Blockchain Papers

Dmitriy Krasikov

The rapid development of the practice of using the Distributed Ledger Technology (DLT) in the area of financial and commercial relations gives rise to problems of uncertainty in the legal regulation of the rights and obligations of participants in relations concerning operation of systems based on this technology. This paper contains a brief review of some notable foreign studies on the problems of determining the applicable law and jurisdiction in the context of using DLT systems.

Vladimir Evsin, Svetlana Shirobokova, S. P. Vorobyev

The paper proposes a technique for the mathematical description of a distributed ledger in industrial applications as a queuing system. A conceptual model of an industrial distributed ledger is represented, determining the main structural elements of the distributed ledger topology such as network nodes, distributed ledger nodes, and distributed ledger services to verify transactions. The distribution functions of random variables typical of this process are determined and represented. The approximation of the tickets distribution via the Erlang arrivals is performed to obtain the most accurate value. The conditions for building the infinitesimal matrix are determined considering the specifics of information processes in the distributed ledger. Normalization conditions are formed. The main integral characteristic exponents required to analyze a distributed ledger as a queuing system are given. To determine the main integral characteristic exponents of the industrial distributed ledger system, a simulation model was developed in the AnyLogic environment.

Ilya Shilov, D A Zakoldaev

The paper considers the problem of constructing a model of the robust distributed ledger for security proof of a multidimensional blockchain. Several requirements for the model are imposed, among which most important are compatibility with existing models and presence of functionalities for external transactions. The authors present an approach to extending existing models based on the analysis of these solutions, their advantages and disadvantages. The model construction is based on universal composability framework. Two models are proposed: a model of the robust distributed ledger and a model of the search and verification protocol. These are meant to be used in security proofs for scaling and registration in a multidimensional blockchain. The proposed model of the robust distributed ledger is an extension of models used in security proofs for consensus mechanisms: proof of work and proof of stake. It duplicates their functions and additionally maintains external transactions. The model of the search and verification protocol implements ideal functionality used for external transaction verification. The results prove that the proposed model does not damage essential security parameters of the robust distributed ledger in presence of external transactions. The study confirms the compatibility of the proposed models with existing analogues implementing robust distributed ledgers. This fact allows using the universal composability theorem for constructing security proofs of multidimensional blockchain and search and verification protocol. The proposed method of extending existing models for security proofs can be used to create new models with additional functions not implemented for security proof of a multidimensional blockchain.

Amir Makhmutov, Sergey Trishin, Konstantin Mironov, Alexey Vulfin

Abstract This paper describes the modeling of the industrial Internet-of-Things network for further exploration of its security properties. The goal is to increase the security of process control systems for industrial facilities based on the development of conceptual foundations, methodology, mathematical models, methods and software tools for comprehensive analysis and cyber security risk management of process control systems for industrial facilities using cognitive modeling technology and data mining. One specific task is modeling DLT implementation for industrial network. Common structure of the proposed modeling network is described. Example of smart contracts for the distributed ledger are presented. Performance of lightweight implementations for ciphers and hash functions are given.

Aarthi Iyer, Rubasri Sundar, Umadevi K.S.

Nowadays the whole world is immersed in data. Starting from creating the data, using the data, sharing the data, everyone has control of their respective data. Even the companies rely highly on data as all of their storage and analysis have been computerized. In most traditional methods, the database which is being deployed is deemed trustworthy. But the threat always persists no matter how secure the database is. Attackers perform various types of attacks possible to gain access, tamper or perform any kind of compromising action on the database which will hamper the working of a company/individual.So, the goal is to achieve security against those attacks and additionally avoiding users to obtain information which they are not authorized to.However, there exists a series of relational data such as medical databases where there are two or more parties involved in a database and the trust factor automatically takes a hit. In this paper, I propose a model, that provides authorization, confidentiality, accessibility and privacy for a healthcare database. \n\n

Alexander Grusho

Leakage of protected data became an acute topic. The system tracking who, where and when has accessed a certain record of such a type of data could be a help in investigating vulnerabilities and weaknesses in defense. Also, it could name and point out responsible staff for the leakage with all legal and justice consequences. The paper considers an approach to build a system to register such kind of facts. The essence is to apply the distributed ledger technology, which is an open data storage. The system allows you to identify users who are trying to retrieve valuable information. At present, a technical and theoretical basis is ready for such solutions. Analysis of the current situation in the area under consideration shows that all the leading players in this segment of the IT market, in parallel with the development of mathematical models and methods of problem-oriented data mining, pay significant attention to the development of special software and hardware tools to support the performance of such tool solutions.

