Most concurrent blockchain systems rely heavily on the Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms for decentralized consensus and security assurance. However, the substantial energy expenditure stemming from computationally intensive yet meaningless tasks has raised considerable concerns surrounding traditional PoW approaches, The PoS mechanism, while free of energy consumption, is subject to security and economic issues. Addressing these issues, the paradigm of Proof-of-Useful-Work (PoUW) seeks to employ challenges of practical significance as PoW, thereby imbuing energy consumption with tangible value. While previous efforts in Proof of Learning (PoL) explored the utilization of deep learning model training SGD tasks as PoUW challenges, recent research has revealed its vulnerabilities to adversarial attacks and the theoretical hardness in crafting a byzantine-secure PoL mechanism. In this paper, we introduce the concept of incentive-security that incentivizes rational provers to behave honestly for their best interest, bypassing the existing hardness to design a PoL mechanism with computational efficiency, a provable incentive-security guarantee and controllable difficulty. Particularly, our work is secure against two attacks, and also improves the computational overhead from $Θ(1)$ to $O(\frac{\log E}{E})$. Furthermore, while most recent research assumes trusted problem providers and verifiers, our design also guarantees frontend incentive-security even when problem providers are untrusted, and verifier incentive-security that bypasses the Verifier's Dilemma. By incorporating ML training into blockchain consensus mechanisms with provable guarantees, our research not only proposes an eco-friendly solution to blockchain systems, but also provides a proposal for a completely decentralized computing power market in the new AI age.
Dipika Jha, Ankit K. Bhagat, Raju Halder, Rajendra N. Paramanik · 5 authors
This paper presents a comprehensive Decentraland parcels dataset, called IITP-VDLand, sourced from diverse platforms such as Decentraland, OpenSea, Etherscan, Google BigQuery, and various Social Media Platforms. Unlike existing datasets which have limited attributes and records, IITP-VDLand offers a rich array of attributes, encompassing parcel characteristics, trading history, past activities, transactions, and social media interactions. Alongside, we introduce a key attribute in the dataset, namely Rarity score, which measures the uniqueness of each parcel within the virtual world. Addressing the significant challenge posed by the dispersed nature of this data across various sources, we employ a systematic approach, utilizing both available APIs and custom scripts, to gather it. Subsequently, we meticulously curate and organize the information into four distinct fragments: (1) Characteristics, (2) OpenSea Trading History, (3) Ethereum Activity Transactions, and (4) Social Media. We envisage that this dataset would serve as a robust resource for training machine- and deep-learning models specifically designed to address real-world challenges within the domain of Decentraland parcels. The performance benchmarking of more than 20 state-of-the-art price prediction models on our dataset yields promising results, achieving a maximum R2 score of 0.8251 and an accuracy of 74.23% in case of Extra Trees Regressor and Classifier. The key findings reveal that the ensemble models perform better than both deep learning and linear models for our dataset. We observe a significant impact of coordinates, geographical proximity, rarity score, and few other economic indicators on the prediction of parcel prices.
We like and need Information and Communications Technologies (ICT) for data processing. This is measureable in the exponential growth of data processed by ICT, e.g. ICT for cryptocurrency mining and search engines. So far, the energy demand for computing technology has increased by a factor of 1.38 every ten years due to the exponentially increasing use of ICT systems as computing devices. The energy consumption of ICT systems is expected to rise from 1500 TWh (8% of global electricity consumption) in 2010 to 5700 TWh (14% of global electricity consumption) in 2030. A large part of this energy is required for the continuous data transfer between the separated memory and processor units which constitute the main components of ICT computing devices in von-Neumann architecture. This at the same time massively slows down the computing power of ICT systems in the von-Neumann architecture. In addition, due to the increasing complexity of AI compute algorithms, since 2010 the AI training compute time demand for computing technology increases tenfold every year, for example in the period from 2010 to 2020 from 1x10^{-6} to 1x10^{+4} Petaflops/Day. It has been theoretically predicted that ICT systems in the neuromorphic computer architecture will circumvent all of this through the use of merged memory and processor units. However, the core hardware element for this has not yet been realized so far. In this work we discuss the prespectives for non-linear resistive switches as the core hardware element for merged memory and processor units in neuromorphic computers.
