Blockchain networks which employ Proof-of-Work in their consensus mechanism may face inconsistencies in the form of forks. These forks are usually resolved through the application of block selection rules (such as the Nakamoto consensus). In this paper, we investigate the cause and length of forks for the Bitcoin network. We develop theoretical formulas which model the Bitcoin consensus and network protocols, based on an Erdös-Rényi random graph construction of the overlay network of peers. Our theoretical model addresses the effect of key parameters on the fork occurrence probability, such as block propagation delay, network bandwidth, and block size. We also leverage this model to estimate the weight of fork branches. Our model is implemented using the network simulator OMNET++ and validated by historical Bitcoin data. We show that under current conditions, Bitcoin will not benefit from increasing the number of connections per node.
The Sybil attack plagues all peer-to-peer systems, and modern open distributed ledgers employ a number of tactics to prevent it from proof of work, or other resources such as space, stake or memory, to traditional admission control in permissioned settings. With SybilQuorum we propose an alternative approach to securing an open distributed ledger against Sybil attacks, and ensuring consensus amongst honest participants, leveraging social network based Sybil defences. We show how nodes expressing their trust relationships through the ledger can bootstrap and operate a value system, and general transaction system, and how Sybil attacks are thwarted. We empirically evaluate our system as a secure Federated Byzantine Agreement System, and extend the theory of those systems to do so.
Personalized quality of service (QoS) prediction plays an important role in helping users build high-quality service-oriented systems. To obtain accurate prediction results, many approaches have been investigated in recent years. However, these approaches do not fully address untrustworthy QoS values submitted by unreliable users, leading to inaccurate predictions. To address this issue, inspired by blockchain with distributed ledger technology, distributed consensus mechanisms, encryption algorithms, etc., we propose a personalized QoS prediction method for web services that we call blockchain-based matrix factorization (BMF). We develop a user verification approach based on homomorphic hash, and use the Byzantine agreement to remove unreliable users. Then, matrix factorization is employed to improve the accuracy of predictions and we evaluate the proposed BMF on a real-world web services dataset. Experimental results show that the proposed method significantly outperforms existing approaches, making it much more effective than traditional techniques.
With the support of the blockchain systems, the cryptocurrency has changed the world of virtual assets. Digital games, especially those with massive multi-player scenarios, will be significantly impacted by this novel technology. However, there are insufficient academic studies on this topic. In this work, we filled the blank by surveying the state-of-the-art blockchain games. We discuss the blockchain integration for games and then categorize existing blockchain games from the aspects of their genres and technical platforms. Moreover, by analyzing the industrial trend with a statistical approach, we envision the future of blockchain games from technological and commercial perspectives.
A large portion of the software side of our information technology infrastructure, including web search, email, social media, transportation information, and much more, is provided "free" to the end users, although the corporations that provide this are often enormously profitable. The business model involves customized advertising and behavior manipulation, powered by intensive gathering and cross-correlation of personal information. Significant other parts of our IT infrastructure use fees-for-service but still involve intensive information gathering and behavior manipulation. There are significant indirect costs of these business models, including loss of privacy, supporting surveillance by both corporations and the state, automated manipulations of behavior, undermining the democratic process, and consumerism with its attendant environmental costs. In a recent book, Shoshana Zuboff terms this "surveillance capitalism." Our primary focus in this essay is how we could develop new models for providing these services. We describe some intermediate steps toward those models: education, regulation, and resistance. Following that, we discuss a partial solution, involving for-profit corporations that provide these services without tracking personal information. Finally, we describe desired characteristics for more comprehensive solutions, and outline a range of such solutions for different portions of the IT infrastructure that more truly return control to the end users. A common feature of several is the use of highly decentralized storage of information (either on the end user's own personal devices or on small servers), a modular architecture and interface to allow for customization of what information is to be shared, and a distributed ledger mechanism for authentication.
