Gyuyeon Na, Minjung Park, Hyeonjeong Cha, Soyoun Kim · 9 authors
Blockchain transaction networks are complex, with evolving temporal patterns and inter-node relationships. To detect illicit activities, we propose a hybrid GCN-GRU model that captures both structural and sequential features. Using real Bitcoin transaction data (2020-2024), our model achieved 0.9470 Accuracy and 0.9807 AUC-ROC, outperforming all baselines.
Nan Wang, Nan Wu, Xiangyu Hui, Jiafan Wang · 5 authors
As the demand for exercising the "right to be forgotten" grows, the need for verifiable machine unlearning has become increasingly evident to ensure both transparency and accountability. We present {\em zkUnlearner}, the first zero-knowledge framework for verifiable machine unlearning, specifically designed to support {\em multi-granularity} and {\em forgery-resistance}. First, we propose a general computational model that employs a {\em bit-masking} technique to enable the {\em selectivity} of existing zero-knowledge proofs of training for gradient descent algorithms. This innovation enables not only traditional {\em sample-level} unlearning but also more advanced {\em feature-level} and {\em class-level} unlearning. Our model can be translated to arithmetic circuits, ensuring compatibility with a broad range of zero-knowledge proof systems. Furthermore, our approach overcomes key limitations of existing methods in both efficiency and privacy. Second, forging attacks present a serious threat to the reliability of unlearning. Specifically, in Stochastic Gradient Descent optimization, gradients from unlearned data, or from minibatches containing it, can be forged using alternative data samples or minibatches that exclude it. We propose the first effective strategies to resist state-of-the-art forging attacks. Finally, we benchmark a zkSNARK-based instantiation of our framework and perform comprehensive performance evaluations to validate its practicality.
Nicolò Romandini, Carlo Mazzocca, Kai Otsuki, Rebecca Montanari
Blockchain and smart contracts have garnered significant interest in recent years as the foundation of a decentralized, trustless digital ecosystem, thereby eliminating the need for traditional centralized authorities. Despite their central role in powering Web3, their complexity still presents significant barriers for non-expert users. To bridge this gap, Artificial Intelligence (AI)-based agents have emerged as valuable tools for interacting with blockchain environments, supporting a range of tasks, from analyzing on-chain data and optimizing transaction strategies to detecting vulnerabilities within smart contracts. While interest in applying AI to blockchain is growing, the literature still lacks a comprehensive survey that focuses specifically on the intersection with AI agents. Most of the related work only provides general considerations, without focusing on any specific domain. This paper addresses this gap by presenting the first Systematization of Knowledge dedicated to AI-driven systems for blockchain, with a special focus on their security and privacy dimensions, shedding light on their applications, limitations, and future research directions.
Decentralized Finance (DeFi) attacks have resulted in significant losses, often orchestrated through Adversarial Exploiter Contracts (AECs) that exploit vulnerabilities in victim smart contracts. To proactively identify such threats, this paper targets the explainable detection of AECs. Existing detection methods struggle to capture semantic dependencies and lack interpretability, limiting their effectiveness and leaving critical knowledge gaps in AEC analysis. To address these challenges, we introduce SEASONED, an effective, self-explanatory, and robust framework for AEC detection. SEASONED extracts semantic information from contract bytecode to construct a semantic relation graph (SRG), and employs a self-counterfactual explainable detector (SCFED) to classify SRGs and generate explanations that highlight the core attack logic. SCFED further enhances robustness, generalizability, and data efficiency by extracting representative information from these explanations. Both theoretical analysis and experimental results demonstrate the effectiveness of SEASONED, which showcases outstanding detection performance, robustness, generalizability, and data efficiency learning ability. To support further research, we also release a new dataset of 359 AECs.
