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ch point they stop computing and stop communicating for the rest of the execution. In a Byzantine failure model, the faulty processes may not follow the protocol specification by behaving arbitrarily. When not stated otherwise, we consider a Byzantine failure model and assume the presence of an adversary (or attacker) that can control processes that together own a relatively small fraction Ο < 0.5 of the total mining power of the system.
The processes controlled by the adversary are called malicious or B | [
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] | From blockchain consensus back to Byzantine consensus | 800 |
yzantine and may not follow the protocol specification, however, they cannot impersonate other processes while issuing transactions.
FOOTNOTE: This is typically ensured through public key crypto-systems.
We also assume that the adversary can transiently disrupt communications on a selected subset of edges E0 of the communication graph G.
SECTION: THE CONCENSUS PROBLEM FOR THE GENERAL MODEL
Blockchain systems resemble replicated state machine [10] and aim at solving the consensus problem, so that for a | [
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] | From blockchain consensus back to Byzantine consensus | 801 |
yzantine and may not follow the protocol specification, however, they cannot impersonate other processes while issuing transactions.
FOOTNOTE: This is typically ensured through public key crypto-systems.
We also assume that the adversary can transiently disrupt communications on a selected subset of edges E0 of the communication graph G.
SECTION: THE CONCENSUS PROBLEM FOR THE GENERAL MODEL
Blockchain systems resemble replicated state machine [10] and aim at solving the consensus problem, so that for a | [
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"a",
"work",
"##load",
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"more",
"than",
"400",
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"transactions",
"per",
"second",
",",
"hence",
"to",
"##l",
"-",
"era",
"##ting",
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"much",
"larger",
"number",
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"block",
"##cha",
"##in",
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"issuing",
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"and",
"requesting",
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"##s",
"than",
"existing",
"block",
"##cha",
"##ins",
".",
"In",
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"large",
"-",
"scale",
"block",
"##cha",
"##ins",
",",
"the",
"Red",
"Bell",
"##y",
"Block",
"##cha",
"##in",
"achieve",
"##s",
"fast",
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"(",
"typically",
"within",
"3",
"s",
")",
"because",
"it",
"does",
"not",
"need",
"any",
"proof",
"-",
"of",
"-",
"work",
".",
"Finally",
",",
"an",
"interesting",
"aspect",
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"the",
"Red",
"Bell",
"##y",
"Block",
"##cha",
"##in",
"is",
"its",
"difference",
"with",
"consortium",
"block",
"##cha",
"##ins",
"listed",
"above",
",",
"whose",
"consortium",
"is",
"typically",
"static",
".",
"The",
"Red",
"Bell",
"##y",
"Block",
"##cha",
"##in",
"offers",
"a",
"dynamic",
"consortium",
"that",
"works",
"through",
"co",
"##op",
"##tation",
":",
"the",
"current",
"consortium",
"members",
"decide",
"upon",
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"consortium",
"changes",
"and",
",",
"once",
"decided",
",",
"the",
"new",
"consortium",
"takes",
"over",
"the",
"responsibility",
"of",
"participating",
"in",
"further",
"consensus",
"instances",
"to",
"decide",
"upon",
"blocks",
"or",
"new",
"consort",
"##ia",
".",
"With",
"this",
"model",
",",
"any",
"participant",
"of",
"the",
"block",
"##cha",
"##in",
"can",
"eventually",
"become",
"a",
"consensus",
"participants",
"in",
"charge",
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"deciding",
".",
"SEC",
"##TI",
"##ON",
":",
"CO",
"##NC",
"##L",
"##US",
"##ION",
"While",
"the",
"block",
"##cha",
"##in",
"technology",
"is",
"re",
"##sha",
"##ping",
"ownership",
"track",
"-",
"ing",
"through",
"distributed",
"ledge",
"##rs",
",",
"it",
"remains",
"difficult",
"for",
"block",
"##cha",
"##in",
"users",
"to",
"understand",
"the",
"guarantees",
"this",
"technology",
"has",
"to",
"offer",
".",
"This",
"paper",
"describes",
"the",
"causes",
"of",
"this",
"difficulty",
"in",
"mainstream",
"proof",
"-",
"of",
"-",
"work",
"block",
"##cha",
"##in",
"systems",
",",
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"##co",
"##in",
"and",
"E",
"##ther",
"##eum",
".",
"One",
"cause",
"is",
"the",
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"##ba",
"##bil",
"##istic",
"nature",
"of",
"its",
"consensus",
"algorithms",
":",
"although",
"it",
"appears",
"that",
"one",
"should",
"wait",
"longer",
"to",
"increase",
"the",
"probability",
"of",
"agreement"
] | From blockchain consensus back to Byzantine consensus | 802 |
given index all correct processes agree on a unique block of transactions at this index. Note that nodes may propose different blocks at the same index because remote miners solve cryptopuzzles in the time it takes to exchange their new resulting blockβthis is generally observed with a fork as we will explain in Section 4.2. The classic definition of consensus in the Byzantine failure model is either called Byzantine agreement or Byzantine consensus and is defined along three properties.
Definition 1 (B | [
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] | From blockchain consensus back to Byzantine consensus | 803 |
given index all correct processes agree on a unique block of transactions at this index. Note that nodes may propose different blocks at the same index because remote miners solve cryptopuzzles in the time it takes to exchange their new resulting blockβthis is generally observed with a fork as we will explain in Section 4.2. The classic definition of consensus in the Byzantine failure model is either called Byzantine agreement or Byzantine consensus and is defined along three properties.
Definition 1 (B | [
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yzantine Consensus). The Byzantine Consensus problem is to guarantee the conjunction of these three properties for a given index:
β’ Agreement: no two correct processes decide different blocks;
β’ Termination: all correct processes eventually decide a block; β’ Validity: the decided block is a block proposed by some process.
An algorithm has to fulfill these three properties to solve the Byzantine Consensus problem.
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communication synchrony, where every message gets delivered within a known period of time, might be unrealistic. Unfortunately, consensus is known to be unsolvable in asynchronous networks even in the case of a simple crash failure [11]. To cope with this impossibility, various proposals relaxed the guarantees of the classic Byzantine consensus in favor of probabilistic guarantees by exploiting randomization.
SUBSECTION: RANDOMIZED CONSENSUS
Randomization helps bypassing the impossibility result by guar | [
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anteeing probabilistic properties instead of deterministic ones. Rabin [12] proposed a solution to the Byzantine consensus in the asynchronous case that terminates in a constant expected time, by combining digital signatures and a trusted leader with randomization. Randomized solutions [13] were also investigated to solve consensus with high probability.
