Alexander Ivanov, Yevhenii Babichenko, Hlib Kanunnikov, Paul Karpus · 8 authors
Blockchain as a technology is rapidly developing, finding more and more new entry points into everyday life. This is one of the elements of the technical Revolution 4.0, and it is used in the field of supply, maintenance of various types of registers, access to software products, combating DDOS attacks, distributed storage, fundraising for projects, IoT, etc.Nowadays, there are many blockchainplatforms in the world. They have one technological root but different applications. There are many prerequisites to the fact that in the future the number of new decentralized applications will increase. Therefore, it is important to develop a methodology for determining the optimal blockchainbased platform to solve a specific problem. As an example, consider the worldfamous platforms Ethereum, Nem, and Stellar. Each of them allows to develop decentralized applications, issue tokens, and execute transactions. At the same time, the key features of these blockchainbased platforms are not similar to one another. These very features will be considered in the article.Purpose. Identify the key parameters that characterize the blockchainbased platforms. This will provide an opportunity to present a complex blockchain technology in the form of a simple and understandable architecture. Based on these parameters and using the expertise of the article’s authors, we will be able to develop a methodology to be used to solve the problems of choosing the optimal blockchainbased platform for solving the problem of developing smart contracts and issuing tokens.Methods. Analysis of the complexity of using blockchainbased platforms. Implementation of token issuance, use of test and public networks, execution of transactions, analysis of the development team and the community, analysis of the user interface and the developer interface.Discussion. By developing a platform comparison methodology to determine optimal characteristics, we can take the development process to a new level. This will allow to quickly and effectively solve the tasks.Results. Creation of a methodology for comparison blockchainbased platforms.
Growing consumer awareness as well as manufacturers' internal quality\nrequirements lead to novel demands on supply chain traceability. Existing\ncentralized solutions suffer from isolated data storage and lacking trust when\nmultiple parties are involved. Decentralized blockchain-based approaches\nattempt to overcome these shortcomings by creating digital representations of\nphysical goods to facilitate tracking across multiple entities. However, they\ncurrently do not capture the transformation of goods in manufacturing\nprocesses. Therefore, the relation between ingredients and product is lost,\nlimiting the ability to trace a product's provenance. We propose a\nblockchain-based supply chain traceability system using smart contracts. In\nsuch contracts, manufacturers define the composition of products in the form of\nrecipes. Each ingredient of the recipe is a non-fungible token that corresponds\nto a batch of physical goods. When the recipe is applied, its ingredients are\nconsumed and a new token is produced. This mechanism preserves the traceability\nof product transformations. The system is implemented for the Ethereum Virtual\nMachine and is applicable to any blockchain configuration that supports it. Our\nevaluation reveals that the gas costs scale linearly with the number of\nproducts considered in the system. This leads to the conclusion that the\nsolution can handle complex use cases.\n
Open access
Blockchain Technology Applications and Security
Innovative Microfluidic and Catalytic Techniques Innovation
We introduce FairSwap -- an efficient protocol for fair exchange of digital goods using smart contracts. A fair exchange protocol allows a sender S to sell a digital commodity x for a fixed price p to a receiver R. The protocol is said to be secure if R only pays if he receives the correct x. Our solution guarantees fairness by relying on smart contracts executed over decentralized cryptocurrencies, where the contract takes the role of an external judge that completes the exchange in case of disagreement. While in the past there have been several proposals for building fair exchange protocols over cryptocurrencies, our solution has two distinctive features that makes it particular attractive when users deal with large commodities. These advantages are: (1) minimizing the cost for running the smart contract on the blockchain, and (2) avoiding expensive cryptographic tools such as zero-knowledge proofs. In addition to our new protocols, we provide formal security definitions for smart contract based fair exchange, and prove security of our construction. Finally, we illustrate several applications of our basic protocol and evaluate practicality of our approach via a prototype implementation for fairly selling large files over the cryptocurrency Ethereum.
