Blockchain Papers

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164 papersLast indexed Aug 16, 2026
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Aug 11, 2026·Electronics
0 cites
Privacy-Preserving and Quantum-Resilient Blockchain Infrastructures for MuReQua Federated Micro Data Centers

Gerardo Iovane

The rapid growth of AI-driven workloads, IoT ecosystems, and distributed digital services has exposed fundamental limitations in existing cloud and edge infrastructures, particularly in guaranteeing robust data privacy under emerging quantum threats. Current blockchain-based systems provide integrity and decentralization but rely predominantly on computational cryptography and access-control mechanisms, leaving them vulnerable to future quantum adversaries and large-scale inference attacks. In this paper, we introduce Data Communities as a novel paradigm for privacy-preserving, blockchain-enabled cooperative digital infrastructures, formalized within the Cooperative Digital Infrastructure (CDI) framework. Our approach integrates three complementary privacy protection layers: (i) MuReQua, a quantum-resilient blockchain consensus mechanism leveraging CQKD for cryptographic robustness against Shor-type attacks; (ii) DeSSE, an information-theoretically secure distributed storage model based on n × m fragmentation, ensuring zero information leakage below reconstruction thresholds; and (iii) a multi-tier data sovereignty model (C0–C3) enforcing policy-driven data locality and regulatory compliance across federated nodes. We formalize privacy guarantees through an adversarial model encompassing classical, quantum, insider, and governance-level threats, and demonstrate that the proposed architecture achieves information-theoretic confidentiality, forward secrecy, and attack-resilient distributed governance. A privacy leakage analysis shows that the probability of data reconstruction under sub-threshold compromise is identical to zero, outperforming conventional blockchain storage models based on encryption alone. Simulation and case study results indicate that Data Communities achieve up to 99.999% service availability, 55% reduction in external data exposure, and 22–35% carbon-aware optimization, while maintaining strict privacy guarantees across distributed environments. Compared with existing blockchain systems (e.g., Ethereum, Hyperledger Fabric), the proposed framework shifts privacy protection from access-control and pseudonymity to structural, information-theoretic privacy by design. Overall, the results establish Data Communities as a scalable and quantum-resilient foundation for next-generation privacy-preserving blockchain infrastructures, bridging distributed AI, secure storage, and cooperative governance under a unified formal model.

Open access
Blockchain Technology Applications and Security
Cloud Computing and Resource Management
IoT and Edge/Fog Computing
Original source
Aug 11, 2026·International Journal of Electronics and Communication Engineering
0 cites
A Cryptographic Proof Framework for Tamper-Evident Pneumonia Diagnosis on Blockchain

Murugeshwari B., Kayalvizhi S, Daya Florance D, Saranya S

To deploy deep learning-based diagnostic systems in a clinical setting, they need to have not only a high degree of predictive accuracy, but also an unbroken cryptographic chain to prove that the model parameters have not been changed from one inference to the next. This incompatibility arises because softmax, GELU activation, and layer normalization involve transcendental operations to produce the final output. Transcendental operations cannot be represented over the prime finite fields that are necessary when utilizing Rank-1 Constraint Systems (R1CS). The work here provides a mathematically sound approach to resolving the incompatibility by providing three formally defined polynomial approximations: a degree-3 Taylor series softmax approximation (ε ≤ 2.47E-03 per weight); a degree-5 composite polynomial GELU (ε ≤ 1.80E-03); and a squared witness hint reformulation of layer normalization that results in exact constraint satisfaction. The accumulating polynomial approximation errors across 12 transformer encoder blocks have a total approximation error defined as (ε total ≤ 0.0512) and results in a loss of less than one-fifth of a percent in accuracy (94.1% vs. 94.3%) on the RSNA Pneumonia Detection benchmark. The entire ViT-B/16 inference model was compiled into an R1CS form of approximately 2.3×10⁸ R1CS constraints and instantiated as a Groth 16 zk-SNARK. The integrity of the model is confirmed by hashing the parameters using SHA-256 onto an immutable Polygon zkEVM smart contract, allowing for on-chain verification of inference without revealing any of the proprietary model weights. Additionally, this system produces an area under the receiver operating characteristic curve (AUC-ROC) of 0.961, a mean latency for proof generation of 2.84 seconds, an end-to-end verification time of 5.07 seconds, and an average cost for on-chain verification of 0.012ETH, all within the operational constraints of typical radiology workflows.

