Secure Computing, Economy, and Trust: A Generic Solution for Secure Auctions with Real-World Applications

In this paper we consider the problem of constructing secure auctions based on techniques from modern cryptography. We combine knowledge from economics, cryptography and security engineering and develop and implement secure auctions for practical real-world problems. In essence this paper is an overview of the research project SCET--Secure Computing, Economy, and Trust-- which attempts to build auctions for real applications using secure multiparty computation. The main contributions of this project are: A generic setup for secure evaluation of integer arithmetic including comparisons; general double auctions expressed by such operations; a real world double auction tailored to the complexity and performance of the basic primitives '+' and

Integration of Blockchain and Auction Models: A Survey, Some Applications, and Challenges

In recent years, blockchain has gained widespread attention as an emerging technology for decentralization, transparency, and immutability in advancing online activities over public networks. As an essential market process, auctions have been well studied and applied in many business fields due to their efficiency and contributions to fair trade. Complementary features between blockchain and auction models trigger a great potential for research and innovation. On the one hand, the decentralized nature of blockchain can provide a trustworthy, secure, and cost-effective mechanism to manage the auction process; on the other hand, auction models can be utilized to design incentive and consensus protocols in blockchain architectures. These opportunities have attracted enormous research and innovation activities in both academia and industry; however, there is a lack of an in-depth review of existing solutions and achievements. In this paper, we conduct a comprehensive state-of-the-art survey of these two research topics. We review the existing solutions for integrating blockchain and auction models, with some application-oriented taxonomies generated. Additionally, we highlight some open research challenges and future directions towards integrated blockchain-auction models

Giffen paradoxes in quantum market games

Recent development in quantum computation and quantum information theory allows to extend the scope of game theory for the quantum world. The paper presents the history and basic ideas of quantum game theory. Description of Giffen paradoxes in this new formalism is discussed.

An Invitation to Quantum Game Theory

Recent development in quantum computation and quantum information theory allows to extend the scope of game theory for the quantum world. The paper presents the history, basic ideas and recent development in quantum game theory. In this context, a new application of the Ising chain model is proposed.

Cloud/fog computing resource management and pricing for blockchain networks

The mining process in blockchain requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to the high computing power and energy needed. In this paper, we, for the first time, consider edge computing as an enabler for mobile blockchain. In particular, we study edge computing resource management and pricing to support mobile blockchain applications in which the mining process of miners can be offloaded to an edge computing service provider. We formulate a two-stage Stackelberg game to jointly maximize the profit of the edge computing service provider and the individual utilities of the miners. In the first stage, the service provider sets the price of edge computing nodes. In the second stage, the miners decide on the service demand to purchase based on the observed prices. We apply the backward induction to analyze the sub-game perfect equilibrium in each stage for both uniform and discriminatory pricing schemes. For the uniform pricing where the same price is applied to all miners, the existence and uniqueness of Stackelberg equilibrium are validated by identifying the best response strategies of the miners. For the discriminatory pricing where the different prices are applied to different miners, the Stackelberg equilibrium is proved to exist and be unique by capitalizing on the Variational Inequality theory. Further, the real experimental results are employed to justify our proposed model.Comment: 16 pages, double-column version, accepted by IEEE Internet of Things Journa

