The article proposes UML diagrams of the property right distribution module using NFT fractalization based on blockchain technology, which allow to develop software for the implementation of the modern way of fractions generation according to the ERC-1155 standard. A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. This standard was chosen for the impossibility of offering fractions for sale on other platforms, ensuring the uniqueness of the proposed decentralized application. The main reason for the development is to create a module located on the network blockchain, ensuring the security of functionality with cryptographic algorithms from one of the most secure blockchain — Ethereum. The task of development is to implement functionality that ensures the fulfillment of all functional requirements, the most important of which are the creation of a unique NFT to the user’s property, its Fractionalization and the sale of fractions to other users.
Open access
Economic and Technological Systems Analysis
Advanced Research in Systems and Signal Processing
The main aim of the paper is to contribute to the discussion of cryptocurrency pricing through asset pricing models. The paper develops multifactor models for the cryptocurrency valuation and discusses the elements of these models based on the literature review of scholarly articles, books, and scientific databases. We further developed the models from unit factor to five factors in order to observe whether the development is achieved by adding new factors into the model. Consequently, we pointed out the most influential factor that determines the value of cryptocurrencies.
Cryptocurrencies considered not just as a payment means and an investment object, but also as one of the prerequisites for entering to the Internet economy and a means of exchange in this new digital economy. The article examines the shadow component aspects of the economy in the context of appearances and development of cryptocurrency. The theoretical basis of the study is the provision of a "shadow economy" in almost any economic system. When using cryptocurrency often use fraudulent schemes and methods. The functioning of cryptocurrencies based on blockchain technology has full functionality for performing illegal operations, and this is the main negative factor in the circulation of these currencies. As the results of the study, it can be noted that cryptocurrencies should be considered as a means to enter the Internet economy while their turnover associated with the risk of money laundering, due to their anonymity and cross-border nature, which, in turn, requires a detailed development of methods and tools for economic security. Prohibition on cryptocurrencies transactions at the legislative level can lead to serious negative consequences for the economic security of the state. Such bans will only stimulate the use of cryptocurrencies in the shadow economy. The object of the study is integration of cryptocurrencies into national economic processes, which generates fundamentally new risks and threats using. The subject of the study is the economic properties of the cryptocurrency that contribute to its involvement in the shadow economy. The main purpose of the study is to analyze the aspects of cryptocurrency involvement in the shadow economy.
Леонід Куперштейн, Mykhailo Krentsin, A. V. Dudatyev, Vladyslav Kaplun
The basic concepts of peer-to-peer networks are analyzed. The current areas of their use are indicated, namely file-sharing services, teleconferencing systems, gaming and trade services, etc. The types of structural organization are considered, and their advantages and disadvantages are determined. According to the degree of centralization, pure, hybrid and federal architectures are distinguished. The classification of peer-to-peer peer networks by connection method and function is also given. Analysis of the prevalence of peer-to-peer networks in the modern world has proved the demand and relevance of the use of decentralized network technology, especially in the field of finance. Possible types of attacks on peer-to-peer networks are analyzed. Both general and specific attacks are highlighted. Specific attacks are oriented on user, application or network. Methods and mechanisms of protection for each of the studied types of attacks are given. The results of the analysis are systematized, namely for each attack the impact on the data, the degree of danger and the level of protection is determined. It also indicates the direction of violation of information security of each attack, namely the integrity, accessibility, confidentiality. It turned out to be no less interesting for malefactors, as evidenced by the significant number of hacks. The research of attacks on P2P networks showed a wide range of both general and specialized. At the same time, attacks are differentiated according to the degree of danger and the aspect of security breach. The most dangerous were attacks that could violate the confidentiality and integrity of data. These include the following attacks: distributed denial of service, index poisoning, sibyl attack, eclipse attack, botnets, masquerade. The research is the basis for further study of the shortcomings of the protection of peer-to-peer networks and the development of new secure mechanisms for data exchange in decentralized structures.
Technologies such as distributed ledger and its utilization of blockchain have higher network security, promote the balance between security and efficiency, and new technical measures are being taken to enhance its security. However, blockchain technology and utilization are not secure. The security architecture of blockchain should be constructed from the concept of “zero-trust security”, and the security utilization of the blockchain should be highly valued from the network security strategy to promote international cooperation in blockchain security.