Ben-Orβs consensus protocol [14] was the first to always ensure agreement but guaranteeing termination with high probability in the crash failure model | [
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anteeing probabilistic properties instead of deterministic ones. Rabin [12] proposed a solution to the Byzantine consensus in the asynchronous case that terminates in a constant expected time, by combining digital signatures and a trusted leader with randomization. Randomized solutions [13] were also investigated to solve consensus with high probability.
Ben-Orβs consensus protocol [14] was the first to always ensure agreement but guaranteeing termination with high probability in the crash failure model | [
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with up to f < 2n faulty processes where n is the number of participants and f is an upper-bound on the number of failures. Since then, randomization has been extensively used to help solving consensus [15β 17].
It is not easy to relate the probabilistic guarantees offered by proof-of-work blockchain consensus protocols to the consensus definition used in the distributed computing literature. For ex- ample, the Bitcoin analysis relies on the fact that the probability of agreement upon a block at a given | [
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It is not easy to relate the probabilistic guarantees offered by proof-of-work blockchain consensus protocols to the consensus definition used in the distributed computing literature. For ex- ample, the Bitcoin analysis relies on the fact that the probability of agreement upon a block at a given | [
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index of the blockchain increases exponentially with the depth of the blockchain [1]. In theory, one can thus consider that Bitcoin solves agreement but not termination, as it solves agreement with probability 1 when the execution is infinite.
Another way of looking at it is to consider that Bitcoin solves termination but not agreement: if after a finite time or a finite number i + k of blocks i + k have been mined, we say that consensus is reached for block at index i, then the probability that agreemen | [
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index of the blockchain increases exponentially with the depth of the blockchain [1]. In theory, one can thus consider that Bitcoin solves agreement but not termination, as it solves agreement with probability 1 when the execution is infinite.
Another way of looking at it is to consider that Bitcoin solves termination but not agreement: if after a finite time or a finite number i + k of blocks i + k have been mined, we say that consensus is reached for block at index i, then the probability that agreemen | [
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t is satisfied is lower than 1: agreement is not guaranteed.
SUBSECTION: TERMINATION REQUIREMENTS
There exist, however, important guarantees that are needed by the applications that make use of blockchains. One of these key consensus properties that must be guaranteed for most blockchain applications is termination [18]. For | [
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] | From blockchain consensus back to Byzantine consensus | 813 |
Future Generation Computer Systems 102 (2020) 140β151
Contents lists available at ScienceDirect
Future Generation Computer Systems
journal homepage: www.elsevier.com/locate/fgcs
PoRX: A reputation incentive scheme for blockchain consensus of IIoT
Eric Ke Wang a, Zuodong Liang a, Chien-Ming Chen a, Saru Kumari b,β, Muhammad
Khurram Khan c
a Harbin Institute of Technology, Shenzhen 518055, China
b Department of Mathematics, Chaudhary Charan Singh University, Meerut 250004, India
c Centre of excellence i | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 814 |
Future Generation Computer Systems 102 (2020) 140β151
Contents lists available at ScienceDirect
Future Generation Computer Systems
journal homepage: www.elsevier.com/locate/fgcs
PoRX: A reputation incentive scheme for blockchain consensus of IIoT
Eric Ke Wang a, Zuodong Liang a, Chien-Ming Chen a, Saru Kumari b,β, Muhammad
Khurram Khan c
a Harbin Institute of Technology, Shenzhen 518055, China
b Department of Mathematics, Chaudhary Charan Singh University, Meerut 250004, India
c Centre of excellence i | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 815 |
n Information Assurance, King Saud University, Riyadh 11653, Saudi Arabia
h i g h l i g h t s
β’ Blockchain improves productivity and operational efficiency of IIoT through smart contract.
β’ Appling blockchain technology in IIoT needs to solve the security problems of consensus protocols.
β’ Our scheme (PoRX) can be implemented on the state-of-the-art PoX consensus protocols.
β’ A reputation based incentive scheme is proposed in the consensus process.
β’ The experimental results show that our scheme is bene | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 816 |
n Information Assurance, King Saud University, Riyadh 11653, Saudi Arabia
h i g h l i g h t s
β’ Blockchain improves productivity and operational efficiency of IIoT through smart contract.
β’ Appling blockchain technology in IIoT needs to solve the security problems of consensus protocols.
β’ Our scheme (PoRX) can be implemented on the state-of-the-art PoX consensus protocols.
β’ A reputation based incentive scheme is proposed in the consensus process.
β’ The experimental results show that our scheme is bene | [
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"Many",
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 817 |
ficial to IIoT.
a r t i c l e i n f o
Article history:
Received 20 April 2019
Received in revised form 29 June 2019
Accepted 5 August 2019
Available online 9 August 2019
Keywords:
Blockchain
PoX
IIoT
Trust management
a b s t r a c t
Industrial Internet of Things (IIoT) refers to all kinds of equipment in industrial production, whether
it is machine equipment in factories or engine in automobiles and airplanes, on which sensors are
installed and connected to wireless network terminals to collect and s | [
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hare data. At present, because
IIoT system is an open, distributed and heterogeneous system, it is a great challenge to implement
trusted communication in IIoT. Blockchain technology has become a new way to solve the cooperative
trust issues of industrial Internet of Things. Using blockchain, a tamper-proof system can be built,
which can be used as an audit tool for hardware products of industrial Internet of Things from
chip to whole equipment. Blockchain improve productivity and operational efficiency o | [
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hare data. At present, because
IIoT system is an open, distributed and heterogeneous system, it is a great challenge to implement
trusted communication in IIoT. Blockchain technology has become a new way to solve the cooperative
trust issues of industrial Internet of Things. Using blockchain, a tamper-proof system can be built,
which can be used as an audit tool for hardware products of industrial Internet of Things from
chip to whole equipment. Blockchain improve productivity and operational efficiency o | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 820 |
f IIoT through
smart contract, allowing machines to manage themselves. To apply blockchain technology in IIoT,
one of the main issues is to solve the security and efficiency problems of consensus protocols. In
this paper, a reputation scheme is proposed to encourage normal nodes and abnormal nodes both
to participate in network collaboration in a good way. In order to guide the behavior, a credit based
incentive approach is proposed. The reward and punishment factor is designed in the revenue payment
func | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 821 |
f IIoT through
smart contract, allowing machines to manage themselves. To apply blockchain technology in IIoT,
one of the main issues is to solve the security and efficiency problems of consensus protocols. In
this paper, a reputation scheme is proposed to encourage normal nodes and abnormal nodes both
to participate in network collaboration in a good way. In order to guide the behavior, a credit based
incentive approach is proposed. The reward and punishment factor is designed in the revenue payment
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 822 |
tion of reputation. The effectiveness is that the cooperative behavior is rewarded, and the non
cooperative behavior is punished. The main advantage of our scheme is that our reputation based
incentive module can be implemented on state-of-the-art PoX protocols, which is called PoRX,and can
make PoX protocols achieve better consensus states. Therefore, it would benefit the applications of
IIoT with blockchain. A prototype has been implemented and the experimental results shows that our
scheme can effectiv | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 823 |
tion of reputation. The effectiveness is that the cooperative behavior is rewarded, and the non
cooperative behavior is punished. The main advantage of our scheme is that our reputation based
incentive module can be implemented on state-of-the-art PoX protocols, which is called PoRX,and can
make PoX protocols achieve better consensus states. Therefore, it would benefit the applications of
IIoT with blockchain. A prototype has been implemented and the experimental results shows that our
scheme can effectiv | [
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ely encourage the cooperative behavior of the nodes in IIoT, that can benefit the
network.
