Temporary work is an employment situation useful and suitable in all occasions in which business needs to adjust more easily and quickly to workload fluctuations or maintain staffing flexibility. Temporary workers play therefore an important role in many companies, but this kind of activity is subject to a special form of legal protections and many aspects and risks must be taken into account both employers and employees. In this work we propose a blockchain-based system that aims to ensure respect for the rights for all actors involved in a temporary employment, in order to provide employees with the fair and legal remuneration (including taxes) of work performances and a protection in the case employer becomes insolvent. At the same time, our system wants to assist the employer in processing contracts with a fully automated and fast procedure. To resolve these problems we propose the D-ES (Decentralized Employment System). We first model the employment relationship as a state system. Then we describe the enabling technology that makes us able to realize the D-ES. In facts, we propose the implementation of a DLT (Decentralized Ledger Technology) based system, consisting in a blockchain system and of a web-based environment. Thanks the decentralized application platforms that makes us able to develop smart contracts, we define a discrete event control system that works inside the blockchain. In addition, we discuss the temporary work in agriculture as a interesting case of study.
Blockchain uses the idea of storing transaction data in the form of a distributed ledger wherein each node in the network stores a current copy of the sequence of transactions in the form of a hash chain. This requirement of storing the entire ledger incurs a high storage cost that grows undesirably large for high transaction rates and large networks. In this work we use the ideas of secret key sharing, private key encryption, and distributed storage to design a coding scheme such that each node stores only a part of the entire transaction thereby reducing the storage cost to a fraction of its original cost. When further using dynamic zone allocation, we show the coding scheme can also improve the integrity of the transaction data in the network over current schemes. Further, block validation (bitcoin mining) consumes a significant amount of energy as it is necessary to determine a hash value satisfying a specific set of constraints; we show that using dynamic distributed storage reduces these energy costs.
Most user authentication methods and identity proving systems rely on a centralized database. Such information storage presents a single point of compromise from a security perspective. If this system is compromised it poses a direct threat to users' digital identities. This paper proposes a decentralized authentication method, called the Horcrux protocol, in which there is no such single point of compromise. The protocol relies on decentralized identifiers (DIDs) under development by the W3C Verifiable Claims Community Group and the concept of self-sovereign identity. To accomplish this, we propose specification and implementation of a decentralized biometric credential storage option via blockchains using DIDs and DID documents within the IEEE 2410-2017 Biometric Open Protocol Standard (BOPS).
In this work, we propose a straightforward method to derive Elliptic Curve Digital Signature Algorithm (ECDSA) key pairs from embeddings created using Deep Learning and Metric Learning approaches. We also show that these keys allows the derivation of cryptocurrencies (such as Bitcoin) addresses that can be used to transfer and receive funds, allowing novel Blockchain-based applications that can be used to transfer funds or data directly to domains such as image, text, sound or any other domain where Deep Learning can extract high-quality embeddings; providing thus a novel integration between the properties of the Blockchain-based technologies such as trust minimization and decentralization together with the high-quality learned representations from Deep Learning techniques.
Shehar Bano, Alberto Sonnino, Mustafa Al-Bassam, Sarah Azouvi · 7 authors
The blockchain initially gained traction in 2008 as the technology underlying bitcoin, but now has been employed in a diverse range of applications and created a global market worth over $150B as of 2017. What distinguishes blockchains from traditional distributed databases is the ability to operate in a decentralized setting without relying on a trusted third party. As such their core technical component is consensus: how to reach agreement among a group of nodes. This has been extensively studied already in the distributed systems community for closed systems, but its application to open blockchains has revitalized the field and led to a plethora of new designs. The inherent complexity of consensus protocols and their rapid and dramatic evolution makes it hard to contextualize the design landscape. We address this challenge by conducting a systematic and comprehensive study of blockchain consensus protocols. After first discussing key themes in classical consensus protocols, we describe: first protocols based on proof-of-work (PoW), second proof-of-X (PoX) protocols that replace PoW with more energy-efficient alternatives, and third hybrid protocols that are compositions or variations of classical consensus protocols. We develop a framework to evaluate their performance, security and design properties, and use it to systematize key themes in the protocol categories described above. This evaluation leads us to identify research gaps and challenges for the community to consider in future research endeavours.