New business model for auction houses based on blockchain

Over the last few years, and perhaps due to the global pandemic, activity around blockchain technology, cryptocurrencies, and crypto-assets has become socially popular and mainstream. This technology presents a new digital infrastructure and offers a new governance model in the ecosystem that can bring improvements to current systems and represent a turning point. In the frenetic and constantly evolving world we live in, the implementation of these new technologies is a challenge for companies, and their early adoption can be a turning point for their growth and future development. The project's starting point is born at this precise moment when different companies and industries are racing to join the new technology and try to adapt and take advantage of it. In particular, there has been a revolution in the art sector thanks to the invention of NFTs and their use linked to the creation and trade of digital art. Despite the existence of significant and recognized marketplaces where these assets are traded, large auction houses have maintained a relevant role in managing some of the most famous NFTs auctions. Their role has meant nothing more than incorporating these new assets into their catalogs and, in some cases, creating digital spaces where they can exhibit them. This thesis presents a new business model for auction houses based on blockchain to enable them to go a step further and take full advantage of the possibilities and improvements that this technology offers. The new business model developed incorporates several applications of the technology in the current system to improve it and satisfy the new needs and requirements of the market. In order to carry out the design of the new model, the document first proposes a compilation chapter of the two main topics to be dealt with. On the one hand, historical documentation of auctions and auction houses up to their current model has been carried out to understand their evolution. On the other hand, a detailed explanation of blockchain technology and its set of applications has been developed to understand its characteristics and the possibilities it offers. Finally, in order to give the most accurate picture of the current situation, a state-of-the-art is developed in a timeline format with the most significant related events that have taken place over the last year. Once the foundations on which the new business model is built have been understood and internalized, the project enters the second chapter, where the current situation on the topic is analyzed in detail through three different analyses. First, the state-of-the-art is examined in-depth, and the characteristics and conclusions that define the present situation are drawn. For this purpose, the different news items are examined objectively in order to distinguish the reasons behind the events, understanding how and why they have taken place. Secondly, a set of interviews have been conducted with different actors involved in the main topic of the thesis in order to have a first-hand opinion and hear different perspectives. To conclude the analysis and deepen in the field of blockchain technology and particularly in the possibilities of smart contracts, a programming course in blockchain has been carried out in parallel to the project's development. The document section shows a summary of the follow-up of the course and explains all the new concepts acquired during the course. Finally, the last chapter of the thesis shows a description of the new business model for auction houses based on blockchain as a result of the analysis of the project. The first section develops the new system and its characteristics, the design of the blockchain infrastructure and its operation, and presents the modifications made to the new business model. The chapter continues with the justification for creating the model and explains how it arises from taking advantage of the opportunities offered by the new technology and the possible results and benefits that auction houses can obtain. In addition, other sections are added that qualitatively define the roadmap to be followed for its implementation, the economic analysis, and the environmental impact of the new model. To conclude, a feasibility analysis is carried out to show the current weaknesses to be taken into account before adopting the new modelNegli ultimi anni e a causa