Gleb Savin

The transport and logistics system is a high-tech intelligent system that focuses on the development of the relevant world-class industry, innovations, software and people’s skills. Besides, it is aimed to exchange routine interaction between economic operators with the use of distributed data registry technology and intelligent management systems, develop a trust center of competence, and form an open architecture with dynamic infrastructure development. At the same time, with the general trend for digitalization, today there are two main ways of their development distinguished: machine learning of the vehicle for its interaction with pedestrians and stationary objects, and filling the infrastructure with accounting and information systems when combined with intelligent transport systems. These days the development of the second way lags behind due to the high cost of both bringing its current state into a normative form, and creating a new digital and intelligent world-class infrastructure. In this situation the development of smart contracts is a necessary element for coordinating and organising transportation, which also provides effective transformation of the transport and logistics system, savings for economic operators and the city’s environment improvement.

S. P. Vorobyev, Svetlana Shirobokova, Vladimir Evsin

This study presents a formalized definition of the problem of minimizing data traffic addressing the distribution of computing and information resources for data storage and processing, as well as the provision of services by levels of cloud, fog and edge computing to optimize the multi-level topology of the computing network of the distributed ledger system. The possibility of using software-defined functions is shown for building a model of a multi-level representation of a topological structure to determine the optimal network architecture of a distributed ledger system. The results of experiments are presented for models of Poisson and fractal traffic obtained using a genetic optimization algorithm.

D. O. Kondyrev

The paper analyzes the privacy preserving problem for distributed ledgers. It provides an overview of technologies such as mixers, zero-knowledge proof algorithms, homo- morphic encryption, secure multi-party computation, anonymous signatures, and hardware solutions. Advantages and disadvantages of each technology are identified, as well as usage samples in the existing distributed ledgers. As a result, unsolved problems and prospects for further research are formulated.

Saint Petersburg SPIIRAS, A.V. Smirnov, Nikolay Teslya, Saint Petersburg SPIIRAS

During a common goal achieving, a coalition of autonomous robots may face a situation that requires prompt decision-making in order to maintain an initially agreed action plan. In this case, it is proposed to use adaptive decentralized planning mechanisms based on the model of socio-inspired self-organization and implemented using the original protocol ofnegotiations between robots. Negotiations are carried out through the execution of smart contracts that process robots' proposalsюThe contracts are storing and distributing in a distributed ledger implemented with the HyperLedger Fabric platform.

A. V. Siriak, Valentina Turchyna

The problem of constructing a NIZK proof of knowledge of a multivariate polynomial’s zero is considered. A previously developed method for SNARK construction based on Quadratic Arithmetic Programs and Pinocchio protocol is adapted to solve the stated problem efficiently.

Tatiana Shulzhenko

The article presents scenarios for the transition to smart contract technology, compiled as a result of a study of the functioning of transport and logistics chains formed by the largest Russian railway company, JSC "Russian Railways", and also specifies a set of conditions for the introduction and effective use of this technology. It is determined that a necessary condition for the introduction of smart contract technology for the largest transport and logistics companies, which mainly occupy a monopoly position in their segment of the logistics services market, is to focus on an expanded transport and logistics chain and the presence of Mature processes. Special attention is paid to methodological tools for assessing the maturity of internal processes of a focus company in the transport and logistics chain. The presented approach is recommended for use by large operators that own infrastructure facilities and act as focus companies in transport and logistics chains.

Valeriy Khabarov, Irina Volegzhanina

Abstract Digital systems in railways known as “digital railways” have dramatically changed the railway industry and the nature of railway employees’ work. The Digital Railway is in a large extend linked with the knowledge-based economy, knowledge management and knowledge management technologies which have had a significant impact on digital transformations in the industry and professional education. An ontology characterized the cause-effect and aggregative relations reflecting transformation chains in the various spheres of human activity and shedding light on the Digital Railway place in the context of digital economy is presented. The article argues that the Digital Railway role in changing mechanisms of interaction between industry and universities, which are also specialized research centres with closer ties to the industry, is best understood applying to the idea of “a smart contract” that can be reduced to artificial intelligent agents serving as intermediaries providing interaction between the non-human and human roles in a business process. With the smart contract technology, the Digital Railway might provide a precedent in development of the Hybrid Corporate Intelligence based on industry-related knowledge redistributed between artificial intelligent agents and employees. From this perspective, the process of corporate informatization is seen through a system of artificial intelligent agents implying the formalization of operational rules and regulations into a shared knowledge base in a form of ontologies. The proposed idea can be transferred to universities where smart contracts may support professional training as a business process.