Financial crimes fast proliferation and sophistication require novel approaches that provide robust and effective solutions. This paper explores the potential of quantum algorithms in combating financial crimes. It highlights the advantages of quantum computing by examining traditional and Machine Learning (ML) techniques alongside quantum approaches. The study showcases advanced methodologies such as Quantum Machine Learning (QML) and Quantum Artificial Intelligence (QAI) as powerful solutions for detecting and preventing financial crimes, including money laundering, financial crime detection, cryptocurrency attacks, and market manipulation. These quantum approaches leverage the inherent computational capabilities of quantum computers to overcome limitations faced by classical methods. Furthermore, the paper illustrates how quantum computing can support enhanced financial risk management analysis. Financial institutions can improve their ability to identify and mitigate risks, leading to more robust risk management strategies by exploiting the quantum advantage. This research underscores the transformative impact of quantum algorithms on financial risk management. By embracing quantum technologies, organisations can enhance their capabilities to combat evolving threats and ensure the integrity and stability of financial systems.
Mohammad Jabed Morshed Chowdhury, Naveed Ul Hassan, Wayes Tushar, Niyato, Dustin · 7 authors
The adoption of renewable energy resources, such as solar power, is on the rise. However, the excessive installation and lack of recycling facilities pose environmental risks. This paper suggests a circular economy approach to address the issue. By implementing blockchain technology, the end-of-life (EOL) of solar panels can be tracked, and responsibilities can be assigned to relevant stakeholders. The degradation of panels can be monetized by tracking users' energy-related activities, and these funds can be used for future recycling. A new coin, the recycling coin (RC-Coin), incentivizes solar panel recycling and utilizes decentralized finance to stabilize the coin price and supply issue.
The convergence of blockchain, Metaverse, and non-fungible tokens (NFTs) brings transformative digital opportunities alongside challenges like privacy and resource management. Addressing these, we focus on optimizing user connectivity and resource allocation in an NFT-centric and blockchain-enabled Metaverse in this paper. Through user work-offloading, we optimize data tasks, user connection parameters, and server computing frequency division. In the resource allocation phase, we optimize communication-computation resource distributions, including bandwidth, transmit power, and computing frequency. We introduce the trust-cost ratio (TCR), a pivotal measure combining trust scores from users’ resources and server history with delay and energy costs. This balance ensures sustained user engagement and trust. The DASHF algorithm, central to our approach, encapsulates the Dinkelbach algorithm, alternating optimization, semidefinite relaxation (SDR), the Hungarian method, and a novel fractional programming technique from a recent IEEE JSAC paper [2]. The most challenging part of DASHF is to rewrite an optimization problem as Quadratically Constrained Quadratic Programming (QCQP) via carefully designed transformations, in order to be solved by SDR and the Hungarian algorithm. Extensive simulations validate the DASHF algorithm’s efficacy, revealing critical insights for enhancing blockchain-Metaverse applications, especially with NFTs.
Juan Ignacio Ibañez, Lena Klaaßen, Ulrich Gallersdörfer, Christian Stoll
This document is written as an academic exercise, with the goal of exploring the feasibility of writing a white paper in accordance with Regulation (EU) 2023/1114 (MiCA). It is meant as a Proof of Concept (PoC) illustrating a concrete application of the requirements of MiCA. Like the MiCA white papers PoC shared by ESMA, this document is solely for the purposes of the PoC, to inform the public as to how a crypto-asset white paper could work, inspire public debate and feedback, and enhance the public conversation around the implementation of EU regulations.
This paper examines the complex legal landscape surrounding digital assets, analysing how they are defined and regulated as property across various jurisdictions. As digital assets such as cryptocurrencies and non-fungible tokens (NFTs) increasingly integrate with global economies, their intangible nature presents unique challenges to traditional property law concepts, necessitating a re-evaluation of legal definitions and ownership frameworks. This research presents a comparative analysis, reviewing how different legal systems classify and manage digital assets within property law, highlighting the variations in regulatory approaches and their implications on ownership, transfer, and inheritance rights. By examining seminal cases and regulatory developments in major jurisdictions, including the United States, the European Union, and Singapore, this paper explores the emerging trends and potential legal evolutions that could influence the global handling of digital assets. The study aims to contribute to the scholarly discourse by proposing a harmonized approach to digital asset regulation, seeking to balance innovation with legal certainty and consumer protection.
