Kun Li, Guangpeng Qi, Guangyong Shang, Wanli Deng · 6 authors
With the widespread adoption of blockchain technology, the transaction fee mechanism (TFM) in blockchain systems has become a prominent research topic. An ideal TFM should satisfy user incentive compatibility (UIC), miner incentive compatibility (MIC), and miner-user side contract proofness ($c$-SCP). However, state-of-the-art works either fail to meet these three properties simultaneously or only satisfy them under certain conditions. In this paper, we propose a burning $N$-price auction TFM named BNP. This mechanism divides the transaction fee into a base fee, which is burned, and a priority fee, which is allocated to miners. Theoretical proofs and experimental analyses demonstrate that, even under conditions of significant transaction congestion, this mechanism satisfies UIC, MIC, and $c$-SCP simultaneously. Furthermore, the BNP mechanism is not constrained by the type of blockchain consensus, making it widely applicable.
Decentralized Physical Infrastructure Networks (De-PINS) are secured and governed by blockchains but beyond crypto-economic incentives, they lack measures to establish trust in participating devices and their services. The verification of relevant device credentials during device registration helps to overcome this problem. However, on-chain verification in decentralized applications (dApp) discloses potentially confidential device attributes whereas off-chain verification introduces undesirable trust assumptions. In this paper, we propose a credential-based device registration (CDR) mechanism that verifies device credentials on the blockchain and leverages zero-knowledge proofs (ZKP) to protect confidential device attributes from being disclosed. We characterize CDR for DePINs, present a general system model, and technically evaluate CDR using zkSNARKs with Groth16 [1] and Marlin [2]. Our experiments give first insights into performance impacts and reveal a tradeoff between the applied proof systems.
We engineer blockchain based risk managed portfolios by creating three funds with distinct risk and return profiles: 1) Alpha - high risk portfolio; 2) Beta - mimics the wider market; and 3) Gamma - represents the risk free rate adjusted to beat inflation. Each of the sub-funds (Alpha, Beta and Gamma) provides risk parity because the weight of each asset in the corresponding portfolio is set to be inversely proportional to the risk derived from investing in that asset. This can be equivalently stated as equal risk contributions from each asset towards the overall portfolio risk. We provide detailed mechanics of combining assets - including mathematical formulations - to obtain better risk managed portfolios. The descriptions are intended to show how a risk parity based efficient frontier portfolio management engine - that caters to different risk appetites of investors by letting each individual investor select their preferred risk-return combination - can be created seamlessly on blockchain. Any Investor - using decentralized ledger technology - can select their desired level of risk, or return, and allocate their wealth accordingly among the sub funds, which balance one another under different market conditions. This evolution of the risk parity principle - resulting in a mechanism that is geared to do well under all market cycles - brings more robust performance and can be termed as conceptual parity. We have given several numerical examples that illustrate the various scenarios that arise when combining Alpha, Beta and Gamma to obtain Parity. The final investment frontier is now possible - a modification to the efficient frontier, thus becoming more than a mere theoretical construct - on blockchain since anyone from anywhere can participate at anytime to obtain wealth appreciation based on their financial goals.
In this paper, we present a decentralized network protocol, Space Network Protocol, based on Communication Satellite Services. The protocol outlines a method for distributing information about the status of satellite communication services across the entire blockchain network, facilitating fairness and transparency in all communication services. Our primary objective is to standardize the services delivered by all satellite networks under the communication satellite protocol. This standard remains intact regardless of potential unreliability associated with the satellites or the terminal hardware. We proposed PoD (Proof of Distribution) to verify if the communication satellites are online and PoF (Proof of Flow) to authenticate the actual data flow provided by the communication satellites. In addition, we also proposed PoM (Proof of Mesh) to verify if the communication satellites have successfully meshed together. Utilizing zero-knowledge proof and multi-party cryptographic computations, we can evaluate the service provisioning parameters of each satellite, even in the presence of potential terminal or network node fraud. This method offers technical support for the modeling of distributed network services.
