation to mobile (address-changing) devices that communicate via an unreliable network (e.g. smartphones using UDP); and discuss how grassroots dissemination can realize grassroots social networking and grassroots cryptocurrencies. The mathematical construction employs distributed multiagent transition systems to define the notions of grassroots protocols, to specify the grassroots dissemination protocols, and to prove their correctness. The protocols use the blocklace - a distributed, partially-ordered counterpart of the replicated, totally-ordered blockchain.
In the era of digital markets, the challenge for consumers is discerning quality amidst information asymmetry . While traditional markets use brand mechanisms to address this issue, transferring such systems to internet-based P2P markets – where misleading practices like fake ratings are rampant – remains challenging. Current internet platforms strive to counter this through verification algorithms, but these efforts find themselves in a continuous tug-of-war with counterfeit actions. Exploiting the transparency, immutability, and traceability of blockchain technology, this paper introduces a robust reputation voting system grounded in it. Unlike existing blockchain-based reputation systems, our model harnesses an intrinsically economically incentivized approach to bolster agent integrity. We optimize this model to mirror real-world user behavior , preserving the reputation system’s foundational sustainability . Through Monte-Carlo simulations, using both uniform and power-law distributions enabled by an innovative inverse transform method, we traverse a broad parameter landscape, replicating real-world complexity. The findings underscore the promise of a sustainable, transparent, and formidable reputation mechanism. Given its structure, our framework can potentially function as a universal, sustainable oracle for offchain-onchain bridging, aiding entities in perpetually cultivating their reputation. Future integration with technologies like Ring Signature and Zero Knowledge Proof could amplify the system’s privacy facets, rendering it particularly influential in the ever-evolving digital domain.
As one of the most popular blockchain platforms supporting smart contracts, Ethereum has caught the interest of both investors and criminals. Differently from traditional financial scenarios, executing Know Your Customer verification on Ethereum is rather difficult due to the pseudonymous nature of the blockchain. Fortunately, as the transaction records stored in the Ethereum blockchain are publicly accessible, we can understand the behavior of accounts or detect illicit activities via transaction mining. Existing risk control techniques have primarily been developed from the perspectives of de-anonymizing address clustering and illicit account classification. However, these techniques cannot be used to ascertain the potential risks for all accounts and are limited by specific heuristic strategies or insufficient label information. These constraints motivate us to seek an effective rating method for quantifying the spread of risk in a transaction network. To the best of our knowledge, we are the first to address the problem of account risk rating on Ethereum by proposing a novel model called RiskProp, which includes a de-anonymous score to measure transaction anonymity and a network propagation mechanism to formulate the relationships between accounts and transactions. We demonstrate the effectiveness of RiskProp in overcoming the limitations of existing models by conducting experiments on real-world datasets from Ethereum. Through case studies on the detected high-risk accounts, we demonstrate that the risk assessment by RiskProp can be used to provide warnings for investors and protect them from possible financial losses, and the superior performance of risk score-based account classification experiments further verifies the effectiveness of our rating method.
Blockchain, pivotal in shaping the metaverse and Web3, often draws criticism for high energy consumption and carbon emission. The rise of sustainability-focused blockchains, especially when intersecting with innovative wireless technologies, revises this predicament. To understand blockchain's role in sustainability, we propose a three-layers structure encapsulating four green utilities: Recording and Tracking, Wide Verification, Value Trading, and Concept Disseminating. Nori, a decentralized voluntary carbon offset project, serves as our case, illuminating these utilities. Our research unveils unique insights into the on-chain carbon market participants, affect factors of the market, value propositions of NFT-based carbon credits, and the role of social media to spread the concept of carbon offset. We argue that blockchain's contribution to sustainability is significant, with carbon offsetting potentially evolving as a new standard within the blockchain sector.
The Metaverse has emerged as the next generation of the Internet. It aims to provide an immersive, persistent virtual space where people can live, learn, work and interact with each other. However, the existing technology is inadequate to guarantee high visual quality and ultra-low latency service for the Metaverse players. Mobile Edge Computing (MEC) is a paradigm where proximal edge servers are utilized to perform computation-intensive and latency-sensitive tasks like image processing and video analysis. In MEC, the large amount of data is processed by edge servers closest to where it is captured, thus significantly reducing the latency and providing almost real-time performance. In this paper, we integrate fundamental elements (5G and 6G wireless communications, Blockchain, digital twin and artificial intelligence) into the MEC framework to facilitate the Metaverse. We also elaborate on the research problems and applications in the MEC-enabled Metaverse. Finally, we provide a case study to establish a thorough knowledge of the user utility maximization problem in a real-world scenario and gain some insights about trends in potential research directions.