Swagatika Sahoo, Akshay M. Fajge, Raju Halder, Agostino Cortesi
In the nine years since its launch, amid intense research, scalability is always a serious concern in blockchain, especially in case of large-scale network generating huge number of transaction-records. In this paper, we propose a hierarchical blockchain model characterized by: (1) each level maintains multiple local blockchain networks, (2) each local blockchain records local transactional activities, and (3) partial views (tunable w.r.t. precision) of different subsets of local blockchain-records are maintained in the blockchains at next level of the hierarchy. To meet this objective, we apply abstractions on a set of transaction-records in a regular time interval by following the Abstract Interpretation framework, which provides a tunable precision in various abstract domain and guarantees the soundness of the system. While this model suitably fits to the real-worlds organizational structures, the proposal is powerful enough to scale when large number of nodes participate in a network resulting into an enormous growth of the network-size and the number of transaction-records. We discuss experimental results on a small-scale network with three sub networks at lower-level and by abstracting the transaction-records in the abstract domain of intervals. The results are encouraging and clearly indicate the effectiveness of this approach to control exponential growth of blockchain size w.r.t. the total number of participants in the network.
This paper proposes an architecture for dynamic decentralized marketplace for trading of Internet of Things data. To this end, we introduce a 3-tier framework which consists of provider, consumer and broker. The framework is realized using multiple trustless broker which matches and selects potential data provider based on the consumers requirements. Rather than using a centralized server to manage the contract between provider and consumer, the framework leverages smart contract-based agreement for automatically enforcing the terms of the contract to the involved parties.
Niclas Kannengießer, Sebastian Lins, Tobias Dehling, Ali Sunyaev
When developing peer-to-peer applications on distributed ledger technology (DLT), a crucial decision is the selection of a suitable DLT design (e.g., Ethereum), because it is hard to change the underlying DLT design post hoc. To facilitate the selection of suitable DLT designs, we review DLT characteristics and identify trade-offs between them. Furthermore, we assess how DLT designs account for these trade-offs and we develop archetypes for DLT designs that cater to specific requirements of applications on DLT. The main purpose of our article is to introduce scientific and practical audiences to the intricacies of DLT designs and to support development of viable applications on DLT.
Blockchains have attracted a great deal of attention as a technology for the distributed management of register information at multiple nodes without a centralized system. However, they possess the drawbacks of low transaction throughput and long approval time. These problems can be addressed by shortening the block generation interval; however, shortening this interval alone has the effect of increasing the frequency of forks. In this study, we aim to shorten the block generation interval without increasing the fork generation rate by improving the network topology of the nodes and shortening the propagation time. We propose a neighbor node selection method forming a network topology with a short block propagation time. A blockchain simulator is used to demonstrate the effect of the proposed neighbor node selection method on the propagation delay of the network. This result indicates that the proposed method improves block propagation time.
Niclas Kannengießer, Sebastian Lins, Tobias Dehling, Ali Sunyaev
When developing peer-to-peer applications on Distributed Ledger Technology (DLT), a crucial decision is the selection of a suitable DLT design (e.g., Ethereum) because it is hard to change the underlying DLT design post hoc. To facilitate the selection of suitable DLT designs, we review DLT characteristics and identify trade-offs between them. Furthermore, we assess how DLT designs account for these trade-offs and we develop archetypes for DLT designs that cater to specific quality requirements. The main purpose of our article is to introduce scientific and practical audiences to the intricacies of DLT designs and to support development of viable applications on DLT.
Francesco Zola, Cristina Pérez‐Solà, Jon Egana, Maria Eguimendia · 5 authors
Bitcoin is a peer-to-peer distributed cryptocurrency system, that keeps all transaction history in a public ledger known as blockchain. The Bitcoin network is implicitly pseudoanonymous and its nodes are controlled by independent entities making network analysis difficult. This calls for the development of a fully controlled testing environment. This paper presents Kriptosare.gen, a dockerized automatized Bitcoin testbed, for deploying full-scale custom Bitcoin networks. The testbed is deployed in a single machine executing four different experiments, each one with different network configuration. We perform a cost analysis to investigate how the resources are related with network parameters and provide experimental data quantifying the amount of computational resources needed to run the different types of simulations. Obtained results demonstrate that it is possible to run the testbed with a configuration similar to a real Bitcoin system.
Maximilian Tschuchnig, Dejan Radovanovic, Eduard Hirsch, Oberluggauer Anna-Maria · 5 authors
Conventional data storage methods like SQL and NoSQL offer a huge amount of possibilities with one major disadvantage, having to use a centralized authority. This authority may be in the form of a centralized or decentralized master server or a permissioned peer-to-peer setting. This paper looks at different technologies on how to persist data without using a central authority, mainly looking at permissionless peer-to-peer networks, primarily Distributed Ledger Technologies (DLTs) and a combination of DLTs with conventional databases. Afterwards it is shown how a system like this might be implemented in two prototypes which are then evaluated against conventional databases.