della pandemia globale, l'attività intorno alla tecnologia blockchain, alle criptovalute e ai crypto asset è diventata socialmente popolare e un argomento mainstream. Questa tecnologia presenta una nuova infrastruttura digitale e offre un nuovo modello di governance nell'ecosistema che può portare miglioramenti ai sistemi attuali. Nel mondo frenetico e in continua evoluzione in cui viviamo, l'implementazione di queste nuove tecnologie è una sfida per le aziende, e la loro adozione precoce può essere un punto di svolta per la loro crescita e sviluppo futuro. Il punto di partenza del progetto nasce in questo preciso momento in cui diverse aziende e industrie stanno correndo per unirsi alla nuova tecnologia e cercare di adattarsi e trarne vantaggio. In particolare, c'è stata una rivoluzione nel settore dell'arte grazie all'invenzione degli NFT e al loro utilizzo legato alla creazione e al commercio di arte digitale. Nonostante l'esistenza di importanti e riconosciuti marketplace di questi beni, le grandi case d'asta hanno mantenuto un ruolo rilevante nella gestione di alcune delle più famose aste di NFTs. Il loro ruolo non ha significato altro che incorporare questi nuovi beni nei loro cataloghi e, in alcuni casi, creare spazi digitali dove poterli esporre. Questa tesi presenta un nuovo modello di business per le case d'asta basato sulla blockchain per permettere loro di fare un passo avanti e sfruttare al massimo le possibilità e i miglioramenti che questa tecnologia offre. Il nuovo modello di business sviluppato incorpora diverse applicazioni della tecnologia nel sistema attuale per migliorarlo e soddisfare le nuove esigenze e richieste del mercato. Per realizzare la progettazione del nuovo modello, il documento propone innanzitutto un capitolo di compilazione dei due temi principali da trattare. Da un lato, è stata realizzata una documentazione storica delle aste e delle case d'asta fino al loro modello attuale per comprendere la loro evoluzione. Dall'altro, è stata sviluppata una spiegazione dettagliata della tecnologia blockchain e del suo insieme di applicazioni per capire le sue caratteristiche e le possibilità che offrono. Infine, al fine di dare il quadro più accurato della situazione attuale, è stato sviluppato uno stato dell'arte in formato timeline con gli eventi correlati più significativi che hanno avuto luogo nell'ultimo anno. Una volta che le basi su cui è costruito il nuovo modello di business sono state comprese e interiorizzate, il progetto entra nel secondo capitolo, dove la situazione attuale sull’argomento viene analizzata in dettaglio attraverso di tre diverse analisi. In primo luogo, si esamina in profondità lo stato dell'arte e si tracciano le caratteristiche e le conclusioni che definiscono la situazione attuale. A questo scopo, le diverse notizie vengono esaminate in modo oggettivo per distinguere le ragioni dietro gli eventi, capendo come e perché sono avvenuti. In secondo luogo, sono state condotte una serie di interviste con diversi partecipanti riguardo l'argomento principale della tesi, al fine di avere un'opinione di prima mano e sentire diverse prospettive. Per concludere l'analisi e approfondire nel campo della tecnologia e in particolare nelle possibilità degli smart contracts, è stato realizzato un corso di programmazione in blockchain in parallelo allo sviluppo del progetto. La sezione del documento mostra un riassunto del seguito del corso e spiega tutti i nuovi concetti acquisiti durante il corso. Infine, l'ultimo capitolo della tesi mostra una descrizione del nuovo modello di business per le case d'asta basato su blockchain come risultato dell'analisi del progetto. La prima sezione sviluppa il nuovo sistema e le sue caratteristiche, la progettazione dell'infrastruttura blockchain e il suo funzionamento, e presenta le modifiche apportate al nuovo modello di business. Il capitolo continua con la giustificazione della creazione del modello e spiega come nasce dallo sfruttamento delle opportunità offerte dalla nuova tecnologia e i possibili risultati e benefici che le case d'asta possono ottenere. Inoltre, vengono aggiunte altre sezioni che definiscono qualitativamente la tabella di marcia da seguire per la sua implementazione, l'analisi economica e l'impatto ambientale del nuovo modello. Per concludere, viene effettuata un'analisi di fattibilità per mostrare le attuali debolezze da prendere in considerazione prima di adottare il nuovo modell