Andrei Damian, Petrica Butusina, Alessandro De Franceschi, Vitalii Toderian · 6 authors
We propose the Ratio1 AI meta-operating system (meta-OS), a decentralized MLOps protocol that unifies AI model development, deployment, and inference across heterogeneous edge devices. Its key innovation is an integrated blockchain-based framework that transforms idle computing resources (laptops, smartphones, cloud VMs) into a trustless global supercomputer. The architecture includes novel components: a decentralized authentication layer (dAuth), an in-memory state database (CSTORE), a distributed storage system (R1FS), homomorphic encrypted federated learning (EDIL), decentralized container orchestration (Deeploy) and an oracle network (OracleSync), which collectively ensure secure, resilient execution of AI pipelines and other container based apps at scale. The protocol enforces a formal circular token-economic model combining Proof-of-Availability (PoA) and Proof-of-AI (PoAI) consensus. Compared to centralized heterogeneous cloud MLOps and existing decentralized compute platforms, which often lack integrated AI toolchains or trusted Ratio1 node operators (R1OP) mechanics, Ratio1's holistic design lowers barriers for AI deployment and improves cost-efficiency. We provide mathematical formulations of its secure licensing and reward protocols, and include descriptive information for the system architecture and protocol flow. We argue that our proposed fully functional ecosystem proposes and demonstrates significant improvements in accessibility, scalability, and security over existing alternatives.
Minjung Park, Gyuyeon Na, Soyoun Kim, Sunyoung Moon · 6 authors
Abnormal cryptocurrency transactions - such as mixing services, fraudulent transfers, and pump-and-dump operations -- pose escalating risks to financial integrity but remain notoriously difficult to detect due to class imbalance, temporal volatility, and complex network dependencies. Existing approaches are predominantly model-centric and post hoc, flagging anomalies only after they occur and thus offering limited preventive value. This paper introduces HyPV-LEAD (Hyperbolic Peak-Valley Lead-time Enabled Anomaly Detection), a data-driven early-warning framework that explicitly incorporates lead time into anomaly detection. Unlike prior methods, HyPV-LEAD integrates three innovations: (1) window-horizon modeling to guarantee actionable lead-time alerts, (2) Peak-Valley (PV) sampling to mitigate class imbalance while preserving temporal continuity, and (3) hyperbolic embedding to capture the hierarchical and scale-free properties of blockchain transaction networks. Empirical evaluation on large-scale Bitcoin transaction data demonstrates that HyPV-LEAD consistently outperforms state-of-the-art baselines, achieving a PR-AUC of 0.9624 with significant gains in precision and recall. Ablation studies further confirm that each component - PV sampling, hyperbolic embedding, and structural-temporal modeling - provides complementary benefits, with the full framework delivering the highest performance. By shifting anomaly detection from reactive classification to proactive early-warning, HyPV-LEAD establishes a robust foundation for real-time risk management, anti-money laundering (AML) compliance, and financial security in dynamic blockchain environments.
The Decentralized Physical Infrastructure (DePIN) market is revolutionizing the sharing economy through token-based economics and smart contracts that govern decentralized operations. By 2024, DePIN projects have exceeded \$10 billion in market capitalization, underscoring their rapid growth. However, the unregulated nature of these markets, coupled with the autonomous deployment of AI agents in smart contracts, introduces risks such as inefficiencies and potential misalignment with human values. To address these concerns, we introduce EconAgentic, a Large Language Model (LLM)-powered framework designed to mitigate these challenges. Our research focuses on three key areas: 1) modeling the dynamic evolution of DePIN markets, 2) evaluating stakeholders' actions and their economic impacts, and 3) analyzing macroeconomic indicators to align market outcomes with societal goals. Through EconAgentic, we simulate how AI agents respond to token incentives, invest in infrastructure, and adapt to market conditions, comparing AI-driven decisions with human heuristic benchmarks. Our results show that EconAgentic provides valuable insights into the efficiency, inclusion, and stability of DePIN markets, contributing to both academic understanding and practical improvements in the design and governance of decentralized, tokenized economies.