Felix Engelmann, Florian Glaser, Henning Kopp, Frank Kargl · 5 authors
Payment channel networks are supposed to overcome technical scalability limitations of blockchain infrastructure by employing a special overlay network with fast payment confirmation and only sporadic settlement of netted transactions on the blockchain. However, they introduce economic routing constraints that limit decentralized scalability and are currently not well understood. In this paper, we model the economic incentives for participants in payment channel networks. We provide the first formal model of payment channel economics and analyze how the cheapest path can be found. Additionally, our simulation assesses the long-term evolution of a payment channel network. We find that even for small routing fees, sometimes it is cheaper to settle the transaction directly on the blockchain.
Public key quantum money can be seen as a version of the quantum no-cloning theorem that holds even when the quantum states can be verified by the adversary. In this work, investigate quantum lightning, a formalization of "collision-free quantum money" defined by Lutomirski et al. [ICS'10], where no-cloning holds even when the adversary herself generates the quantum state to be cloned. We then study quantum money and quantum lightning, showing the following results: - We demonstrate the usefulness of quantum lightning by showing several potential applications, such as generating random strings with a proof of entropy, to completely decentralized cryptocurrency without a block-chain, where transactions is instant and local. - We give win-win results for quantum money/lightning, showing that either signatures/hash functions/commitment schemes meet very strong recently proposed notions of security, or they yield quantum money or lightning. - We construct quantum lightning under the assumed multi-collision resistance of random degree-2 systems of polynomials. - We show that instantiating the quantum money scheme of Aaronson and Christiano [STOC'12] with indistinguishability obfuscation that is secure against quantum computers yields a secure quantum money scheme
Saurabh Raje, Shyamal Vaderia, Neil Wilson, Rudrakh Panigrahi
This paper describes the design and development of a decentralized firewall system powered by a novel malware detection engine. The firewall is built using blockchain technology. The detection engine aims to classify Portable Executable (PE) files as malicious or benign. File classification is carried out using a deep belief neural network (DBN) as the detection engine. Our approach is to model the files as grayscale images and use the DBN to classify those images into the aforementioned two classes. An extensive data set of 10,000 files is used to train the DBN. Validation is carried out using 4,000 files previously unexposed to the network. The final result of whether to allow or block a file is obtained by arriving at a proof of work based consensus in the blockchain network.
As the core issue of blockchain, the mining requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to the high computing power needed. Thus, the development of blockchain in mobile applications is restricted. In this paper, we, for the first time, consider the edge computing as the network enabler for mobile blockchain. In particular, we study optimal pricing-based edge computing resource management to support mobile blockchain applications where the mining process can be offloaded to an Edge computing Service Provider (ESP). We adopt a two-stage Stackelberg game to jointly maximize the profit of the ESP and the individual utilities of different miners. In Stage~I, the ESP sets the price of edge computing services. In Stage~II, the miners decide on the service demand to purchase based on the observed prices. We apply the backward induction to analyze the sub-game perfect equilibrium in each stage for uniform and discriminatory pricing schemes. Further, the existence and uniqueness of Stackelberg game are validated for both pricing schemes. At last, the performance evaluation shows that the ESP intends to set the maximum possible value as optimal price for profit maximization under uniform pricing. In addition, the discriminatory pricing helps the ESP to encourage higher total service demand from miners and achieve greater profit correspondingly.
At present, the cloud storage used in searchable symmetric encryption schemes (SSE) is provided in a private way, which cannot be seen as a true cloud. Moreover, the cloud server is thought to be credible, because it always returns the search result to the user, even they are not correct. In order to really resist this malicious adversary and accelerate the usage of the data, it is necessary to store the data on a public chain, which can be seen as a decentralized system. As the increasing amount of the data, the search problem becomes more and more intractable, because there does not exist any effective solution at present. In this paper, we begin by pointing out the importance of storing the data in a public chain. We then innovatively construct a model of SSE using blockchain(SSE-using-BC) and give its security definition to ensure the privacy of the data and improve the search efficiency. According to the size of data, we consider two different cases and propose two corresponding schemes. Lastly, the security and performance analyses show that our scheme is feasible and secure.