Decentralized finance (DeFi) is known for its unique mechanism design, which applies smart contracts to facilitate peer-to-peer transactions. The decentralized bank is a typical DeFi application. Ideally, a decentralized bank should be decentralized in the transaction. However, many recent studies have found that decentralized banks have not achieved a significant degree of decentralization. This research conducts a comparative study among mainstream decentralized banks. We apply core-periphery network features analysis using the transaction data from four decentralized banks, Liquity, Aave, MakerDao, and Compound. We extract six features and compare the banks' levels of decentralization cross-sectionally. According to the analysis results, we find that: 1) MakerDao and Compound are more decentralized in the transactions than Aave and Liquity. 2) Although decentralized banking transactions are supposed to be decentralized, the data show that four banks have primary external transaction core addresses such as Huobi, Coinbase, and Binance, etc. We also discuss four design features that might affect network decentralization. Our research contributes to the literature at the interface of decentralized finance, financial technology (Fintech), and social network analysis and inspires future protocol designs to live up to the promise of decentralized finance for a truly peer-to-peer transaction network.
Metaverse is an emerging virtual universe where humans can have real-time interactions and solid social links like in the physical world, and it opens up a new era of Internet and interactions. In Metaverse, an immersive and photorealistic environment promotes social activities, including education, meetings, and shopping of digital avatars based on critical technologies, including 3D rendering, extended reality, digital twins, artificial intelligence, and Blockchain. However, the limitations of computation, storage, and energy resources restrict the development of Metaverse, and a series of system issues (e.g., latency, security, and battery-life) continue to arise. As a result, how to find corresponding measurements to mitigate unsatisfactory influences becomes the focus. Mobile edge computing (MEC) as a distributed computing paradigm offloads computation-intensive tasks to the edge of the network. It brings the resources as close as possible to the end devices, addressing the shortcomings mentioned above. In this paper, we propose a comprehensive survey of the MEC-based Metaverse. Particular emphasis is given to the technologies convergence, architectures, and application scenarios, e.g., BoundlessXR and CloudXR. Significantly, we introduce the potential future directions for developing Metaverse systems.
Non-fungible tokens (NFTs) are unique digital items with blockchain managed ownership. Ethereum blockchain based smart contract created the environment for NFTs (ERC721) to reach its one of the most important future application domains. Non fungible tokens got more attention when the market saw record breaking sales in 2021. Virtually anything of value can be traced and traded on the blockchain network by minting them as NFTs. NFTs provide the users with a decentralized proof of ownership representation, as every transaction and trade of NFTs gets recorded in the Ethereum network blocks. The value of NFTs is derived from their being non fungible meaning that the token cannot be replaced with an identical token (giving it inherent scarcity). In this paper, we study the growth rate and evolutionary nature of the NFT network and try to understand the NFT ecosystem. We explore the evolving nature of the NFT interaction network from a temporal graph perspective. We study the growth rate and observer the semantics of the network. Here on the observer network, we will run two graph algorithms on the dataset. Lastly, observe and forecast the survival of NFTs bubble by applying the Logarithmic periodic power law (LPPL) model to the time series data on one of the most famous NFT collections CryptoPunks (predicting price increase), which has seen sales of around $23.7 million around mid of 2021.
There are a number of forums where people participate under pseudonyms. One example is peer review, where the identity of reviewers for any paper is confidential. When participating in these forums, people frequently engage in "batching": executing multiple related tasks (e.g., commenting on multiple papers) at nearly the same time. Our empirical analysis shows that batching is common in two applications we consider $\unicode{x2013}$ peer review and Wikipedia edits. In this paper, we identify and address the risk of deanonymization arising from linking batched tasks. To protect against linkage attacks, we take the approach of adding delay to the posting time of batched tasks. We first show that under some natural assumptions, no delay mechanism can provide a meaningful differential privacy guarantee. We therefore propose a "one-sided" formulation of differential privacy for protecting against linkage attacks. We design a mechanism that adds zero-inflated uniform delay to events and show it can preserve privacy. We prove that this noise distribution is in fact optimal in minimizing expected delay among mechanisms adding independent noise to each event, thereby establishing the Pareto frontier of the trade-off between the expected delay for batched and unbatched events. Finally, we conduct a series of experiments on Wikipedia and Bitcoin data that corroborate the practical utility of our algorithm in obfuscating batching without introducing onerous delay to a system.
