Industry 4.0 is a concept devised for improving the way modern factories operate through the use of some of the latest technologies, like the ones used for creating the Industrial Internet of Things (IIoT), robotics, or Big Data applications. One of such technologies is blockchain, which is able to add trust, security, and decentralization to different industrial fields. This article focuses on analyzing the benefits and challenges that arise when using blockchain and smart contracts to develop Industry 4.0 applications. In addition, this paper presents a thorough review of the most relevant blockchain-based applications for Industry 4.0 technologies. Thus, its aim is to provide a detailed guide for the future Industry 4.0 developers that allows for determining how the blockchain can enhance the next generation of cybersecure industrial applications.
In this paper, we present the most extensive evaluation of blockchain system to date. To achieve scalability across servers in more than 10 countries located on 4 different continents, we drastically revisited Byzantine fault tolerant blockchains and verification of signatures. The resulting blockchain, called the Red Belly Blockchain (RBBC), commits more than a hundred thousand transactions issued by permissionless nodes. These transactions are grouped into blocks within few seconds through a partially synchronous consensus run by permissioned nodes. It prevents double spending by guaranteeing that a unique block is decided at any given index of the chain in a deterministic way by all participants. We compared the performance of RBBC against traditional Byzantine fault tolerant alternatives and more recent randomized solutions. In the same geo-distributed environment with low-end machines, we noticed two interesting comparisons: (i) the RBBC throughput scales to hundreds of machines whereas the classic 3-step leader-based BFT state machine used by consortium blockchains cannot scale to 40 identically configured nodes; (ii) RBBC guarantees transaction finality in 3 seconds and experiences a third of the latency that randomized-based solutions like HoneyBadgerBFT can offer. This empirical evaluation demonstrates that blockchain scalability can be achieved without sacrificing security.
Rachid Guerraoui, Petr Kuznetsov, Matteo Monti, Matej Pavlovic · 5 authors
Many blockchain-based protocols, such as Bitcoin, implement a decentralized asset transfer (or exchange) system. As clearly stated in the original paper by Nakamoto, the crux of this problem lies in prohibiting any participant from engaging in double-spending. There seems to be a common belief that consensus is necessary for solving the double-spending problem. Indeed, whether it is for a permissionless or a permissioned environment, the typical solution uses consensus to build a totally ordered ledger of submitted transfers. In this paper we show that this common belief is false: consensus is not needed to implement of a decentralized asset transfer system. We do so by introducing AT2 (Asynchronous Trustworthy Transfers), a class of consensusless algorithms. To show formally that consensus is unnecessary for asset transfers, we consider this problem first in the shared-memory context. We introduce AT2$_{SM}$, a wait-free algorithm that asynchronously implements asset transfer in the read-write shared-memory model. In other words, we show that the consensus number of an asset-transfer object is one. In the message passing model with Byzantine faults, we introduce a generic asynchronous algorithm called AT2$_{MP}$ and discuss two instantiations of this solution. First, AT2$_{D}$ ensures deterministic guarantees and consequently targets a small scale deployment (tens to hundreds of nodes), typically for a permissioned environment. Second, AT2$_{P}$ provides probabilistic guarantees and scales well to a very large system size (tens of thousands of nodes), ensuring logarithmic latency and communication complexity. Instead of consensus, we construct AT2$_{D}$ and AT2$_{P}$ on top of a broadcast primitive with causal ordering guarantees offering deterministic and probabilistic properties, respectively.
Marco Conoscenti, Antonio Vetrò, Juan Carlos De Martin, Federico Spini · 6 authors
The Lightning Network (LN) is one of the most promising off-chain scaling solutions for Bitcoin, as it enables off-chain payments which are not subject to the well-known blockchain scalability limit. In this work, we introduce CLoTH, a simulator for HTLC payment networks, of which LN is the best working example. It simulates input-defined payments on an input-defined HTLC network and produces performance measures in terms of payment-related statistics, such as time to complete payments and probability of payment failure. CLoTH helps to predict issues that might arise in the development of an HTLC payment network, and to estimate the effects of an optimisation before deploying it. In upcoming works we'll publish the results of CLoTH simulations.