The object of research is software for financial accounting and distribution of funds in a non-profit charitable foundation using smart contracts of the Ethereum platform. The work is aimed at designing and implementing a software application for a charitable foundation, which allows to exclude the misuse of funds of a non-profit charitable foundation. The paper proposes an implementation of the Ethereum smart contract for the software of a charitable foundation. In the app, users can apply for financial aid or make a charitable donation. The request for financial support is confirmed by administrators to avoid abuse by those seeking help. Anyone who has a crypto wallet can become a sponsor by transferring funds from its account to a selected request. The sponsor remains incognito when making a charitable contribution. After collecting the entire declared amount, the funds are automatically transferred to the crypto wallet of the request’s owner. A smart contract and a corresponding decentralized web application for interacting with it were experimentally deployed, and their joint work was tested. To implement the smart contract, the Solidity programming language was chosen; developed smart contract converted to bytecode using remix. The resulting bytecode is ready to be deployed on the Ethereum platform. Decentralized web application for interacting with the contract is implemented using Web3.js, Vue.js. A rough estimate of the cost of deploying a project on the Ethereum platform has been made. The deployment and operation of smart contracts and web applications comes with a certain overhead, which is most dependent on the cost of ether. However, this is a justified price to pay for the transparency of transactions and the shadowing of the turnover of funds of the charitable foundation. The results of the research can be used as a basis for further transformation into full-fledged software with the ability to submit all reporting documents to the relevant government agencies and sponsors.
methodology of evaluation of efficiency of the implementation at industrial enterprises of “peer-to-peer distributed systems of storage and processing of protected information in enterprise networks” has been proposed. The efficiency evaluation is based on the comparison of the indicators of reliability, fault tolerance, and total cost of ownership of the implementation of corporate information systems within the proposed system and its possible alternatives. The “peer-to-peer distributed system of storage and processing of protected information” is designed for the protection of distributed computing and incapsulation of private networks without restricting possibilities for usable interactions in the process of implementation of Industry 5.0 and Super Smart Society technologies. When these concepts get implemented in an enterprise, manufacture, logistics, and sales are merged into a global geographically and organizationally distributed information system for data exchange, which functions on top of the Internet. The proposed system offers tools for setting up distributed computing, and it ensures an effective response to threats by applying cryptography, unauthorized access protection with the use of biometry and an innovative protocol for information exchange and control of topology powered by distributed ledger technology, while also optimizing the utilization of computing capacity.
<p>Bai Jie<sup>1,2</sup>, Du Yanhui<sup>1</sup>, Lu Tianliang<sup>1</sup></p>
This paper studies the sensitive information recognition and processing system in social online games. A real-time data mining framework for sensitive information on online games in the blockchain mode is proposed. A large-scale social online game chat room database is selected for testing, with SKLearn library based on Python is used for data preprocessing. The model training and verification are implemented through tensorflow. The results show that the accuracy of TextCNN is over 5% higher than that of Naive Bayes and CNN models for short text recognition in online game context, so TextCNN model can meet the requirements for high efficiency and accuracy of sensitive information recognition in large-scale online games. The conclusion proves that the blockchain-based online game sensitive information mining framework has the advantage of alliance chain hierarchical management, the characteristics of the distributed ledgers leaving traces in the whole process of information dissemination, and enhanced contract enforcement through the smart contracts and consensus mechanisms.
Viktor Boiko, Tymoshenko Ye., А Kononenko, Yuliia Rusina · 5 authors
It was determined that the profitabilities of the cryptocurrency are not subject to normal distribution due to the presence of heavy-tailed profitability. This condition does not allow the use of the classical theory of Markowitz's portfolio for the financial asset under consideration. Based on the Cauchy distribution function, the analytical expressions were obtained for the VaR risk measure and the cryptocurrency risk estimation calculations were performed using the VaR approach. Meanwhile, the risk assessment was found as the difference between the most expected value of profitability and the boundary of the risk zone. The set of optimal cryptocurrency portfolios was built based on the modified optimization Markowitz model. The results of the author's calculations have showed that the high profitability and low risk of Bitcoin determines its dominance in the cryptocurrency portfolio. An effective tool for managing the risks of the cryptocurrency portfolio may be its integration into the structure of Amazon stocks.
The research specifies benefits and drawbacks related to the application of distributed information systems based on blockchain technologies in higher education. The authors also examine conditions for implementing distributed information systems based on blockchains in higher educational establishments. Special attention is paid to the primary directions of these technologies application in the system of higher education. The authors also define the types of educational services which can be automated by using blockchains. The research describes the examples of higher educational establishments using distributed ledgers in their activity. Certain recommendations for the terms of reference on designing distributed information systems based on blockchains are formulated. The research also outlines the perspectives for the prospective research.