Pietro Danzi, Anders E. Kalør, Čedomir Stefanović, Petar Popovski
Blockchain is a technology uniquely suited to support massive number of transactions and smart contracts within the Internet of Things (IoT) ecosystem, thanks to the decentralized accounting mechanism. In a blockchain network, the states of the accounts are stored and updated by the validator nodes, interconnected in a peer-to-peer fashion. IoT devices are characterized by relatively low computing capabilities and low power consumption, as well as sporadic and low-bandwidth wireless connectivity. An IoT device connects to one or more validator nodes to observe or modify the state of the accounts. In order to interact with the most recent state of accounts, a device needs to be synchronized with the blockchain copy stored by the validator nodes. In this work, we describe general architectures and synchronization protocols that enable synchronization of the IoT endpoints to the blockchain, with different communication costs and security levels. We model and analytically characterize the traffic generated by the synchronization protocols, and also investigate the power consumption and synchronization trade-off via numerical simulations. To the best of our knowledge, this is the first study that rigorously models the role of wireless connectivity in blockchain-powered IoT systems.
Permissionless blockchains protocols such as Bitcoin are inherently limited in transaction throughput and latency. Current efforts to address this key issue focus on off-chain payment channels that can be combined in a Payment-Channel Network (PCN) to enable an unlimited number of payments without requiring to access the blockchain other than to register the initial and final capacity of each channel. While this approach paves the way for low latency and high throughput of payments, its deployment in practice raises several privacy concerns as well as technical challenges related to the inherently concurrent nature of payments that have not been sufficiently studied so far. In this work, we lay the foundations for privacy and concurrency in PCNs, presenting a formal definition in the Universal Composability framework as well as practical and provably secure solutions. In particular, we present Fulgor and Rayo. Fulgor is the first payment protocol for PCNs that provides provable privacy guarantees for PCNs and is fully compatible with the Bitcoin scripting system. However, Fulgor is a blocking protocol and therefore prone to deadlocks of concurrent payments as in currently available PCNs. Instead, Rayo is the first protocol for PCNs that enforces non-blocking progress (i.e., at least one of the concurrent payments terminates). We show through a new impossibility result that non-blocking progress necessarily comes at the cost of weaker privacy. At the core of Fulgor and Rayo is Multi-Hop HTLC, a new smart contract, compatible with the Bitcoin scripting system, that provides conditional payments while reducing running time and communication overhead with respect to previous approaches. Our performance evaluation of Fulgor and Rayo shows that a payment with 10 intermediate users takes as few as 5 seconds, thereby demonstrating their feasibility to be deployed in practice.
We introduce Casper, a proof of stake-based finality system which overlays an existing proof of work blockchain. Casper is a partial consensus mechanism combining proof of stake algorithm research and Byzantine fault tolerant consensus theory. We introduce our system, prove some desirable features, and show defenses against long range revisions and catastrophic crashes. The Casper overlay provides almost any proof of work chain with additional protections against block reversions.
Rens W. van der Heijden, Felix Engelmann, David Mödinger, Franziska Schönig · 5 authors
In this paper, we propose a new Blockchain-based message and revocation accountability system called Blackchain. Combining a distributed ledger with existing mechanisms for security in V2X communication systems, we design a distributed event data recorder (EDR) that satisfies traditional accountability requirements by providing a compressed global state. Unlike previous approaches, our distributed ledger solution provides an accountable revocation mechanism without requiring trust in a single misbehavior authority, instead allowing a collaborative and transparent decision making process through Blackchain. This makes Blackchain an attractive alternative to existing solutions for revocation in a Security Credential Management System (SCMS), which suffer from the traditional disadvantages of PKIs, notably including centralized trust. Our proposal becomes scalable through the use of hierarchical consensus: individual vehicles dynamically create clusters, which then provide their consensus decisions as input for road-side units (RSUs), which in turn publish their results to misbehavior authorities. This authority, which is traditionally a single entity in the SCMS, responsible for the integrity of the entire V2X network, is now a set of authorities that transparently perform a revocation, whose result is then published in a global Blackchain state. This state can be used to prevent the issuance of certificates to previously malicious users, and also prevents the authority from misbehaving through the transparency implied by a global system state.