Antonio Fernández Anta, Chryssis Georgiou, Nicolas Nicolaou
The various applications using Distributed Ledger Technologies (DLT) or blockchains, have led to the introduction of a new `marketplace' where multiple types of digital assets may be exchanged. As each blockchain is designed to support specific types of assets and transactions, and no blockchain will prevail, the need to perform interblockchain transactions is already pressing. In this work we examine the fundamental problem of interoperable and interconnected blockchains. In particular, we begin by introducing the Multi-Distributed Ledger Objects (MDLO), which is the result of aggregating multiple Distributed Ledger Objects -- DLO (a DLO is a formalization of the blockchain) and that supports append and get operations of records (e.g., transactions) in them from multiple clients concurrently. Next, we define the AtomicAppends problem, which emerges when the exchange of digital assets between multiple clients may involve appending records in more than one DLO. Specifically, AtomicAppend requires that either all records will be appended on the involved DLOs or none. We examine the solvability of this problem assuming rational and risk-averse clients that may fail by crashing, and under different client utility and append models, timing models, and client failure scenarios. We show that for some cases the existence of an intermediary is necessary for the problem solution. We propose the implementation of such intermediary over a specialized blockchain, we term Smart DLO (SDLO), and we show how this can be used to solve the AtomicAppends problem even in an asynchronous, client competitive environment, where all the clients may crash.
Purposely modular, this protocol enables customization of several protocol properties, including the consensus properties implemented, blockchain type, the roots used, and virtual machine opcodes, among others. These modules enable implementing parties to control the behavior of their economy, with a minimal amount of effort, and no sacrifice in participant cryptoeconomic quality. This work also demonstrates the simplification of the developer experience by abstracting away all technological details, except basic CRUD-based operations, using various programming languages. We demonstrate the mechanism design approach taken, and formalize a process for deploying populations of blockchain economies at scale. The framework shown includes adequate tooling for simulation, development, deployment, maintenance, and analytic-based decision making. Lastly, we introduce an expressive programming language for the purpose of creating, and interacting with the cryptoeconomy designed by the implementing developer.
Lanny Z. N. Yuan, Huaibing Jian, Peng Liu, Pengxin Zhu · 5 authors
In this white paper, we propose a blockchain-based system, named AME, which is a decentralized infrastructure and application platform with enhanced security and self-management properties. The AME blockchain technology aims to increase the transaction throughput by adopting various optimizations in network transport and storage layers, and to enhance smart contracts with AI algorithm support. We introduce all major technologies adopted in our system, including blockchain, distributed storage, P2P network, service application framework, and data encryption. To properly provide a cohesive, concise, yet comprehensive introduction to the AME system, we mainly focus on describing the unique definitions and features that guide the system implementation.
Concurrency, the art of doing many things at the same time is slowly becoming a science. It is very difficult to master, yet it arises all over modern computing systems, both when the communication medium is shared memory and when it is by message passing. Concurrent programming is hard because it requires to cope with many possible, unpredictable behaviors of communicating processes interacting with each other. Right from the start in the 1960s, the main way of dealing with concurrency has been by reduction to sequential reasoning. We trace this history, and illustrate it through several examples, from early ideas based on mutual exclusion, passing through consensus and concurrent objects, until today ledgers and blockchains. We conclude with a discussion on the limits that this approach encounters, related to fault-tolerance, performance, and inherently concurrent problems.
Directed acyclic graphs (DAGs) are emerging as an attractive alternative to traditional blockchain architectures for distributed ledger technology. In particular, DAG ledgers with stochastic attachment mechanisms potentially offer many advantages over blockchain, including scalability and faster transaction speeds. However, the random nature of the attachment mechanism coupled with the requirement of protection against double-spending transactions might result in an unstable system in which not all transactions get eventually validated. Such transactions are said to be orphaned, and will never be validated. Our principal contribution is to propose a simple modification to the attachment mechanism for the Tangle (the IOTA DAG architecture). This modification ensures that all transactions are validated in finite time, and preserves essential features of the popular Monte Carlo selection algorithm. In order to demonstrate these results, we derive a fluid approximation for the Tangle (in the limit of infinite arrival rate) and prove that this fluid model exhibits the desired behavior. We also present simulations that validate the results for finite arrival rates.