The latest advancements in Distributed Ledger Technology (DLT), and payment architectures such as the UK's New Payments Architecture, present opportunities for leveraging the hidden informational value and intelligence within payments. In this paper, we present Smart Money, an infrastructure capability for a Central Bank Digital Currency (CBDC) which enables real-time Value Added Tax split payments, oversight, controlled access and smart policy implementation. This capability is implemented as a prototype, called Making Tax Smart (MTS), which is based on the open source R3 Corda framework. The results presented herein confirm that it is feasible to build a MTS capability which is scalable and co-exists with the current payment systems. Smart Money CBDC has the potential to mobilise payments data in order to transform the role of money from a blunt instrument to a government policy sensor and actuator without disrupting the existing money system. DLT, smart contracts and programmable money have a crucial role to play with benefits for government departments, the economy and society as a whole.
Shiva Raj Pokhrel, Luxing Yang, Sutharshan Rajasegarar, Gang Li
This paper introduces a robust zero-trust architecture (ZTA) tailored for the decentralized system that empowers efficient remote work and collaboration within IoT networks. Using blockchain-based federated learning principles, our proposed framework includes a robust aggregation mechanism designed to counteract malicious updates from compromised clients, enhancing the security of the global learning process. Moreover, secure and reliable trust computation is essential for remote work and collaboration. The robust ZTA framework integrates anomaly detection and trust computation, ensuring secure and reliable device collaboration in a decentralized fashion. We introduce an adaptive algorithm that dynamically adjusts to varying user contexts, using unsupervised clustering to detect novel anomalies, like zero-day attacks. To ensure a reliable and scalable trust computation, we develop an algorithm that dynamically adapts to varying user contexts by employing incremental anomaly detection and clustering techniques to identify and share local and global anomalies between nodes. Future directions include scalability improvements, Dirichlet process for advanced anomaly detection, privacy-preserving techniques, and the integration of post-quantum cryptographic methods to safeguard against emerging quantum threats.
The increasing complexity of digital asset transactions across multiple blockchains necessitates a robust atomic swap protocol that can securely handle more than two participants. Traditional atomic swap protocols, including those based on adaptor signatures, are vulnerable to malicious dropout attacks, which break atomicity and compromise the security of the transaction. This paper presents a novel multi-party atomic swap protocol that operates almost entirely off-chain, requiring only a single on-chain transaction for finalization. Our protocol leverages Schnorr-like signature verification and a universal adaptor secret to ensure atomicity and scalability across any number of participants and blockchains without the need for smart contracts or trusted third parties. By addressing key challenges such as collusion attacks and malicious dropouts, our protocol significantly enhances the security and efficiency of multi-party atomic swaps. Our contributions include the first scalable, fully off-chain protocol for atomic swaps involving any number of participants, adding zero overhead to native blockchains, and providing a practical and cost-effective solution for decentralized asset exchanges.
Khalid Hourani, William K. Moses, Gopal Pandurangan
We focus on designing Peer-to-Peer (P2P) networks that enable efficient communication. Over the last two decades, there has been substantial algorithmic research on distributed protocols for building P2P networks with various desirable properties such as high expansion, low diameter, and robustness to a large number of deletions. A key underlying theme in all of these works is to distributively build a \emph{random graph} topology that guarantees the above properties. Moreover, the random connectivity topology is widely deployed in many P2P systems today, including those that implement blockchains and cryptocurrencies. However, a major drawback of using a random graph topology for a P2P network is that the random topology does not respect the \emph{underlying} (Internet) communication topology. This creates a large \emph{propagation delay}, which is a major communication bottleneck in modern P2P networks. In this paper, we work towards designing P2P networks that are communication-efficient (having small propagation delay) with provable guarantees. Our main contribution is an efficient, decentralized protocol, $\textsc{Close-Weaver}$, that transforms a random graph topology embedded in an underlying Euclidean space into a topology that also respects the underlying metric. We then present efficient point-to-point routing and broadcast protocols that achieve essentially optimal performance with respect to the underlying space.