Blockchain technology shows significant results and huge potential for serving as an interweaving fabric that goes through every industry and market, allowing decentralized and secure value exchange, thus connecting our civilization like never before. The standard approach for asset value predictions is based on market analysis with an LSTM neural network. Blockchain technologies, however, give us access to vast amounts of public data, such as the executed transactions and the account balance distribution. We explore whether analyzing this data with modern Deep Leaning techniques results in higher accuracies than the standard approach. During a series of experiments on the Ethereum blockchain, we achieved $4$ times error reduction with blockchain data than an LSTM approach with trade volume data. By utilizing blockchain account distribution histograms, spatial dataset modeling, and a Convolutional architecture, the error was reduced further by 26\%. The proposed methodologies are implemented in an open source cryptocurrency prediction framework, allowing them to be used in other analysis contexts.
Petar Tsankov, Andrei Dan, Dana Drachsler-Cohen, Arthur Gervais · 6 authors
Permissionless blockchains allow the execution of arbitrary programs (called smart contracts), enabling mutually untrusted entities to interact without relying on trusted third parties. Despite their potential, repeated security concerns have shaken the trust in handling billions of USD by smart contracts. To address this problem, we present Securify, a security analyzer for Ethereum smart contracts that is scalable, fully automated, and able to prove contract behaviors as safe/unsafe with respect to a given property. Securify's analysis consists of two steps. First, it symbolically analyzes the contract's dependency graph to extract precise semantic information from the code. Then, it checks compliance and violation patterns that capture sufficient conditions for proving if a property holds or not. To enable extensibility, all patterns are specified in a designated domain-specific language. Securify is publicly released, it has analyzed >18K contracts submitted by its users, and is regularly used to conduct security audits by experts. We present an extensive evaluation of Securify over real-world Ethereum smart contracts and demonstrate that it can effectively prove the correctness of smart contracts and discover critical violations.
Stefan Dziembowski, Sebastian Faust, Kristina Hostáková
One of the fundamental challenges that hinder further adaption of decentralized cryptocurrencies is scalability. Because current cryptocurrencies require that all transactions are processed and stored on a distributed ledger -- the so-called blockchain -- transaction throughput is inherently limited. An important proposal to significantly improve scalability are off-chain protocols, where the massive amount of transactions is executed without requiring the costly interaction with the blockchain. Examples of off-chain protocols include payment channels and networks, which are currently deployed by popular cryptocurrencies such as Bitcoin and Ethereum. A further extension of payment networks envisioned for cryptocurrencies are so-called state channel networks. In contrast to payment networks that only support off-chain payments between users, state channel networks allow execution of arbitrary complex smart contracts. The main contribution of this work is to give the first full specification for general state channel networks. Moreover, we provide formal security definitions and prove the security of our construction against powerful adversaries. An additional benefit of our construction is the use of channel virtualization, which further reduces latency and costs in complex channel networks.
Blockchain technology adds records to a list using cryptographic links. Therefore, the security of blockchain smart contracts is among the most popular contemporary research topics. To improve the theorem-proving technology in this field, we are developing an extensible hybrid verification tool chain, denoted as FSPVM-E, for Ethereum smart contract verification. This hybrid system extends the proof assistants in Coq, a formal proof-management system. Combining symbolic execution with higher-order theorem-proving, it solves consistency, automation, and reusability problems by standard theorem-proving approaches. This article completes the FSPVM-E by developing its proof engine. FSPVM-E is an extensible definitional interpreter based on our previous work FEther, which is totally developed in the Coq proof assistant. It supports almost all semantics of the Solidity programing language, and simultaneously executes multiple types of symbols. FEther also contains a set of automatic strategies that execute and verify the smart contracts in Coq with a high level of automation. The functional correctness of FEther was verified in Coq. In standard tutorials, the execution efficiency of FEther far exceeded that of the interpreters developed in Coq.
Deep neural network (DNN) applications require heavy computations, so an embedded device with limited hardware such as an IoT device cannot run the apps by itself. One solution is to offload DNN computations from the client device to nearby edge servers [1] to request an execution of the DNN computations with their powerful hardware. However, there are several issues with the solution. One is an availability issue that how we can provide the edge server with some incentives to run the client' apps. The other is a scalability issue that how we can use more servers when there are more DNN requests. Finally, there is an integrity issue that how the client can trust the result coming from anonymous edge servers. We think the blockchain technology can solve these issues to make edge computing more practical. This paper proposes a novel architecture for DNN edge computing based on the blockchain technology. Existing blockchains such as Ethereum do not support execution of a complex program, so we propose a modified blockchain structure and protocol to overcome the limitation.
