Privacy Preservation & Security Solutions in Blockchain Network

Blockchain has seen exponential progress over the past few years, and today its usage extends well beyond cryptocurrencies. Its features, including openness, transparency, secure communication, difficult falsification, and multi-consensus, have made it one of the most valuable technology in the world. In most open blockchain platforms, any node can access the data on the blockchain, which leads to a potential risk of personal information leakage. So the issue of blockchain privacy and security is particularly prominent and has become an important research topic in the field of blockchain. This dissertation mainly summarizes my research on blockchain privacy and security protection issues throughout recent years. We first summarize the security and privacy vulnerabilities in the mining pools of traditional bitcoin networks and some possible protection measures. We then propose a new type of attack: coin hopping attack, in the case of multiple blockchains under an IoT environment. This attack is only feasible in blockchain-based IoT scenarios, and can significantly reduce the operational efficiency of the entire blockchain network in the long run. We demonstrate the feasibility of this attack by theoretical analysis of four different attack models and propose two possible solutions. We also propose an innovative hybrid blockchain crowdsourcing platform solution to settle the performance bottlenecks and various challenges caused by privacy, scalability, and verification efficiency problems of current blockchain-based crowdsourcing systems. We offer flexible task-based permission control and a zero-knowledge proof mechanism in the implementation of smart contracts to flexibly obtain different levels of privacy protection. By performing several tests on Ethereum and Hyperledger Fabric, EoS.io blockchains, the performance of the proposed platform consensus under different transaction volumes is verified. At last, we also propose further investigation on the topics of the privacy issues when combining AI with blockchain and propose some defense strategies

Of degens and defrauders: Using open-source investigative tools to investigate decentralized finance frauds and money laundering

Fraud across the decentralized finance (DeFi) ecosystem is growing, with victims losing billions to DeFi scams every year. However, there is a disconnect between the reported value of these scams and associated legal prosecutions. We use open-source investigative tools to (1) investigate potential frauds involving Ethereum tokens using on-chain data and token smart contract analysis, and (2) investigate the ways proceeds from these scams were subsequently laundered. The analysis enabled us to (1) uncover transaction-based evidence of several rug pull and pump-and-dump schemes, and (2) identify their perpetrators’ money laundering tactics and cash-out methods. The rug pulls were less sophisticated than anticipated, money laundering techniques were also rudimentary and many funds ended up at centralized exchanges. This study demonstrates how open-source investigative tools can extract transaction-based evidence that could be used in a court of law to prosecute DeFi frauds. Additionally, we investigate how these funds are subsequently laundered

Security Threats Classification in Blockchains

Blockchain, the foundation of Bitcoin, has become one of the most popular technologies to create and manage digital transactions recently. It serves as an immutable ledger which allows transactions take place in a decentralized manner. This expeditiously evolving technology has the potential to lead to a shift in thinking about digital transactions in multiple sectors including, Internet of Things, healthcare, energy, supply chain, manufacturing, cybersecurity and principally financial services. However, this emerging technology is still in its infancy. Despite the huge opportunities blockchain offers, it suffers from challenges and limitation such as scalability, security, and privacy, compliance, and governance issues that have not yet been thoroughly explored and addressed. Although there are some studies on the security and privacy issues of the blockchain, they lack a systematic examination of the security of blockchain systems. This research conducted a systematic survey of the security threats to the blockchain systems and reviewed the existing vulnerabilities in the Blockchain. These vulnerabilities lead to the execution of the various security threats to the normal functionality of the Blockchain platforms. Moreover, the study provides a case-study for each attack by examining the popular blockchain systems and also reviews possible countermeasures which could be used in the development of various blockchain systems. Furthermore, this study developed taxonomies that classified the security threats and attacks based on the blockchain abstract layers, blockchain primary processes and primary business users. This would assist the developers and businesses to be attentive to the existing threats in different areas of the blockchain-based platforms and plan accordingly to mitigate risk. Finally, summarized the critical open challenges, and suggest future research directions

Application-based authentication on an inter-VM traffic in a Cloud environment

Cloud Computing (CC) is an innovative computing model in which resources are provided as a service over the Internet, on an as-needed basis. It is a large-scale distributed computing paradigm that is driven by economies of scale, in which a pool of abstracted, virtualized, dynamically-scalable, managed computing power, storage, platforms, and services are delivered on demand to external customers over the Internet. Since cloud is often enabled by virtualization and share a common attribute, that is, the allocation of resources, applications, and even OSs, adequate safeguards and security measures are essential. In fact, Virtualization creates new targets for intrusion due to the complexity of access and difficulty in monitoring all interconnection points between systems, applications, and data sets. This raises many questions about the appropriate infrastructure, processes, and strategy for enacting detection and response to intrusion in a Cloud environment. Hence, without strict controls put in place within the Cloud, guests could violate and bypass security policies, intercept unauthorized client data, and initiate or become the target of security attacks. This article shines the light on the issues of security within Cloud Computing, especially inter-VM traffic visibility. In addition, the paper lays the proposition of an Application Based Security (ABS) approach in order to enforce an application-based authentication between VMs, through various security mechanisms, filtering, structures, and policies

Need To Know Before Utopian Balloon Is Popped: Security Perspective Analysis of Nun-Fungible Tokens

Non-Fungible Tokens (NFTs) have exploded into the technological and blockchain worlds with millions of dollars’ worth of cryptocurrencies such as Ethereum and Bitcoin among others, being traded for with these NFTs by individuals. NFTs are utilized by most buyers and sellers to show authenticity and sole ownership of a rare piece of work which could be in the form of an art, a video, a game, an image, a collectible, or anything the individual deems to be of great value and of interest for other individuals to pay for and own. NFTs however are not immune to the security and privacy issues that are already affiliated with the blockchain. This research work therefore examines the existing vulnerabilities in the blockchain then specifically investigates vulnerabilities with NFTs. Not much of research effort has been put into this area but the ones that have been conducted centered on generic security issues related to Non-Fungible Tokens. Taxonomies are developed in this paper to classify the security threats and attacks as identified by investigating the vulnerabilities of NFTs. This work will be of great assistance to investors and developers who look to enter into the NFT market, as they will be provided with some adequate knowledge for them to be aware of the security issues related to the booming market of NFTs

Financing Violent Extremism: An Examination of Maligned Creativity in the Use of Financial Technologies

This workbook teaches researchers, analysts and practitioners how different sorts of terrorist and violent extremist actors utilise financial technologies and cryptocurrencies to finance their operations. The process of terrorist adoption of financial technologies is spelled out for various organisations and can assist analysts to estimate whether and when a group or terrorist actor would embrace a financial technology or cryptocurrency. The workbook also includes terms that may be used to search information holdings for terrorist adoption of cryptocurrencies or financial technologies, offering early warning of terrorist adoption. • Most terrorist organisations, cells and individuals gradually embrace new technology, tactics, strategies and processes. Finance is more confined by external constraints than other areas of potential innovation and adaptation, hence few organisations or entities actually innovate in finance. • Most terrorist actors are bound by financial and economic institutions, making terrorist financing difficult to innovate. Structures control them. Thus, terrorist fin ance patterns and approaches are better regarded as adaptation and learning rather than innovation. • When economic and financial systems evolve, most terrorists adapt to new financing methods. Terrorists employ financial technologies and cryptocurrencies when they are convenient and widely used. Until then, motivated individuals or cells can innovate, but groups or more established cells or organisations seldom adopt new financing methods early