The Internet of Things (IoT) is increasingly prevalent in various applications, such as healthcare and logistics. One significant service of IoT technologies that is essential for these applications is localization. The goal of this service is to determine the precise position of a specific target. The localization data often needs to be private, accessible only to specific entities, and must maintain authenticity and integrity to ensure trustworthiness. IoT technology has evolved significantly, with Ultra-Wide Band (UWB) technology enhancing localization speed and precision. However, IoT device security remains a concern, as devices can be compromised or act maliciously. Furthermore, localization data is typically stored centrally, which can also be a point of vulnerability. Our approach leverages the features of a permissioned blockchain, specifically Hyperledger Fabric, to address these challenges. Hyperledger Fabric's collection feature ensures data privacy, and its smart contracts (chaincode) enhance trustworthiness. We tested our solution using a network of devices known as CLOVES, demonstrating robust performance characteristics with UWB technology. Additionally, we evaluated our approach through an indoor localization use case.
Jun 17, 2024·Proceedings of the 2024 IEEE 35th International Conference on Application-Specific Systems, Architectures and Processors (ASAP), 24-26 July 2024, pp. 135-142
Zhuoheng Ran, Muhammad A. A. Abdelgawad, Zekai Zhang, Ray C. C. Cheung · 5 authors
The dramatic surge in the utilisation of generative artificial intelligence (GenAI) underscores the need for a secure and efficient mechanism to responsibly manage, use and disseminate multi-dimensional data generated by artificial intelligence (AI). In this paper, we propose a blockchain-based copyright traceability framework called ring oscillator-singular value decomposition (RO-SVD), which introduces decomposition computing to approximate low-rank matrices generated from hardware entropy sources and establishes an AI-generated content (AIGC) copyright traceability mechanism at the device level. By leveraging the parallelism and reconfigurability of field-programmable gate arrays (FPGAs), our framework can be easily constructed on existing AI-accelerated devices and provide a low-cost solution to emerging copyright issues of AIGC. We developed a hardware-software (HW/SW) co-design prototype based on comprehensive analysis and on-board experiments with multiple AI-applicable FPGAs. Using AI-generated images as a case study, our framework demonstrated effectiveness and emphasised customisation, unpredictability, efficiency, management and reconfigurability. To the best of our knowledge, this is the first practical hardware study discussing and implementing copyright traceability specifically for AI-generated content.
Similar to other transaction processing frameworks, blockchain systems need to be dynamically reconfigured to adapt to varying workloads and changes in network conditions. However, achieving optimal reconfiguration is particularly challenging due to the complexity of the blockchain stack, which has diverse configurable parameters. This paper explores the concept of self-driving blockchains, which have the potential to predict workload changes and reconfigure themselves for optimal performance without human intervention. We compare and contrast our discussions with existing research on databases and highlight aspects unique to blockchains. We identify specific parameters and components in Hyperledger Fabric, a popular permissioned blockchain system, that are suitable for autonomous adaptation and offer potential solutions for the challenges involved. Further, we implement three demonstrative locally autonomous systems, each targeting a different layer of the blockchain stack, and conduct experiments to understand the feasibility of our findings. Our experiments indicate up to 11% improvement in success throughput and a 30% decrease in latency, making this a significant step towards implementing a fully autonomous blockchain system in the future.
Blockchains implement decentralized monetary systems and applications. Recent advancements enable what we call tethering a blockchain to a primary blockchain, securing the tethered chain by nodes that post primary-chain tokens as collateral. The collateral ensures nodes behave as intended, until they withdraw it. Unlike a Proof of Stake blockchain which uses its own token as collateral, using primary-chain tokens shields the tethered chain from the volatility of its own token. State-of-the-art tethered blockchains either rely on centralization, or make extreme assumptions: that all communication is synchronous, that operators remain correct even post-withdrawal, or that withdrawals can be indefinitely delayed by tethered-chain failures. We prove that with partial synchrony, there is no solution to the problem. However, under the standard assumptions that communication with the primary chain is synchronous and communication among the tethered chain nodes is partially synchronous, there is a solution. We present a tethered-chain protocol called Aegis. Aegis uses references from its blocks to primary blocks to define committees, checkpoints on the primary chain to perpetuate decisions, and resets to establish new committees when previous ones become obsolete. It ensures safety at all times and rapid progress when latency among Aegis nodes is low.