Jiho Choi, Junghoon Park, Woocheol Kim, Jin‐Hyeok Park · 6 authors
The recent advent of play-to-earn (P2E) systems in massively multiplayer online role-playing games (MMORPGs) has made in-game goods interchangeable with real-world values more than ever before. The goods in the P2E MMORPGs can be directly exchanged with cryptocurrencies such as Bitcoin, Ethereum, or Klaytn via blockchain networks. Unlike traditional in-game goods, once they had been written to the blockchains, P2E goods cannot be restored by the game operation teams even with chargeback fraud such as payment fraud, cancellation, or refund. To tackle the problem, we propose a novel chargeback fraud prediction method, PU GNN, which leverages graph attention networks with PU loss to capture both the players' in-game behavior with P2E token transaction patterns. With the adoption of modified GraphSMOTE, the proposed model handles the imbalanced distribution of labels in chargeback fraud datasets. The conducted experiments on three real-world P2E MMORPG datasets demonstrate that PU GNN achieves superior performances over previously suggested methods.
The problem of identifying anomalies in dynamic networks is a fundamental task with a wide range of applications. However, it raises critical challenges due to the complex nature of anomalies, lack of ground truth knowledge, and complex and dynamic interactions in the network. Most existing approaches usually study networks with a single type of connection between vertices, while in many applications interactions between objects vary, yielding multiplex networks. We propose ANOMULY, a general, unsupervised edge anomaly detection framework for multiplex dynamic networks. In each relation type, ANOMULY sees node embeddings at different GNN layers as hierarchical node states and employs a GRU cell to capture temporal properties of the network and update node embeddings over time. We then add an attention mechanism that incorporates information across different types of relations. Our case study on brain networks shows how this approach could be employed as a new tool to understand abnormal brain activity that might reveal a brain disease or disorder. Extensive experiments on nine real-world datasets demonstrate that ANOMULY achieves state-of-the-art performance.
In this paper we give an elementary analysis of economics of Bitcoin that combines the transaction demand by the consumers and the supply of hashrate by miners. We argue that the decreasing block reward will have no significant effect on the exchange rate (price) of Bitcoin and thus the network will be transitioning to a regime where transaction fees will play a bigger part of miners' revenue. We consider a simple model where consumers demand bitcoins for transactions, but not for hoarding bitcoins, and we analyze market equilibrium where the demand is matched with the hashrate supplied by miners. Our main conclusion is that the exchange rate of Bitcoin cannot be determined from the market equilibrium and so our arguments support the hypothesis that Bitcoin price has no economic fundamentals and is free to fluctuate according to the present demand for hoarding and speculation. We point out that increasing fees bear the risk of Bitcoin being outcompeted by its main rival Ethereum, and that decreasing revenues to miners depreciate the perception of Bitcoin as a medium for store value (hoarding demand) which will have effect its exchange rate.
Predicting stock market movements has always been of great interest to investors and an active area of research. Research has proven that popularity of products is highly influenced by what people talk about. Social media like Twitter, Reddit have become hotspots of such influences. This paper investigates the impact of social media posts on close price prediction of stocks using Twitter and Reddit posts. Our objective is to integrate sentiment of social media data with historical stock data and study its effect on closing prices using time series models. We carried out rigorous experiments and deep analysis using multiple deep learning based models on different datasets to study the influence of posts by executives and general people on the close price. Experimental results on multiple stocks (Apple and Tesla) and decentralised currencies (Bitcoin and Ethereum) consistently show improvements in prediction on including social media data and greater improvements on including executive posts.