Open access
Cryptography and Residue Arithmetic
Cryptography and Data Security
Cryptographic Implementations and Security
Original source
Aug 11, 2026·International Journal of Educational Technology in Higher Education
0 cites
Integrating LLM with consortium blockchain for personalized and verifiable online education in higher education

Fuan Xiao, Jiahui Huang, Jia-Xin Huang, Jia-Xin Huang · 7 authors

Abstract Online Education in Higher Education is rapidly evolving through the integration of Large Language Model (LLM)-powered intelligent systems, which enable personalized tutoring, dynamic content generation, and automated assessment. However, the widespread adoption of LLMs in education is hampered due to their inherent limitations, including susceptibility to hallucinations, insufficient domain-specific knowledge validation, and output inconsistency. These deficiencies can lead to misleading or erroneous content, potentially causing significant negative learning outcomes. A core challenge lies in ensuring that such errors are immutably logged and traceable, thereby establishing a mechanism for accountability among the entities deploying these LLM services. To address these challenges, this paper proposes a novel framework that Integrates LLM with consortium blockchain for personalized and verifiable online education. Our design features a synergistic architecture in which LLM based services provide the intelligent educational interface, while a permissioned consortium blockchain serves as a secure and tamper proof ledger. This blockchain infrastructure records critical educational transactions ranging from learning process data and academic credentials to the outputs generated by the LLMs. This integration not only secures academic credentials but also establishes a fully auditable trail, making it possible to trace responsibility for educational deficiencies caused by AI errors. Collectively, this work demonstrates a robust and accountable framework for leveraging LLMs in education, effectively mitigating the risks of AI inaccuracies through the verifiable and immutable nature of consortium blockchain.

Open access
Artificial Intelligence in Healthcare and Education
Online Learning and Analytics
Intelligent Tutoring Systems and Adaptive Learning
Original source
Aug 11, 2026·Engineering Technology & Applied Science Research
0 cites
Performance Evaluation of Network Security and Management Using Bioinspired Blockchain

Kapil K. Jajulwar, Priya Dasarwar, Uma Yadav, Bhakti Prasad Thakre · 6 authors

Blockchain consensus mechanisms are important to ensure the safe validation of transactions. However, the limitations of high computational complexity, energy consumption, and mining latency restrict the scalability of blockchain in large-scale IP-based and wireless network environments. Current methods mainly rely on single optimization methods without jointly optimizing miner selection and hash computation, resulting in inferior performance under dynamic network conditions. To fill this gap, this study presents a new hybrid bioinspired optimization framework for efficient blockchain mining, integrating Genetic Algorithm (GA), Firefly optimization, and Particle Swarm Optimization (PSO) into a unified architecture to take advantage of their complementary strengths. The proposed method uses both historical and real-time performance metrics to determine the best mining nodes. The Firefly algorithm is used to optimize the selection of hash ranges to reduce CPU workload. PSO is used to select high-performance neighboring nodes for collaborative mining. The model is implemented using the NS-2 simulator and tested over a network of 1000 wireless nodes under different consensus protocols. The experimental results illustrate 4.3% decrease in computational complexity, 4% decrease in energy consumption, and 5% decrease in mining delay. The model further reduces mining complexity by up to 34.2% and reduces the energy utilization from 24.5% to 16.6%, demonstrating its effectiveness for scalable and energy-efficient blockchain deployment.

Open access
Blockchain Technology Applications and Security
Software-Defined Networks and 5G
Caching and Content Delivery
Original source
Aug 11, 2026·arXiv (Cornell University)
0 cites
Nuclear fusion for AI: A pathway to power data centers sustainably