Automated Market Makers (AMMs) are a cornerstone of decentralized finance. They are smart contracts (stateful programs) running on blockchains. They enable virtual token exchange: traders swap tokens with the AMM for a fee, while liquidity providers supply liquidity and receive these fees. Demand for AMMs is growing rapidly, but our experiment-based estimates show that current architectures cannot meet the projected demand by 2029. This is because the execution of existing AMMs is non-parallelizable. We present SAMM, an AMM comprising multiple shards. All shards are AMMs running on the same chain, but their independence enables parallel execution. The security of SAMM, unlike in classical sharding solutions, relies on incentive compatibility. Therefore, SAMM introduces a novel fee design. Through analysis of Subgame-Perfect Nash Equilibria (SPNE), we show that SAMM incentivizes the desired behavior: liquidity providers balance liquidity among all shards, overcoming destabilization attacks, and trades are evenly distributed. We validate our game-theoretic analysis with a simulation using real-world data. We evaluate SAMM by implementing and deploying it on local testnets of the Sui and Solana blockchains. To our knowledge, this is the first quantification of high-demand-contract performance. SAMM improves throughput by 5x and 16x, respectively, potentially more with better parallelization of the underlying blockchains. It is directly deployable, mitigating the upcoming scaling bottleneck.
Lei Xu, Yulong Chen, Yuntian Chen, Longfeng Nie · 7 authors
Machine learning models offer the capability to forecast future energy production or consumption and infer essential unknown variables from existing data. However, legal and policy constraints within specific energy sectors render the data sensitive, presenting technical hurdles in utilizing data from diverse sources. Therefore, we propose adopting a Swarm Learning (SL) scheme, which replaces the centralized server with a blockchain-based distributed network to address the security and privacy issues inherent in Federated Learning (FL)'s centralized architecture. Within this distributed Collaborative Learning framework, each participating organization governs nodes for inter-organizational communication. Devices from various organizations utilize smart contracts for parameter uploading and retrieval. Consensus mechanism ensures distributed consistency throughout the learning process, guarantees the transparent trustworthiness and immutability of parameters on-chain. The efficacy of the proposed framework is substantiated across three real-world energy series modeling scenarios with superior performance compared to Local Learning approaches, simultaneously emphasizing enhanced data security and privacy over Centralized Learning and FL method. Notably, as the number of data volume and the count of local epochs increases within a threshold, there is an improvement in model performance accompanied by a reduction in the variance of performance errors. Consequently, this leads to an increased stability and reliability in the outcomes produced by the model.
William Boitier, Antonella Del Pozzo, Álvaro García-Pérez, Stéphane Gazut · 12 authors
Federated Learning is a decentralized framework that enables multiple clients to collaboratively train a machine learning model under the orchestration of a central server without sharing their local data. The centrality of this framework represents a point of failure which is addressed in literature by blockchain-based federated learning approaches. While ensuring a fully-decentralized solution with traceability, such approaches still face several challenges about integrity, confidentiality and scalability to be practically deployed. In this paper, we propose Fantastyc, a solution designed to address these challenges that have been never met together in the state of the art.
Margarita Capretto, Martín Ceresa, Antonio Fernández Anta, Pedro Moreno-Sánchez · 5 authors
Modern blockchains face a scalability challenge due to the intrinsic throughput limitations of consensus protocols. Layer 2 optimistic rollups (L2) are a faster alternative that offer the same interface in terms of smart contract development and user interaction. Optimistic rollups perform most computations offchain and make light use of an underlying blockchain (L1) to guarantee correct behavior, implementing a cheaper blockchain on a blockchain solution. With optimistic rollups, a sequencer calculates offchain batches of L2 transactions and commits batches (compressed or hashed) to the L1 blockchain. The use of hashes requires a data service to translate hashes into their corresponding batches. Current L2 implementations consist of a centralized sequencer (central authority) and an optional data availability committee (DAC). In this paper, we propose a decentralized L2 optimistic rollup based on Setchain, a decentralized Byzantine-tolerant implementation of sets. The main contribution is a fully decentralized "arranger" where arrangers are a formal definition combining sequencers and DACs. We prove our implementation correct and show empirical evidence that our solution scales. A final contribution is a system of incentives (payments) for servers that implement the sequencer and data availability committee protocols correctly, and a fraud-proof mechanism to detect violations of the protocol.