Morit Zwang, Shahar Somin, Alex Pentland, Yaniv Altshuler
The Ethereum blockchain network is a decentralized platform enabling smart contract execution and transactions of Ether (ETH) [1], its designated cryptocurrency. Ethereum is the second most popular cryptocurrency with a market cap of more than 100 billion USD, with hundreds of thousands of transactions executed daily by hundreds of thousands of unique wallets. Tens of thousands of those wallets are newly generated each day. The Ethereum platform enables anyone to freely open multiple new wallets [2] free of charge (resulting in a large number of wallets that are controlled by the same entities). This attribute makes the Ethereum network a breeding space for activity by software robots (bots). The existence of bots is widespread in different digital technologies and there are various approaches to detect their activity such as rule-base, clustering, machine learning and more [3,4]. In this work we demonstrate how bot detection can be implemented using a network theory approach.
Fadhlan Hafizhelmi Kamaruzaman, Ahmad Ihsan Mohd Yassin, Azlee Zabidi, Fadhlan Hafizhelmi Kamaru Zaman · 7 authors
In recent years, an individual under the pseudonym of Satoshi Nakamoto devised a revolutionary technology called blockchain as the engine behind the first decentralized virtual currency called Bitcoin. A radical concept departing from government-centric controlled currencies, Bitcoin has emerged as a disruptive technology with the power to revolutionize business and its processes. Advantages of the blockchain include decentralized control, immutability, elimination of central authority and solution of concurrency problems in traditional databases. Leveraging on the advantages of blockchain technology defined above, this paper discusses the potential application of blockchain technology for storage of Islamic marriage certificates. Marriage certificates are documents issued to couples to legally recognize their marriage. Due to its paper-based nature, there is significant risk for them to be forged or frauded. These issues can be addressed effective using blockchain. The proposed application was implemented using smart contracts on a simulated Ethereum platform. A smart contract is designed to execute automatically under certain predefined conditions. The use of smart contracts eliminate manipulation by a single party. In addition, the immutable concept of blockchain ensures that data integrity is always preserved, greatly reducing the risk of fraud. Â
Space situation awareness (SSA) includes tracking of active and inactive resident space objects and assessing the space environment through sensor data collection and processing. To enhance SSA, the dynamic data-driven application systems framework couples online data with offline models to enhance performance by using feedback control, sensor management, and communications reliability. For information management, there is a need for identity authentication and access control (AC) to ensure the integrity of exchanged data as well as to grant authorized entities access right to data and services. Due to decentralization and heterogeneity of SSA systems, it is challenging to build an efficient centralized AC system, which can either be a performance bottleneck or the single point of failure. Inspired by the blockchain and smart contract technology, we introduce blockchain-enabled, decentralized, capability-based access control (BlendCAC), a decentralized authentication, and capability-based AC mechanism to enable effective protection for devices, services, and information in SSA networks. To achieve secure identity authentication, the BlendCAC leverages the blockchain to create virtual trust zones, in which distributed components can identify and update each other in a trustless network environment. A robust identity-based capability token management strategy is proposed, which takes advantage of the smart contract for registration, propagation, and revocation of the access authorization. A proof-of-concept prototype has been implemented on both resources-constrained devices (i.e., Raspberry Pi nodes emulating satellites with sensor observations) and more powerful computing devices (i.e., laptops emulating a ground network) and is tested on a private Ethereum blockchain network. The experimental results demonstrate the feasibility of the BlendCAC scheme to offer a decentralized, scalable, lightweight, and fine-grained AC solution for space system toward SSA.
It’s has been years and we still have a lot of downtimes in the major online platforms we use. When we go deep down and understand the problem, it’s all because of SPOF i. e. Single point of failure (which is a part of a system that, if it fails, it will stop the entire system from working). By this there is a possibility of downtime or hack or tampering of data or loss of data. Bitcoin is the first application of blockchain, then a lot of communities like Ethereum , etc. have been developing dApp protocols and frameworks to build applications in blockchain. Also a world renowned framework called Hyperledger Project is also in development made by an open source community consisting of people from large organisations. Early days and also now we have been using a technology called Torrent which is also decentralized. And now the question why to use decentralized systems in regards of issues with the largest social media company the problem was with the data that it had stored. Imagine a network that gives you the full control and privacy of data you share, send and get. Also not having a single second of service unavailability. The main aim of the project is to build a database system to achieve the goal of decentralized internet.
