Blockchains and Smart Contracts for the Internet of Things
TL;DR: The conclusion is that the blockchain-IoT combination is powerful and can cause significant transformations across several industries, paving the way for new business models and novel, distributed applications.
Abstract: Motivated by the recent explosion of interest around blockchains, we examine whether they make a good fit for the Internet of Things (IoT) sector. Blockchains allow us to have a distributed peer-to-peer network where non-trusting members can interact with each other without a trusted intermediary, in a verifiable manner. We review how this mechanism works and also look into smart contracts—scripts that reside on the blockchain that allow for the automation of multi-step processes. We then move into the IoT domain, and describe how a blockchain-IoT combination: 1) facilitates the sharing of services and resources leading to the creation of a marketplace of services between devices and 2) allows us to automate in a cryptographically verifiable manner several existing, time-consuming workflows. We also point out certain issues that should be considered before the deployment of a blockchain network in an IoT setting: from transactional privacy to the expected value of the digitized assets traded on the network. Wherever applicable, we identify solutions and workarounds. Our conclusion is that the blockchain-IoT combination is powerful and can cause significant transformations across several industries, paving the way for new business models and novel, distributed applications.
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TL;DR: This paper proposes an evolutionary game theoretic analysis of Proof-of-Work (PoW) based blockchain network in order to investigate the mining pool dynamics affected by malicious infiltrators and the feasibility of autonomous migration among individual miners.
Abstract: In the current blockchain network, many participants rationally migrate the pool to receive a better compensation according to their contribution in situations where the pools they engage encounter undesirable attacks. The Nash equilibria of attacked pool has been widely analyzed, but the analysis of practical methodology for obtaining it is still inadequate. In this paper, we propose an evolutionary game theoretic analysis of Proof-of-Work (PoW) based blockchain network in order to investigate the mining pool dynamics affected by malicious infiltrators and the feasibility of autonomous migration among individual miners. We formulate a revenue model for mining pools which are implicitly allowed to launch a block withholding attack. Under our mining game, we analyze the evolutionary stability of Nash equilibrium with replicator dynamics, which can explain the population change with time between participated pools. Further, we explore the statistical approximation of successful mining events to show the necessity of artificial manipulation for migrating. Finally, we construct a better response learning based on the required block size which can lead to our evolutionarily stable strategy (ESS) with numerical results that support our theoretical discoveries.
25 citations
TL;DR: A new transaction solution based on the smart contract-enabled blockchain technology is proposed, which consists of the DPT smart contract and DAST smart contract, designed to enable entities in IIoT to execute DPTs and Dasts automatically and honestly.
Abstract: The evolution of Industrial Internet of things (IIoT) boosts the amount of IIoT data. Machine learning promotes the progress of data analytics services. In order to facilitate the flow and explore the economic value of IIoT data, it is crucial to consider data packet transactions (DPTs) and data analytics service transactions (DASTs) simultaneously. Centralized data trading platforms emerge to realize transactions of data commodities. However, centralized platforms lack trust and robustness. How to realize DPTs and DASTs in a decentralized way is a challenging issue. In this paper, a new transaction solution based on the smart contract-enabled blockchain technology is proposed, which consists of the DPT smart contract and DAST smart contract. The DPT smart contract is implemented to trade data packets. The DAST smart contract provides a competitive way to trade data analytics services. Both smart contracts are designed to enable entities in IIoT to execute DPTs and DASTs automatically and honestly. Moreover, the transaction disputes between different IIoT entities are solved by the big data center off-chain, and the treatment results will be recorded on the blockchain by the big data center. The DPT smart contract and DAST smart contract are implemented and tested on Remix integrated development environment to achieve DPTs and DASTs. The gas costs of smart contracts are estimated and the security of the proposed solution is analyzed. The performance analysis demonstrates that the proposed solution is secure and feasible.
25 citations
Cites background from "Blockchains and Smart Contracts for..."
...Applications that previously could only be implemented on trusted third-party platforms can be performed in a distributed manner with the blockchain technology at present [15]....
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20 Sep 2017
TL;DR: The results indicate that the BC core characteristics can be utilized in several use cases addressing current CBRS implementation considerations, and the cognitive radio spectrum sharing – BC combination paves the way for new business models and distributed services.
Abstract: The Blockchain (BC) technology has received religious attention in the financial and internet domains, and recently interest has spread to adjacent sectors like communications. This paper seeks to identify the impact of the BC technology in novel spectrum sharing concepts using the Citizens Broadband Radio Service (CBRS) concept as an example. The results indicate that the BC core characteristics can be utilized in several use cases addressing current CBRS implementation considerations. The CBRS concept could particularly benefit of BCs in building trust, consensus and lowering the transaction cost. In BC deployments, confidentiality should be taken into consideration through hybrid and private BC options. Furthermore, the cognitive radio spectrum sharing – BC combination paves the way for new business models and distributed services.