Amir M. Ebrahimi, Bram Adams, Gustavo A. Oliva, Ahmed E. Hassan
The proxy pattern is a well-known design pattern with numerous use cases in several sectors of the software industry. As such, the use of the proxy pattern is also a common approach in the development of complex decentralized applications (DApps) on the Ethereum blockchain. Despite the importance of proxy contracts, little is known about (i) how their prevalence changed over time, (ii) the ways in which developers integrate proxies in the design of DApps, and (iii) what proxy types are being most commonly leveraged by developers. This study bridges these gaps through a comprehensive analysis of Ethereum smart contracts, utilizing a dataset of 50 million contracts and 1.6 billion transactions as of September 2022. Our findings reveal that 14.2% of all deployed smart contracts are proxy contracts. We show that proxy contracts are being more actively used than non-proxy contracts. Also, the usage of proxy contracts in various contexts, transactions involving proxy contracts, and adoption of proxy contracts by users have shown an upward trend over time, peaking at the end of our study period. They are either deployed through off-chain scripts or on-chain factory contracts, with the former and latter being employed in 39.1% and 60.9% of identified usage contexts in turn. We found that while the majority (67.8%) of proxies act as an interceptor, 32.2% enables upgradeability. Proxy contracts are typically (79%) implemented based on known reference implementations with 29.4% being of type ERC-1167, a class of proxies that aims to cheaply reuse and clone contracts' functionality. Our evaluation shows that our proposed behavioral proxy detection method has a precision and recall of 100% in detecting active proxies. Finally, we derive a set of practical recommendations for developers and introduce open research questions to guide future research on the topic.
Federated learning allows several clients to train one machine learning model jointly without sharing private data, providing privacy protection. However, traditional federated learning is vulnerable to poisoning attacks, which can not only decrease the model performance, but also implant malicious backdoors. In addition, direct submission of local model parameters can also lead to the privacy leakage of the training dataset. In this paper, we aim to build a privacy-preserving and Byzantine-robust federated learning scheme to provide an environment with no vandalism (NoV) against attacks from malicious participants. Specifically, we construct a model filter for poisoned local models, protecting the global model from data and model poisoning attacks. This model filter combines zero-knowledge proofs to provide further privacy protection. Then, we adopt secret sharing to provide verifiable secure aggregation, removing malicious clients that disrupting the aggregation process. Our formal analysis proves that NoV can protect data privacy and weed out Byzantine attackers. Our experiments illustrate that NoV can effectively address data and model poisoning attacks, including PGD, and outperforms other related schemes.
Jun Li, Weiwei Zhang, Kang Wei, Guangji Chen · 7 authors
Federated learning (FL) based on the centralized design faces both challenges regarding the trust issue and a single point of failure. To alleviate these issues, blockchain-aided decentralized FL (BDFL) introduces the decentralized network architecture into the FL training process, which can effectively overcome the defects of centralized architecture. However, deploying BDFL in wireless networks usually encounters challenges such as limited bandwidth, computing power, and energy consumption. Driven by these considerations, a dynamic stochastic optimization problem is formulated to minimize the average training delay by jointly optimizing the resource allocation and client selection under the constraints of limited energy budget and client participation. We solve the long-term mixed integer non-linear programming problem by employing the tool of Lyapunov optimization and thereby propose the dynamic resource allocation and client scheduling BDFL (DRC-BDFL) algorithm. Furthermore, we analyze the learning performance of DRC-BDFL and derive an upper bound for convergence regarding the global loss function. Extensive experiments conducted on SVHN and CIFAR-10 datasets demonstrate that DRC-BDFL achieves comparable accuracy to baseline algorithms while significantly reducing the training delay by 9.24% and 12.47%, respectively.