Β© 2019 Published by Elsevier B.V.
1. Introduction
Many IT companies such as Cisco, Bosch, Gemalto and IBM
regard blockchain as a perfect solution for trust of cooperations in
industrial Internet of Things. In the survey [1,2], interest in using
β Corresponding author.
E-mail addresses: [email protected] (E.K. Wang),
[email protected] (Z. Liang), [email protected] (C.-M. Chen),
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 825 |
ely encourage the cooperative behavior of the nodes in IIoT, that can benefit the
network.
Β© 2019 Published by Elsevier B.V.
1. Introduction
Many IT companies such as Cisco, Bosch, Gemalto and IBM
regard blockchain as a perfect solution for trust of cooperations in
industrial Internet of Things. In the survey [1,2], interest in using
β Corresponding author.
E-mail addresses: [email protected] (E.K. Wang),
[email protected] (Z. Liang), [email protected] (C.-M. Chen),
saryusiirohi@gmail. | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 826 |
com (S. Kumari), [email protected] (M.K. Khan).
blockchains as an asset security mechanism for the Internet of
Things rose from 9% in 2017 to about 19%. Twenty-three percent
of respondents said they thought blockchains were the ideal so-
lution to ensure the security of IIoT assets. Xage [3] is the world's
first industrial Internet of Things platform based on blockchain
technology. The platform supports both public facilities and fac-
tory production lines. It can improve productivity and operational
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 827 |
com (S. Kumari), [email protected] (M.K. Khan).
blockchains as an asset security mechanism for the Internet of
Things rose from 9% in 2017 to about 19%. Twenty-three percent
of respondents said they thought blockchains were the ideal so-
lution to ensure the security of IIoT assets. Xage [3] is the world's
first industrial Internet of Things platform based on blockchain
technology. The platform supports both public facilities and fac-
tory production lines. It can improve productivity and operational
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fficiency through this kind of arbitrary p2p machine communi-
cation, allowing machines to manage themselves. For example,
smart meters can be connected locally in the community, so that
https://doi.org/10.1016/j.future.2019.08.005
0167-739X/Β© 2019 Published by Elsevier B.V.
https://doi.org/10.1016/j.future.2019.08.005
http://www.elsevier.com/locate/fgcs
http://www.elsevier.com/locate/fgcs
http://crossmark.crossref.org/dialog/?doi=10.1016/j.future.2019.08.005&domain=pdf
mailto:[email protected]
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fficiency through this kind of arbitrary p2p machine communi-
cation, allowing machines to manage themselves. For example,
smart meters can be connected locally in the community, so that
https://doi.org/10.1016/j.future.2019.08.005
0167-739X/Β© 2019 Published by Elsevier B.V.
https://doi.org/10.1016/j.future.2019.08.005
http://www.elsevier.com/locate/fgcs
http://www.elsevier.com/locate/fgcs
http://crossmark.crossref.org/dialog/?doi=10.1016/j.future.2019.08.005&domain=pdf
mailto:[email protected]
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 830 |
[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
https://doi.org/10.1016/j.future.2019.08.005
E.K. Wang, Z. Liang, C.-M. Chen et al. / Future Generation Computer Systems 102 (2020) 140β151 141
if there is a power failure, these smart meters can determine the
scope of the fault, communicate directly with the local substation
through the blockchain based smart contract technology, and
re-plan the transmission line. In many cases, these oper | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 831 |
[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
https://doi.org/10.1016/j.future.2019.08.005
E.K. Wang, Z. Liang, C.-M. Chen et al. / Future Generation Computer Systems 102 (2020) 140β151 141
if there is a power failure, these smart meters can determine the
scope of the fault, communicate directly with the local substation
through the blockchain based smart contract technology, and
re-plan the transmission line. In many cases, these oper | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 832 |
ations
are completed quickly, and users cannot even feel the change.
IBM and Samsung have also used Ethereum protocol to create
a decentralized IIoT project named ADEPT [4]. In ADEPT system,
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".",
"β’",
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".",
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"Second"
] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 833 |
ations
are completed quickly, and users cannot even feel the change.
IBM and Samsung have also used Ethereum protocol to create
a decentralized IIoT project named ADEPT [4]. In ADEPT system,
blockchain plays a role of distributed ledger when billions of
devices communicate and interact with each other. All interac-
tion, communication or application can be implemented on smart
contracts for a secure way. Smart contracts automate machine-
to-person (M2P) and machine-to-machine (M2M) messaging, and
can conn | [
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ect independent devices.
Although the prospect of IIoT with blockchain is affirmative,
there are still some challenges. One of it is the security issue
for the consensus protocol itself. The consensus mechanism is
the basic supportive structure of the blockchain which achieves
decentralized goal. The security issues on consensus protocols
actually can affect the whole system. Currently, the state-of-the-
art consensus protocols for the IIoT blockchain system are mainly
series of PoX [5], including PoW [6 | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 835 |
ect independent devices.
Although the prospect of IIoT with blockchain is affirmative,
there are still some challenges. One of it is the security issue
for the consensus protocol itself. The consensus mechanism is
the basic supportive structure of the blockchain which achieves
decentralized goal. The security issues on consensus protocols
actually can affect the whole system. Currently, the state-of-the-
art consensus protocols for the IIoT blockchain system are mainly
series of PoX [5], including PoW [6 | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 836 |
], PoS [7] and so on. but since
the IIoT itself is an open system, various devices are allowed
to join in. Some malicious devices and dishonest devices may
launch attacks on the consensus agreement of IIoT system after
join in the network, which may destroy the system of the IIoT [8].