In recent years, Bitcoin, Ethereum and other cryptocurrencies have attracted a great deal of attention from the whole industry including the financial as a new settlement system. Transaction information of these cryptocurrencies is stored in a distribution ledger called Blockchain on the P2P network through processing such as PoW. Meanwhile, since PoW requires a large amount of computer resources, researches on private / consortium type blockchain that do not need PoW. In this paper, we propose a decentralized netting protocol using a consortium type block chain that has the channel function. On a system that implements the proposed protocol, netting settlement can be performed on P2P hiding information of the sender and receiver name of transaction, amount of money, calculation butt of netting, and without setting up a specific central organization such as a central server.
Since 2016, China has officially regarded blockchain technology as a subversive innovation that will fundamentally transform major industries. Current blockchain projects in China are dominated by private or consortium blockchains that have their accessibility firmly controlled; for public blockchains such as Bitcoin and Ethereum, access is free for all. Not surprisingly, by weakening state control of digital data, public blockchains may neutralise China’s decades of efforts in building internet filtering systems. The existing development trajectory of private and consortium blockchains is likely to advance steadfastly, and citizens and companies in China may be required to use state-controlled blockchains.
Michael Hinterstocker, Florian Haberkorn, Andreas Zeiselmair, Serafin von Roon
Only a small share of German households make use of the opportunity to regularly switch their electricity supplier in order to fulfill their needs. Besides the relatively low possible monetary savings, another reason is the fact of long running contracts. The process of supplier switching for stakeholders in the energy market is quite time-consuming. This is caused by inefficient design of the process steps due to a lack of automation, of common data management and of direct communication between these stakeholders. Two options for optimizing this by means of a blockchain-based system are described and discussed here. These allow simplified communication between participating parties and therefore potentially quicker completion of the process. They enable automation of the whole process, prevent delays due to inconsistent data and therefore, allow intraday switching. An exemplary proof-of-concept implementation on the Ethereum blockchain shows the feasibility of the approach. Nevertheless, the advantages and disadvantages when compared to an alternative automated implementation, which is not blockchain-based, are still to be thoroughly examined.
Blockchain is currently one of the most widely discussed and hyped technologies. It has the potential to disrupt existing but also to enable new business models — The top 3 key takeaways in the blockchain technology in the media industry are: New pricing option for paid content using Blockchain: Blockchain makes even micro-cent payments cost-efficient. Current cryptocurrencies, such as Bitcoin or Ethereum permit transactions as small as fractions of cents. It is thus an enabler for penny price content purchases, such as paying for reading a single news article or streaming a single song. Also, traditionally ad-sponsored content such as YouTube videos can be monetized with an “ad-free” alternative for a small fee. — Consumption of paid content without boundaries: National / regional limitations of paid content subscriptions and DRM complexities will be decreased by the Blockchain. Blockchain is not a technical prerequisite for this endeavor since more sophisticated Digital Rights Management systems are also capable of dealing with complexities like multi-country access. Nevertheless, the blockchain has the potential to make DRM systems obsolete or at least to reduce the complexity of these systems, because every transaction/ consumption is tracked in the blockchain and directly linked to a user. The payment will be automatically initiated according to the underlying smart contract terms for the content. — Smart contracts: Ethereum, the second-largest blockchain network by market capitalization, was the first platform to introduce the concept of a smart contract. Smart contracts enable counterparties to automate transaction tasks that are typically performed manually and that require the involvement of third-party intermediaries. Smart contract technology can result in processes that are faster and more accurate and cost-efficient. — Challenges in implementing blockchain technology: — • Trust in blockchain technologies and platforms — • Opaqueness of blockchain platforms and standards due to quickly-changing market participants — • Usability and reach of blockchain technologies in everyday environments — • Interoperability of platforms and various standards needs to be secured
Kyungchan Ko, Chaehyeon Lee, Taeyeol Jeong, James Won‐Ki Hong
On 2017, Bitcoin and Ethereum shocked the world with their coins being traded in coin exchange markets at incredibly high prices around the world. The fervor led to more than 1,700 startups launching ICOs (Initial Coin Offerings) and many more preparing one. Blockchain the fundamental technology behind these cryptocurrencies - is being used by many companies worldwide to solve mathematically meaningful problems. enhance efficiency, save cost and/or generate new revenue. The growing popularity of blockchain has brought about the need for monitoring and analyzing blockchain transactions, nodes, blocks, and smart contracts in order to make sure that the blockchains operate legally, efficiently, and reliably. Various government authorities (police, taxation office, banking and financial) show great interest in monitoring blockchain transactions. In this paper, we present the design of blockchain monitoring and analysis system for collecting and analyzing important aspects of blockchain operations.