Huong Q. Nguyen, Tri Nguyen, Lauri Lovén, Susanna Pirttikangas
This paper presents a fully coupled blockchain-assisted federated learning architecture that effectively eliminates single points of failure by decentralizing both the training and aggregation tasks across all participants. Our proposed system offers a high degree of flexibility, allowing participants to select shared models and customize the aggregation for local needs, thereby optimizing system performance, including accurate inference results. Notably, the integration of blockchain technology in our work is to promote a trustless environment, ensuring transparency and non-repudiation among participants when abnormalities are detected. To validate the effectiveness, we conducted real-world federated learning deployments on a private Ethereum platform, using two different models, ranging from simple to complex neural networks. The experimental results indicate comparable inference accuracy between centralized and decentralized federated learning settings. Furthermore, our findings indicate that asynchronous aggregation is a feasible option for simple learning models. However, complex learning models require greater training model involvement in the aggregation to achieve high model quality, instead of asynchronous aggregation. With the implementation of asynchronous aggregation and the flexibility to select models, participants anticipate decreased aggregation time in each communication round, while experiencing minimal accuracy trade-off.
In an era of increasing concerns over intellectual property rights, traditional peer review systems face challenges including plagiarism, malicious attacks, and unauthorized data access. BeerReview, a blockchain-enabled peer review platform, offers a robust solution, enabling experts and scholars to participate actively in the review process without concerns about plagiarism or security threats. Following the completion of its alpha testing, BeerReview demonstrates the potential for expanded deployment. This platform offers improved convenience and more robust intellectual property protection within the peer review process with open source initiative.
Crypto rug pulls have become a major threat to the integrity of blockchain ecosystems, with illicit activities surging and resulting in significant financial losses. Existing approaches to detect crypto asset fraud are based on the analysis of transaction graphs within blockchain networks. While effective for identifying transaction patterns indicative of fraud, existing approaches do not capture the semantics of transactions and are constrained to blockchain data. Consequently, preventive methods based on transaction graphs are inherently limited. In response to these limitations, we propose the Kosmosis approach, which aims to incrementally construct a knowledge graph as new blockchain and social media data become available. During construction, it aims to extract the semantics of transactions and connects blockchain addresses to their real-world entities by fusing blockchain and social media data in a knowledge graph. This enables novel preventive methods against rug pulls as a form of crypto asset fraud. To demonstrate the effectiveness and practical applicability of the Kosmosis approach, we examine a series of real-world rug pulls. Through this case, we illustrate how Kosmosis can aid in identifying such fraudulent activities by leveraging the insights from the constructed knowledge graph.
Proof of Work (PoW) has extensively served as the foundation of blockchain's security, consistency, and tamper-resistance. However, long has it been criticized for its tremendous and inefficient utilization of computational power and energy. Proof of useful work (PoUW) can effectively address the blockchain's sustainability issue by redirecting the computing power towards useful tasks instead of meaningless hash puzzles. Optimization problems, whose solutions are often hard to find but easy to verify, present a viable class of useful work for PoUW. However, most existing studies rely on either specific problems or particular algorithms, and there lacks comprehensive security analysis for optimization-based PoUW. Therefore, in this work, we build a generic PoUW framework that solves useful optimization problems for blockchain maintenance. Through modeling and analysis, we identify the security conditions against both selfish and malicious miners. Based on these conditions, we establish a lower bound for the security overhead and uncover the trade-off between useful work efficiency and PoW safeguard. We further offer the reward function design guidelines to guarantee miners' integrity. We also show that the optimization-based PoUW is secure in the presence of malicious miners and derive a necessary condition against long-range attacks. Finally, simulation results are presented to validate our analytical results.
A Service Level Agreement (SLA) is a commitment between a client and provider that assures the quality of service (QoS) a client can expect to receive when purchasing a service. However, evidence of SLA violations in Internet of Things (IoT) service monitoring data can be manipulated by the provider or consumer, resulting in an issue of trust between contracted parties. The following research aims to explore the use of blockchain technology in monitoring IoT systems using smart contracts so that SLA violations captured are irrefutable amongst service providers and clients. The research focuses on the development of a Java library that is capable of generating a smart contract from a given SLA. A smart contract generated by this library is validated through a mock scenario presented in the form of a Remote Patient Monitoring IoT system. In this scenario, the findings demonstrate a 100 percent success rate in capturing all emulated violations.