Fine-tuning large language models (LLMs) is crucial for adapting them to specific tasks, yet it remains computationally demanding and raises concerns about correctness and privacy, particularly in untrusted environments. Although parameter-efficient methods like Low-Rank Adaptation (LoRA) significantly reduce resource requirements, ensuring the security and verifiability of fine-tuning under zero-knowledge constraints remains an unresolved challenge. To address this, we introduce VeriLoRA, the first framework to integrate LoRA fine-tuning with zero-knowledge proofs (ZKPs), achieving provable security and correctness. VeriLoRA employs advanced cryptographic techniques -- such as lookup arguments, sumcheck protocols, and polynomial commitments -- to verify both arithmetic and non-arithmetic operations in Transformer-based architectures. The framework provides end-to-end verifiability for forward propagation, backward propagation, and parameter updates during LoRA fine-tuning, while safeguarding the privacy of model parameters and training data. Leveraging GPU-based implementations, VeriLoRA demonstrates practicality and efficiency through experimental validation on open-source LLMs like LLaMA, scaling up to 13 billion parameters. By combining parameter-efficient fine-tuning with ZKPs, VeriLoRA bridges a critical gap, enabling secure and trustworthy deployment of LLMs in sensitive or untrusted environments.
Cross-chain bridges play a vital role in enabling blockchain interoperability. However, due to the inherent design flaws and the enormous value they hold, they have become prime targets for hacker attacks. Existing detection methods show progress yet remain limited, as they mainly address single-chain behaviors and fail to capture cross-chain semantics. To address this gap, we leverage heterogeneous graph attention networks, which are well-suited for modeling multi-typed entities and relations, to capture the complex execution semantics of cross-chain behaviors. We propose BridgeShield, a detection framework that jointly models the source chain, off-chain coordination, and destination chain within a unified heterogeneous graph representation. BridgeShield incorporates intra-meta-path attention to learn fine-grained dependencies within cross-chain paths and inter-meta-path attention to highlight discriminative cross-chain patterns, thereby enabling precise identification of attack behaviors. Extensive experiments on 51 real-world cross-chain attack events demonstrate that BridgeShield achieves an average F1-score of 92.58%, representing a 24.39% improvement over state-of-the-art baselines. These results validate the effectiveness of BridgeShield as a practical solution for securing cross-chain bridges and enhancing the resilience of multi-chain ecosystems.
Non-Terrestrial Networks (NTNs) based on Unmanned Aerial Vehicles (UAVs) as base stations are extremely susceptible to security attacks due to their distributed and dynamic nature, which makes them vulnerable to rogue nodes. In this paper, a new Dynamic Trust Score Adjustment Mechanism with Energy-Aware Consensus (DTSAM-EAC) is proposed to enhance security in UAV-based NTNs. The proposed framework integrates a permissioned Hyperledger Fabric blockchain with Federated Learning (FL) to support privacy-preserving trust evaluation. Trust ratings are updated continuously through weighted aggregation of past trust, present behavior, and energy contribution, thus making the system adaptive to changing network conditions. An energy-aware consensus mechanism prioritizes UAVs with greater available energy for block validation, ensuring efficient use of resources under resource-constrained environments. FL aggregation with trust-weighting further increases the resilience of the global trust model. Simulation results verify the designed framework achieves 94\% trust score prediction accuracy and 96\% rogue UAV detection rate while outperforming centralized and static baselines of trust-based solutions on privacy, energy efficiency, and reliability. It complies with 6G requirements in terms of distributed intelligence and sustainability and is an energy-efficient and scalable solution to secure NTNs.
