Blockchain: A Graph Primer

Bitcoin and its underlying technology Blockchain have become popular in recent years. Designed to facilitate a secure distributed platform without central authorities, Blockchain is heralded as a paradigm that will be as powerful as Big Data, Cloud Computing and Machine learning. Blockchain incorporates novel ideas from various fields such as public key encryption and distributed systems. As such, a reader often comes across resources that explain the Blockchain technology from a certain perspective only, leaving the reader with more questions than before. We will offer a holistic view on Blockchain. Starting with a brief history, we will give the building blocks of Blockchain, and explain their interactions. As graph mining has become a major part its analysis, we will elaborate on graph theoretical aspects of the Blockchain technology. We also devote a section to the future of Blockchain and explain how extensions like Smart Contracts and De-centralized Autonomous Organizations will function. Without assuming any reader expertise, our aim is to provide a concise but complete description of the Blockchain technology.Comment: 16 pages, 8 figure

Collective Dynamics of Dark Web Marketplaces

Dark markets are commercial websites that use Bitcoin to sell or broker transactions involving drugs, weapons, and other illicit goods. Being illegal, they do not offer any user protection, and several police raids and scams have caused large losses to both customers and vendors over the past years. However, this uncertainty has not prevented a steady growth of the dark market phenomenon and a proliferation of new markets. The origin of this resilience have remained unclear so far, also due to the difficulty of identifying relevant Bitcoin transaction data. Here, we investigate how the dark market ecosystem re-organises following the disappearance of a market, due to factors including raids and scams. To do so, we analyse 24 episodes of unexpected market closure through a novel datasets of 133 million Bitcoin transactions involving 31 dark markets and their users, totalling 4 billion USD. We show that coordinated user migration from the closed market to coexisting markets guarantees overall systemic resilience beyond the intrinsic fragility of individual markets. The migration is swift, efficient and common to all market closures. We find that migrants are on average more active users in comparison to non-migrants and move preferentially towards the coexisting market with the highest trading volume. Our findings shed light on the resilience of the dark market ecosystem and we anticipate that they may inform future research on the self-organisation of emerging online markets

Data mining for detecting Bitcoin Ponzi schemes

Soon after its introduction in 2009, Bitcoin has been adopted by cyber-criminals, which rely on its pseudonymity to implement virtually untraceable scams. One of the typical scams that operate on Bitcoin are the so-called Ponzi schemes. These are fraudulent investments which repay users with the funds invested by new users that join the scheme, and implode when it is no longer possible to find new investments. Despite being illegal in many countries, Ponzi schemes are now proliferating on Bitcoin, and they keep alluring new victims, who are plundered of millions of dollars. We apply data mining techniques to detect Bitcoin addresses related to Ponzi schemes. Our starting point is a dataset of features of real-world Ponzi schemes, that we construct by analysing, on the Bitcoin blockchain, the transactions used to perform the scams. We use this dataset to experiment with various machine learning algorithms, and we assess their effectiveness through standard validation protocols and performance metrics. The best of the classifiers we have experimented can identify most of the Ponzi schemes in the dataset, with a low number of false positives

Blockchain for secured IoT and D2D applications over 5G cellular networks : a thesis by publications presented in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Computer and Electronics Engineering, Massey University, Albany, New Zealand

Author's Declaration: "In accordance with Sensors, SpringerOpen, and IEEE’s copyright policy, this thesis contains the accepted and published version of each manuscript as the final version. Consequently, the content is identical to the published versions."The Internet of things (IoT) is in continuous development with ever-growing popularity. It brings significant benefits through enabling humans and the physical world to interact using various technologies from small sensors to cloud computing. IoT devices and networks are appealing targets of various cyber attacks and can be hampered by malicious intervening attackers if the IoT is not appropriately protected. However, IoT security and privacy remain a major challenge due to characteristics of the IoT, such as heterogeneity, scalability, nature of the data, and operation in open environments. Moreover, many existing cloud-based solutions for IoT security rely on central remote servers over vulnerable Internet connections. The decentralized and distributed nature of blockchain technology has attracted significant attention as a suitable solution to tackle the security and privacy concerns of the IoT and device-to-device (D2D) communication. This thesis explores the possible adoption of blockchain technology to address the security and privacy challenges of the IoT under the 5G cellular system. This thesis makes four novel contributions. First, a Multi-layer Blockchain Security (MBS) model is proposed to protect IoT networks while simplifying the implementation of blockchain technology. The concept of clustering is utilized to facilitate multi-layer architecture deployment and increase scalability. The K-unknown clusters are formed within the IoT network by applying a hybrid Evolutionary Computation Algorithm using Simulated Annealing (SA) and Genetic Algorithms (GA) to structure the overlay nodes. The open-source Hyperledger Fabric (HLF) Blockchain platform is deployed for the proposed model development. Base stations adopt a global blockchain approach to communicate with each other securely. The quantitative arguments demonstrate that the proposed clustering algorithm performs well when compared to the earlier reported methods. The proposed lightweight blockchain model is also better suited to balance network latency and throughput compared to a traditional global blockchain. Next, a model is proposed to integrate IoT systems and blockchain by implementing the permissioned blockchain Hyperledger Fabric. The security of the edge computing devices is provided by employing a local authentication process. A lightweight mutual authentication and authorization solution is proposed to ensure the security of tiny IoT devices within the ecosystem. In addition, the proposed model provides traceability for the data generated by the IoT devices. The performance of the proposed model is validated with practical implementation by measuring performance metrics such as transaction throughput and latency, resource consumption, and network use. The results indicate that the proposed platform with the HLF implementation is promising for the security of resource-constrained IoT devices and is scalable for deployment in various IoT scenarios. Despite the increasing development of blockchain platforms, there is still no comprehensive method for adopting blockchain technology on IoT systems due to the blockchain's limited capability to process substantial transaction requests from a massive number of IoT devices. The Fabric comprises various components such as smart contracts, peers, endorsers, validators, committers, and Orderers. A comprehensive empirical model is proposed that measures HLF's performance and identifies potential performance bottlenecks to better meet blockchain-based IoT applications' requirements. The implementation of HLF on distributed large-scale IoT systems is proposed. The performance of the HLF is evaluated in terms of throughput, latency, network sizes, scalability, and the number of peers serviceable by the platform. The experimental results demonstrate that the proposed framework can provide a detailed and real-time performance evaluation of blockchain systems for large-scale IoT applications. The diversity and the sheer increase in the number of connected IoT devices have brought significant concerns about storing and protecting the large IoT data volume. Dependencies of the centralized server solution impose significant trust issues and make it vulnerable to security risks. A layer-based distributed data storage design and implementation of a blockchain-enabled large-scale IoT system is proposed to mitigate these challenges by using the HLF platform for distributed ledger solutions. The need for a centralized server and third-party auditor is eliminated by leveraging HLF peers who perform transaction verification and records audits in a big data system with the help of blockchain technology. The HLF blockchain facilitates storing the lightweight verification tags on the blockchain ledger. In contrast, the actual metadata is stored in the off-chain big data system to reduce the communication overheads and enhance data integrity. Finally, experiments are conducted to evaluate the performance of the proposed scheme in terms of throughput, latency, communication, and computation costs. The results indicate the feasibility of the proposed solution to retrieve and store the provenance of large-scale IoT data within the big data ecosystem using the HLF blockchain