The emergence of distributed systems has revolutionized the financial technology (Fintech) landscape, offering unprecedented opportunities for enhancing security, scalability, and efficiency in financial operations. This paper explores the role of distributed systems in Fintech, analyzing their architecture, benefits, challenges, and applications. It examines key distributed technologies such as blockchain, decentralized finance (DeFi), and distributed ledger technology (DLT), and their impact on various aspects of the financial industry, and future directions for distributed systems in Fintech.
Cryptocurrency mining processes always lead to a high energy consumption at considerably high production cost, which is nearly one-third of cryptocurrency (e.g. Bitcoin) price itself. As the core of mining process is based on SHA-256 cryptographic hashing function, by using the alternative quantum computers, hybrid quantum computers or more larger quantum computing devices like quantum annealers, it would be possible to reduce the mining energy consumption with a quantum hardware's low-energy-operation characteristics. Within this work we demonstrated the use of optimized quantum mining facilities which would replace the classical SHA-256 and high energy consuming classical hardware in near future.
Massimiliano Silenzi, Umut Can Cabuk, Enis Karaarslan, Omer Aydin
The fast-growing cryptocurrency sector presents both challenges and opportunities for businesses and consumers alike. This study investigates the knowledge, expertise, and buying habits of people who shop using cryptocurrencies. Our survey of 516 participants shows that knowledge levels vary from beginners to experts. Interestingly, a segment of respondents, nearly 30%, showed high purchase frequency despite their limited knowledge. Regression analyses indicated that while domain knowledge plays a role, it only accounts for 11.6% of the factors affecting purchasing frequency. A K-means cluster analysis further segmented the respondents into three distinct groups, each having unique knowledge levels and purchasing tendencies. These results challenge the conventional idea linking extensive knowledge to increased cryptocurrency usage, suggesting other factors at play. Understanding this varying crypto-shopper demographic is pivotal for businesses, emphasizing the need for tailored strategies and user-friendly experiences. This study offers insights into current crypto-shopping behaviors and discusses future research exploring the broader impacts and potential shifts in the crypto-consumer landscape.
In recent years, blockchain has been widely applied in the Internet of Things (IoT). Blockchain oracle, as a bridge for data communication between blockchain and off-chain, has also received significant attention. However, the numerous and heterogeneous devices in the IoT pose great challenges to the efficiency and security of data acquisition for oracles. We find that the matching relationship between data sources and oracle nodes greatly affects the efficiency and service quality of the entire oracle system. To address these issues, this paper proposes a distributed and efficient oracle solution tailored for the IoT, enabling fast acquisition of real-time off-chain data. Specifically, we first design a distributed oracle architecture that combines both Trusted Execution Environment (TEE) devices and ordinary devices to improve system scalability, considering the heterogeneity of IoT devices. Secondly, based on the trusted node information provided by TEE, we determine the matching relationship between nodes and data sources, assigning appropriate nodes for tasks to enhance system efficiency. Through simulation experiments, our proposed solution has been shown to effectively improve the efficiency and service quality of the system, reducing the average response time by approximately 9.92\% compared to conventional approaches.
The recent advancement of Blockchain technology consolidates its status as a viable alternative for various domains. However, evaluating the performance of blockchain applications can be challenging due to the underlying infrastructure's complexity and distributed nature. Therefore, a reliable modelling approach is needed to boost Blockchain-based applications' development and evaluation. While simulation-based solutions have been researched, machine learning (ML) model-based techniques are rarely discussed in conjunction with evaluating blockchain application performance. Our novel research makes use of two ML model-based methods. Firstly, we train a $k$ nearest neighbour ($k$NN) and support vector machine (SVM) to predict blockchain performance using predetermined configuration parameters. Secondly, we employ the salp swarm optimization (SO) ML model which enables the investigation of optimal blockchain configurations for achieving the required performance level. We use rough set theory to enhance SO, hereafter called ISO, which we demonstrate to prove achieving an accurate recommendation of optimal parameter configurations; despite uncertainty. Finally, statistical comparisons indicate that our models have a competitive edge. The $k$NN model outperforms SVM by 5\% and the ISO also demonstrates a reduction of 4\% inaccuracy deviation compared to regular SO.