Actually, current state-of-the-art consensus protocols do not con-
sider how to guarantee nodes behavior good in the consensus
agreement. In the real applications of IIoT, solving attacks from
malicious nodes inside IIoT sys | [
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], PoS [7] and so on. but since
the IIoT itself is an open system, various devices are allowed
to join in. Some malicious devices and dishonest devices may
launch attacks on the consensus agreement of IIoT system after
join in the network, which may destroy the system of the IIoT [8].
Actually, current state-of-the-art consensus protocols do not con-
sider how to guarantee nodes behavior good in the consensus
agreement. In the real applications of IIoT, solving attacks from
malicious nodes inside IIoT sys | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 838 |
tems has been realistic problems to
be faced [9,10]. In order to apply blockchain to IIoT successfully,
building a trusted and efficient blockchain consensus protocol
is a key problem to be solved. In this paper, aiming at those
problems, we propose an incentive reputation scheme to stim-
ulate the nodes to maintain stable good behaviors in the system.
Good behavior would be rewarded and bad behavior would be
punished. Each node have an identity with reputation value. With
high reputation value, it would | [
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tems has been realistic problems to
be faced [9,10]. In order to apply blockchain to IIoT successfully,
building a trusted and efficient blockchain consensus protocol
is a key problem to be solved. In this paper, aiming at those
problems, we propose an incentive reputation scheme to stim-
ulate the nodes to maintain stable good behaviors in the system.
Good behavior would be rewarded and bad behavior would be
punished. Each node have an identity with reputation value. With
high reputation value, it would | [
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receive more cooperations from
others. While with low reputation value, it would receive few
cooperations from others. The main advantage of our scheme is
that our reputation based incentive module can be built on the
PoX protocols, thus it is a practical method. We hope that our
research results will contribute to the development of blockchain
based IIoT.
2. Related work
2.1. Application status of blockchain in IIoT
Blockchain has been a new way to implement IIoT system.
How to apply blockchain in IIo | [
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T efficiently has been a hot topic.
The features of decentralized control, immutability, cryptographic
security, fault tolerance, data integrity and authentication, and
smart contracts are main interest points [11,12]. Makhdoom
et al. [13] discuss the progress of blockchain technology and
the applicability of the blockchain platform for IIoT, compare
some of the most famous blockchain platforms, including Bit-
coin [6], Ethereum [14], Hyperledger-Fabric [15] and IOTA [16].
IOTA provides free transactions | [
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T efficiently has been a hot topic.
The features of decentralized control, immutability, cryptographic
security, fault tolerance, data integrity and authentication, and
smart contracts are main interest points [11,12]. Makhdoom
et al. [13] discuss the progress of blockchain technology and
the applicability of the blockchain platform for IIoT, compare
some of the most famous blockchain platforms, including Bit-
coin [6], Ethereum [14], Hyperledger-Fabric [15] and IOTA [16].
IOTA provides free transactions | [
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designed specifically for M-2-M
interaction, but it is not as mature as Ethereum and Hyperledger-
Fabric. For example, a limited number of authentication nodes
are vulnerable to malicious collusion. In addition, since IIOTA is
currently in beta testing, some issues related to its security and
performance efficiency remain questionable. Lee [17] propose a
updating scheme for IIoT devices based on blockchains, which al-
lows devices to safely check firmware versions and their integrity,
and then download th | [
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designed specifically for M-2-M
interaction, but it is not as mature as Ethereum and Hyperledger-
Fabric. For example, a limited number of authentication nodes
are vulnerable to malicious collusion. In addition, since IIOTA is
currently in beta testing, some issues related to its security and
performance efficiency remain questionable. Lee [17] propose a
updating scheme for IIoT devices based on blockchains, which al-
lows devices to safely check firmware versions and their integrity,
and then download th | [
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e latest firmware. The scheme promises to
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The blockchain consensus adopted is customized PoW.
Yu Zhang and Jiang tao [18] propose a blockchain-based de-
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 846 |
e latest firmware. The scheme promises to
mitigate the impact of network attacks against known firmware
vulnerabilities. And it avoids the problem of network congestion.
The blockchain consensus adopted is customized PoW.
Yu Zhang and Jiang tao [18] propose a blockchain-based de-
centralized e-commerce model for IIoT. The model aims to share
payment data and smart assets, such as cars, parking spaces,
houses, fuels, electronic shopping, goods and services, by applying
the concept of decentralized autono | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 847 |
mous corporation (DAC). The
key idea here is that DAC is automated, does not require any man-
ual intervention, and uses smart contracts for decision-making. It
can rapidly exchange information among all participants (i.e. sen-
sors, computers, people, DAC, buyers, sellers, etc.). In addition,
every device in IIoT acts as a service provider. Traditional VANETS
have a centralized manager which has many shortcomings, in-
cluding central node failure, user privacy leakage [10]. To avoid
these problems, Leidi | [
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mous corporation (DAC). The
key idea here is that DAC is automated, does not require any man-
ual intervention, and uses smart contracts for decision-making. It
can rapidly exchange information among all participants (i.e. sen-
sors, computers, people, DAC, buyers, sellers, etc.). In addition,
every device in IIoT acts as a service provider. Traditional VANETS
have a centralized manager which has many shortcomings, in-
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",",
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"##pu",
"-",
"ta",
"##tion",
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",",
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"reputation",
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",",
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"is",
"not",
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".",
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"500",
"reputation",
"value",
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"likely",
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"/",
"2000",
"*",
"4",
"=",
"1",
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",",
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"value",
"of",
"500",
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".",
"On",
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"contrary",
",",
"nodes",
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"1500",
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"E",
".",
"K",
".",
"Wang",
",",
"Z",
".",
"Liang",
",",
"C",
".",
"-",
"M",
".",
"Chen",
"et",
"al",
".",
"/",
"Future",
"Generation",
"Computer",
"Systems",
"102",
"(",
"2020",
")",
"140",
"β",
"151",
"147",
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"2",
"Normal",
"reputation",
"growth",
"without",
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"decay",
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"decay",
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"Pro",
"##port",
"##ion",
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"42",
"14",
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"%",
"1000",
"68",
"22",
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"67",
"%",
"1500",
"190",
"63",
".",
"33",
"%",
"Table",
"3",
"Normal",
"reputation",
"growth",
"without",
"available",
"reputation",
"decay",
".",
"Initial",
"reputation",
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"##port",
"##ion",
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"51",
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"40",
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"Fi",
"##g",
".",
"4",
".",
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"##uta",
"##tion",
"Growth",
"without",
"Ava",
"##ila",
"##ble",
"Rep",
"##uta",
"##tion",
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"2000",
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"R",
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"##UT",
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"##UT",
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"##ION",
"_",
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"=",
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"d",
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"_",
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"=",
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"_",
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"and",
"Fi",
"##g",
".",
"5",
",",
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"verify",
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"reputation",
"value",
"is",
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"rate",
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"value",
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",",
"but",
"it",
"is",
"difficult",
"to",
"improve",
"the",
"re",
"##p",
"-",
"u",
"##tation"
] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 849 |
ng et al. [19] propose a decentralized, self-
managed VANET based on the Ethereum blockchain. The entire
VANET is managed by smart contracts that are used to enforce
certain rules or provide various services.