Tatiana Shulzhenko

The article analysis the methodological justification of the digital transformation of logistics processes in transport chains formed by transport and logistics companies at the national and transnational levels, which own their own infrastructure, when switching to the technology of smart contracts. The research methodology is based on the provisions of the theory of logistics and supply chain management, the theory of process management and the design and technological concept of organizational culture formation. Based on the results of the established principles of transition to smart contract technology, digital transformation of processes, a logical and time structure of the methodology of engineering/reengineering of logistics business processes in transport chains was formed during the transition to smart contract technology, which provides the most complete coverage of methodological problems solved in the process of reengineering, their logical focus, as well as correlation with the time frame. The study presents a methodological tool and results of semantic modeling of logistics processes in transport chains that form the necessary basis for further algorithmization of procedures for fulfilling the contractual conditions of a smart contract. Based on the systematization of approaches to establishing the essential characteristics of smart contracts, their models are established, as well as the necessary conditions for the successful implementation of various smart contract models and possible transition scenarios are identified. The materials of the article are largely the result of close interaction with JSC “Russian Railways” in the course of preparing a methodological justification for the transition to the technology of smart contracts in transport chains, the logical processes in which are implemented using the railway infrastructure of JSC “Russian Railways”.

Felix Eigelshoven, André Ullrich, Benedict Bender

Blockchain has the potential to change business transactions to a major extent. Thereby, underlying consensus algorithms are the core mechanism to achieve consistency in distributed infrastructures. Their application aims for transparency and accountability in societal transactions. As a result of missing reviews holistically covering consensus algorithms, we aim to (1) identify prevalent consensus algorithms for public blockchains, and (2) address the resource perspective with a sustainability consideration, whereby we address the three spheres of sustainability. Our systematic literature review identified 33 different consensus algorithms for public blockchains. Our contribution is twofold: first, we provide a systematic summary of consensus algorithms for public blockchains derived from the scientific literature as well as real-world applications and systematize them according to their research focus; second, we assess the sustainability of consensus algorithms using a representative sample and thereby highlight the gaps in literature to address the holistic sustainability of consensus algorithms.

Authors unavailable

Blockchain technology establishes an ecosystem in IoT that is creditworthy among the participants for high-security requirements. However, there has not been comprehensive researches done on the blockchain in IoT nor its application potential in Project management. The objectives of this research are to investigate the role of blockchain in IoT and to identify prospective applications of blockchain technology in project management. Both IoT and project management require the secured data transmission and effective yet efficient data management. The blockchain-based technology can be applied in the areas of IoT and project management because it can provide immutability, transparency between users in a complex system. This research needs to be extended to build a prototype open-source blockchain-based project management application.

Nick Große, David Leisen, Tan Gürpinar, Robert Schulze Forsthövel · 6 authors

In the course of the digital transformation, organizations are not only facing increasing volatility of the markets, but also increasing customer requirements and thus an increasing complexity in production and logistics systems. Therefore, production plants need to become more flexible by transforming conventional production systems to Cyber-physical Production Systems (CPPS). CPPS allow organizations to dynamically react to fluctuations in demand and markets and to introduce new product lines quickly and effectively. The challenge in implementing CPPS is to handle and store relevant data streams between Cyber-physical objects in a secure but transparent way. As CPPS involve a high level of decentralization, the data storage can either be combined with centralized IT-solutions like a Cloud or utilize decentralized IT-technologies like Edge Computing or Distributed Ledger Technologies (DLT) like Blockchains. The paper addresses the suitability of centralized and decentralized technologies in terms of dealing with data streams in the fields of CPPS. For this purpose, based on a paper exploration, appropriate evaluation criteria are derived, followed by a comparison of exemplary centralized and decentralized technologies. The outcome is a qualitative evaluation of the supplement of each technology regarding its suitability of dealing with data streams.

Sergii Kushch, Yurii Baryshev, Silvio Ranise

This paper introduces a new method of Blockchain formation for reliable storage of personal data of ID-card holders. In particular, the model of the information system is presented, the new structure of smart ID-cards and information on these cards are proposed. The new structure of Blockchain, "Blockchain Tree", allows not only to store information from ID-cards but also to increase the level of security and access control to this information. The proposed Subchains system allows us to integrate Blockchain of the lower level to Blockchain of the higher level, allowing us to create a multilevel protected system.

Ayya G. Galieva, D. E. Palchunov

This article contains a description of the present state of business processes formalization developments. Currently existing formalized contracts automation methods have different functional limitations in application. The methodical approach to creating the tool for constructing formalized automated contracts containing a complex of hierarchically connected multilevel contracts is developed. Requirements to the tool for constructing formalized automated contracts (FACT) are defined, its structural components and mechanisms of interaction between them are described, the areas of application of the FACT and its prospects are defined.

A. M. Kudin, Богдан Анатолійович Коваленко, І. В. Швідченко

No abstract is available for this record.

Andrey Zubarev, Kirill Shilov, Mariana Suleimanova, Elizaveta Golovanova · 5 authors

No abstract is available for this record.