25 citations
Cites background from "Blockchains and Smart Contracts for..."
...Potential deployment considerations found in research and early trials, particularly in the financial sector, include throughput, scalability and latency in large public BCs, legal enforceability, transactional confidentiality particularly in the public BCs, consensus mechanism determination & complexity, and integration with legacy systems and workflows [10]....
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...In telecommunications, to date early BC studies has focused mainly on the context of Internet of Things (IoT) [10]....
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TL;DR: This paper exploits the smart contract feature of blockchain to construct a completely autonomous framework, where all the participants are financially enforced by smart contract terms, and proposes a decentralized and trustless auction framework based on blockchain technology.
Abstract: Physical layer security (PLS) is considered as a promising technique to prevent information eavesdropping in wireless systems. In this context, cooperative relaying has emerged as a robust solution for achieving PLS due to multipath diversity and relatively lower transmission power. However, relays or the relay operators in the practical environment are unwilling for service provisioning unless they are incentivized for their cost of services. Thus, it is required to jointly consider network economics and relay cooperation to improve system efficiency. In this paper, we consider the problem of joint network economics and PLS using cooperative relaying and jamming. Based on the double auction theory, we model the interaction between transmitters seeking for a particular level of secure transmission of information and relay operators for suitable relay and jammer assignment, in a multiple source-destination networks. In addition, theoretical analyses are presented to justify that the proposed auction mechanism satisfies the desirable economic properties of individual rationality, budget balance, and truthfulness. As the participants in the traditional centralized auction framework may take selfish actions or collude with each other, we propose a decentralized and trustless auction framework based on blockchain technology. In particular, we exploit the smart contract feature of blockchain to construct a completely autonomous framework, where all the participants are financially enforced by smart contract terms. The security properties of the proposed framework are also discussed.
25 citations
Cites background from "Blockchains and Smart Contracts for..."
...Smart contract is a software program that executes an agreement between distrusting parties automatically in the digital domain [55]–[57]....
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Posted Content•
16 Nov 2017
TL;DR: To facilitate blockchain applications in future mobile Internet of Things systems, multiple access mobile edge computing appears to be an auspicious option to solve the proof-of-work puzzles for mobile users.
Abstract: Blockchain, as the backbone technology of the current popular Bitcoin digital currency, has become a promising decentralized approach for resource and transaction management. Although blockchain has been widely adopted in many applications, e.g., finance, healthcare, and logistics, its application in mobile environments is still limited. This is due to the fact that blockchain users need to solve preset proof-of-work puzzles to add new transactions to the blockchain. Solving the proof-of-work, however, consumes substantial resources in terms of CPU time and energy, which is not suitable for resource-limited mobile devices. To facilitate blockchain applications in future mobile Internet of Things systems, multiple access mobile edge computing appears to be an auspicious option to solve the proof-of-work puzzles for mobile users. We first introduce a novel concept of edge computing for mobile blockchain. Then, we introduce an economic approach for edge computing resource management. Moreover, a demonstrative prototype of mobile edge computing enabled blockchain systems is presented with experimental results to justify the proposed concept.
25 citations
Cites background from "Blockchains and Smart Contracts for..."
...One possible implementation can be the small-scaled “whitelisted” IoT networks [9]...
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...Mobile edge computing enabled blockchain can provide transparent and secured transferring of data as digitized assets [9]....
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...A typical application scenario is IoT [9], [10]....
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References
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TL;DR: The Albanian Generals Problem as mentioned in this paper is a generalization of Dijkstra's dining philosophers problem, where two generals have to come to a common agreement on whether to attack or retreat, but can communicate only by sending messengers who might never arrive.
Abstract: I have long felt that, because it was posed as a cute problem about philosophers seated around a table, Dijkstra’s dining philosopher’s problem received much more attention than it deserves. (For example, it has probably received more attention in the theory community than the readers/writers problem, which illustrates the same principles and has much more practical importance.) I believed that the problem introduced in [41] was very important and deserved the attention of computer scientists. The popularity of the dining philosophers problem taught me that the best way to attract attention to a problem is to present it in terms of a story. There is a problem in distributed computing that is sometimes called the Chinese Generals Problem, in which two generals have to come to a common agreement on whether to attack or retreat, but can communicate only by sending messengers who might never arrive. I stole the idea of the generals and posed the problem in terms of a group of generals, some of whom may be traitors, who have to reach a common decision. I wanted to assign the generals a nationality that would not offend any readers. At the time, Albania was a completely closed society, and I felt it unlikely that there would be any Albanians around to object, so the original title of this paper was The Albanian Generals Problem. Jack Goldberg was smart enough to realize that there were Albanians in the world outside Albania, and Albania might not always be a black hole, so he suggested that I find another name. The obviously more appropriate Byzantine generals then occurred to me. The main reason for writing this paper was to assign the new name to the problem. But a new paper needed new results as well. I came up with a simpler way to describe the general 3n+1-processor algorithm. (Shostak’s 4-processor algorithm was subtle but easy to understand; Pease’s generalization was a remarkable tour de force.) We also added a generalization to networks that were not completely connected. (I don’t remember whose work that was.) I also added some discussion of practical implementation details.