The article deals with information technology blockchain. The possibility of databases creating using blockchain is described. The simple writing data procedure to the blockchain is realized. The main domains for the technology applying are given. The smart contract in blockchain are shown. The potential of this technology is described.
Adélia Cristina Peres Torrecillas, Rodrigo Sakayemura
In the last decade, cryptocurrencies have gained prominence in the media as a payment method or an investment, arisingthe importance to study the viability of their attachment in the Brazilian execution process. However, the pace at which technological innovations arise is not always accompanied by the law to regulate them, and any omissions should be analyzed by the Judiciary, applying the current law and making up any gaps, in order to provide effective jurisdiction. This article, therefore, intends to review the existing literature to briefly explain some aspects of attachment of property, to define the legal and technical concepts of cryptocurrencies, elucidating how they work and analyzing the possibility of their attachment. At last, it will be discussed about the best mode of procedure for attachment of cryptocurrencies, if allowed by law.
In the paper a new approach for protecting video files from unauthorized changes using the Blockchain technology and cloud services is proposed. The essence of our approach consists in hash function calculating for each frame and forming the blocks sequence of calculated hash functions for all frames of video file. The hash function blocks are sent to the Blockchain cloud storage, which is trusted by all interested parties.
Information Systems and Technology Applications
Advanced Steganography and Watermarking Techniques
Data security and privacy are one of the key concerns in the Internet of Things (IoT). Usage of IOT is increasing in the society day-by-day, and security challenges are becoming more and more severe. From a data perspective, IOT data security plays a major role. Some of the sensitive data such as criminal record, military information, the medical record of the patients, etc. Due to the size and other features of IOT, it is almost impossible to create an efficient centralized authentication system. The proposed system focused on IoT security for distributed medical record to provide perimeter security to the patient. Building trust in distributed environments without the need for authorities is a technological advance that has the potential to change many industries, the IOT is one among them. Furthermore, it protects data integrity and availability. It improves the accessibility of data by using the indexing method along with the blockchain. Moreover, it facilitate the utility of tracking the previous history of the patient record using the hyper ledger with authorization.
A. B. Goldstein, Н.А. Соколов, Vasiliy Elagin, A. V. Onufrienko · 5 authors
Due to the increased popularity of distributed registry technology applications on the Internet, each of which uses network resources in different ways, has different characteristics and service requirements, there are the problem of impact of this technology to the network characteristics and how does the technology affect the network. In this article, the authors introduce a definition of the term blockchain, describe the services implemented by this technology and its scope. The authors identify the main technical characteristics and their features associated with transfer of information through the network. The authors explain how does the blockchain technology work and block structure. The authors indicate basic features of the network required for guarantee quality of service during provision and transfer for different type of traffic, determine the network scheme working with blockchain transactions and the dependence of network characteristics on application parameters. Authors show different classes of traffic priority, based on the requirements and behavior of certain types of applications, allowing maximum flexibility in the transmission of user information.
The article discusses the features of distributed ledger technology based on the use of decentralized peer-topeer networks. The history of the emergence and development of distributed ledger technology considered in detail, the prerequisites for the growth of its popularity in various fields are analyzed. The main advantages and disadvantages of distributed ledger technology in general, as well as decentralized (permissionless) and exclusive (permitted) blockchain platforms in particular, are revealed. The principles of functioning of cryptocurrencies on the basis of blockchain technology, including their issue (coinage) are described. The state of blockchain technologies from the point of view of technology maturity is considered. The main trends in the development of blockchain technology at the present stage are revealed. An analysis of the possibilities of using distributed ledger technology of public administration, including in the education system, in order to improve the safety and automation of functions is presented.