Layla Araiinejad, Vineet Jagadeesan Nair

This perspective examines whether nuclear fusion can provide a scalable, low-carbon power source for rapidly growing AI-driven data center demand. As large language models, cloud computing, and cryptocurrency mining accelerate electricity consumption growth, data centers are projected to account for a substantially larger share of U.S. and global electricity use in the coming decades, creating significant pressure on grid reliability and decarbonization goals. We evaluate the technical and economic alignment between data center load profiles and nuclear power, particularly fusion, through a comparative analysis of capacity factors, levelized cost of electricity, grid interconnection constraints, and deployment pathways. Unlike intermittent renewables, nuclear fission and fusion offer high-capacity-factor, firm baseload generation suited to AI training and inference workloads that require continuous, reliable power. Preliminary techno-economic analysis suggests that several Nth-of-a-kind fusion concepts, particularly magnetic confinement systems, may become cost-competitive with firmed renewable systems and advanced fission for hyperscale data center applications. Co-location of fusion plants with data centers further reduces transmission bottlenecks, improves resilience, and aligns with emerging hyperscaler procurement strategies. We also assess recent regulatory developments and argue that fusion's favorable safety profile and reduced waste burden improve its long-term social and political viability relative to fission. We conclude that fusion represents a strategically important pathway for sustainably powering next-generation computing infrastructure and should be prioritized in both policy and industrial deployment planning.

Open access
2 source records
eess.SY
Cloud Computing and Resource Management
Software-Defined Networks and 5G
Original source
Aug 11, 2026·arXiv (Cornell University)
0 cites
The Triadic Stress Index in Financial Markets

Alberto Acedo

The Triadic Stress Index (TSI) takes a network index whose four factors were first observed in soil microbiome co-occurrence networks and applies it, without alteration, to the correlation network of financial assets. We test it on five markets spanning 2006-2026 (equities including banking crises and the AI sector, cryptocurrencies, commodities, foreign exchange and sovereign debt), against three independent definitions of a crisis episode, at a fixed alarm budget, out of sample, with block-bootstrap intervals and a Holm correction across the family of tests. The benchmarks are the Absorption Ratio, the industry standard used by MSCI and central banks; the effective rank and the Vendi score, the sharpest spectral measures available; Ollivier-Ricci curvature; and the global and local balance indices of signed correlation networks. Three comparisons favour the index. It carries a per-node decomposition, diag(A^3), naming which asset is carrying the concentration with no parameter to select, and scores 0.97-0.99 against 0.33-0.84 for the only published per-node alternative, whereas spectral attribution must first choose how many components to read and collapses under a standard but wrong choice. Its alarms are the cleanest of anything tested, 4.0% of them with no matching episode against 14.7% for the effective rank and roughly 59% for the Absorption Ratio. And it beats the Absorption Ratio on detection by 0.273 in F1 out of sample, p<0.0005. The remaining comparisons are ties. Against the effective rank and the Vendi score the index ties in every scheme and both samples, and the margin over the Absorption Ratio narrows under the strictest labelling. On real matrices the far simpler node degree reproduces the attribution. A lead-lag analysis puts the peak cross-correlation at zero lag: this is a coincident state index, not a forecast.

Open access
2 source records
physics.soc-ph
q-fin.RM
q-fin.ST
Original source
Aug 11, 2026·arXiv (Cornell University)
0 cites
Universality and Heterogeneity of Stylized Facts in Cryptocurrency and Equity Markets

Jaesung Kim, C.H. Cho, Jae Woo Lee

This study investigates whether the macroscopic statistical maturity of cryptocurrencies implies dynamical equivalence with traditional equity markets. We analyze high-frequency data (2020--2025) using the Complexity--Entropy Causality Plane (CECP) and directed horizontal visibility graphs (directed HVG) to uncover complex temporal patterns and time-directed structures in the return series. While conventional stylized facts show striking convergence across all assets, structural diagnostics reveal a compelling paradox: cryptocurrencies appear more locally random than the equity benchmark during ordinary periods, yet exhibit significantly stronger directional time-irreversibility around high-visibility return events. The absolute-return results show that large cryptocurrency fluctuations tend to begin abruptly and remain elevated afterward. Separate analyses of positive returns and negative-return magnitudes show that this pattern is shared across cryptocurrencies on the upside but varies across assets on the downside. We conclude that statistical maturity is only skin-deep; the underlying dynamical processes of mature cryptocurrencies remain fundamentally distinct from traditional benchmarks.