Mikko Mäenpää

The main objective of this case study is to illustrate how a limited liability company could be founded fully digitally based on Corda- and Hyperledger Indy-distributed ledger technologies (DLTs). The second objective of the thesis is to analyze the profitability and key risks of introducing this technology through a Monte Carlo-based investment analysis simulation. The results of the simulation are interpreted using summary statistics and visualized by the net present value (NPV), internal rate of return (IRR), and discounted payback period (DPP) distributions. Input-values for the simulation are gathered by interviewing the Project Mercury participants with semi-structured interviews. The third objective of this study is to identify and analyze future opportunities and applications for a digitalized company founding process based on the case study and investment analysis simulation.
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\nThe data for this research is gathered from Project Mercury which carried out a proof-of-concept on the possibility of this technology used in the founding process of an LLC. Project Mercury is a Finnish-based collaboration that consists of organizations from various fields that are currently involved in the founding process of a limited liability company. The development of distributed ledger technologies is in a relatively novel stage, and no evidence of DLT being applied to the founding process of a limited liability company prior to Project Mercury has been found.
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\nDistributed ledger technologies are inspired by blockchain technologies such as Bitcoin and Ethereum, but possess different features compared to blockchains, most notably, are not fully public networks as blockchains are. As an important part of the company's digitalization process, a new kind of decentralized self-sovereign digital identity (SSI) is generated for the newly founded company based on the distributed ledger technology. This new digital identity enables, for example, the company to digitally assign representation rights for its stakeholders. In addition to that, the digital identity and the data related to it is fully owned and controlled by the company.\t\t
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\nAt the beginning of the study, a review of key technologies was made, and key concepts, blockchain, and distributed ledger technology were defined since there are no established definitions for these technologies. In the literature review previous DLT applications are introduced since this was the first time DLT was applied in the founding process of an LLC. Methodology and data chapters form the following chapters four and five. The digitalized founding process of a limited liability company using DLT and self-sovereign identity is illustrated empirically in chapter six. The results of the simulation-based investment analysis are presented in chapter seven, and the value propositions of Project Mercury for different stakeholders are discussed at the end of the chapter.
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\nThe benefits of this digitalized founding process for different stakeholders are abundant. Founders and company stakeholders are able to found the company digitally by using their bank services without any manual paper-work. Digitalized representation rights can be given to company stakeholders to represent the company on various occasions. Organizations involved in the DLT based business network can securely share and receive information related to the company and its stakeholders in real-time. Financial institutions that are part of the business network acquire cost savings, time benefits, and new business opportunities. The most important business opportunity is to digitalize and tokenize the shares of unlisted companies. In Finland alone, this could turn approximately 200 billion worth of wealth into a more liquid form.
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\nThe Monte Carlo simulation indicates that Project Mercury as an investment will be profitable on average, but the distribution between the different scenarios is wide, which indicates the riskiness of the investment and the difficulty of accurately predicting the future cash flows associated with this investment. Investments in this technology were seen more as a research and development activity. It is essential to stay updated within the field, in order to remain competitive in the future.

Mariia Sigova, Igor Klioutchnikov, Anna Zatevakhina, Oleg I. Klioutchnikov

Is the distributed ledger technology able to predict the capital asset prices and digitizes any financial market participant? Prediction is a scary and tempting place to venture, profitable trading and the development of effective strategies. Will predictions fit into the everyday practice of financial markets? Is blockchain technology capable to revolutionize predictions? Is the blockchain able to compensate of the lack of individual intelligence in assessing market prospects? In the article, the authors do not so much raise these questions as they try to outline the directions for their solution. Financial inclusion is one of the problems that blockchain technology can solve, if it is applied properly. Transferring predictions to the online mode and providing each market participant with the opportunity to digitize their activities would help introduce new efficient mechanisms to improve performance of financial market practices. The article discusses two aspects of using blockchain technology in finance - forecasting financial markets using “collective knowledge” and digitizing assets of market participants based on blockchain. The article also raises the question of the possibility of using some fundamental physical laws for analyzing the impact of new technologies on the financial markets. An attempt is made to approach the assessment of the prospects of using a number of decentralized applications for financial market predictions and the creation of digital counterparts of market participants. A fundamental lesson from experiments in predicting financial markets and digitizing market participants is that decentralized solutions are still not sufficiently scaled and, as a result, are used by consumers.

И.Д. Котилевец, I. A. Ivanova, Ilya Romanov, Shamil Magomedov · 6 authors

The article describes the advantages provided by the implementation of a directed acyclic graph in the blockchain network. The advantages and known limitations of common blockchain networks are described. It is shown how directed acyclic graph allows increasing the speed of transactions between the network nodes and scaling the channel width due to the formation of parallel chains instead of the single true chain in common blockchain networks. Consequently, it is shown how blockchain network with directed acyclic graph also eliminates the concept of mining, allowing for transactions without the corresponding fees.