Blockchain Papers

Pietro Tiberi, Gabriele Marcelli, Vitangelo Lasorella

Central Bank Digital Currency (CBDC) interbank settlement systems operating on Distributed Ledger Technology (DLT) face a fundamental trade-off: blockchain transparency enables trustless verification but exposes commercially sensitive bilateral transaction flows to all network participants. We propose a confidential interbank settlement protocol for permissioned Ethereum-compatible networks that resolves this tension through a relaxed sender anonymity model tailored to regulatory AML/CFT requirements. In this model, the initiating institution remains publicly identifiable on-chain for accountability and compliance, while the receiving institution, transfer amount, and business payload are cryptographically obfuscated. We realize the protocol on Hyperledger Besu using QBFT consensus, combining Groth16 zero-knowledge proofs over BN254, Poseidon hash commitments in an incremental Merkle tree, multi-recipient ECIES payload encryption, and an on-chain NoteRegistry contract that stores encrypted notes as an append-only ledger log, eliminating trusted off-chain custody servers. The protocol supports shield, confidential transfer, and unshield state transitions. Experimental evaluation across a five-node network (three commercial banks, a central bank operator, and a securities depository) demonstrates end-to-end settlement in 8-16 s, proof verification overhead of about 1 ms (around 220k gas) via EVM precompiles, and client proof generation in 4-12 s on commodity ARM hardware. While receiver confidentiality is established at the protocol level, the current proof-of-concept NoteRegistry uses owner-indexed events, a trade-off addressable in production via uniform event broadcasting.

Preston Vander Vos, Daniel Cason

Tendermint is among the most widely studied and deployed Byzantine fault-tolerant (BFT) consensus protocols, owing in part to its native leader-rotation mechanism that subsumes complex view changes. Like most partially-synchronous BFT protocols, Tendermint tolerates $f 5f$ setting that decides in two communication steps in the good case, while preserving Tendermint's leader-rotation structure. Fast Tendermint collapses Tendermint's prevote and precommit steps into a single voting step and merges the $locked$ and $valid$ state. We give proofs of agreement, validity, and termination, and a formal specification in Quint, a modern surface syntax for TLA+, used to model-check the protocol.

Jakub Kacper Szeląg, Aydin Abadi, Mohammad Naseri

Decentralization as a concept in computer science has existed for over half a century. Despite its fundamental role across domains such as security, distributed computing, artificial intelligence, cloud infrastructures, and Internet of Things (IoT) architectures, there remains no universally accepted definition of decentralization applicable across computer communication systems. This has become increasingly problematic with the emergence of decentralized AI and machine learning paradigms, including collaborative training, distributed inference, blockchain-based, and agentic AI, where decentralization is often treated as a core design objective. Meanwhile, existing approaches frequently conflate decentralization with related notions such as distribution of trust or specific implementation paradigms. Such ambiguity creates inconsistencies in system analysis, limits comparability between works, and weakens the rigor of formal reasoning surrounding communication architectures and protocol design. In this work, we define this research gap as the Decentralization Problem. We analyze the formal-semantic, epistemological, and pragmatic foundations of decentralization and introduce a graph-based ontology defining it as both relational and subject-specific property of computer communication systems. The framework formally distinguishes decentralization from distribution and supports evaluation through two novel metrics: Void Tolerance and Imperviousness. We also provide a browser-based implementation that enables automated classification and metric computation of arbitrary systems. Instantiations to federated learning and blockchain architectures show consistent, comparable assessments where existing definitions produce incomplete or contradictory conclusions, providing a domain-independent foundation for analysing decentralization across heterogeneous systems.

Adnan Iftekhar, Chengliang Zheng, Xiaohui Cui, Mir Hassan

Blockchain can preserve supply-chain records, but ledger integrity alone does not show whether a participant should be trusted in a future risk-sensitive transaction. Existing reputation systems mainly address product evidence, global feedback aggregation, or review authenticity, while giving less attention to repeated bilateral inflation, identity multiplicity, and unfair decay for honest participants with sparse histories. We present \RC, a participant trust framework that uses blockchain as an evidence and provenance layer rather than as the source of trust. Governed interaction outcomes are converted into bounded evidence. Repeated interactions between the same pair are discounted, low counterparty diversity is penalized, governance-supplied identity confidence weights positive evidence, and scores decay toward a neutral prior according to verified interaction volume. Identity, contract, outcome, and update provenance remain on chain, while nonlinear reputation computation is performed off chain and checked on chain for admissibility. In controlled simulations with 30 seeded runs and matched interaction traces, the full model reduces mean collusive gain to 0.1443, compared with 0.3688 for naive mean evidence and 0.3585 for static decay. With ten identities under one controller, the reputation inflation ratio falls to 0.8723, while three comparison baselines remain above 1.08. On identical newcomer traces, volume-aware decay increases mean newcomer reputation from 0.6626 to 0.7589 and reduces the false low-trust rate from 0.3633 to 0.1683. Paired analysis confirms these improvements across runs. The results support a bounded reduction in reputation distortion, not attacker detection. Deployment evaluation and calibration with operational data are still required before production use.

Hongru He, Akihiro Fujihara

High-performance Byzantine Fault Tolerant (BFT) blockchains are designed to achieve high throughput and low latency, yet their observed block time distributions often reveal complex behaviors arising from networking, pipelining, and deployment heterogeneity. In this paper, we diagnose HotStuff-based high-performance BFT consensus by modeling block times through a quorum-based multicast framework that links each block interval to quorum formation latency. We capture multimodal block time distributions using mixture models, where each component represents a distinct network condition characterized by effective transfer rate of block information. The proposed model is fitted to the bulk of mainnet block time data, while tail decay is analyzed separately to assess asymptotic behavior. Applying this methodology to Hyperliquid and Aptos mainnets, we find that Hyperliquid is well explained by a unimodal distribution, consistent with a relatively homogeneous validator deployment. In contrast, Aptos exhibits persistent multimodal structure and a pronounced shift following a consensus upgrade, reflecting heterogeneous deployments and diverse communication paths. These results demonstrate that mixture modeling of block time provides a practical and informative diagnostic tool for analyzing and monitoring high-performance BFT consensus.