Open access
2 source records
physics.soc-ph
q-fin.ST
Blockchain Technology Applications and Security
Original source
Aug 11, 2026·arXiv (Cornell University)
0 cites
Beyond Forecasting: Recasting Volatility Control as a Routing Problem

Hongji Pu, Leyang Zhou

Volatility control converts risk estimates into portfolio exposure, yet existing approaches often rely on a fixed volatility estimator or a pre-defined control rule that may not adapt to changing market conditions. We propose VolRouter, a modular framework that formulates volatility control as state-conditioned routing over estimator-controller pairs. VolRouter first summarizes market conditions into a control-relevant state profile and then performs routing through three stages: state inference, switch review, and pair selection. The Router can be implemented using rule-based, learnable, or LLM-based decision modules, while portfolio actions remain generated by predefined control policies. We evaluate VolRouter across S&P 500, Multi-Asset, Bitcoin, and USDT volatility-control settings. VolRouter achieves the highest Sharpe ratio in three of four settings. On S&P 500, it improves Sharpe from 0.952 for RV + Naive Scaling to 1.222 while reducing maximum drawdown from 15.10% to 12.58% and daily CVaR from 1.76% to 1.32%. On Multi-Asset, it improves Sharpe from 1.498 to 1.540 and reduces CVaR from 1.56% to 1.18%. Bitcoin shows similar improvements in risk-adjusted performance, while USDT provides a boundary case where simpler state-aware selectors remain competitive. Ablation and sensitivity analyses show that the improvement comes from relative policy evaluation and selective persistent switching rather than simply expanding the policy library. These results suggest that volatility control can be viewed as a policy-selection problem when risk management requirements vary across market states.

Open access
2 source records
cs.CE
cs.AI
Financial Markets and Investment Strategies
Original source
Aug 11, 2026·Cambridge University Press (CUP)
0 cites
GOVERNED AUTONOMOUS INFRASTRUCTURE (GAI) The AETHELIS Ecosystem: Formal Operational Guarantees and Verifiable Governance for Autonomous Intelligence

emanuele colombo

Artificial intelligence is rapidly evolving from isolated models into persistent autonomous infrastructures capable of continuous learning, coordination, adaptation, and real-world operation. As autonomy increases, the central engineering challenge shifts from improving model capabilities to ensuring that autonomous systems remain governable, verifiable, accountable, and trustworthy throughout their operational lifecycle. This paper introduces Governance Guarantees, a formal framework that defines Governed Autonomous Infrastructure (GAI) through implementation-independent operational properties rather than architectural components. It presents a collection of original concepts, including Governance Integrity, Governance Capacity, Governance Saturation, Governance Pressure, Operational Heat, Governance Drift, Governance Continuity, Governance Surface, and Verifiable Governance, providing a unified vocabulary for engineering and evaluating autonomous infrastructures. The paper further proposes Bounded Governance Proof Objects and an incremental verification methodology that enables infrastructures to generate continuous governance evidence without requiring complete formal verification of the entire system. Together, these concepts establish a practical foundation for observable, reproducible, and evidence-based governance of persistent autonomous intelligence. Finally, the paper interprets the AETHELIS ecosystem as the first operational implementation intentionally designed to satisfy these Governance Guarantees, demonstrating how governance can become an intrinsic infrastructural property rather than an external supervisory mechanism. The work argues that future autonomous intelligence should be evaluated not only by its capabilities, but by its ability to continuously preserve governance throughout operation.

Open access
Original source
Aug 11, 2026·Geosciences
0 cites
Landslide Susceptibility Assessment Using a Machine Learning Model with VAE-CDM Sample Augmentation: A Case Study of Southeastern Xizang

Kangkang Li, Huan Yu, Han Wang, Shirong Hu · 7 authors

Landslide susceptibility mapping in alpine regions with limited data has two persistent obstacles: too few recorded landslide cases and the questionable reliability of non-landslide samples. We address these issues with a hybrid generative framework—a Variational Autoencoder (VAE) performs latent-space interpolation to produce additional positive samples, while a Conditional Diffusion Model (CDM) generates counterfactual negative samples. To validate generation quality, we used Principal Component Analysis (PCA) scatterplots, convex hull containment analysis, and covariance structure checks. The generated samples were then evaluated across five classifiers (Logistic Regression (LR), Random Forest (RF), Support Vector Machine (SVM), eXtreme Gradient Boosting (XGBoost), and The Convolutional Neural Network-Transformer-Long Short-Term Memory-Graph Convolutional Network (CTLGNet)). VAE-CDM consistently outperformed the original dataset, Synthetic Minority Over-sampling Technique (SMOTE), and Conditional Tabular Generative Adversarial Network (CTGAN), with XGBoost achieving the best results—Area Under the Curve (AUC) of 0.9337, recall of 0.91, and F1 of 0.87. DeLong’s test confirmed the AUC gain was statistically significant (p = 0.043). After augmentation, the very-high-susceptibility capture rate rose from 68.5% to 89.4%, while cumulative capture curves reflected a 4.9% improvement in spatial targeting efficiency. Shapley Additive Explanations (SHAP) analysis highlighted distance to roads, elevation, and the Freeze-Thaw Index (FTI) as the dominant controlling factors. Application to Southeastern Xizang shows the framework offers a viable pathway for susceptibility mapping in data-limited environments, although the generated samples show moderate diversity reduction (0.53) due to the interpolation-based generation strategy.