Currently most of the current blockchain-based IIoT projects
adopt the Ethereum platform and PoX consensus protocol [20,21],
so we mainly focus on improving the PoX protocols for IIoT, and
performing experiments on Ethereum.
2.2. Analysis of PoX protocols
PoW and PoS are two typical protocols of P | [
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"value",
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",",
"it",
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",",
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"rate",
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",",
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"the",
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".",
"The",
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",",
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"high",
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"value",
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"after",
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".",
"The",
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"reduce",
"the",
"base",
"of",
"reputation",
"decay",
"and",
"maintain",
"a",
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"the",
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".",
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",",
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"value",
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"of",
"the",
"second",
"block",
".",
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"with",
"the",
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"agreement",
",",
"the",
"greater",
"the",
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"power",
",",
"the",
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"rate",
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"the",
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",",
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"value",
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".",
"4",
".",
"4",
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"##uta",
"##tion",
"decay",
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"order",
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",",
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",",
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"value",
"of",
"reputation",
"to",
"1000",
".",
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"mine",
"##r",
"Fi",
"##g",
".",
"5",
".",
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"Rep",
"##uta",
"##tion",
"Growth",
".",
"Fi",
"##g",
".",
"6",
".",
"Rep",
"##uta",
"##tion",
"Dec",
"##ay",
".",
"is",
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"operation",
",",
"the",
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"##r",
"is",
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".",
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"reputation",
"decay",
",",
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"it",
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"a",
"mine",
"##r",
"to",
"come",
"out",
".",
"The",
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"results",
"are",
"shown",
"in",
"Fi",
"##g",
".",
"6",
".",
"R",
"##EP",
"##UT",
"##AT",
"##ION",
"_",
"MA",
"##X",
"=",
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"R",
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"##AT",
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"##o",
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"di",
"##f",
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"=",
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"5",
".",
"Co",
"##mp",
"##aris",
"##on",
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".",
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".",
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",",
"2",
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",",
"1",
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",",
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".",
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"are",
"set",
"as",
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"R",
"##EP",
"##UT",
"##AT",
"##ION",
"_",
"MA",
"##X",
"=",
"2000",
"R",
"##EP",
"##UT",
"##AT",
"##ION",
"_",
"MI",
"##N",
"=",
"0",
"R",
"##EP",
"##UT",
"##AT"
] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 850 |
ng et al. [19] propose a decentralized, self-
managed VANET based on the Ethereum blockchain. The entire
VANET is managed by smart contracts that are used to enforce
certain rules or provide various services.
Currently most of the current blockchain-based IIoT projects
adopt the Ethereum platform and PoX consensus protocol [20,21],
so we mainly focus on improving the PoX protocols for IIoT, and
performing experiments on Ethereum.
2.2. Analysis of PoX protocols
PoW and PoS are two typical protocols of P | [
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oX. PoW is applied
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be broadcasted to the entire network for verification by other
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 852 |
PoS is an alternative protocol for PoW [23], without the prob-
lem of too much computation cost and consensus time delay.
The main idea of PoS is that the proportion of users' stake in
the system is inversely proportional to the difficulty of block
generation. The larger the stake held by nodes in the system, the
easier he wins.
PoA (Proof-of-Activity) [24] is a protocol that combines PoW
and PoS. It is base on a hypothesis of economic phenomenon
known as the ''tragedy of the commons''. The proposed PoA | [
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PoS is an alternative protocol for PoW [23], without the prob-
lem of too much computation cost and consensus time delay.
The main idea of PoS is that the proportion of users' stake in
the system is inversely proportional to the difficulty of block
generation. The larger the stake held by nodes in the system, the
easier he wins.
PoA (Proof-of-Activity) [24] is a protocol that combines PoW
and PoS. It is base on a hypothesis of economic phenomenon
known as the ''tragedy of the commons''. The proposed PoA | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 854 |
protocol aims to increase attack costs of malicious miners by
forcing them to achieve eight times hash rate than the honest
miners in the network. In addition, it reduces computational com-
plexity to 1/10 of Bitcoin PoW, minimizing energy consumption.
However, the proof of activity is also intended to protect only
cryptocurrency applications.
Proof of Elapsed Time (PoET) aims to address the high compu-
tation cost and latency issues in POW-based consensus protocols.
Intel develops a blockchain-based di | [
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protocol aims to increase attack costs of malicious miners by
forcing them to achieve eight times hash rate than the honest
miners in the network. In addition, it reduces computational com-
plexity to 1/10 of Bitcoin PoW, minimizing energy consumption.
However, the proof of activity is also intended to protect only
cryptocurrency applications.
Proof of Elapsed Time (PoET) aims to address the high compu-
tation cost and latency issues in POW-based consensus protocols.
Intel develops a blockchain-based di | [
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stributed application plat-
form for Sawtooth Lake, a lottery-based consensus protocol called
''PoET''. In the protocol, the mining node with the smallest wait-
ing time is selected to perform the mining of the next block [25].
The Leadership Election Agreement is in line with the standards
of a good lottery algorithm, namely fairness, investment and
verification. It randomly assigns the election to the entire verifier.
PoET is protected by the Trusted Execution Environment (TEE)
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 857 |
stributed application plat-
form for Sawtooth Lake, a lottery-based consensus protocol called
''PoET''. In the protocol, the mining node with the smallest wait-
ing time is selected to perform the mining of the next block [25].
The Leadership Election Agreement is in line with the standards
of a good lottery algorithm, namely fairness, investment and
verification. It randomly assigns the election to the entire verifier.
PoET is protected by the Trusted Execution Environment (TEE)
through Intel's Software | [
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Protection Extension. In addition to the
need for specialized hardware for leader elections, the rest of the
agreement works in a similar way to the Bitcoin protocol. Trust
is also placed in hardware that generates random wait times.