Bitcoin, introduced in 2008 and launched in 2009, is the first digital currency to solve the double spending problem without relying on a trusted third party. Bitcoin provides a way to transact without any trusted intermediary, but its privacy guarantees are questionable. Despite the fact that Bitcoin addresses are not linked to any identity, multiple deanonymization attacks have been proposed. Alternative cryptocurrencies such as Dash, Monero, and Zcash aim to provide stronger privacy by using sophisticated cryptographic techniques to obfuscate transaction data. Previous work in cryptocurrency privacy mostly focused on applying data mining algorithms to the transaction graph extracted from the blockchain. We focus on a less well researched vector for privacy attacks: network analysis. We argue that timings of transaction messages leak information about their origin, which can be exploited by a well connected adversarial node. For the first time, network level attacks on Bitcoin and the three major privacy-focused cryptocurrencies have been examined. We describe the message propagation mechanics and privacy guarantees in Bitcoin, Dash, Monero, and Zcash. We propose a novel technique for linking transactions based on transaction propagation analysis. We also unpack address advertisement messages (ADDR), which under certain assumptions may help in linking transaction clusters to IP addresses of nodes. We implement and evaluate our method, deanonymizing our own transactions in Bitcoin and Zcash with a high level of accuracy. We also show that our technique is applicable to Dash and Monero. We estimate the cost of a full-scale attack on the Bitcoin mainnet at hundreds of US dollars, feasible even for a low budget adversary.
Sebastian Henningsen, Daniel Teunis, Martin Florian, Björn Scheuermann
Ethereum is a decentralized Blockchain system that supports the execution of Turing-complete smart contracts. Although the security of the Ethereum ecosystem has been studied in the past, the network layer has been mostly neglected. We show that Go Ethereum (Geth), the most widely used Ethereum implementation, is vulnerable to eclipse attacks, effectively circumventing recently introduced (Geth v1.8.0) security enhancements. We responsibly disclosed the vulnerability to core Ethereum developers; the corresponding countermeasures to our attack where incorporated into the v1.9.0 release of Geth. Our false friends attack exploits the Kademlia-inspired peer discovery logic used by Geth and enables a low-resource eclipsing of long-running, remote victim nodes. An adversary only needs two hosts in distinct /24 subnets to launch the eclipse, which can then be leveraged to filter the victim's view of the Blockchain. We discuss fundamental properties of Geth's node discovery logic that enable the false friends attack, as well as proposed and implemented countermeasures.
Open access
3 source records
Peer-to-Peer Network Technologies
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
Ethereum, one of the most popular cryptocurrencies, has attracted increasing attention of people in various fields. As the backbone of Ethereum, its peer-to-peer network has an effect on almost every aspect of the ecosystem. Consequently, it's necessary to understand the topological properties of Ethereum P2P network. In this paper, we conducted a measurement of Ethereum P2P network. Our result shows that the graphs of Ethereum network have a small average shortest path length and a large clustering coefficient, and the degree distribution of nodes does not follow a pure power-law distribution. These indicate that Ethereum network is very close to a small world network. Though there are a large number of stale nodes and useless nodes, Ethereum is still resilient to both random failures and targeted attacks. What's more, we find that there are around one hundred abnormal nodes in the network. The IP addresses of nodes included in the neighbors messages they reply are replaced with their own IP addresses. Those nodes might have a bad influence on network routing.
Bitcoin is a top-ranked cryptocurrency that has experienced huge growth and survived numerous attacks. The protocols making up Bitcoin must therefore accommodate the growth of the network and ensure security. Security of the Bitcoin network depends on connectivity between the nodes. Higher connectivity yields better security. In this paper we make two observations: (1) current connectivity in the Bitcoin network is too low for optimal security; (2) at the same time, increasing connectivity will substantially increase the bandwidth used by the transaction dissemination protocol, making it prohibitively expensive to operate a Bitcoin node. Half of the total bandwidth needed to operate a Bitcoin node is currently used to just announce transactions. Unlike block relay, transaction dissemination has received little attention in prior work. We propose a new transaction dissemination protocol, Erlay, that not only reduces the bandwidth consumption by 40% assuming current connectivity, but also keeps the bandwidth use almost constant as the connectivity increases. In contrast, the existing protocol increases the bandwidth consumption linearly with the number of connections. By allowing more connections at a small cost, Erlay improves the security of the Bitcoin network. And, as we demonstrate, Erlay also hardens the network against attacks that attempt to learn the origin node of a transaction. Erlay is currently being investigated by the Bitcoin community for future use with the Bitcoin protocol.
