Moshe Babaioff, Shahar Dobzinski, Sigal Oren, Aviv Zohar
Many large decentralized systems rely on information propagation to ensure their proper function. We examine a common scenario in which only participants that are aware of the information can compete for some reward, and thus informed participants have an incentive not to propagate information to others. One recent example in which such tension arises is the 2009 DARPA Network Challenge (finding red balloons). We focus on another prominent example: Bitcoin, a decentralized electronic currency system. Bitcoin represents a radical new approach to monetary systems. It has been getting a large amount of public attention over the last year, both in policy discussions and in the popular press. Its cryptographic fundamentals have largely held up even as its usage has become increasingly widespread. We find, however, that it exhibits a fundamental problem of a different nature, based on how its incentives are structured. We propose a modification to the protocol that can eliminate this problem. Bitcoin relies on a peer-to-peer network to track transactions that are performed with the currency. For this purpose, every transaction a node learns about should be transmitted to its neighbors in the network. The current implemented protocol provides an incentive to nodes to not broadcast transactions they are aware of. Our solution is to augment the protocol with a scheme that rewards information propagation. Since clones are easy to create in the Bitcoin system, an important feature of our scheme is Sybil-proofness. We show that our proposed scheme succeeds in setting the correct incentives, that it is Sybil-proof, and that it requires only a small payment overhead, all this is achieved with iterated elimination of dominated strategies. We complement this result by showing that there are no reward schemes in which information propagation and no self-cloning is a dominant strategy.
Autonomic computing has become increasingly popular during recent years. Many mobile autonomic and context-aware applications exhibit self-organization in dynamic environments adopted from multi-agent, or swarm, research. The basic paradigm behind swarm systems is that tasks can be more efficiently dispatched through the use of multiple, simple autonomous agents instead of a single, sophisticated one. Such systems are much more adaptive, scalable, and robust than those based on a single, highly capable, agent. A swarm system can generally be defined as a decentralized group (swarm) of autonomous agents (particles) that are simple, with limited processing capabilities. Particles must cooperate intelligently to achieve common tasks.
Raluca Ada Popa, Andrew J. Blumberg, Hari Balakrishnan, Frank H. Li
A significant and growing class of location-based mobile applications aggregate position data from individual devices at a server and compute aggregate statistics over these position streams. Because these devices can be linked to the movement of individuals, there is significant danger that the aggregate computation will violate the location privacy of individuals. This paper develops and evaluates PrivStats, a system for computing aggregate statistics over location data that simultaneously achieves two properties: first, provable guarantees on location privacy even in the face of any side information about users known to the server, and second, privacy-preserving accountability (i.e., protection against abusive clients uploading large amounts of spurious data). PrivStats achieves these properties using a new protocol for uploading and aggregating data anonymously as well as an efficient zero-knowledge proof of knowledge protocol we developed from scratch for accountability. We implemented our system on Nexus One smartphones and commodity servers. Our experimental results demonstrate that PrivStats is a practical system: computing a common aggregate (e.g., count) over the data of 10,000 clients takes less than 0.46 s at the server and the protocol has modest latency (0.6 s) to upload data from a Nexus phone. We also validated our protocols on real driver traces from the CarTel project.