142 E.K. Wang, Z. Liang, C.-M. Chen et al. / Future Generation Computer Systems 102 (2020) 140β151
2.3. Current PoX consensus in IIoT
The current PoX consensus protocols, such as PoW [6],
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 859 |
d they all focus on value transfer. How-
ever, PoS and PoET can also be used in the authorization based
blockchain [26]. There is a common problem with several consen-
sus agreements, that is, the consensus process is uncertain. The
lack of consensus certainty leads to delays in transaction confir-
mation, which is not suitable for most real-time IIoT systems that
require real-time confirmation.
The design and development of an ideal consensus protocol
for an IIoT environment demands that the requirement | [
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s of a
consensus protocol for a blockchain-based IIoT system be dis-
tinguished from existing general purpose and cryptocurrency
oriented consensus protocols. The primary requirement of the
IIoT system is that transactions should be validated against trans-
action validation rules centered on the IIoT business. This is
a basic requirement, because every new transaction in IIoT is
basically independent of previous transactions, and changes in
the environment or events can affect changes in device readings. | [
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Things transactions. For example, in a smart home, the fireplace is
only lit when the camera or any other sensor detects someone in
the room. This means that sensor readings are validated against
environmental background rather than in isolation. The PoX Con-
sensus Agreement should also have the finality of consensus to
avoid disagreements. Besides, Huang [27] propose an analytical
model to analyze the distributed network split probabilit | [
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Therefore, we should design the verification rules of Internet of
Things transactions. For example, in a smart home, the fireplace is
only lit when the camera or any other sensor detects someone in
the room. This means that sensor readings are validated against
environmental background rather than in isolation. The PoX Con-
sensus Agreement should also have the finality of consensus to
avoid disagreements. Besides, Huang [27] propose an analytical
model to analyze the distributed network split probabilit | [
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y in
consensus protocol blockchains.
In addition, IIoT systems are also vulnerable to physical or
network attacks. Recently, a cyber attack called ''Mirai'' (Sophos
Naked Security, 2016) [28] infected a large number of IIoT de-
vices, including DVRs and CCTV cameras, and turned them into
zombies. These compromised devices are then used to initiate
DDOS attacks against the DNS service provider ''DYN'' by booting
huge data traffic in the form of millions of DNS lookup requests.
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 864 |
y in
consensus protocol blockchains.
In addition, IIoT systems are also vulnerable to physical or
network attacks. Recently, a cyber attack called ''Mirai'' (Sophos
Naked Security, 2016) [28] infected a large number of IIoT de-
vices, including DVRs and CCTV cameras, and turned them into
zombies. These compromised devices are then used to initiate
DDOS attacks against the DNS service provider ''DYN'' by booting
huge data traffic in the form of millions of DNS lookup requests.
If the PoX consensus protoco | [
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 865 |
l is used, it can effectively resist this
DDOS attack, but it faces 51% attack. If the attacker has more than
half of the proof ability of the whole network, he can enforce
an attack and has a very high probability of success. The PoX
consensus protocol should also be effective against Sybil attacks.
2.4. Reputation mechanism for decentralized system
The reputation systems in P2P networks have been studied for
decades. Gupta et al. [29] proposed the first reputation system
for P2P networks. It is an eff | [
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ective solution. Other studies have
also made contributions to reputation systems, but none of them
are truly decentralized. In recent years, blockchain technology has
been concerned and used for reputation design. Tavakolifard [30]
model trust and reputation in decentralized multi-agent systems.
Yi [31] propose a scheme of building a Unlinkable Coin Mixing
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ective solution. Other studies have
also made contributions to reputation systems, but none of them
are truly decentralized. In recent years, blockchain technology has
been concerned and used for reputation design. Tavakolifard [30]
model trust and reputation in decentralized multi-agent systems.
Yi [31] propose a scheme of building a Unlinkable Coin Mixing
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] | PoRX A reputation incentive scheme for blockchain consensus of IIoT | 868 |
Zero-determinant Strategy for the Algorithm optimize of
Blockchain PoW Consensus
Yang Zhen, Miao Yue, Chen Zhong-yu *, Tang Chang-bing, Chen Xin
College of Mathematics, Physics & Information Engineering, Zhejiang Normal University, Jinhua, 321004
E-mail: [email protected]
Abstract: The Proof of Work (PoW) consensus algorithm guarantees the safety and dependability of Blockchain systems.
Miners can achieve a consensus through the PoW algorithm during the mining process, that is mutual attacking. Ho | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 869 |
wever, when
the miners attack each other, all miners earn less. In this paper, we established a model that mining between two miners is an
iterative game, and proposed a subclass of ZD strategy (a pining strategy) to alleviate miners' dilemma, a miner can control
another miner's payoff and increase the social revenue through a pinning strategy. Numerical simulation results verify the
effectiveness of the proposed strategy. In summary, this work leads to the better understanding and analysis of the PoW | [
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",",
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"##r",
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",",
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"In",
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",",
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",",
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"##r",
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"never",
"sharing",
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",",
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"This",
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"with",
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"[",
"7",
"]",
".",
"In",
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"pool",
",",
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"choose",
"either",
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"attack",
"or",
"cooperate",
"with",
"other",
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"to",
"gain",
"its",
"own",
"pay",
"##off",
".",
"When",
"all",
"miners",
"attack",
"each",
"other",
",",
"they",
"earn",
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"than",
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"they",
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",",
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"[",
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"##r",
",",
"while"
] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 870 |
wever, when
the miners attack each other, all miners earn less. In this paper, we established a model that mining between two miners is an
iterative game, and proposed a subclass of ZD strategy (a pining strategy) to alleviate miners' dilemma, a miner can control
another miner's payoff and increase the social revenue through a pinning strategy. Numerical simulation results verify the
effectiveness of the proposed strategy. In summary, this work leads to the better understanding and analysis of the PoW | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 871 |
algorithm
via the game theory, rendering it possible to design a more rational consensus algorithm in the future.
Key Words: Blockchain, Consensus algorithm, PoW, Iterative game, ZD strategy
οΏ½
1 Introduction
The blockchain is a distributed shared ledger [1],
maintained by all the participants in bitcoin system [2]. As
the most successful application of blockchain, bitcoin relies
on the participation in the PoW consensus of distributed
network nodes to complete the verification and record of | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 872 |
algorithm
via the game theory, rendering it possible to design a more rational consensus algorithm in the future.