In the paper, we consider multilevel multitask analysis of cryptocurrency news using a fine-tuned Mistral 7B large language model with retrieval-augmented generation (RAG). On the first level of analytics, the fine-tuned model generates graph and text summaries with sentiment scores as well as JSON representations of summaries. Higher levels perform hierarchical stacking that consolidates sets of graph-based and text-based summaries as well as summaries of summaries into comprehensive reports. The combination of graph and text summaries provides complementary views of cryptocurrency news. The model is fine-tuned with 4-bit quantization using the PEFT/LoRA approach. The representation of cryptocurrency news as knowledge graph can essentially eliminate problems with large language model hallucinations. The obtained results demonstrate that the use of fine-tuned Mistral 7B LLM models for multilevel cryptocurrency news analysis can conduct informative qualitative and quantitative analytics, providing important insights.
The very high growth of Intelligent Transportation Systems (ITS) has generated an urgent requirement for secure, effective, and context-aware data sharing mechanisms, especially over heterogeneous and geographically dispersed settings. This work suggests a new architecture that combines a relay chain-driven encryption system with a modified Ciphertext-Policy Attribute-Based Encryption (CP-ABE) scheme to tackle the double impediment of dynamic access and low-latency communication. The model proposes a context-aware smart contract on a worldwide relay chain that checks against data properties, including event type, time, and geographical region, to specify the suitable level of encryption policy. From such relay-directed judgment, On-Board Units (OBUs) encrypt data end-to-end by utilising CP-ABE and store ciphertext inside localised regional blockchains, preventing dependence on symmetric encryption or off-chain storage. High-sensitivity events are secured with firm, multi-attribute access rules, whereas common updates use light policies to help reduce processing burdens. The crypto system also adds traceability and low-latency revocation, with global enforcement managed through the relay chain. This distributed, scalable model provides a proper balance between responsiveness in real time and security and is extremely apt for next-gen vehicular networks that function across multi-jurisdictional domains.
Sai Teja Reddy Adapala, Yashwanth Reddy Alugubelly
The proliferation of autonomous AI agents marks a paradigm shift toward complex, emergent multi-agent systems. This transition introduces systemic security risks, including control-flow hijacking and cascading failures, that traditional cybersecurity paradigms are ill-equipped to address. This paper introduces the Aegis Protocol, a layered security framework designed to provide strong security guarantees for open agentic ecosystems. The protocol integrates three technological pillars: (1) non-spoofable agent identity via W3C Decentralized Identifiers (DIDs); (2) communication integrity via NIST-standardized post-quantum cryptography (PQC); and (3) verifiable, privacy-preserving policy compliance using the Halo2 zero-knowledge proof (ZKP) system. We formalize an adversary model extending Dolev-Yao for agentic threats and validate the protocol against the STRIDE framework. Our quantitative evaluation used a discrete-event simulation, calibrated against cryptographic benchmarks, to model 1,000 agents. The simulation showed a 0 percent success rate across 20,000 attack trials. For policy verification, analysis of the simulation logs reported a median proof-generation latency of 2.79 seconds, establishing a performance baseline for this class of security. While the evaluation is simulation-based and early-stage, it offers a reproducible baseline for future empirical studies and positions Aegis as a foundation for safe, scalable autonomous AI.
Cryptocurrency markets are characterized by ex-treme volatility, making accurate forecasts essential for effective risk management and informed trading strategies. Traditional deterministic (point) forecasting methods are inadequate for capturing the full spectrum of potential volatility outcomes, underscoring the importance of probabilistic approaches. To address this limitation, this paper introduces probabilistic fore-casting methods that leverage point forecasts from a wide range of base models, including statistical (HAR, GARCH, ARFIMA) and machine learning (e.g. LASSO, SVR, MLP, Random Forest, LSTM) algorithms, to estimate conditional quantiles of cryp-tocurrency realized variance. To the best of our knowledge, this is the first study in the literature to propose and systematically evaluate probabilistic forecasts of variance in cryptocurrency markets based on predictions derived from multiple base models. Our empirical results for Bitcoin demonstrate that the Quantile Estimation through Residual Simulation (QRS) method, partic-ularly when applied to linear base models operating on log-transformed realized volatility data, consistently outperforms more sophisticated alternatives. Additionally, we highlight the robustness of the probabilistic stacking framework, providing comprehensive insights into uncertainty and risk inherent in cryptocurrency volatility forecasting. This research fills a sig-nificant gap in the literature, contributing practical probabilistic forecasting methodologies tailored specifically to cryptocurrency markets.