Blockchain-Coordinated Frameworks for Scalable and Secure Supply Chain Networks

Supply chains have progressed through time from being limited to a few regional traders to becoming complicated business networks. As a result, supply chain management systems now rely significantly on the digital revolution for the privacy and security of data. Due to key qualities of blockchain, such as transparency, immutability and decentralization, it has recently gained a lot of interest as a way to solve security, privacy and scalability problems in supply chains. However conventional blockchains are not appropriate for supply chain ecosystems because they are computationally costly, have a limited potential to scale and fail to provide trust. Consequently, due to limitations with a lack of trust and coordination, supply chains tend to fail to foster trust among the network’s participants. Assuring data privacy in a supply chain ecosystem is another challenge. If information is being shared with a large number of participants without establishing data privacy, access control risks arise in the network. Protecting data privacy is a concern when sending corporate data, including locations, manufacturing supplies and demand information. The third challenge in supply chain management is scalability, which continues to be a significant barrier to adoption. As the amount of transactions in a supply chain tends to increase along with the number of nodes in a network. So scalability is essential for blockchain adoption in supply chain networks. This thesis seeks to address the challenges of privacy, scalability and trust by providing frameworks for how to effectively combine blockchains with supply chains. This thesis makes four novel contributions. It first develops a blockchain-based framework with Attribute-Based Access Control (ABAC) model to assure data privacy by adopting a distributed framework to enable fine grained, dynamic access control management for supply chain management. To solve the data privacy challenge, AccessChain is developed. This proposed AccessChain model has two types of ledgers in the system: local and global. Local ledgers are used to store business contracts between stakeholders and the ABAC model management, whereas the global ledger is used to record transaction data. AccessChain can enable decentralized, fine-grained and dynamic access control management in SCM when combined with the ABAC model and blockchain technology (BCT). The framework enables a systematic approach that advantages the supply chain, and the experiments yield convincing results. Furthermore, the results of performance monitoring shows that AccessChain’s response time with four local ledgers is acceptable, and therefore it provides significantly greater scalability. Next, a framework for reducing the bullwhip effect (BWE) in SCM is proposed. The framework also focuses on combining data visibility with trust. BWE is first observed in SC and then a blockchain architecture design is used to minimize it. Full sharing of demand data has been shown to help improve the robustness of overall performance in a multiechelon SC environment, especially for BWE mitigation and cumulative cost reduction. It is observed that when it comes to providing access to data, information sharing using a blockchain has some obvious benefits in a supply chain. Furthermore, when data sharing is distributed, parties in the supply chain will have fair access to other parties’ data, even though they are farther downstream. Sharing customer demand is important in a supply chain to enhance decision-making, reduce costs and promote the final end product. This work also explores the ability of BCT as a solution in a distributed ledger approach to create a trust-enhanced environment where trust is established so that stakeholders can share their information effectively. To provide visibility and coordination along with a blockchain consensus process, a new consensus algorithm, namely Reputation-based proof-of cooperation (RPoC), is proposed for blockchain-based SCM, which does not involve validators to solve any mathematical puzzle before storing a new block. The RPoC algorithm is an efficient and scalable consensus algorithm that selects the consensus node dynamically and permits a large number of nodes to participate in the consensus process. The algorithm decreases the workload on individual nodes while increasing consensus performance by allocating the transaction verification process to specific nodes. Through extensive theoretical analyses and experimentation, the suitability of the proposed algorithm is well grounded in terms of scalability and efficiency. The thesis concludes with a blockchain-enabled framework that addresses the issue of preserving privacy and security for an open-bid auction system. This work implements a bid management system in a private BC environment to provide a secure bidding scheme. The novelty of this framework derives from an enhanced approach for integrating BC structures by replacing the original chain structure with a tree structure. Throughout the online world, user privacy is a primary concern, because the electronic environment enables the collection of personal data. Hence a suitable cryptographic protocol for an open-bid auction atop BC is proposed. Here the primary aim is to achieve security and privacy with greater efficiency, which largely depends on the effectiveness of the encryption algorithms used by BC. Essentially this work considers Elliptic Curve Cryptography (ECC) and a dynamic cryptographic accumulator encryption algorithm to enhance security between auctioneer and bidder. The proposed e-bidding scheme and the findings from this study should foster the further growth of BC strategies

Agent-Based Model of the Spectrum Auctions with Sensing Imperfections in Dynamic Spectrum Access Networks

Cognitive radio (CR) is the underlying platform for the application of dynamic spectrum access (DSA) networks. Although the auction theory and spectrum trading mechanisms have been discussed in the CR related works, their joint techno-economic impact on the efficiency of distributed CR networks has not been researched yet. In this paper we assume heterogeneous primary channels with network availability statistics unknown to each secondary user (SU) terminal. In order to detect the idle primary user (PU) network channels, the SU terminals trigger regularly the spectrum sensing mechanism and make the cooperative decision regarding the channel status at the fusion center. The imperfections of the spectrum mechanism create the possibility of the channel collision, resulting in the existence of the risk (in terms of user collision) in the network. The spectrum trading within SU network is governed by the application of the sealed-bid first-price auction, which takes into account the channel valuation as well as the statistical probability of the risk existence. In order to maximize the long-term payoff, the SU terminals take an advantage of the reinforcement comparison strategy. The results demonstrate that in the investigated model, total revenue and total payoff of the SU operator (auctioneer) and SU terminals (bidders) are characterized by the existence of the global optimum, thus there exists the optimal sensing time guaranteeing the optimum economic factors for both SU operator and SU terminals