Xiaotong Sun, Xi Chen, Charalampos Stasinakis, Georgios Sermpinis
Decentralized Autonomous Organization (DAO) provides a decentralized governance solution through blockchain, where decision-making process relies on on-chain voting and follows majority rule. This paper focuses on MakerDAO, and we find three voter coalitions after applying clustering algorithm to voting history. The emergence of a dominant voter coalition is a signal of governance centralization in DAO, and voter coalitions have complicated influence on Maker protocol, which is governed by MakerDAO. This paper presents empirical evidence of multicoalition democracy in DAO and further contributes to the contemporary debate on whether decentralized governance is possible.
Sunwoo Kim, Minyoung Choe, Jaemin Yoo, Kijung Shin
Group interactions are prevalent in a variety of areas. Many of them, including email exchanges, chemical reactions, and bitcoin transactions, are directional, and thus they are naturally modeled as directed hypergraphs, where each hyperarc consists of the set of source nodes and the set of destination nodes. For directed graphs, which are a special case of directed hypergraphs, reciprocity has played a key role as a fundamental graph statistic in revealing organizing principles of graphs and in solving graph learning tasks. For general directed hypergraphs, however, even no systematic measure of reciprocity has been developed. In this work, we investigate the reciprocity of 11 real-world hypergraphs. To this end, we first introduce eight axioms that any reasonable measure of reciprocity should satisfy. Second, we propose HyperRec, a family of principled measures of hypergraph reciprocity that satisfies all the axioms. Third, we develop Ferret, a fast and exact algorithm for computing the measure, whose search space is up to 10^{147}x smaller than that of naive computation. Fourth, using them, we examine 11 real-world hypergraphs and discover patterns that distinguish them from random hypergraphs. Lastly, we propose ReDi, an intuitive generative model for directed hypergraphs exhibiting the patterns.
Non-Fungible Tokens (NFTs) have recently surged to mainstream attention by allowing the exchange of digital assets via blockchains. NFTs have also been adopted by artists to sell digital art. One of the promises of NFTs is broadening participation to the art market, a traditionally closed and opaque system, to sustain a wider and more diverse set of artists and collectors. A key sign of this effect would be the disappearance or at least reduction in importance of seller-buyer preferential ties, whereby the success of an artist is strongly dependent on the patronage of a single collector. We investigate NFT art seller-buyer networks considering several galleries and a large set of nearly 40,000 sales for over 230 M USD in total volume. We find that NFT art is a highly concentrated market driven by few successful sellers and even fewer systematic buyers. High concentration is present in both the number of sales and, even more strongly, in their priced volume. Furthermore, we show that, while a broader-participation market was present in the early phase of NFT art adoption, preferential ties have dominated during market growth, peak and recent decline. We consistently find that the top buyer accounts on average for over 80% of buys for a given seller. Similar trends apply to buyers and their top seller. We conclude that NFT art constitutes, at the present, a highly concentrated market driven by preferential seller-buyer ties.
Michael Sammeth, Nicu-Cosmin Ursache, Sînică Alboaie
Introduction: Distributed ledger networks, chiefly those based on blockchain technologies, currently are heralding a next-generation of computer systems that aims to suit modern users’ demands. Over the recent years, several technologies for blockchains, off-chaining strategies, as well as decentralised and respectively self-sovereign identity systems have shot up so fast that standardisation of the protocols is lagging behind, severely hampering the interoperability of different approaches. Moreover, most of the currently available solutions for distributed ledgers focus on either home users or enterprise use case scenarios, failing to provide integrative solutions addressing the needs of both. Methods: Herein, we introduce the OpenDSU platform that allows to interoperate generic blockchain technologies, organised–and possibly cascaded in a hierarchical fashion–in domains. To achieve this flexibility, we seamlessly integrated a set of well conceived components that orchestrate off-chain data and provide granularly resolved and cryptographically secure access levels, intrinsically nested with sovereign identities across the different domains. The source code and extensive documentation of all OpenDSU components described herein are publicly available under the MIT open-source licence at https://opendsu.com . Results: Employing our platform to PharmaLedger, an inter-European network for the standardisation of data handling in the pharmaceutical industry and in healthcare, we demonstrate that OpenDSU can cope with generic demands of heterogeneous use cases in both, performance and handling substantially different business policies. Discussion: Importantly, whereas available solutions commonly require a pre-defined and fixed set of components, no such vendor lock-in restrictions on the blockchain technology or identity system exist in OpenDSU, making systems built on it flexibly adaptable to new standards evolving in the future.