The rapid development of large language models (LLMs) has significantly propelled the development of artificial intelligence (AI) agents, which are increasingly evolving into diverse autonomous entities, advancing the LLM-based multi-agent systems (LaMAS). However, current agentic ecosystems remain fragmented and closed. Establishing an interconnected and scalable paradigm for Agentic AI has become a critical prerequisite. Although Agentic Web proposes an open architecture to break the ecosystem barriers, its implementation still faces core challenges such as privacy protection, data management, and value measurement. Existing centralized or semi-centralized paradigms suffer from inherent limitations, making them inadequate for supporting large-scale, heterogeneous, and cross-domain autonomous interactions. To address these challenges, this paper introduces the blockchain-enabled trustworthy Agentic Web (BetaWeb). By leveraging the inherent strengths of blockchain, BetaWeb not only offers a trustworthy and scalable infrastructure for LaMAS but also has the potential to advance the Web paradigm from Web3 (centered on data ownership) towards Web3.5, which emphasizes ownership of agent capabilities and the monetization of intelligence. Beyond a systematic examination of the BetaWeb framework, this paper presents a five-stage evolutionary roadmap, outlining the path of LaMAS from passive execution to advanced collaboration and autonomous governance. We also conduct a comparative analysis of existing products and discuss key challenges of BetaWeb from multiple perspectives. Ultimately, we argue that deep integration between blockchain and LaMAS can lay the foundation for a resilient, trustworthy, and sustainably incentivized digital ecosystem. A summary of the enabling technologies for each stage is available at https://github.com/MatZaharia/BetaWeb.
Bitcoin's Proof of Work (PoW) mechanism, while central to achieving decentralized consensus, has long been criticized for excessive energy use and hardware inefficiencies \cite{devries2018bitcoin, truby2018decarbonizing}. This paper introduces a hybrid architecture that replaces Bitcoin's traditional PoW with a centralized, cloud-based collaborative training framework. In this model, miners contribute computing resources to train segments of horizontally scaled machine learning models on preprocessed datasets, ensuring privacy and generating meaningful outputs \cite{li2017securing}. A central server evaluates contributions using two metrics: number of parameters trained and reduction in model loss during each cycle. At the end of every cycle, a weighted lottery selects the winning miner, who receives a digitally signed certificate. This certificate serves as a verifiable substitute for PoW and grants the right to append a block to the blockchain \cite{nakamoto2008bitcoin}. By integrating digital signatures and SHA-256 hashing \cite{nist2015sha}, the system preserves blockchain integrity while redirecting energy toward productive computation. The proposed approach addresses the sustainability concerns of traditional mining by converting resource expenditure into socially valuable work, aligning security incentives with real-world computational progress.
We introduce RegimeNAS, a novel differentiable architecture search framework specifically designed to enhance cryptocurrency trading performance by explicitly integrating market regime awareness. Addressing the limitations of static deep learning models in highly dynamic financial environments, RegimeNAS features three core innovations: (1) a theoretically grounded Bayesian search space optimizing architectures with provable convergence properties; (2) specialized, dynamically activated neural modules (Volatility, Trend, and Range blocks) tailored for distinct market conditions; and (3) a multi-objective loss function incorporating market-specific penalties (e.g., volatility matching, transition smoothness) alongside mathematically enforced Lipschitz stability constraints. Regime identification leverages multi-head attention across multiple timeframes for improved accuracy and uncertainty estimation. Rigorous empirical evaluation on extensive real-world cryptocurrency data demonstrates that RegimeNAS significantly outperforms state-of-the-art benchmarks, achieving an 80.3% Mean Absolute Error reduction compared to the best traditional recurrent baseline and converging substantially faster (9 vs. 50+ epochs). Ablation studies and regime-specific analysis confirm the critical contribution of each component, particularly the regime-aware adaptation mechanism. This work underscores the imperative of embedding domain-specific knowledge, such as market regimes, directly within the NAS process to develop robust and adaptive models for challenging financial applications.