Key Words: Blockchain, Consensus algorithm, PoW, Iterative game, ZD strategy
οΏ½
1 Introduction
The blockchain is a distributed shared ledger [1],
maintained by all the participants in bitcoin system [2]. As
the most successful application of blockchain, bitcoin relies
on the participation in the PoW consensus of distributed
network nodes to complete the verification and record of | [
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transactions [3], it also products a set of database with
sequential, not be tampered and trustworthy [4]. Through
complicated checking mechanism, blockchain database can
maintain the integrity, continuity and consistency of data,
even if some participants make mistakes, they cannot change
blockchain integrity, and tamper with the trading data yet. In
brief, blockchain technology [5] involving key points
include: decentralized, trustless, collectively maintain,
reliable database, time stamp, asy | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 874 |
transactions [3], it also products a set of database with
sequential, not be tampered and trustworthy [4]. Through
complicated checking mechanism, blockchain database can
maintain the integrity, continuity and consistency of data,
even if some participants make mistakes, they cannot change
blockchain integrity, and tamper with the trading data yet. In
brief, blockchain technology [5] involving key points
include: decentralized, trustless, collectively maintain,
reliable database, time stamp, asy | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 875 |
mmetric cryptography, and
so on.
The PoW is a kind of incentive mechanism in blockchain,
and the core concept of PoW is to guarantee the consistency
of data and the safety of consensus through the power
competition of miners, namely, mining. In bitcion system,
nodes competition with each other based on the power of
them respective mine, to collectively work out a SHA256
mathematical problems which is solved complicated but
easily verified, the node fastest to solve complex problems
will acquire | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 876 |
the right of recording block and the currency
reward with the system automatically generate bitcions, that
is this node successfully mines a block.
In the bitcoin system, miners are the participants that mine
blocks. It is vulnerable for the open pool since each miner
can join this pool by providing a network ID number.
Because the currency system produces a block in about 10
minutes, it is extremely difficult for most of the miners to
produce a block during a certain period of time. In order to | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 877 |
increase the likelihood of stable revenues, many miners
choose to join an open pool by cooperating with other miners
*This work is supported by the National Natural Science Foundation of
China under Grant 61272007, 61503342, and the Natural Science
Foundation of Zhejiang Province under Grant LY16F030002 and
Q13F020029.
[6]. Many miners spend plenty of computing power on
creating a block. In other words, producing block is to solve
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omplex problem, or to generate a full poof of work.
Miners get the corresponding payoff through sending poof of
work to the pool, while they might as well send partial proof
of work to the open pool since a full pool of work is difficulty
to be discovered. Moreover, this pool allocates equality
according to the contributed power ratio in whole system.
However, a miner can sabotage an open pool by seemingly
joining it but never sharing its power. The attacker only
sends a partial proof of work to p | [
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ool, and discards the full
proof of work when it is discovered. This situation is called
block withholding attack [7]. In an open pool, miners choose
either to attack or cooperate with other miners to gain its own
payoff. When all miners attack each other, they earn less than
that they would have if none had attacked, that is the mining
dilemma [8-9] in PoW consensus process, this dilemma also
corresponds to the famous of Prisoner's Dilemma in the
game theory [10], namely, it is the optimal choice | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 880 |
for
individual to attack, but not the best for system. Similarly, for
all miners mine in an open pool, whether or not attack is a
miner's dilemma, attack is the best choose for one miner,
while attack will make the system obtain a low welfare. With
the purpose that promoting miners cooperatively mine in
pool, to get a high social revenue, it is necessary to develop
or optimize the incentive mechanisms to promote
cooperative mine in PoW consensus algorithm in blockchain
[11-13].
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mechanism aims at ensuring the
consistency of bitcoin distributed accounting system.
Unfortunately, it also holds many shortcomings. There are
some improved consensus algorithms, such as Proof of Stake
(PoS) [14], which changes the power of the PoW into the
system rights, greater ownership of player has greater
probability of becoming the next to account. PoS is both
energy saving and time saving, while it is prone to fork, and
also needed to mine. Delegated Proof of Stake (DPoS) [15]
depending o | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 882 |
n PoS plays the role of accounting professionals,
in which the accounts are kept by the player selected by the
rights. It significantly reduces the number of nodes involved
in authentication and accounting, and reaches the second
Proceedings of the 36th Chinese Control Conference
July 26-28, 2017, Dalian, China
1441
level of consensus verification. Whereas it still relies on
tokens. The Verified Pool [16] based on the traditional
distribution consensus technology uses data verification
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hanism. It works without tokens, keeping a low degree of
decentration. The Delegated Byzantine Fault Tolerance
algorithm [17] selects bookkeepers selected by the rights to
achieve a consensus, which maximizes the integrity of the
system but also forks a lot. None of the present consensus
mechanisms is perfect or apt to all the application scenarios.
Lewenberg Y et. al. [18] propose an alternative structure to the
chain for higher rates, and analyzes the security protocol to
decrease the attacks be | [
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tween miners. Moreover, a new
protocol that just uses cryptography principle without
generating cryptogram is proposed to guarantee the
transactional privacy [19]. A new method that weights tuning
laws in critic neural networks to achieve a Nash Equilibrium
to assure the system stability is presented in [20]. Optimal
control scheme methods are also proposed for nonlinear
systems, for example, the iterative two-stage dual heuristic
programming [21] or the adaptive dynamic programming
[22], are ba | [
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 885 |
sed on the change of system state.
In order to prevent participants from being trapped in a
prisoner's dilemma [23-24], the ZD strategy [25-26] is
employed as a probabilistic and conditional strategy in the
iterated game to cope with the "free-riding" problem. With
the ZD strategies, the player is able to unilaterally set the
expected utility of an opponent or a ratio of the player's
expected payoff to its opponent's, whatever the opponent's
strategy is.