The growing adoption of photovoltaic panels on roof-tops increases the pressure on grid operators for offsetting surplus or deficiency in generation. A multi-carrier energy system allows energy to be converted and stored using different energy carriers, thus relieving the stress from grid operators. However, these systems require efficient operation to unfold their full potential. This paper proposes a novel blockchain-enabled process to coordinate, allocate, and settle intra-day energy transactions in a district multi-carrier energy system with electricity and heating sub-networks. An incentive mechanism is designed for an optimal allocation of local green energy generation. The mechanism is implemented for the Ethereum blockchain and operates fully on-chain. The design leaves energy producers the freedom to choose their preferred pricing strategy for profit maximization while restricting them to behavior favoring the common good. We test three pricing strategies, with different levels of knowledge on users’ pricing behaviors, that energy producers may adopt. The price-availability-based allocation system guarantees consumers the lowest possible cost.
Pietro Danzi, Sarah Hambridge, Čedomir Stefanović, Petar Popovski
In the power grid, the Balance Responsible Parties (BRPs) purchase energy based on a forecast of the user consumption. The forecasts are imperfect, and the corrections of their real-time deviations are managed by a System Operator (SO), which charges the BRPs for the procured imbalances. Flexible consumers, associated with a BRP, can be involved in a demand response (DR) program to reduce the imbalance costs. However, running the DR program requires the BRP to invest resources in the infrastructure and increases its operating costs. To limit the intervention of BRP, we implement the DR via a blockchain smart contract. Moreover, to reduce the delay of publication of the imbalance price, caused by the inefficient accounting process of the current balancing markets, a second blockchain is adopted at the SO layer, procuring a fast and auditable credit settlements. The feasibility of the proposed architecture is evaluated over an Ethereum blockchain platform. The results show that block chains can enable a high automation of the balancing market, by providing (i) the implementation of aggregators with low operating cost and (ii) the timely and transparent access to the balancing information, thus fostering new business models for the BRPs.
Internet of Things (IoT) has already been in the period of rapid development and widespread deployment, while it is still vulnerable to various malicious attacks. Security detection before system installation is not enough to ensure that IoT devices are always secure, because newly emerging vulnerabilities can still be exploited to launch attacks. To address this issue, retrospective detection is often required to trace the security status of IoT systems. Unfortunately, existing centralized detection mechanisms cannot easily provide a comprehensive security analysis. In particular, consumers cannot automatically receive security notification whenever a new vulnerability is uncovered. In this paper, we propose a novel blockchain-powered incentive platform, called SmartRetro, that can incentivize and attract more distributed detectors to participate in retrospective vulnerability detection and contribute their detection results. Leveraging smart contracts, consumers in SmartRetro receive automatic security feedback about their installed IoT systems. We perform the security and theoretical analysis to demonstrate that SmartRetro achieves our desirable security goals.We further implement SmartRetro prototype on Ethereum to evaluate its performance. Our experimental results show SmartRetro is technically feasible and economically beneficial.
The ubiquitous ID (uID) architecture provides dynamic and flexible context-awareness frameworks necessary in ubiquitous computing. Its basic idea is to assign 128 bit unique identifiers, each of which is called a ucode (ubiquitous code), to real-world entities. To guarantee the uniqueness of ucodes, current ucode ownreships are maintained by a hierarchical structure like DNS. In this traditional system, processing ucode transactions between organizations is cumbersome and inefficient because the reliability of owner information is dependent on individual organizations. To solve this problem, we designed a ucode ownership management system on a blockchain which is a decentralized platform. In this system, we proposed a blockchain-based ucode allocation method, which requires a simple procedure and only one transaction. This proposed method is user-friendly and efficient compared with ucode allocation methods to which we simply apply current blockchain-based name registration methods requiring a complex procedure and at least two transactions. Finally, we conducted a case study about these ucode allocation methods built on the Ethereum blockchain. From this result, we compared the usability and security of each ucode allocation method in Ethereum.