The Tessera D&R computational environment: Designed experiments for R-Hadoop performance and Bitcoin analysis

D&R is a statistical framework for the analysis of large complex data that enables feasible and practical analysis of large complex data. The analyst selects a division method to divide the data into subsets, applies an analytic method of the analysis to each subset independently with no communication among subsets, selects a recombination method that is applied to the outputs across subsets to form a result of the analytic method for the entire data. The computational tasking of D&R is nearly embarrassingly parallel, so D&R can readily exploit distributed, parallel computational environments, such as our D&R computational environment, Tessera.^ In the first part of this dissertation, I present a study of the performance of the Tessera D&R computational environment through designed experiments. ^ The base of the D&R computational environment is RHIPE, the R and Hadoop Integrated Programming Environment. R is a widely used interactive language for data analysis. Hadoop is a distributed, parallel computational environment consisting of a distributed file system (HDFS) and distributed compute engine (MapReduce). RHIPE is a merger of R and Hadoop.^ The D&R framework enables a fast embarrassingly parallel computation on a cluster for large complex data that can lead to a small computational elapsed times for the applications analytic methods to all of the data. However, the time depends on many factors. The system we study is very complex and the effects of factors are complex. There are interactions, but not well understood. So we run a full factorial experiment with replicates to enable an understanding. ^ In the second part of this dissertation, I present an analysis of the Bitcoin transaction data utilizing the Tessera D&R computational environment. ^ Bitcoin is a de-centralized digital currency system. There is no central authority in the Bitcoin system to issue new money, or validate the transfer of money; both of these tasks are accomplished through the joint work of participants in the Bitcoin network. In the past two years, the Bitcoin system has become very popular, mostly due to its ease of use and embedded anonymity in the system.^ The ease of use of Bitcoin is straightforward. The anonymity of the Bitcoin system, on the other hand, is rather debatable and has drawn much attention in its user community as well as the research community. We admit that a certain level of anonymity exists in the Bitcoin system, but it might not be as invulnerable as one would hope. For one thing, the entire history of Bitcoin transactions is publicly available, which provides an opportunity for passive analysis of Bitcoin usage such as ours.^ I present here a study of the general statistical properties of the usage of Bitcoin transactions and the usage of Bitcoin addresses. We have also built profiles for a few groups of popular addresses among which the addresses share similar behavior. Furthermore, we provide a passive analysis of the anonymity of Bitcoin system by proposing a classification model to identify payment and change in majority of the Bitcoin transactions

Questions related to Bitcoin and other Informational Money

A collection of questions about Bitcoin and its hypothetical relatives Bitguilder and Bitpenny is formulated. These questions concern technical issues about protocols, security issues, issues about the formalizations of informational monies in various contexts, and issues about forms of use and misuse. Some questions are formulated in the more general setting of informational monies and near-monies. We also formulate questions about legal, psychological, and ethical aspects of informational money. Finally we formulate a number of questions concerning the economical merits of and outlooks for Bitcoin.Comment: 31 pages. In v2 the section on patterns for use and misuse has been improved and expanded with so-called contaminations. Other small improvements were made and 13 additional references have been include

Bitcoin: the wrong implementation of the right idea at the right time

This paper is a study into some of the regulatory implications of cryptocurrencies using the CAMPO research framework (Context, Actors, Methods, Methods, Practice, Outcomes). We explain in CAMPO format why virtual currencies are of interest, how self-regulation has failed, and what useful lessons can be learned. We are hopeful that the full paper will produce useful and semi-permanent findings into the usefulness of virtual currencies in general, block chains as a means of mining currency, and the profundity of current ‘media darling’ currency Bitcoin as compared with the development of block chain generator Ethereum. While virtual currencies can play a role in creating better trading conditions in virtual communities, despite the risks of non-sovereign issuance and therefore only regulation by code (Brown/Marsden 2013), the methodology used poses significant challenges to researching this ‘community’, if BitCoin can even be said to have created a single community, as opposed to enabling an alternate method of exchange for potentially all virtual community transactions. First, BitCoin users have transparency of ownership but anonymity in many transactions, necessary for libertarians or outright criminals in such illicit markets as #SilkRoad. Studying community dynamics is therefore made much more difficult than even such pseudonymous or avatar based communities as Habbo Hotel, World of Warcraft or SecondLife. The ethical implications of studying such communities raise similar problems as those of Tor, Anonymous, Lulzsec and other anonymous hacker communities. Second, the journalistic accounts of BitCoin markets are subject to sensationalism, hype and inaccuracy, even more so than in the earlier hype cycle for SecondLife, exacerbated by the first issue of anonymity. Third, the virtual currency area is subject to slowly emerging regulation by financial authorities and police forces, which appears to be driving much of the early adopter community ‘underground’. Thus, the community in 2016 may not bear much resemblance to that in 2012. Fourth, there has been relatively little academic empirical study of the community, or indeed of virtual currencies in general, until relatively recently. Fifth, the dynamism of the virtual currency environment in the face of the deepening mistrust of the financial system after the 2008 crisis is such that any research conclusions must by their nature be provisional and transient. All these challenges, particularly the final three, also raise the motivation for research – an alternative financial system which is separated from the real-world sovereign and which can use code regulation with limited enforcement from offline policing, both returns the study to the libertarian self-regulated environment of early 1990s MUDs, and offers a tantalising prospect of a tool to evade the perils of ‘private profit, socialized risk’ which existing large financial institutions created in the 2008-12 disaster. The need for further research into virtual currencies based on blockchain mining, and for their usage by virtual communities, is thus pressing and should motivate researchers to solve the many problems in methodology for exploring such an environment

The Evolution of Embedding Metadata in Blockchain Transactions

The use of blockchains is growing every day, and their utility has greatly expanded from sending and receiving crypto-coins to smart-contracts and decentralized autonomous organizations. Modern blockchains underpin a variety of applications: from designing a global identity to improving satellite connectivity. In our research we look at the ability of blockchains to store metadata in an increasing volume of transactions and with evolving focus of utilization. We further show that basic approaches to improving blockchain privacy also rely on embedding metadata. This paper identifies and classifies real-life blockchain transactions embedding metadata of a number of major protocols running essentially over the bitcoin blockchain. The empirical analysis here presents the evolution of metadata utilization in the recent years, and the discussion suggests steps towards preventing criminal use. Metadata are relevant to any blockchain, and our analysis considers primarily bitcoin as a case study. The paper concludes that simultaneously with both expanding legitimate utilization of embedded metadata and expanding blockchain functionality, the applied research on improving anonymity and security must also attempt to protect against blockchain abuse.Comment: 9 pages, 6 figures, 1 table, 2018 International Joint Conference on Neural Network

Anonymity in Bitcoin and Bitmessage

This report describes two projects created by the author which are based on ideas which originate from the Bitcoin community. The first, bmd, is a re-implementation of the Bitmessage protocol in go. Bitmessage is an anonymous and secure messaging system invented by Jonathan Warren, who was inspired by the design of Bitcoin's p2p network. [WARR1] The second is Shufflepuff, an implementation of a protocol called CoinShuffle[RUFF1] which allows several people to construct a Bitcoin transaction with an input and an output for each participant without any participant knowing who owns which output. CoinShuffle was invented by Tim Ruffing et al, and it is an upgrade of a protocol called CoinJoin, invented by Gregory Maxwell. This paper discusses the background, properties, applications, and design of bmd and Shufflepuff. There is also a report of a performance analysis on bmd.Electrical and Computer Engineerin