We present Fission, a new permissionless blockchain that achieves scalability in both terms of system throughput and transaction confirmation time, while at the same time, retaining blockchain's core values of equality and decentralization. Fission overcomes the system throughput bottleneck by employing a novel Eager-Lazy pipeling model that achieves very high system throughputs via block pipelining, an adaptive partitioning mechanism that auto-scales to transaction volumes, and a provably secure energy-efficient consensus protocol to ensure security and robustness. Fission applies a hybrid network which consists of a relay network, and a peer-to-peer network. The goal of the relay network is to minimize the transaction confirmation time by minimizing the information propagation latency. To optimize the performance on the relay network in the presence of churn, dynamic network topologies, and network heterogeneity, we propose an ultra-fast game-theoretic relay selection algorithm that achieves near-optimal performance in a fully distributed manner. Fission's peer-to-peer network complements the relay network and provides a very high data availability via enabling users to contribute their storage and bandwidth for information dissemination (with incentive). We propose a distributed online data retrieval strategy that optimally offloads the relay network without degrading the system performance. By re-innovating all the core elements of the blockchain technology - computation, networking, and storage - in a holistic manner, Fission aims to achieve the best balance among scalability, security and decentralization.
Blockchains have received much attention recently since they provide decentralized approaches to the creation and management of value. Many banks, Internet companies, car manufacturers, and even governments worldwide have incorporated or started considering blockchains to improve the security, scalability, and efficiency of their services. In this paper, we survey blockchain applications in different areas. These areas include cryptocurrency, healthcare, advertising, insurance, copyright protection, energy, and societal applications. Our work provides a timely summary for individuals and organizations interested in blockchains. We envision our study to motivate more blockchain applications.
Open access
3 source records
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
Existing education systems are facing a threat of question paper leaking\n(QPL) in the exam which jeopardizes the quality of education. Therefore, it is\nhigh time to think about a more secure and flexible question sharing system\nwhich can prevent QPL issue in the future education system. Blockchain enables\na way of creating and storing transactions, contracts or anything that requires\nprotection against tampering, accessing etc. This paper presents a new scheme\nfor smart education, by utilizing the concept of blockchain, for question\nsharing. A two-phase encryption technique for encrypting question paper (QSP)\nis proposed. In the first phase, QSPs are encrypted using timestamp and in the\nsecond phase, previous encrypted QSPs are encrypted again using a timestamp,\nsalt hash and hashes from previous QSPs. These encrypted QSPs are stored in the\nblockchain along with a smart contract which helps the user to unlock the\nselected QSP. An algorithm is also proposed for selecting a QSP for the exam\nwhich picks a QSP randomly. Moreover, a timestamp based lock is imposed on the\nscheme so that no one can decrypt the QSP before the allowed time. Finally,\nsecurity is analyzed by proving different propositions and the superiority of\nthe proposed scheme over existing schemes is proven through a comparative study\nbased on the different features.\n
Many blockchain consensus protocols have been proposed recently to scale the throughput of a blockchain with available bandwidth. However, these protocols are becoming increasingly complex, making it more and more difficult to produce proofs of their security guarantees. We propose a novel permissionless blockchain protocol OHIE which explicitly aims for simplicity. OHIE composes as many parallel instances of Bitcoin's original (and simple) backbone protocol as needed to achieve excellent throughput. We formally prove the safety and liveness properties of OHIE. We demonstrate its performance with a prototype implementation and large-scale experiments with up to 50,000 nodes. In our experiments, OHIE achieves linear scaling with available bandwidth, providing about 4-10 Mbps transaction throughput (under 8-20 Mbps per-node available bandwidth configurations) and at least about 20x better decentralization over prior works.
Blockchain is a decentralized transaction and data management solution, the technological weapon-of-choice behind the success of Bitcoin and other cryptocurrencies. As the number and variety of existing blockchain implementations continues to increase, adopters should focus on selecting the best one to support their decentralized applications (dApps), rather than developing new ones from scratch. In this paper we present a framework to aid software architects, developers, tool selectors and decision makers to adopt the right blockchain technology for their problem at hand. The framework exposes the correlation between technological decisions and architectural features, capturing the knowledge from existing industrial products, technical forums/blogs, experts' feedback and academic literature; plus our own experience using and developing blockchain-based applications. We validate our framework by applying it to dissect the most outstanding blockchain platforms, i.e., the ones behind the top 10 cryptocurrencies apart from Bitcoin. Then, we show how we applied it to a real-world case study in the insurtech domain.