5,208 citations
TL;DR: In this article, a group of generals of the Byzantine army camped with their troops around an enemy city are shown to agree upon a common battle plan using only oral messages, if and only if more than two-thirds of the generals are loyal; so a single traitor can confound two loyal generals.
Abstract: Reliable computer systems must handle malfunctioning components that give conflicting information to different parts of the system. This situation can be expressed abstractly in terms of a group of generals of the Byzantine army camped with their troops around an enemy city. Communicating only by messenger, the generals must agree upon a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals will reach agreement. It is shown that, using only oral messages, this problem is solvable if and only if more than two-thirds of the generals are loyal; so a single traitor can confound two loyal generals. With unforgeable written messages, the problem is solvable for any number of generals and possible traitors. Applications of the solutions to reliable computer systems are then discussed.
4,901 citations
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TL;DR: It is shown that, without a logically centralized authority, Sybil attacks are always possible except under extreme and unrealistic assumptions of resource parity and coordination among entities.
Abstract: Large-scale peer-to-peer systems face security threats from faulty or hostile remote computing elements. To resist these threats, many such systems employ redundancy. However, if a single faulty entity can present multiple identities, it can control a substantial fraction of the system, thereby undermining this redundancy. One approach to preventing these "Sybil attacks" is to have a trusted agency certify identities. This paper shows that, without a logically centralized authority, Sybil attacks are always possible except under extreme and unrealistic assumptions of resource parity and coordination among entities.
4,816 citations
"Blockchains and Smart Contracts for..." refers background in this paper
...Because of the Sybil attack [15], consensus in public networks is costly...
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...anyone can join though, this would be catastrophic because of the Sybil attack [15]: a single entity could join with multiple identities, get multiple votes, and thus influence the network to favor this entity’s interests....
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22 Feb 1999
TL;DR: A new replication algorithm that is able to tolerate Byzantine faults that works in asynchronous environments like the Internet and incorporates several important optimizations that improve the response time of previous algorithms by more than an order of magnitude.
Abstract: This paper describes a new replication algorithm that is able to tolerate Byzantine faults. We believe that Byzantinefault-tolerant algorithms will be increasingly important in the future because malicious attacks and software errors are increasingly common and can cause faulty nodes to exhibit arbitrary behavior. Whereas previous algorithms assumed a synchronous system or were too slow to be used in practice, the algorithm described in this paper is practical: it works in asynchronous environments like the Internet and incorporates several important optimizations that improve the response time of previous algorithms by more than an order of magnitude. We implemented a Byzantine-fault-tolerant NFS service using our algorithm and measured its performance. The results show that our service is only 3% slower than a standard unreplicated NFS.
3,562 citations
"Blockchains and Smart Contracts for..." refers background or methods in this paper
...5If more than 3f + 1 nodes are used, then the quorum thresholds listed in [26] may lead to forks....
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...Tendermint vs PBFT—Tendermint....
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...Sieve [38], a mechanism used in the HyperLedger Fabric project, augments the PBFT algorithm [26] by adding speculative execution and verification phases, inspired by the execute-verify architecture presented in [39]....
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...Tendermint [32] provides BFT tolerance and is similar to the PBFT algorithm; however it provides a tighter guarantee with regards to the results returned to the client when more than one third of the nodes are faulty, and allows for a dynamically changing set of set of validators, and leaders that can be rotated in a round-robin manner, among other optimizations [33]....
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...PBFT works on the assumption that less than one third of the nodes are faulty (f ), which is why say that it requires at least5 3f + 1 nodes....
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Proceedings Article•
19 Jun 2014TL;DR: Raft is a consensus algorithm for managing a replicated log that separates the key elements of consensus, such as leader election, log replication, and safety, and it enforces a stronger degree of coherency to reduce the number of states that must be considered.
Abstract: Raft is a consensus algorithm for managing a replicated log. It produces a result equivalent to (multi-)Paxos, and it is as efficient as Paxos, but its structure is different from Paxos; this makes Raft more understandable than Paxos and also provides a better foundation for building practical systems. In order to enhance understandability, Raft separates the key elements of consensus, such as leader election, log replication, and safety, and it enforces a stronger degree of coherency to reduce the number of states that must be considered. Results from a user study demonstrate that Raft is easier for students to learn than Paxos. Raft also includes a new mechanism for changing the cluster membership, which uses overlapping majorities to guarantee safety.
1,811 citations
"Blockchains and Smart Contracts for..." refers methods in this paper
...popular Raft algorithm [30], is used as a consensus mechanism in Juno [31]....
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