Yathin Kethepalli, Rony Joseph, Sai Raja Vajrala, Jashwanth Vemula · 5 authors
Crypto-wallets or digital asset wallets are a crucial aspect of managing cryptocurrencies and other digital assets such as NFTs. However, these wallets are not immune to security threats, particularly from the growing risk of quantum computing. The use of traditional public-key cryptography systems in digital asset wallets makes them vulnerable to attacks from quantum computers, which may increase in the future. Moreover, current digital wallets require users to keep track of seed-phrases, which can be challenging and lead to additional security risks. To overcome these challenges, a new algorithm is proposed that uses post-quantum cryptography (PQC) and zero-knowledge proof (ZKP) to enhance the security of digital asset wallets. The research focuses on the use of the Lattice-based Threshold Secret Sharing Scheme (LTSSS), Kyber Algorithm for key generation and ZKP for wallet unlocking, providing a more secure and user-friendly alternative to seed-phrase, brain and multi-sig protocol wallets. This algorithm also includes several innovative security features such as recovery of wallets in case of downtime of the server, and the ability to rekey the private key associated with a specific username-password combination, offering improved security and usability. The incorporation of PQC and ZKP provides a robust and comprehensive framework for securing digital assets in the present and future. This research aims to address the security challenges faced by digital asset wallets and proposes practical solutions to ensure their safety in the era of quantum computing.
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Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
Data security and sharing remains nuisance among many applications like business data, medical data, banking data etc. In this research, block chain technology is built with encryption algorithm for high level data security in cloud storage. Medical data security seems critical aspect due to sensitivity of patient’s information. Unauthorized access of medical data creates major issue to patients. This article proposed block chain with hybrid encryption technique for securing medical data stored in block chain model at cloud storage. New Two fish encryption model is implemented based on RSA Multiple Precision Arithmetic (MPA). MPA works by using library concept. The objective of using this methodology is to enhance security performance with less execution time. Patient data is processed by encryption algorithm and stored at blockchain infrastructure using encrypted key. Access permission allows user to read or write the medical data attached in block chain framework. The performance of traditional cryptographic techniques is very less in providing security infrastructure. Proposed blockchain based Two fish encryption technique provides high security in less encryption and decryption time.
Marie Tcholakian, Karolina Gorna, Maryline Laurent, Hella Kaffel Ben Ayed · 5 authors
Electronic Health Records (EHRs) and Medical Data are classified as personal data in every privacy law, meaning that any related service that includes processing such data must come with full security, confidentiality, privacy and accountability. Solutions for health data management, as in storing it, sharing and processing it, are emerging quickly and were significantly boosted by the Covid-19 pandemic that created a need to move things online. EHRs makes a crucial part of digital identity data, and the same digital identity trends -- as in self sovereign identity powered by decentralized ledger technologies like Blockchain, are being researched or implemented in contexts managing digital interactions between health facilities, patients and health professionals. In this paper, we propose a blockchain-based solution enabling secure exchange of EHRs between different parties powered by a self-sovereign identity (SSI) wallet and decentralized identifiers. We also make use of a consortium IPFS network for off-chain storage and attribute-based encryption (ABE) to ensure data confidentiality and integrity. Through our solution, we grant users full control over their medical data, and enable them to securely share it in total confidentiality over secure communication channels between user wallets using encryption. We also use DIDs for better user privacy and limit any possible correlations or identification by using pairwise DIDs. Overall, combining this set of technologies guarantees secure exchange of EHRs, secure storage and management along with by-design features inherited from the technological stack.