Aydin Abadi, Basil Aldali, Benito Vincent, Elliot A. J. Hurley · 13 authors
Weather forecasting plays a vital role in disaster preparedness, agriculture, and resource management, yet current centralized forecasting systems are increasingly strained by security vulnerabilities, limited scalability, and susceptibility to single points of failure. To address these challenges, we propose a decentralized weather forecasting framework that integrates Federated Learning (FL) with blockchain technology. FL enables collaborative model training without exposing sensitive local data; this approach enhances privacy and reduces data transfer overhead. Meanwhile, the Ethereum blockchain ensures transparent and dependable verification of model updates. To further enhance the system's security, we introduce a reputation-based voting mechanism that assesses the trustworthiness of submitted models while utilizing the Interplanetary File System (IPFS) for efficient off-chain storage. Experimental results demonstrate that our approach not only improves forecasting accuracy but also enhances system resilience and scalability, making it a viable candidate for deployment in real-world, security-critical environments.
In this paper, we present NetMoniAI, an agentic AI framework for automatic network monitoring and security that integrates decentralized analysis with lightweight centralized coordination. The framework consists of two layers: autonomous micro-agents at each node perform local traffic analysis and anomaly detection. A central controller then aggregates insights across nodes to detect coordinated attacks and maintain system-wide situational awareness. We evaluated NetMoniAI on a local micro-testbed and through NS-3 simulations. Results confirm that the two-tier agentic-AI design scales under resource constraints, reduces redundancy, and improves response time without compromising accuracy. To facilitate broader adoption and reproducibility, the complete framework is available as open source. This enables researchers and practitioners to replicate, validate, and extend it across diverse network environments and threat scenarios. Github link: https://github.com/pzambare3/NetMoniAI
Jane Carney, Kushal Upreti, Gaby G. Dagher, Tim Andersen
Federated learning enhances traditional deep learning by enabling the joint training of a model with the use of IoT device's private data. It ensures privacy for clients, but is susceptible to data poisoning attacks during training that degrade model performance and integrity. Current poisoning detection methods in federated learning lack a standardized detection method or take significant liberties with trust. In this paper, we present \Sys, a novel blockchain-enabled poison detection framework in federated learning. The framework decentralizes the role of the global server across participating clients. We introduce a judge model used to detect data poisoning in model updates. The judge model is produced by each client and verified to reach consensus on a single judge model. We implement our solution to show \Sys is robust against data poisoning attacks and the creation of our judge model is scalable.
Dan Ivanov, Tristan Freiberg, Shahabi, Shirin, Jonathan Gold · 5 authors
DSperse is a modular framework for distributed machine learning inference with strategic cryptographic verification. Operating within the emerging paradigm of distributed zero-knowledge machine learning, DSperse avoids the high cost and rigidity of full-model circuitization by enabling targeted verification of strategically chosen subcomputations. These verifiable segments, or "slices", may cover part or all of the inference pipeline, with global consistency enforced through audit, replication, or economic incentives. This architecture supports a pragmatic form of trust minimization, localizing zero-knowledge proofs to the components where they provide the greatest value. We evaluate DSperse using multiple proving systems and report empirical results on memory usage, runtime, and circuit behavior under sliced and unsliced configurations. By allowing proof boundaries to align flexibly with the model's logical structure, DSperse supports scalable, targeted verification strategies suited to diverse deployment needs.