Open access
Original source
Aug 11, 2026·Proceedings of the ACM SIGCOMM 2026 Conference
0 cites
Zero-Knowledge Cloud Analytics

Z. P. Zhu, Clarence Lam, Alexander Frolov, Ian Miers · 5 authors

We present zk-Analytics, a distributed cloud analytics system that enables publicly verifiable analytics without revealing raw logs or relying on trusted hardware in analytics providers' infrastructure. Today's cloud analytics are largely self-assertive: providers collect telemetry, perform aggregation, and report results, leaving external parties unable to verify correctness without access to sensitive data or trusted execution environments. zk-Analytics addresses this gap by augmenting analytics pipelines with lightweight append-only log commitments and verifiable aggregation and query execution using zero-knowledge proofs. The system cleanly separates online log commitment from offline, distributed batch aggregation and query verification, enabling scalability while keeping online overhead low. We implement zk-Analytics using a zkVM-based execution environment and evaluate it on real-world and synthetic workloads, demonstrating that verifiable, privacy-preserving cloud analytics is feasible for real-world cloud workloads. zk-Analytics is open-sourced at https://github.com/Froot-NetSys/zk-Analytics.

Open access
2 source records
Original source
Aug 11, 2026·Advances in Economics, Management and Political Sciences
0 cites
The Challenges Posed by Decentralized Finance to Traditional Financial Regulatory Frameworks and Pathways for Restructuring

Yingzhu Chen

Decentralized Finance (DeFi) refers to an open financial ecosystem built on blockchain technology that does not require the participation of centralized institutions. The technology and operational mechanisms it employs represent a significant "paradigm mismatch" with the current financial regulatory framework. This paper examines the comprehensive impact of DeFi on existing financial regulation from multiple perspectives, including the blurring of regulatory authority and a lack of accountability; the difficulty in identifying regulatory targets and the ambiguity in determining their nature; the ineffectiveness of regulatory rules and the absence of relevant provisions; overlapping jurisdictions, and difficulties in enforcement. Through a comparative study of regulatory experiences in the United States, Europe, and other regions, this paper proposes solutions such as shifting the existing regulatory philosophy toward functional regulation, embedding compliance requirements into the underlying technology at the institutional level, and strengthening international cooperation at the operational level, while also discussing the specific context in China. This paper identifies a threefold paradigm mismatch between decentralized finance and traditional financial regulation, giving rise to multiple regulatory challenges such as difficulties in holding entities accountable, ambiguity in defining regulatory targets, ineffective regulatory rules, and obstacles to cross-border enforcement. A comparison of regulatory practices in the U.S. and Europe reveals that it is difficult for any single country to independently manage the risks associated with globalized DeFi.

Open access
2 source records
Global Financial Regulation and Crises
FinTech, Crowdfunding, Digital Finance
Banking stability, regulation, efficiency
Original source
Aug 11, 2026·Pragmatic Cybersecurity
0 cites
Decentralized Biometric Authentication via Threshold-Based Key Derivation †

Hui Cui, Haoze Cheng, James Boorman

Biometric authentication offers enhanced usability for digital payments, but traditional centralized architectures suffer from single points of failure. While blockchain integration promises decentralized trust, existing solutions often store biometric helper data (e.g., fuzzy commitments) directly on-chain. We demonstrate that such transparency, even in permissioned settings, exposes low-entropy biometric inputs to offline brute-force attacks and identity-linkage risks if the immutable ledger is accessed by malicious nodes. To resolve this transparency–privacy paradox, we propose a threshold-based decentralized authentication framework. Unlike prior works, our protocol keeps all sensitive Biometric-Enhanced Key Derivation (BEKD) tokens entirely off-chain, using the blockchain solely for freshness enforcement. We provide a game-based security analysis of brute-force resistance, unforgeability, and unlinkability. Our experimental results demonstrate that our scheme’s gas cost is acceptable, offering a robust solution for self-sovereign biometric identity.