We introduce the Deep Learning Vulnerability Analyzer (DLVA) for Ethereum smart contracts based on neural networks. We train DLVA to judge bytecode even though the supervising oracle can only judge source. DLVA's training algorithm is general: we extend a source code analysis to bytecode without any manual feature engineering, predefined patterns, or expert rules. DLVA's training algorithm is also robust: it overcame a 1.25% error rate mislabeled contracts, and--the student surpassing the teacher--found vulnerable contracts that Slither mislabeled. DLVA is much faster than other smart contract vulnerability detectors: DLVA checks contracts for 29 vulnerabilities in 0.2 seconds, a 10-1,000x speedup. DLVA has three key components. First, Smart Contract to Vector (SC2V) uses neural networks to map smart contract bytecode to a high-dimensional floating-point vector. We benchmark SC2V against 4 state-of-the-art graph neural networks and show that it improves model differentiation by 2.2%. Second, Sibling Detector (SD) classifies contracts when a target contract's vector is Euclidian-close to a labeled contract's vector in a training set; although only able to judge 55.7% of the contracts in our test set, it has a Slither-predictive accuracy of 97.4% with a false positive rate of only 0.1%. Third, Core Classifier (CC) uses neural networks to infer vulnerable contracts regardless of vector distance. We benchmark DLVA's CC with 10 ML techniques and show that the CC improves accuracy by 11.3%. Overall, DLVA predicts Slither's labels with an overall accuracy of 92.7% and associated false positive rate of 7.2%. Lastly, we benchmark DLVA against nine well-known smart contract analysis tools. Despite using much less analysis time, DLVA completed every query, leading the pack with an average accuracy of 99.7%, pleasingly balancing high true positive rates with low false positive rates.
Blockchain technology is one of the key technologies that have revolutionized various facets of society, such as the banking, healthcare, and other critical ecosystems. One area that can harness the usage of blockchain is the real estate sector. The most lucrative long-term investment is real estate, followed by gold, equities, mutual funds, and savings accounts. Nevertheless, it has administrative overheads such as lack of transparency, fraud, several intermediaries, title issues, paperwork, an increasing number of arbitrations, and the lack of liquidity. This paper proposes a framework that uses blockchain as an underlying technology. With the aid of blockchain and the suite of tools, it supports many of these problems that can be alleviated in the real estate investment ecosystem. These include smart contracts, immutable record management, tokenization, record tracking, and time-stamped storage. Tokenization of real estate lowers the entry barrier by fixing liquidity and interoperability and improving the interaction between various stakeholders.
The introduction of electronic personal health records (EHR) enables nationwide information exchange and curation among different health care systems. However, the current EHR systems do not provide transparent means for diagnosis support, medical research or can utilize the omnipresent data produced by the personal medical devices. Besides, the EHR systems are centrally orchestrated, which could potentially lead to a single point of failure. Therefore, in this article, we explore novel approaches for decentralizing machine learning over distributed ledgers to create intelligent EHR systems that can utilize information from personal medical devices for improved knowledge extraction. Consequently, we proposed and evaluated a conceptual EHR to enable anonymous predictive analysis across multiple medical institutions. The evaluation results indicate that the decentralized EHR can be deployed over the computing continuum with reduced machine learning time of up to 60% and consensus latency of below 8 seconds.
The blockchain technology empowers secure, trustless, and privacy-preserving trading with cryptocurrencies. However, existing blockchain-based trading platforms only support trading cryptocurrencies with digital assets (e.g., NFTs). Although several payment service providers have started to accept cryptocurrency as a payment method for tangible goods (e.g., Visa, PayPal), customers still need to trust and hand over their private information to centralized E-commerce platforms (e.g., Amazon, eBay). To enable trustless and privacy-preserving trading between cryptocurrencies and real goods, we propose SPENDER, a smart-contract-based platform for Secure and Privacy-PresErviNg Decentralized P2P E-commeRce. The design of our platform enables various advantageous features and brings unlimited future potential. Moreover, our platform provides a complete paradigm for designing real-world Web3 infrastructures on the blockchain, which broadens the application scope and exploits the intrinsic values of cryptocurrencies. The platform has been built and tested on the Terra ecosystem, and we plan to open-source the code later.
