601 research outputs found
Designing a Blockchain Model for the Paris Agreement’s Carbon Market Mechanism
This paper examines the benefits and constraints of applying blockchain technology for the Paris Agreement carbon market mechanism and develops a list of technical requirements and soft factors as selection criteria to test the feasibility of two different blockchain platforms. The carbon market mechanism, as outlined in Article 6.2 of the Paris Agreement, can accelerate climate action by enabling cooperation between national Parties. However, in the past, carbon markets were limited by several constraints. Our research investigates these constraints and translates them into selection criteria to design a blockchain platform to overcome these past limitations. The developed selection criteria and assumptions developed in this paper provide an orientation for blockchain assessments. Using the selection criteria, we examine the feasibility of two distinct blockchains, Ethereum and Hyperledger Fabric, for the specific use case of Article 6.2. These two blockchain systems represent contrary forms of design and governance; Ethereum constitutes a public and permissionless blockchain governance system, while Hyperledger Fabric represents a private and permissioned governance system. Our results show that both blockchain systems can address present carbon market constraints by enhancing market transparency, increasing process automation, and preventing double counting. The final selection and blockchain system implementation will first be possible, when the Article 6 negotiations are concluded, and governance preferences of national Parties are established. Our paper informs about the viability of different blockchain systems, offers insights into governance options, and provides a valuable framework for a concrete blockchain selection in the future.DFG, 414044773, Open Access Publizieren 2019 - 2020 / Technische Universität Berli
FairLedger: A Fair Blockchain Protocol for Financial Institutions
Financial institutions are currently looking into technologies for
permissioned blockchains. A major effort in this direction is Hyperledger, an
open source project hosted by the Linux Foundation and backed by a consortium
of over a hundred companies. A key component in permissioned blockchain
protocols is a byzantine fault tolerant (BFT) consensus engine that orders
transactions. However, currently available BFT solutions in Hyperledger (as
well as in the literature at large) are inadequate for financial settings; they
are not designed to ensure fairness or to tolerate selfish behavior that arises
when financial institutions strive to maximize their own profit.
We present FairLedger, a permissioned blockchain BFT protocol, which is fair,
designed to deal with rational behavior, and, no less important, easy to
understand and implement. The secret sauce of our protocol is a new
communication abstraction, called detectable all-to-all (DA2A), which allows us
to detect participants (byzantine or rational) that deviate from the protocol,
and punish them. We implement FairLedger in the Hyperledger open source
project, using Iroha framework, one of the biggest projects therein. To
evaluate FairLegder's performance, we also implement it in the PBFT framework
and compare the two protocols. Our results show that in failure-free scenarios
FairLedger achieves better throughput than both Iroha's implementation and PBFT
in wide-area settings
SoK: Consensus in the Age of Blockchains
The core technical component of blockchains is consensus: how to reach agreement among a distributed network of nodes. A plethora of blockchain consensus protocols have been proposed---ranging from new designs, to novel modifications and extensions of consensus protocols from the classical distributed systems literature. The inherent complexity of consensus protocols and their rapid and dramatic evolution makes it hard to contextualize the design landscape. We address this challenge by conducting a systematization of knowledge of blockchain consensus protocols. After first discussing key themes in classical consensus protocols, we describe: (i) protocols based on proof-of-work; (ii) proof-of-X protocols that replace proof-of-work with more energy-efficient alternatives; and (iii) hybrid protocols that are compositions or variations of classical consensus protocols. This survey is guided by a systematization framework we develop, to highlight the various building blocks of blockchain consensus design, along with a discussion on their security and performance properties. We identify research gaps and insights for the community to consider in future research endeavours
Cryptocurrency Constellations across the Three-Dimensional Space: Governance Decentralization, Security, and Scalability
In the post-Bitcoin era, many cryptocurrencies with a variety of goals and purposes have emerged in the digital arena. This article aims to map cryptocurrency protocols across three main defining dimensions, which are governance decentralization, security, and scalability. We theorize about the organizational and technological features that impact these three dimensions. Such features encompass roles permissiveness, validation network size, resource expenditure, and number of transactions per second. We map the different cryptocurrency constellations based on their consensus mechanisms, discussing the organizational and technological features of the various protocols applications and how they experience and play with the tradeoffs among governance decentralization, security, and scalability
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