Bitcoin is a cryptocurrency attracting a lot of interest both from the general public and researchers. There is an ongoing debate on the question of users' anonymity: while the Bitcoin protocol has been designed to ensure that the activity of individual users could not be tracked, some methods have been proposed to partially bypass this limitation. In this article, we show how the Bitcoin transaction network can be studied using complex networks analysis techniques, and in particular how community detection can be efficiently used to re-identify multiple addresses belonging to a same user.
In this letter we propose Meta-key, a data-sharing mechanism that enables users share their encrypted data under a blockchain-based decentralized storage architecture. All the data-encryption keys are encrypted by the owner's public key and put onto the blockchain for safe and secure storage and easy key-management. Encrypted data are stored in dedicated storage nodes and proxy re-encryption mechanism is used to ensure secure data-sharing in the untrusted environment. Security analysis of our model shows that the proxy re-encryption adopted in our system is naturally free from collusion-attack due to the specific architecture of Meta-key.
N. Tokareva, A. Gorodilova, S. Agievich, V. Idrisova · 8 authors
The mathematical problems and their solutions of the Third International Students' Olympiad in Cryptography NSUCRYPTO'2016 are presented. We consider mathematical problems related to the construction of algebraic immune vectorial Boolean functions and big Fermat numbers, problems about secrete sharing schemes and pseudorandom binary sequences, biometric cryptosystems and the blockchain technology, etc. Two open problems in mathematical cryptography are also discussed and a solution for one of them proposed by a participant during the Olympiad is described. It was the first time in the Olympiad history.
With the advent of numerous online content providers, utilities and applications, each with their own specific version of privacy policies and its associated overhead, it is becoming increasingly difficult for concerned users to manage and track the confidential information that they share with the providers. Users consent to providers to gather and share their Personally Identifiable Information (PII). We have developed a novel framework to automatically track details about how a users' PII data is stored, used and shared by the provider. We have integrated our Data Privacy ontology with the properties of blockchain, to develop an automated access control and audit mechanism that enforces users' data privacy policies when sharing their data across third parties. We have also validated this framework by implementing a working system LinkShare. In this paper, we describe our framework on detail along with the LinkShare system. Our approach can be adopted by Big Data users to automatically apply their privacy policy on data operations and track the flow of that data across various stakeholders.
Public blockchain networks using proof of work (PoW)-based consensus protocols are considered as a promising platform for decentralized resource management with financial incentive mechanisms. In order to maintain a secured, universal state of the blockchain, PoW-based consensus protocols financially incentivize the nodes in the network to compete for the privilege of block generation through cryptographic puzzle solving. For rational consensus nodes, i.e., miners with limited local computational resources, offloading the computation load for PoW to the cloud/fog providers (CFPs) becomes a viable option. In this paper, we study the interaction between the CFPs and the miners in a PoW-based blockchain network using a game theoretic approach. In particular, we propose a lightweight infrastructure of the PoW-based blockchains, where the computation-intensive part of the consensus process is offloaded to the cloud/fog. We formulate the computation resource management in the blockchain consensus process as a two-stage Stackelberg game, where the profit of the CFP and the utilities of the individual miners are jointly optimized. In the first stage of the game, the CFP sets the price of offered computing resource. In the second stage, the miners decide on the amount of service to purchase accordingly. We apply backward induction to analyze the subgame perfect equilibria in each stage for both uniform and discriminatory pricing schemes. For uniform pricing where the same price applies to all miners, the uniqueness of the Stackelberg equilibrium is validated by identifying the best response strategies of the miners. For discriminatory pricing where the different prices are applied, the uniqueness of the Stackelberg equilibrium is proved by capitalizing on the variational inequality theory. Further, the real experimental results are employed to justify our proposed model.