As the cornerstone of blockchain, block synchronization plays a vital role in maintaining the security. Without full blockchain synchronization, unexpected forks will emerge and thus providing a breeding ground for various malicious attacks. The state-of-the-art works mainly study the relationship between the propagation time and blockchain security at the systematic level, neglecting the fine-grained impact of peering nodes in blockchain networks. To conduct a node-level synchronization analysis, we take advantage of the large deviation theory and game theory to study the pull-based propagation from a microscopic perspective. We examine the blockchain synchronization in a bidirectional manner via investigating the impact of full nodes as responders and that of partial nodes as requesters. Based on that, we further reveal the most efficient path to speed up synchronization from full nodes and design the best synchronization request scheme based on the concept of correlated equilibrium for partial nodes. Extensive experimental results demonstrate the effectiveness of our analysis.
As blockchain technology and cryptocurrency become increasingly mainstream, ever-increasing energy costs required to maintain the computational power running these decentralized platforms create a market for more energy-efficient hardware. Photonic cryptographic hash functions, which use photonic integrated circuits to accelerate computation, promise energy efficiency for verifying transactions and mining in a cryptonetwork. Like many analog computing approaches, however, current proposals for photonic cryptographic hash functions that promise similar security guarantees as Bitcoin are susceptible to systematic error, so multiple devices may not reach a consensus on computation despite high numerical precision (associated with low photodetector noise). In this paper, we theoretically and experimentally demonstrate that a more general family of robust discrete analog cryptographic hash functions, which we introduce as LightHash, leverages integer matrix-vector operations on photonic mesh networks of interferometers. The difficulty of LightHash can be adjusted to be sufficiently tolerant to systematic error (calibration error, loss error, coupling error, and phase error) and preserve inherent security guarantees present in the Bitcoin protocol. Finally, going beyond our proof-of-concept, we define a ``photonic advantage'' criterion and justify how recent developments in CMOS optoelectronics (including analog-digital conversion) provably achieve such advantage for robust and digitally-verifiable photonic computing and ultimately generate a new market for decentralized photonic technology.
Technological advancements of Blockchain and other Distributed Ledger Techniques (DLTs) promise to provide significant advantages to applications seeking transparency, redundancy, and accountability. Actual adoption of these emerging technologies requires incorporating cost-effective, fast, QoS-enabled, secure, and scalable design. With the recent advent of quantum computing, the security of current blockchain cryptosystems can be compromised to a greater extent. Quantum algorithms like Shor's large integer factorization algorithm and Grover's unstructured database search algorithm can provide exponential and quadratic speedup, respectively, in contrast to their classical counterpart. This can put threats on both public-key cryptosystems and hash functions, which necessarily demands to migrate from classical cryptography to quantum-secure cryptography. Moreover, the computational latency of blockchain platforms causes slow transaction speed, so quantum computing principles might provide significant speedup and scalability in transaction processing and accelerating the mining process. For such purpose, this article first studies current and future classical state-of-the-art blockchain scalability and security primitives. The relevant quantum-safe blockchain cryptosystem initiatives which have been taken by Bitcoin, Ethereum, Corda, etc. are stated and compared with respect to key sizes, hash length, execution time, computational overhead, and energy efficiency. Post Quantum Cryptographic algorithms like Code-based, Lattice-based, Multivariate-based, and other schemes are not well suited for classical blockchain technology due to several disadvantages in practical implementation. Decryption latency, massive consumption of computational resources, and increased key size are few challenges that can hinder blockchain performance.
Dan A. Bard, Joseph J. Kearney, Carlos A. Pérez-Delgado
Proof-of-Work (PoW) is a fundamental underlying technology behind most major blockchain cryptocurrencies. It has been previously pointed out that quantum devices provide a computational advantage in performing PoW in the context of Bitcoin. Here we make the case that this quantum advantage extends not only to all existing PoW mechanisms, but to any possible PoW as well. This has strong consequences regarding both quantum-based attacks on the integrity of the entirety of the blockchain, as well as more legitimate uses of quantum computation for the purpose of mining Bitcoin and other cryptocurrencies. For the first case, we estimate when these quantum attacks will become feasible, for various cryptocurrencies, and discuss the impact of such attacks. For the latter, we derive a precise formula to calculate the economic incentive for switching to quantum-based cryptocurrency miners. Using this formula, we analyze several test scenarios, and conclude that investing in quantum hardware for cryptocurrency mining has the potential to pay off immensely.