The zero-determinant (ZD) strategy is a | [
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fields. It is used in wireless communication for cooperation
of resource sharing in many works [27-30]. In [31], the ZD
strategy is applied in iterated public goods game, while in
[32], Ashraf et al. model the secondary sharing of wireless
spectrum as an iterated game, and a ZD strategy is used to
control the outcome of opponents in a certain range or to
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] | Zero determinant strategy for the algorithm optimize of blockchain PoW consensus | 887 |
Personalized Difficulty Adjustment for Countering the Double-Spending Attack in
Proof-of-Work Consensus Protocols
Chi-Ning Chou*, β , Yu-Jing Linβ ,
Ren Chen and Hsiu-Yao Chang
Department of Computer Science and
Electrical Engineering
National Taiwan University, Taiwan
I-Ping Tu
Institute of Statistical Science
Academia Sinica
Taipei, Taiwan
Shih-wei Liao
Department of Computer Science
National Taiwan University, Taiwan
[email protected], corresponding author
AbstractβBitcoin is the first secure | [
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",",
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",",
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")",
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"m",
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"##ifies",
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"have",
"a",
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",",
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"##shi",
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"##in",
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"[",
"2",
"]",
",",
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"the",
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"hazards",
"[",
"3",
"]",
"[",
"4",
"]",
"such",
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".",
"The",
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"overhead",
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"Bit",
"##co",
"##in",
"lies",
"in",
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"the",
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":",
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"-",
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"-",
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"##ync",
"##hr",
"##oni",
"##zation",
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"issue"
] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 888 |
Personalized Difficulty Adjustment for Countering the Double-Spending Attack in
Proof-of-Work Consensus Protocols
Chi-Ning Chou*, β , Yu-Jing Linβ ,
Ren Chen and Hsiu-Yao Chang
Department of Computer Science and
Electrical Engineering
National Taiwan University, Taiwan
I-Ping Tu
Institute of Statistical Science
Academia Sinica
Taipei, Taiwan
Shih-wei Liao
Department of Computer Science
National Taiwan University, Taiwan
[email protected], corresponding author
AbstractβBitcoin is the first secure | [
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 889 |
decentralized electronic
currency system. However, it is known to be inefficient due
to its proof-of-work (PoW) consensus algorithm and has the
potential hazard of double spending. In this paper, we aim
to reduce the probability of double spending by decreasing
the probability of consecutive winning. We first formalize
a PoW-based decentralized secure network model in order
to present a quantitative analysis. Next, to resolve the risk
of double spending, we propose the personalized difficulty
adjustment ( | [
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".",
"D",
".",
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",",
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".",
"β ",
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".",
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"They",
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"connectivity",
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"can",
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"Network",
",",
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".",
"6",
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".",
"From",
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"we",
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".",
"A",
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",",
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"##fie",
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".",
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"ve",
"##ri",
"##fie",
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"B",
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"S",
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"However",
",",
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"##ri",
"##fie",
"##r",
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"Attack",
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".",
"In",
"[",
"1",
"]",
",",
"Sato",
"##shi",
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",",
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".",
"The",
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"double",
"spending",
"scenario",
"in",
"[",
"1",
"]",
"considers",
"the",
"possibility",
"that",
"some",
"attackers",
"in",
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"##co",
"##in",
"system",
"build",
"their",
"own",
"block",
"##cha",
"##in",
"instead",
"of",
"mining",
"on",
"the",
"main",
"chain",
".",
"The",
"attackers"
] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 890 |
decentralized electronic
currency system. However, it is known to be inefficient due
to its proof-of-work (PoW) consensus algorithm and has the
potential hazard of double spending. In this paper, we aim
to reduce the probability of double spending by decreasing
the probability of consecutive winning. We first formalize
a PoW-based decentralized secure network model in order
to present a quantitative analysis. Next, to resolve the risk
of double spending, we propose the personalized difficulty
adjustment ( | [
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 891 |
PDA) mechanism which modifies the difficulty of
each participant such that those who win more blocks in the
past few rounds have a smaller probability to win in the next
round. To analyze the performance of the PDA mechanism,
we observe that the system can be modeled by a high-order
Markov chain. Finally, we show that PDA effectively decreases
the probability of consecutive winning and results in a more
trustworthy PoW-based system.
Keywords-personalized difficulty adjustment, proof-of-work,
high-order M | [
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 892 |
PDA) mechanism which modifies the difficulty of
each participant such that those who win more blocks in the
past few rounds have a smaller probability to win in the next
round. To analyze the performance of the PDA mechanism,
we observe that the system can be modeled by a high-order
Markov chain. Finally, we show that PDA effectively decreases
the probability of consecutive winning and results in a more
trustworthy PoW-based system.
Keywords-personalized difficulty adjustment, proof-of-work,
high-order M | [
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 893 |
arkov chain, state reduction
I. INTRODUCTION
In 2008, Satoshi Nakamoto [1] published a breakthrough
decentralized cryptosystem called Bitcoin, which ushered
in an era of fully distributed trust network. Ten years
have passed since its publication and Bitcoin is indeed
a successful electronic currency. Many papers have been
published for Bitcoin applications [2], however, very few
are ever materialized. We believe that there are two main
reasons for this phenomenon: the intrinsic overhead of the
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"(",
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")",
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",",
"we",
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"have",
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"PD",
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"##W",
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"m",
"##od",
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"For",
"example",
",",
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"[",
"Figure",
"1",
"]",
",",
"the",
"difficulty",
"index",
"of",
"each",
"player",
"will",
"be",
"con",
"##figured",
"according",
"to",
"the",
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"winners",
"in",
"recent",
"blocks",
"."
] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 894 |
arkov chain, state reduction
I. INTRODUCTION
In 2008, Satoshi Nakamoto [1] published a breakthrough
decentralized cryptosystem called Bitcoin, which ushered
in an era of fully distributed trust network. Ten years
have passed since its publication and Bitcoin is indeed
a successful electronic currency. Many papers have been
published for Bitcoin applications [2], however, very few
are ever materialized. We believe that there are two main
reasons for this phenomenon: the intrinsic overhead of the
Bitcoin | [
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 895 |
construction and the security hazards [3] [4] such as
double spending.
The intrinsic overhead of Bitcoin lies in two parts of
the system: the information propagation and the proof-of-
work mechanism. The former is strongly related to the
synchronization and consensus issue. Karame et al. [5] [6]
initiated the study of fast payment in order to accelerate the
transaction confirmation in Bitcoin and found out that the
double spending probability is non-negligible. Bamert et al.
[7] proposed securing fast pa | [
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construction and the security hazards [3] [4] such as
double spending.
The intrinsic overhead of Bitcoin lies in two parts of
the system: the information propagation and the proof-of-
work mechanism. The former is strongly related to the
synchronization and consensus issue. Karame et al. [5] [6]
initiated the study of fast payment in order to accelerate the
transaction confirmation in Bitcoin and found out that the
double spending probability is non-negligible. Bamert et al.
[7] proposed securing fast pa | [
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yments, which improved the
previous studies. They showed that under their construction
* Currently a first-year Ph.D. student at Harvard University, USA.
β Students contributed equally to this work.
the double spending probability diminishes to less than
0.088%. Stathakopoulou et al. [8] introduced a faster Bitcoin
network based on the pipeline. They showed that increasing
the locality of connectivity among each node can accelerate
the information propagation. By implementing a Content
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ork, they achieved 60.6% average speed
up. From these works, we see that resolving the intrinsic
overhead by accelerating the information propagation has
limited performance.
As a result, we tried to fix the intrinsic overhead of
Bitcoin network, or the PoW-based network, by proposing
a new difficulty adjustment mechanism. The main focus is
to strengthen the power of PoW so that it can guarantee
stronger security.
A. Proof-of-Work (PoW)
In a PoW system, every participant has the right to be the
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] | Personalized Difficulty Adjustment for Countering the Double Spending Attack in P | 899 |