A Flexible Network Approach to Privacy of Blockchain Transactions

For preserving privacy, blockchains can be equipped with dedicated mechanisms to anonymize participants. However, these mechanism often take only the abstraction layer of blockchains into account whereas observations of the underlying network traffic can reveal the originator of a transaction request. Previous solutions either provide topological privacy that can be broken by attackers controlling a large number of nodes, or offer strong and cryptographic privacy but are inefficient up to practical unusability. Further, there is no flexible way to trade privacy against efficiency to adjust to practical needs. We propose a novel approach that combines existing mechanisms to have quantifiable and adjustable cryptographic privacy which is further improved by augmented statistical measures that prevent frequent attacks with lower resources. This approach achieves flexibility for privacy and efficency requirements of different blockchain use cases.Comment: 6 pages, 2018 IEEE 38th International Conference on Distributed Computing Systems (ICDCS

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

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

Internet Gambling: An Overview of Psychosocial Impacts

Technological innovation has always played a role in the development of gambling behaviour, primarily through providing new market opportunities. Early prevalence studies of Internet gambling in the UK, Canada and the US have shown that Internet gambling is not a cause for concern at present However, this seems likely to change as more people start to use the Internet for leisure activities. After a brief overview of gambling technologies and deregulation issues, this paper examines the impact of technology on gambling by highlighting salient factors in the rise of Internet gambling (i.e., accessibility, affordability, anonymity, convenience, escape immersion/dissociation, disinhibition, event frequency, asociability, interactivity, and simulation). The paper also overviews some of the main social impacts surrounding Internet gambling, such as protection of the vulnerable, Internet gambling in the workplace, electronic cash, and unscrupulous operators. Recommendations for Internet gambling operators are also provided

Internet gambling: an overview of psychosocial impacts

Technological innovation has always played a role in the development of gambling behaviour, primarily through providing new market opportunities. Early prevalence studies of Intemet gambling in the UK, Canada and the US have shown that Intemet gambling is not a eause for concern at present. However, this seems likely to change as more people start to use the Internet for leisure activities. After a brief overview of gambling technologies and deregulation issues, this paper examines the impact of technology on gambling by highlighting salient factors in the rise of Intemet gambling (i.e., accessibility, affordability, anonymity, convenience, escape immersion/dissociation, disinhibition, event frequency, asociability, interactivity, and simulation). The paper also overviews some of the main social impacts surrounding Intemet gambling, such as protection of the vulnerable, Intemet gambling in the workplace, electronic cash, and unscrupulous operators. Recommendations for Internet gambling operators are also provided

SHAREDWEALTH: A CRYPTOCURRENCY TO REWARD MINERS EVENLY

Bitcoin [19] is a decentralized cryptocurrency that has recently gained popularity and has emerged as a popular medium of exchange. The total market capitalization is around 1.5 billion US dollars as of October 2013 [28]. All the operations of Bitcoin are maintained in a distributed public global ledger known as a block chain which consists of all the successful transactions that have ever taken place. The security of a block chain is maintained by a chain of cryptographic puzzles solved by participants called miners, who in return are rewarded with bitcoins. To be successful, the miner has to put in his resources to solve the cryptographic puzzle (also known as a proof of work). The reward structure is an incentive for miners to contribute their computational resources and is also essential to the currency\u27s decentralized nature. One disadvantage of the reward structure is that the payment system is uneven. The reward is always given to one person. Hence people form mining pools where every member of the pool solves the same cryptographic puzzle and irrespective of the person who solved it, the reward is shared evenly among all the members of the pool. The Bitcoin protocol assumes that the miners are honest and they follow the Bitcoin protocol as prescribed. If group of selfish miners comes to lead by forming pools, the currency stops being decentralized and comes under the control of the selfish miners. Such miners can control the whole Bitcoin network [29]. Our goal is to address this problem by creating a distinct peer-to-peer protocol that reduces the incentives for the miners to join large mining pools. The central idea is to pay the “runners-up” who come close to finding a proof, thereby creating a less volatile payout situation. The work done by the “runners-up” can be used by other miners to find the solution of proof of work by building upon their work. Once they find the actual solution they have to include the solution of the other miner in order to get rewarded. The benefit of this protocol is that not only the miners save their computational resources but also the reward is distributed among the miners

An exploratory study in to the money laundering threats, vulnerabilities, and controls within the UK bookmaker sector, with a specific focus on Fixed-Odds Betting Terminals

The purpose of this exploratory study was to generate an understanding in to the money laundering threats, vulnerabilities and controls found within UK betting shops, with a direct focus on the exponential growth of Fixed-Odd Betting Terminals. Qualitative research methods facilitated eight semi-structured interviews with key stakeholders linked to the gambling and/or money laundering sphere. This included the Gambling Commission, Campaign for Fairer Gambling, an ex-Head of Security and Safety at a major bookmaker, and five regular Fixed-Odd Betting Terminal users. The interviews were recorded, transcribed and coded for thematic analysis, subsequently resulting in the emergence of four interesting and meaningful themes. These were (1) Ineffective CDD enforcement facilitating anonymity (2) Weak anti-money laundering safeguards unable to mitigate known threats (3) A lack of anti-money laundering training, awareness, and resources (4) The Gambling Commission’s attempt for increased anti-money laundering regulation unsuccessful. By allowing a phenomenological framework to guide the data collection process, the interpreted subjective views and experiences of the participants involved, although somewhat limited, indicate that money laundering threats within the bookmaker sector are inherently high, with a lack of effective safeguards in place to mitigate the identified vulnerabilities