Oct 1, 2017·2017 4th International Scientific-Practical Conference Problems of Infocommunications. Science and Technology (PIC S&T), Kharkov, Ukraine, 2017, pp. 456-459
In the work, a comparative correlation and fractal analysis of time series of Bitcoin crypto currency rate and community activities in social networks associated with Bitcoin was conducted. A significant correlation between the Bitcoin rate and the community activities was detected. Time series fractal analysis indicated the presence of self-similar and multifractal properties. The results of researches showed that the series having a strong correlation dependence have a similar multifractal structure.
In this paper, we propose BAN-GZKP that optimizes the best to date secure lightweight and energy efficient authentication scheme, BANZKP, designed for WBAN networks. BANZKP is vulnerable to several security attacks such as the replay attack, DDoS attacks at sink and redundancy information crack. Also BANZKP needs an end-to-end authentication which is not compliant with the human body postural mobility. Our scheme, BAN-GZKP, improves both the security and postural mobility resilience of BANZKP. In order to fix the security vulnerabilities of BANZKP, BAN-GZKP uses a novel random key allocation. Moreover, BAN-GZKP uses a hop-by-hop authentication scheme which makes it tolerant to postural mobility. We further prove the reliability of our scheme to various attacks including those to which BANZKP is vulnerable. Furthermore, via extensive simulations we prove that our scheme, BAN-GZKP, outperforms BANZKP in terms of reliability to human body postural mobility for various network parameters (end-to-end delay, number of packets exchanged in the network, number of transmissions). We compared both schemes using representative convergecast strategies with various transmission rates and human postural mobility. When our BAN-GZKP scheme is used the percentage of packets received increases by 34.06%, the end-to-end-delay reduces by 36.02% and the number of transmissions reduces by 8.75% with respect to the case when BANZKP is used. Moreover, BAN-GZKP uses only a three-phase authentication which is optimal in the class of ZKP protocols. Finally, it is important to mention that BAN-GZKP has no additional cost in terms memory, computational complexity or energy consumption compared to BANZKP.
We present a mechanism that puts users in the center of control and empowers them to dictate the access to their collections of data. Revisiting the fundamental mechanisms in security for providing protection, our solution uses capabilities, access lists, and access rights following well-understood formal notions for reasoning about access. This contribution presents a practical, correct, auditable, transparent, distributed, and decentralized mechanism that is well-matched to the current emerging environments including Internet of Things, smart city, precision medicine, and autonomous cars. It is based on well-tested principles and practices used in a distributed authorization, cryptocurrencies, and scalable computing.
Blockchain technology has evolved from being an immutable ledger of transactions for cryptocurrencies to a programmable interactive the environment for building distributed reliable applications. Although, blockchain technology has been used to address various challenges, to our knowledge none of the previous work focused on using blockchain to develop a secure and immutable scientific data provenance management framework that automatically verifies the provenance records. In this work, we leverage blockchain as a platform to facilitate trustworthy data provenance collection, verification, and management. The developed system utilizes smart contracts and open provenance model (OPM) to record immutable data trails. We show that our proposed framework can efficiently and securely capture and validate provenance data, and prevent any malicious modification to the captured data as long as the majority of the participants are honest.
Áron Lászka, Abhishek Dubey, Michael Walker, Douglas C. Schmidt
Power grids are undergoing major changes due to rapid growth in renewable energy resources and improvements in battery technology. While these changes enhance sustainability and efficiency, they also create significant management challenges as the complexity of power systems increases. To tackle these challenges, decentralized Internet-of-Things (IoT) solutions are emerging, which arrange local communities into transactive microgrids. Within a transactive microgrid, "prosumers" (i.e., consumers with energy generation and storage capabilities) can trade energy with each other, thereby smoothing the load on the main grid using local supply. It is hard, however, to provide security, safety, and privacy in a decentralized and transactive energy system. On the one hand, prosumers' personal information must be protected from their trade partners and the system operator. On the other hand, the system must be protected from careless or malicious trading, which could destabilize the entire grid. This paper describes Privacy-preserving Energy Transactions (PETra), which is a secure and safe solution for transactive microgrids that enables consumers to trade energy without sacrificing their privacy. PETra builds on distributed ledgers, such as blockchains, and provides anonymity for communication, bidding, and trading.