The requirement of supporting both latency sensitive and computing intensive Internet of Things (IoT) applications is consistently boosting the necessity for integrating Edge, Fog and Cloud infrastructure. Although there are a number of real-world frameworks attempt to support such integration, they have many limitations from various perspectives including platform independence, security, resource management and multi-application assistance. To address these limitations, we propose a simplified but effective framework, named FogBus for facilitating end-to-end IoT-Fog(Edge)-Cloud integration. FogBus offers a platform independent interface to IoT applications and computing instances for execution and interaction. It not only assists developers in building applications but also helps users in running multiple applications at a time and service providers to manage their resources. In addition, FogBus applies Blockchain, authentication and encryption techniques to secure operations on sensitive data. Because of its lightweight and cross platform software systems, it is easy to deploy, scalable and cost e_cient. We demonstrate the effectiveness of our framework by creating a computing environment with it that integrates finger pulse oximeter as IoT devices with Smartphone-based gateway and Raspberry Pi-based Fog nodes for Sleep Apnea analysis. We also run several experiments on this computing environment varying FogBus settings. The experimental results show that different FogBus settings can improve latency, energy, network and CPU usage of the computing infrastructure.
Luca Becchetti, Andrea Clementi, Emanuele Natale, Francesco Pasquale · 5 authors
It follows from the Marcus-Spielman-Srivastava proof of the Kadison-Singer conjecture that if $G=(V,E)$ is a $Δ$-regular dense expander then there is an edge-induced subgraph $H=(V,E_H)$ of $G$ of constant maximum degree which is also an expander. As with other consequences of the MSS theorem, it is not clear how one would explicitly construct such a subgraph. We show that such a subgraph (although with quantitatively weaker expansion and near-regularity properties than those predicted by MSS) can be constructed with high probability in linear time, via a simple algorithm. Our algorithm allows a distributed implementation that runs in $\mathcal O(\log n)$ rounds and does $\mathcal O(n)$ total work with high probability. The analysis of the algorithm is complicated by the complex dependencies that arise between edges and between choices made in different rounds. We sidestep these difficulties by following the combinatorial approach of counting the number of possible random choices of the algorithm which lead to failure. We do so by a compression argument showing that such random choices can be encoded with a non-trivial compression. Our algorithm bears some similarity to the way agents construct a communication graph in a peer-to-peer network, and, in the bipartite case, to the way agents select servers in blockchain protocols.
Muhammad Shayan, Clement Fung, Chris J. M. Yoon, Ivan Beschastnikh
Federated Learning is the current state of the art in supporting secure multi-party machine learning (ML): data is maintained on the owner's device and the updates to the model are aggregated through a secure protocol. However, this process assumes a trusted centralized infrastructure for coordination, and clients must trust that the central service does not use the byproducts of client data. In addition to this, a group of malicious clients could also harm the performance of the model by carrying out a poisoning attack. As a response, we propose Biscotti: a fully decentralized peer to peer (P2P) approach to multi-party ML, which uses blockchain and cryptographic primitives to coordinate a privacy-preserving ML process between peering clients. Our evaluation demonstrates that Biscotti is scalable, fault tolerant, and defends against known attacks. For example, Biscotti is able to protect the privacy of an individual client's update and the performance of the global model at scale when 30% of adversaries are trying to poison the model. The implementation can be found at: https://github.com/DistributedML/Biscotti
Tetris is an Asynchronous Byzantine Fault Tolerance consensus algorithm designed for next generation high-throughput permission and permissionless blockchain. The core concept of Tetris is derived from Reasoning About Knowledge, which we believe to be the most appropriate tools for revealing and analyzing the fundamental complexity of distributed systems. By analyzing the states of knowledge that each participant attained in an unreliable system, we can capture some of the basis underlying structure of the system, then help us designing effective & efficient protocols. Plus the adoption of Full Information Protocol (FIP) with the optimized message traffic model, Tetris has finally got high performance, with proved safety. Tetris achieve consensus finality in seconds, means transactions can be confirmed greatly faster than other scheme like Pow/Dpos. Tetris also achieve fairness, which is critically important in some areas such as stock market etc.
A blockchain system is a replicated state machine that must be fault tolerant. When designing a blockchain system, there is usually a trade-off between decentralization, scalability, and security. In this paper, we propose a novel blockchain system, DEXON, which achieves high scalability while remaining decentralized and robust in the real-world environment. We have two main contributions. First, we present a highly scalable sharding framework for blockchain. This framework takes an arbitrary number of single chains and transforms them into the \textit{blocklattice} data structure, enabling \textit{high scalability} and \textit{low transaction confirmation latency} with asymptotically optimal communication overhead. Second, we propose a single-chain protocol based on our novel verifiable random function and a new Byzantine agreement that achieves high decentralization and low latency.