Paweł Szałachowski, Daniël Reijsbergen, Ivan Homoliak, Siwei Sun
Bitcoin is the most successful cryptocurrency so far. This is mainly due to its novel consensus algorithm, which is based on proof-of-work combined with a cryptographically-protected data structure and a rewarding scheme that incentivizes nodes to participate. However, despite its unprecedented success Bitcoin suffers from many inefficiencies. For instance, Bitcoin's consensus mechanism has been proved to be incentive-incompatible, its high reward variance causes centralization, and its hardcoded deflation raises questions about its long-term sustainability. In this work, we revise the Bitcoin consensus mechanism by proposing StrongChain, a scheme that introduces transparency and incentivizes participants to collaborate rather than to compete. The core design of our protocol is to reflect and utilize the computing power aggregated on the blockchain which is invisible and "wasted" in Bitcoin today. Introducing relatively easy, although important changes to Bitcoin's design enables us to improve many crucial aspects of Bitcoin-like cryptocurrencies making it more secure, efficient, and profitable for participants. We thoroughly analyze our approach and we present an implementation of StrongChain. The obtained results confirm its efficiency, security, and deployability.
Fuelled by the success (and hype) around cryptocurrencies, distributed ledger technologies (DLT), particularly blockchains, have gained a lot of attention from a wide spectrum of audience who perceive blockchains as a key to carry out business processes that have hitherto been cumbersome in a cost and time effective manner. Governments across the globe have responded to this promising but nascent technology differently - from being apathetic or adopting a wait-and-watch approach: letting the systems shape themselves, to creating regulatory sandboxes and sponsoring capacity building, or in some instances (arguably) over-regulating and attempting to put the blockchain genie back in the bottle. Possible government role spans across a spectrum: regulating crypto-currencies and initial coin offerings (ICO), formulating regulatory frameworks for managing the adoption of blockchains, particularly in critical infrastructure industries, facilitating capacity building, and finally, embracing blockchain technology in conducting the activities of the government itself - be it internally, or in using them to deliver public services. In this paper we survey the last, namely, the use of blockchain and associated distributed ledger technologies in the government technology (GovTech) stack, and discuss the merits and concerns associated with the existing initiatives and approaches.
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality. In this paper, we proposed an Ethereum based eletronic voting (e-voting) protocol, Ques-Chain, which can ensure the authentication can be done without hurting confidentiality and the anonymity can be protected without problems of scams at the same time. Furthermore, the authors considered the wider usages Ques-Chain can be applied on, pointing out that it is able to process all kinds of messages and can be used in all fields with similar needs.
People need a motive to use and maintain a system. In many of the systems we use today, financial rewards and punishments provide a key incentive to participate and abide by the rules. From salaries to traffic tickets, financial motives are often closely tied to a system's viability. Distributed systems such as blockchain also need a mechanism to motivate good behavior. A blockchain must encourage users to maintain the system while preventing a minority of these users from colluding and gaining disproportionate control. Many popular public blockchains use monetary incentives to encourage users to participate and behave appropriately. But these same incentive schemes create more problems than they solve. Mining rewards cause centralization in proof of work chains such as Bitcoin. Validator rewards and punishments invite attacks in proof of stake chains. This paper argues why these incentive schemes are detrimental to blockchain. It also considers a range of other systems-some of which incorporate monetary incentives, some of which do not-to confirm that monetary incentives may be neither necessary nor sufficient for good user behavior.
This work demonstrates how a multi-company shareholder rights management system has been implemented using Distributed Ledger Technology (DLT). In this demo, we use a permissioned blockchain to store our corporate data, such as the list of all registered companies, each company's shareholders and how many shares everyone holds. It is assumed that the nodes of the blockchain are controlled by the main stakeholder agents but we show that users who do not run a node can still use multiple websites to access company information. On top of this, we show our system can be used to allow any shareholder to participate in elections for company matters. Lastly, we describe how we designed our system's architecture so that it could be implemented even on a public blockchain.