2,697 research outputs found
On Cyber Risk Management of Blockchain Networks: A Game Theoretic Approach
Open-access blockchains based on proof-of-work protocols have gained
tremendous popularity for their capabilities of providing decentralized
tamper-proof ledgers and platforms for data-driven autonomous organization.
Nevertheless, the proof-of-work based consensus protocols are vulnerable to
cyber-attacks such as double-spending. In this paper, we propose a novel
approach of cyber risk management for blockchain-based service. In particular,
we adopt the cyber-insurance as an economic tool for neutralizing cyber risks
due to attacks in blockchain networks. We consider a blockchain service market,
which is composed of the infrastructure provider, the blockchain provider, the
cyber-insurer, and the users. The blockchain provider purchases from the
infrastructure provider, e.g., a cloud, the computing resources to maintain the
blockchain consensus, and then offers blockchain services to the users. The
blockchain provider strategizes its investment in the infrastructure and the
service price charged to the users, in order to improve the security of the
blockchain and thus optimize its profit. Meanwhile, the blockchain provider
also purchases a cyber-insurance from the cyber-insurer to protect itself from
the potential damage due to the attacks. In return, the cyber-insurer adjusts
the insurance premium according to the perceived risk level of the blockchain
service. Based on the assumption of rationality for the market entities, we
model the interaction among the blockchain provider, the users, and the
cyber-insurer as a two-level Stackelberg game. Namely, the blockchain provider
and the cyber-insurer lead to set their pricing/investment strategies, and then
the users follow to determine their demand of the blockchain service.
Specifically, we consider the scenario of double-spending attacks and provide a
series of analytical results about the Stackelberg equilibrium in the market
game
The Data Breach Dilemma: Proactive Solutions for Protecting Consumers’ Personal Information
Data breaches are an increasingly common part of consumers’ lives. No institution is immune to the possibility of an attack. Each breach inevitably risks the release of consumers’ personally identifiable information and the strong possibility of identity theft.
Unfortunately, current solutions for handling these incidents are woefully inadequate. Private litigation like consumer class actions and shareholder lawsuits each face substantive legal and procedural barriers. States have their own data security and breach notification laws, but there is currently no unifying piece of legislation or strong enforcement mechanism.
This Note argues that proactive solutions are required. First, a national data security law—setting minimum data security standards, regulating the use and storage of personal information, and expanding the enforcement role of the Federal Trade Commission—is imperative to protect consumers’ data. Second, a proactive solution requires reconsidering how to minimize the problem by going to its source: the collection of personally identifiable information in the first place. This Note suggests regulating companies’ collection of Social Security numbers, and, eventually, using a system based on distributed ledger technology to replace the ubiquity of Social Security numbers
BlockPKI: An Automated, Resilient, and Transparent Public-Key Infrastructure
This paper describes BlockPKI, a blockchain-based public-key infrastructure
that enables an automated, resilient, and transparent issuance of digital
certificates. Our goal is to address several shortcomings of the current TLS
infrastructure and its proposed extensions. In particular, we aim at reducing
the power of individual certification authorities and make their actions
publicly visible and accountable, without introducing yet another trusted third
party. To demonstrate the benefits and practicality of our system, we present
evaluation results and describe our prototype implementation.Comment: Workshop on Blockchain and Sharing Economy Application
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