Zhengwei Ni, Wenbo Wang, Dong In Kim, Ping Wang · 5 authors
With the development of decentralized consensus protocols, permissionless blockchains have been envisioned as a promising enabler for the general-purpose transaction-driven, autonomous systems. However, most of the prevalent blockchain networks are built upon the consensus protocols under the crypto-puzzle framework known as proof-of-work. Such protocols face the inherent problem of transaction-processing bottleneck, as the networks achieve the decentralized consensus for transaction confirmation at the cost of very high latency. In this paper, we study the problem of consensus formation in a system of multiple throughput-scalable blockchains with sharded consensus. Specifically, the protocol design of sharded consensus not only enables parallelizing the process of transaction validation with sub-groups of processors, but also introduces the Byzantine consensus protocols for accelerating the consensus processes. By allowing different blockchains to impose different levels of processing fees and to have different transaction-generating rate, we aim to simulate the multi-service provision eco-systems based on blockchains in real world. We focus on the dynamics of blockchain-selection in the condition of a large population of consensus processors. Hence, we model the evolution of blockchain selection by the individual processors as an evolutionary game. Both the theoretical and the numerical analysis are provided regarding the evolutionary equilibria and the stability of the processors' strategies in a general case.
In 2008, Satoshi Nakamoto proposed an electronic cash system (bitcoin) that is completely realized by peer-to-peer technology. The core value of this scheme is that it proposes a solution based on Proof-of Work, so that the cash system can run in a peer-to-peer environment and be able to prevent double-spend attacks. Bitcoin has been developed for ten years, and since then countless digital currencies have been created. But the discussion of double-spend attacks seems to still concentrate on 51% Attacks. In fact, our research has found that there are many other way to achieve double-spend attacks. In this paper, by introducing a number of double-spend attack vulnerabilities that we have found in EOS, NEO and other large blockchain platforms, we summarized various reasons for causing double-spend attacks, and propose an efficient mitigation measure against them.
Blockchain systems and smart contracts provide ways to securely implement multi-party transactions without the use of trusted intermediaries, which currently underpin many commercial transactions. However, they do so by transferring trust to computer systems, raising the question of whether code can be trusted. Experience with high value losses resulting from incorrect code has already shown that formal verification of smart contracts is likely to be beneficial. This note investigates the specification and verification of a simple form of multi-party transaction, atomic swaps. It is argued that logics with the ability to express properties of strategies of players in a multi-agent setting are conceptually useful for this purpose, although ultimately, for our specific examples, the less expressive setting of temporal logic suffices for verification of concrete implementations. This is illustrated through a number of examples of the use of a model checker to verify atomic swap smart contracts in on-chain and cross-chain settings.
Summary Decentralization, in the form of mesh networking and blockchain, two promising technologies, is coming to the telecommunications industry. Mesh networking allows wider low‐cost Internet access with infrastructures built from routers contributed by diverse owners, whereas blockchain enables transparency and accountability for investments, revenue, or other forms of economic compensations from sharing of network traffic, content, and services. Crowdsourcing network coverage, combined with crowdfunding costs, can create economically sustainable yet decentralized Internet access. This means that every participant can invest in resources and pay or be paid for usage to recover the costs of network devices and maintenance. While mesh networks and mesh routing protocols enable self‐organized networks that expand organically, cryptocurrencies and smart contracts enable the economic coordination among network providers and consumers. We explore and evaluate two existing blockchain software stacks, Hyperledger Fabric (HLF) and Ethereum geth with Proof of Authority (PoA) intended as a local lightweight distributed ledger, deployed in a real city‐wide production mesh network and in laboratory network. We quantify the performance and bottlenecks and identify the current limitations and opportunities for improvement to serve locally the needs of wireless mesh networks, without the privacy and economic cost of relying on public blockchains.
Some of the recent blockchain proposals, such as Stellar and Ripple, use quorum-like structures typical for Byzantine consensus while allowing for open membership. This is achieved by constructing quorums in a decentralised way: each participant independently chooses whom to trust, and quorums arise from these individual decisions. Unfortunately, the theoretical foundations underlying such blockchains have not been thoroughly investigated. To close this gap, in this paper we study decentralised quorum construction by means of federated Byzantine quorum systems, used by Stellar. We rigorously prove the correctness of basic broadcast abstractions over federated quorum systems and establish their relationship to the classical Byzantine quorum systems. In particular, we prove correctness in the realistic setting where Byzantine nodes may lie about their trust choices. We show that this setting leads to a novel variant of Byzantine quorum systems where different nodes may have different understanding of what constitutes a quorum.