Open access
2 source records
Biometric Identification and Security
Advanced Authentication Protocols Security
Blockchain Technology Applications and Security
Original source
Aug 11, 2026·Philosophy & Technology
0 cites
Artificial Externality: A Three-Layer Model of Reality from Substrate to Smart Contract

Keisuke Suzuki

What is real has always been something we find , not something we make —or so philosophy has assumed. This paper argues otherwise. Characterizing reality through resistance rather than substance (the ways the world refuses a subject’s mastery), I distinguish three modalities correlative to epistemic, judgmental, and practical mastery: Substrate (matter’s resistance to representation), Contingency (the forceful givenness of experience that resists revision by judgment), and the Inexorable (structures’ resistance to intervention). Treating virtual environments, AI agents, and blockchain smart contracts not as proofs but as revelatory cases, I show that technology now extends the latter two modalities, Contingency and the Inexorable, artificially. The result is the paper’s central concept, Artificial Externality : human-made structures whose resistance to intervention is deliberately engineered to be practically insurmountable, even for their creators, and that thereby acquire an externality once attributed only to nature. Absoluteness, traditionally found, can now be produced. I close by drawing out the stakes for consciousness: our criteria for what counts as real quietly shape our criteria for what counts as conscious.

Open access
2 source records
Embodied and Extended Cognition
Ethics and Social Impacts of AI
Digital Media and Philosophy
Original source
Aug 10, 2026·arXiv
0 cites
Enhancing Reliability of Symbolic Execution Tools for Smart Contract Analysis through Rule-Based False Positive Reduction

Muhammad Ali Hassan Ahmad, Muhammad Hashim Ali, Muhammad Ali Amer, Muhammad Naiman Jalil · 6 authors

A blockchain is a decentralized, secure ledger system that enables transparent and immutable record-keeping, essential for trust and security in digital transactions. Smart contracts are self-executing agreements encoded on a blockchain, enabling different parties to fulfill the terms of the agreement automatically. These contracts trigger corresponding actions when conditions are met, ensuring decentralized and transparent transactions. Writing reliable smart contracts is challenging due to the lack of standardization. To find security vulnerabilities, tools based on various approaches, including symbolic execution, are used. However, these tools often report a large number of false positives, raising concerns about their reliability. The time and effort spent investigating false positives diverts resources from addressing actual vulnerabilities. Therefore, such tools must also be evaluated according to the rate of false positives they exhibit. More importantly, the algorithms and heuristics used by the tools must be enhanced to distinguish between true vulnerabilities and false alarms. In this paper, we first demonstrate the prevalence of false positives in vulnerability reports generated by Mythril, a symbolic execution-based analysis tool for Ethereum smart contracts. We analyze the root causes of these inaccuracies and devise a rule-based approach based on the gained insight to reduce false positives. We implement our rules for the most impactful vulnerabilities in Mythril and assess the effectiveness of our approach. Our results show a significant reduction in false positives without compromising the detection of true vulnerabilities, thus enhancing the tool's reliability.

Open access
cs.SE
Original source
Aug 10, 2026·arXiv
0 cites
Defining Decentralization: An Ontological Perspective

Jakub Kacper Szeląg, Aydin Abadi, Mohammad Naseri

Decentralization as a concept in computer science has existed for over half a century. Despite its fundamental role across domains such as security, distributed computing, artificial intelligence, cloud infrastructures, and Internet of Things (IoT) architectures, there remains no universally accepted definition of decentralization applicable across computer communication systems. This has become increasingly problematic with the emergence of decentralized AI and machine learning paradigms, including collaborative training, distributed inference, blockchain-based, and agentic AI, where decentralization is often treated as a core design objective. Meanwhile, existing approaches frequently conflate decentralization with related notions such as distribution of trust or specific implementation paradigms. Such ambiguity creates inconsistencies in system analysis, limits comparability between works, and weakens the rigor of formal reasoning surrounding communication architectures and protocol design. In this work, we define this research gap as the Decentralization Problem. We analyze the formal-semantic, epistemological, and pragmatic foundations of decentralization and introduce a graph-based ontology defining it as both relational and subject-specific property of computer communication systems. The framework formally distinguishes decentralization from distribution and supports evaluation through two novel metrics: Void Tolerance and Imperviousness. We also provide a browser-based implementation that enables automated classification and metric computation of arbitrary systems. Instantiations to federated learning and blockchain architectures show consistent, comparable assessments where existing definitions produce incomplete or contradictory conclusions, providing a domain-independent foundation for analysing decentralization across heterogeneous systems.