Open access
2 source records
Adversarial Robustness in Machine Learning
Physical Unclonable Functions (PUFs) and Hardware Security
Modeling evolving interactions among entities is critical in many real-world tasks. For example, predicting driver maneuvers in traffic requires tracking how neighboring vehicles accelerate, brake, and change lanes relative to one another over consecutive frames. Likewise, detecting financial fraud hinges on following the flow of funds through successive transactions as they propagate through the network. Unlike classic time-series forecasting, these settings demand reasoning over who interacts with whom and when, calling for a temporal-graph representation that makes both the relations and their evolution explicit. Existing temporal-graph methods typically use snapshot graphs to encode temporal evolution. We introduce a full-history graph that instantiates one node for every entity at every time step and separates two edge sets: (i) intra-time-step edges that capture relations within a single frame and (ii) inter-time-step edges that connect an entity to itself at consecutive steps. To learn on this graph we design an Edge-Type Decoupled Network (ETDNet) with parallel modules: a graph-attention module aggregates information along intra-time-step edges, a multi-head temporal-attention module attends over an entity's inter-time-step history, and a fusion module combines the two messages after every layer. Evaluated on driver-intention prediction (Waymo) and Bitcoin fraud detection (Elliptic++), ETDNet consistently surpasses strong baselines, lifting Waymo joint accuracy to 75.6\% (vs. 74.1\%) and raising Elliptic++ illicit-class F1 to 88.1\% (vs. 60.4\%). These gains demonstrate the benefit of representing structural and temporal relations as distinct edges in a single graph.
The convergence of Web3 technologies and AI agents represents a rapidly evolving frontier poised to reshape decentralized ecosystems. This paper presents the first and most comprehensive analysis of the intersection between Web3 and AI agents, examining five critical dimensions: landscape, economics, governance, security, and trust mechanisms. Through an analysis of 133 existing projects, we first develop a taxonomy and systematically map the current market landscape (RQ1), identifying distinct patterns in project distribution and capitalization. Building upon these findings, we further investigate four key integrations: (1) the role of AI agents in participating in and optimizing decentralized finance (RQ2); (2) their contribution to enhancing Web3 governance mechanisms (RQ3); (3) their capacity to strengthen Web3 security via intelligent vulnerability detection and automated smart contract auditing (RQ4); and (4) the establishment of robust reliability frameworks for AI agent operations leveraging Web3's inherent trust infrastructure (RQ5). By synthesizing these dimensions, we identify key integration patterns, highlight foundational challenges related to scalability, security, and ethics, and outline critical considerations for future research toward building robust, intelligent, and trustworthy decentralized systems with effective AI agent interactions.
Generative modeling of high-frequency limit order book (LOB) dynamics is a critical yet unsolved challenge in quantitative finance, essential for robust market simulation and strategy backtesting. Existing approaches are often constrained by simplifying stochastic assumptions or, in the case of modern deep learning models like Transformers, rely on tokenization schemes that affect the high-precision, numerical nature of financial data through discretization and binning. To address these limitations, we introduce ByteGen, a novel generative model that operates directly on the raw byte streams of LOB events. Our approach treats the problem as an autoregressive next-byte prediction task, for which we design a compact and efficient 32-byte packed binary format to represent market messages without information loss. The core novelty of our work is the complete elimination of feature engineering and tokenization, enabling the model to learn market dynamics from its most fundamental representation. We achieve this by adapting the H-Net architecture, a hybrid Mamba-Transformer model that uses a dynamic chunking mechanism to discover the inherent structure of market messages without predefined rules. Our primary contributions are: 1) the first end-to-end, byte-level framework for LOB modeling; 2) an efficient packed data representation; and 3) a comprehensive evaluation on high-frequency data. Trained on over 34 million events from CME Bitcoin futures, ByteGen successfully reproduces key stylized facts of financial markets, generating realistic price distributions, heavy-tailed returns, and bursty event timing. Our findings demonstrate that learning directly from byte space is a promising and highly flexible paradigm for modeling complex financial systems, achieving competitive performance on standard market quality metrics without the biases of tokenization.