With the development of blockchain and communication techniques, the Metaverse is considered as a promising next-generation Internet paradigm, which enables the connection between reality and the virtual world. The key to rendering a virtual world is to provide users with immersive experiences and virtual avatars, which is based on virtual reality (VR) technology and high data transmission rate. However, current VR devices require intensive computation and communication, and users suffer from high delay while using wireless VR devices. To build the connection between reality and the virtual world with current technologies, mobile augmented reality (MAR) is a feasible alternative solution due to its cheaper communication and computation cost. This paper proposes an MAR-based connection model for the Metaverse, and proposes a communication resources allocation algorithm based on outer approximation (OA) to achieve the best utility. Simulation results show that our proposed algorithm is able to provide users with basic MAR services for the Metaverse, and outperforms the benchmark greedy algorithm.
Non-Fungible Token (NFT) is evolving with the rise of the cryptocurrency market and the development of blockchain techniques, which leads to an emerging NFT market that has become prosperous rapidly then followed by a cooldown. Nevertheless, the overall rise procedure of the NFT market has not been well understood. To this end, we consider that social media communities evolving alongside the market growth, are worth exploring and reasoning about, as the mineable information might unveil the market behaviors. We explore the procedure from the perspective of NFT Twitter communities and its impact on the NFT price moves with two experiments. We perform a Granger causality test on the number of tweets and the NFT price time series and find that the number of tweets has a positive impact on (Granger-causes) the price or reversely for larger part of the 19 top authentic projects but seldom copycat projects. Besides, to investigate the price moves predictability, we experiment on predicting Markov normalized NFT price (representing the direction and magnitude of price moves) given tweets-extracted word features and interpret the feature importance to find insights. Our results show that social media words as the predictors result in all 19 top projects having a testing accuracy evidently above the baseline. Based on the feature importance analysis, we find that both general market-related words and NFT event-related words have a markedly positive contribution in predicting price moves. We summarize the characteristics including categorization and sentiment for the words with the top and least feature importance.
With nearly 2.5m users, onion services have become the prominent part of the darkweb. Over the last five years alone, the number of onion domains has increased 20x, reaching more than 700k unique domains in January 2022. As onion services host various types of illicit content, they have become a valuable resource for darkweb research and an integral part of e-crime investigation and threat intelligence. However, this content is largely un-indexed by today's search engines and researchers have to rely on outdated or manually-collected datasets that are limited in scale, scope, or both. To tackle this problem, we built Dizzy: An open-source crawling and analysis system for onion services. Dizzy implements novel techniques to explore, update, check, and classify onion services at scale, without overwhelming the Tor network. We deployed Dizzy in April 2021 and used it to analyze more than 63.3m crawled onion webpages, focusing on domain operations, web content, cryptocurrency usage, and web graph. Our main findings show that onion services are unreliable due to their high churn rate, have a relatively small number of reachable domains that are often similar and illicit, enjoy a growing underground cryptocurrency economy, and have a graph that is relatively tightly-knit to, but topologically different from, the regular web's graph.
Cryptocurrencies are highly speculative assets with large price volatility. If one could forecast their behavior, this would make them more attractive to investors. In this work we study the problem of predicting the future performance of cryptocurrencies using social media data. We propose a new model to measure the engagement of users with topics discussed on social media based on interactions with social media posts. This model overcomes the limitations of previous volume and sentiment based approaches. We use this model to estimate engagement coefficients for 48 cryptocurrencies created between 2019 and 2021 using data from Twitter from the first month of the cryptocurrencies' existence. We find that the future returns of the cryptocurrencies are dependent on the engagement coefficients. Cryptocurrencies whose engagement coefficients have extreme values have lower returns. Low engagement coefficients signal a lack of interest, while high engagement coefficients signal artificial activity which is likely from automated accounts known as bots. We measure the amount of bot posts for the cryptocurrencies and find that generally, cryptocurrencies with more bot posts have lower future returns. While future returns are dependent on both the bot activity and engagement coefficient, the dependence is strongest for the engagement coefficient, especially for short-term returns. We show that simple investment strategies which select cryptocurrencies with engagement coefficients exceeding a fixed threshold perform well for holding times of a few months.