Open access
cs.DC
cs.AI
cs.LG
Original source
Aug 10, 2026·arXiv
0 cites
Anomaly detection in European cryptocurrency exchange-traded products

Julia Kończal, Rafał Połoczański

Cryptocurrency exchange-traded products (ETPs) listed on European exchanges provide a regulated environment for studying intraday market anomalies. We study four Bitcoin and Ethereum ETPs traded on Xetra and Nasdaq Stockholm over the period January 2024 - December 2025 using one-minute bars. As a benchmark, we adopt an extreme value theory approach in which anomalous bars are defined as returns falling below a threshold estimated by fitting a generalised Pareto distribution to left-tail exceedances. We then propose three new binary anomaly indicators. The first, a cross-venue divergence anomaly, identifies venue-specific price divergence between the two exchanges. The second is a no-recovery anomaly that identifies extreme price drops followed by little or no recovery over the next ten active bars. The third is a momentum-reversal anomaly that identifies extreme price drops following positive short-term momentum. Although each anomaly type represents fewer than 1% of one-minute bars, statistical analysis using Mann-Whitney U tests shows that anomaly observations exhibit significantly higher effective spreads, higher values of liquidity-related ratios, and more pronounced order-flow imbalances than non-anomalous bars. Furthermore, employing an out-of-sample prediction methodology with four classifiers - random forest, logistic regression, extreme gradient boosting, and light gradient boosting machine - shows that all four anomaly types are predictable one bar ahead, with AUC-ROC values of up to 0.82. Permutation importance indicates that short-term volatility and drawdown measures are generally more useful for prediction than microstructure variables.

Open access
q-fin.MF
Original source
Aug 10, 2026·arXiv
0 cites
Scaling laws of Stablecoin Transactions: Evidence from USDT and USDC on the Ethereum blockchain

Kundan Mukhia, Sabat Rai, Vivek Shrivastav, Imran Ansari · 5 authors

Stablecoins have rapidly emerged as an important class of digital assets and a component of the digital financial ecosystem. Despite their growing importance, the statistical properties of stablecoin transaction activity remain largely unexplored. To the best of our knowledge, this is the first study to investigate scaling behavior in stablecoin transaction data, focusing on USDT and USDC. We analyze approximately 370 million USDT and USDC transactions recorded on the Ethereum blockchain across six periods spanning June 2024 to February 2026. Based on interactions between Externally Owned Accounts (EOAs) and Smart Contracts (SCs), we classify transactions into four categories: EOA-EOA, EOA-SC, SC-EOA, and SC-SC. Using maximum-likelihood estimation of power-law exponents, we find that transaction value distributions exhibit heavy-tailed scaling for both stablecoins across all periods and interaction categories. We identify two distinct scaling regimes: EOA-involved categories cluster around 1.45-1.60, whereas SC-SC transactions exhibit higher exponents of approximately 1.72-1.73. Sensitivity analysis confirms that this separation is robust across periods, stablecoins, and fitting sample sizes. Counterfactual analysis shows that changes in category weights alone cannot explain the observed variation in the overall exponent. Across different sample sizes, the counterfactual path accounts for only about 10%-35% of the total temporal range observed in the actual data. Overall, our results indicate two broadly differentiated scaling regimes in the tail of stablecoin transaction values. Power-law tail behavior is observed throughout stablecoin transaction activity, but the exponent depends on whether transactions are driven by EOAs or SCs. These findings provide a basis for further research on scaling behavior and transaction heterogeneity in blockchain-based financial systems.