We have investigated processes of analysis, integration, and content generation, taking into consideration the needs of the user in cryptocurrency. By using the developed formal model and the performed critical analysis of methods and technologies for predicting the exchange rate of cryptocurrency, we have built a general architecture of the content processing system that acquires data from different cryptocurrency Internet stock exchanges. General functional requirements to the intelligent cryptocurrency system that target the Internet users have been stated. We have investigated methods, models, and tools to improve the effective support for developing structural elements in the model of a decision support system that manages content according to the user’s needs. general architectures of the backend and frontend parts of an intelligent cryptocurrency system have been devised. We also developed software for the system of integration and generation of content considering the cryptocurrency needs of users. An analysis of results of experimental verification of the proposed method for content integration and generation taking into consideration the cryptocurrency needs of users has been performed. A special feature of the system is that it analyzes information from social media and builds a forecast of currency rates based on the acquired information. A given system makes it possible to guess the trend in an exchange rate fluctuation. Conferences of a particular cryptocurrency, new implementations, government decrees from different countries, affect a trend as well, so it too must be taken into consideration. In order to account for most cases, it is necessary to constantly accumulate information on the subject and to assign it to Tables in a database. A given process takes place using a specialized software bot that collects and indexes information. The system is characterized by the following features that favorably distinguish it from analogs: the speed of page generation; the presence of SSL certificate and TLS encryption; content of better quality as it is updated every minute; there are no inactive sections of the service; the mobile web-site layout does not copy content at subdomain; automated checks against e-mail spam messages on the exchange rate. The focus of the system is on the frequency of updates at the speed of data aggregation from the Internet stock exchanges and social networks.
Blockchain technology and smart contract development currently lacks clarity in its implementation. The complicated architecture of blockchain is an obstacle that developers face during design and implementation of blockchain-based systems. In this paper we propose a method based on Model Driven Architecture, which could be used for defining and specifying blockchain structure and behavior. Such approach could be used as one of the ways for describing blockchain-based systems in a more general language in order to facilitate blockchain development process.
We propose a cryptographic protocol with zero-knowledge proof (ZKP) on elliptic curves (EC) using public keys and random messages, allowing to establish the truth of a statement not conveying any additional information about the statement itself. The cryptographic protocols based on zero-knowledge proof allow identification, key exchange and other cryptographic operations to be performed without leakage of sensitive information during the information exchange. The implementation of the cryptographic protocol of the zero-knowledge proof on the basis of the mathematical apparatus of elliptic curves allows to significantly reduce the size of the protocol parameters and increase its cryptographic strength (computational complexity of the breaking). The security of cryptosystems involving elliptic curves is based on the difficulty of solving the elliptic curve discrete logarithm problem. We determine the completeness and correctness of the protocol and give an example of the calculation is given. The cryptographic protocol was modeled in the High-Level Protocol Specification Language, the model validation and verification of the protocol were also performed. The software verification of the cryptographic protocol was performed using the software modules On the Fly Model Checker and Constraint Logic based Attack Searcher. In order to validate the cryptographic protocol resistance to intruder attacks, we used the Security Protocol Animator package for Automated Validation of Internet Security Protocols and Applications. The security of the proposed cryptographic protocol ZKP EC is based on the difficulty of solving the elliptic curve discrete logarithm problem). The recommended elliptical curves according to DSTU 4145-2002 may be used to implement such cryptographic protocol.
System of integration and content formation taking into account the cryptocurrency consumer needs imports courses from cryptocurrency trading exchanges and exchangers. The method is based on the algorithms of forecasting and constructing of the corresponding graphs. It should also support the aggregation of information from social media such as Twitter. Import of news related to cryptocurrency. System based on this method should be optimized for search in search engines and services and distributed by servers. Such a system will serve to inform about currency rate fluctuations depending on the news background.
The rise of cryptocurrency as a new sui generis asset class creates a need for a new classification scheme to cover the wide range of functionality for which tokens can be used. By differentiating tokens based on their functional attributes, cryptocurrency tokens can be categorised into crypto-transaction tokens (which act as a cash substitute); crypto-fuel tokens (which underpin generic blockchain applications); and crypto-voucher tokens (which can be exchanged for a predefined asset). This classification is applied to identify important issues when considering whether to participate in a cryptocurrency system, such as the impact of potential forks, token supply expectations and the level of dependence on a few operators (entity-dependence). For crypto-transaction tokens (and crypto-fuel tokens if used in a similar or overlapping role) it shows the importance of the token being seen as a “better” form of money. For crypto-fuel tokens, the popularity of blockchain applications and the utility of the crypto-fuel system in application development is vital. For crypto-voucher tokens, the value of the underlying asset, the token’s exchangeability for that asset and the importance of a digital representation should be considered by participants. The interplay between fundamentals and speculation as drivers of price is considered.An erratum to this article has been published at as DOI: https://doi.org/10.5195/ledger.2018.151.