Open access
q-fin.ST
Original source
Aug 10, 2026·Zenodo (CERN European Organization for Nuclear Research)
0 cites
AgentShield-Crypto: Zero-Trust Cryptographic Identity and Cascading Anomaly Firewalls for Autonomous Multi-Agent Trading Systems

Saiful Islam Tanvir

Autonomous multi-agent systems powered by Large Language Models (LLMs) are increasingly deployed in high-frequency algorithmic trading, decentralized finance (DeFi), and complex financial decision-making workflows. However, existing multi-agent interaction architectures rely heavily on implicit semantic trust: context passing between upstream and downstream agents occurs via unauthenticated, unstructured natural language or JSON payloads. This design creates critical vulnerabilities, exposing systems to indirect prompt injection, context tampering, system prompt spoofing, and multi-turn cascade poisoning. When an upstream agent ingests malicious external data, adversarial payloads can propagate through the inter-agent execution graph, bypassing single-agent perimeter guardrails and hijacking downstream financial execution logic. To resolve these vulnerabilities, we introduce AgentShield-Crypto, a zero-trust cryptographic framework for multi-agent LLM trading pipelines. AgentShield-Crypto enforces the Know-Your-Agent (KYA) protocol, replacing probabilistic natural language filters with deterministic cryptographic state boundaries. Under KYA, every agent's identity, static system prompt hash H(S_i), temporal liveness timestamp t_i, and output payload M_i are encapsulated into cryptographically signed state envelopes (E_i) using HMAC-SHA256. Inter-agent communication channels are guarded by Inline Cascading Anomaly Firewalls (ICAF), which evaluate verification predicates before allowing state transitions into downstream context windows. We construct and release AgentInject-Bench v1.0, an empirical benchmark comprising 7,000 test vectors spanning direct prompt injections, indirect context hijacking, multi-turn cascade poisoning, system prompt spoofing, and clean financial market baselines across GPT-4o, Claude 3.5 Sonnet, and Llama-3-70B-Instruct. Empirical evaluation demonstrates that AgentShield-Crypto achieves a 100.00% Defense Mitigation Rate (DMR) with a 0.00% False Positive Rate (FPR), completely eliminating multi-hop context hijacking while incurring sub-millisecond per-message execution latency (0.382 ms).

Open access
2 source records
Blockchain Technology Applications and Security
Big Data and Digital Economy
Mobile Agent-Based Network Management
Original source
Aug 10, 2026·Mathematics
0 cites
Modeling Investment Decisions in Renewable Energy and Cryptocurrency Mining Under Uncertainty

Kazuya Ito, Ryo Takahashi, Ryuta Takashima

Operations research has long contributed to addressing energy and environmental challenges through mathematical modeling and decision-support methods. In particular, numerous studies have examined investment planning, capacity expansion, and policy design for renewable energy systems under uncertainty. As efforts to achieve carbon neutrality intensify worldwide, the expansion of renewable energy has become a critical policy and investment priority. However, the inherent variability of renewable power generation and the substantial upfront investment costs continue to hinder investment decisions and limit the adoption of renewable energy. To address the economic challenges associated with renewable energy penetration, recent studies have explored the use of cryptocurrency mining as a means of monetizing surplus renewable electricity. This study contributes to this emerging research stream by developing a real options model that captures the interaction between renewable energy investment and cryptocurrency mining under uncertainty. The numerical results show that cryptocurrency mining increases the value of renewable energy investment and accelerates investment by lowering the investment threshold. Moreover, the equilibrium determination of mining capacity reduces the renewable energy investment threshold by approximately 40.5% compared with the benchmark in which mining capacity is specified exogenously.

Open access
Original source
Aug 10, 2026·Center for Open Science
0 cites
Distributed Bias: A Distributed Cognition Approach to the Emergence of Institutional Bias

Michael Berkebile-Weinberg

Prejudice and discrimination operate at individual and systemic levels, yet much remains unknown about how bias transcends from the individual to shape the behaviors and cognitions of social systems. Distributed cognition theory offers a needed perspective in this gap, positing that cognition is not confined to individual minds, but rather is distributed across individuals and environments throughout time. As such, system-level outcomes are not directly predictable from the cognitive properties of individuals but instead emerge from interactions of individuals with one another and with their environments. Here, a distributed bias approach is proposed, such that individuals within institutions and broader social systems interact with each other and the complex array of tools in their environments, transforming the cognitive processes involved in group-based discrimination, consequently propagating systemic institutional bias. This approach offers a new mechanistic foundation for the emergence of institutional bias and proposes several avenues for future research and application.

Open access
Original source