Cryptocurrency and its forensic significance

Cryptocurrency is a relatively new form of investment. Its concept was first introduced in 2009, and has grown ever since. To this day, there are thousands of cryptocurrencies. Just as other currencies, cryptocurrency can be related to a crime. Ever since its introduction nearly a decade ago, there have been crimes where cryptocurrency are related. According to ACIC’s crime types, cryptocurrency are related to two crime categories: cybercrime, and illicit drugs. There are also other cases where the type of crimes is not listed as a part of ACIC’s. In response to the crimes that have occurred throughout the years, several governments have moved to establish laws regarding cryptocurrency. Some governments chose to ban cryptocurrency completely, whereas others opted for regulation

Data Insertion in Bitcoin\u27s Blockchain

This paper provides the first comprehensive survey of methods for inserting arbitrary data into Bitcoin\u27s blockchain. Historical methods of data insertion are described, along with lesser-known techniques that are optimized for efficiency. Insertion methods are compared on the basis of efficiency, cost, convenience of data reconstruction, permanence, and potentially negative impact on the Bitcoin ecosystem

Kleptography and steganography in blockchains

Despite its vast proliferation, the blockchain technology is still evolving, and witnesses continuous technical innovations to address its numerous unresolved issues. An example of these issues is the excessive electrical power consumed by some consensus protocols. Besides, although various media reports have highlighted the existence of objectionable content in blockchains, this topic has not received sufficient research. Hence, this work investigates the threat and deterrence of arbitrary-content insertion in public blockchains, which poses a legal, moral, and technical challenge. In particular, the overall aim of this work is to thoroughly study the risk of manipulating the implementation of randomized cryptographic primitives in public blockchains to mount kleptographic attacks, establish steganographic communication, and store arbitrary content. As part of our study, we present three new kleptographic attacks on two of the most commonly used digital signatures: ring signature and ECDSA. We also demonstrate our kleptographic attacks on two real cryptocurrencies: Bytecoin and Monero. Moreover, we illustrate the plausibility of hijacking public blockchains to establish steganographic channels. Particularly, we design, implement, and evaluate the first blockchain-based broadcast communication tool on top of a real-world cryptocurrency. Furthermore, we explain the detrimental consequences of kleptography and steganography on the users and the future of the blockchain technology. Namely, we show that kleptography can be used to surreptitiously steal the users' secret signing keys, which are the most valuable and guarded secret in public blockchains. After losing their keys, users of cryptocurrencies will inevitably lose their funds. In addition, we clarify that steganography can be used to establish subliminal communication and secretly store arbitrary content in public blockchains, which turns them into cheap cyberlockers. Consequently, the participation in such blockchains, which are known to store unethical content, can be criminalized, hindering the future adoption of blockchains. After discussing the adverse effects of kleptographic and steganographic attacks on blockchains, we survey all of the existing techniques that can defend against these attacks. Finally, due to the shortcomings of the available techniques, we propose four countermeasures that ensure kleptography and steganography-resistant public blockchains. Our countermeasures include two new cryptographic primitives and a generic steganographyresistant blockchain framework (SRBF). This framework presents a universal solution that deters steganography and practically achieves the right to be forgotten (RtbF) in blockchains, which represents a regulatory challenge for current immutable blockchains

An economic review of the bitcoin production market and resulting externalities

This paper reviews the existing economic theory on Bitcoin (BTC) production, analyzes the Bitcoin production market – as well as the associated externalities of the Bitcoin production process. It discusses how the underlying incentive mechanism further a competitive arms race that not only contradicts the philosophy of the underlying consensus scheme but results in an artificially high level of production demand that imposes significant damages onto society

A Conceptual Foundation for Blockchain Development: The Contribution of Ibn Khaldun

Blockchain is a revolutionary technology that has provided the potential answers for many real-world problems in this digital era. Blockchain is a topic of immense interest in various industries and academia in terms of discovering technology and identifying challenges and innovative practical implementation for the industry. This study deliberates the challenges that are of major concern in designing a Blockchain platform. In this context, the problems such as inefficient technology design, the criminal connection, scalability, energy consumption, privacy, regulation, security, lack of adequate skill sets, energy consumption and public perception are uncovered to be significant. Due to such challenges, the blockchain technologies have emitted a negative impression due to its inabilities to be effectively implemented while, at the same time, its advantages could not be fully reaped by its stakeholders. The aim of this study, hence, is to evaluate the blockchain initiatives and development in light of the eight foundations for economic development as propounded by Ibn Khaldun. Using Ibn Khaldun’s theory, each challenge is discussed and analyzed to find the answers and solutions for addressing and overcoming the afore-mentioned challenges

Does regulation of illegal content in the EU need reconsideration in light of blockchains?

Blockchains are increasingly being used for content distribution, sometimes as an unwanted side-effect of blockchain applications that have other primary purposes, sometimes as intended content distribution. The typical characteristics of a blockchain such as its claimed immutability raise new questions as to what preventive measures can reasonably be demanded from blockchain intermediaries, and administrators of nodes in particular. The article asks whether the exemptions introduced in the Directive on electronic commerce can be applied, what mitigating or preventive measures other than Notice-and-Takedown can be applied and how governmental regulators should react

Fungible and non-fungible tokens with snapshots in Java

Many blockchain applications exchange tokens, such as bitcoin and ether, or implement them through smart contracts. A trend in blockchain is to apply standards for token interoperability, unchanged, from platform to platform, easing the design challenges with trusted and widely-used specifications. However, the exploitation of the target language semantics can result in technological advantages and more efficient contracts. This paper presents a re-engineering of OpenZeppelin’s implementation of the ERC-20 and ERC-721 standards in Takamaka, a Java framework for programming smart contracts. It describes a sound solution to the issue about the types allowed for the token holders and a novel implementation for making snapshots of tokens, based on tree maps, that is possible in Java, but not in Solidity, more efficient than the literal translation in Java from Solidity, within the Java virtual machine. Moreover, it applies to ERC-721 as well, where a snapshot mechanism was previously missing. The same snapshot mechanism can also be applied beyond the smart contracts for tokens

Creating A Fake Cryptocurrency Unit

In the recent years, cryptocurrencies gained lots of popularity. Many new cryptocurrencies are introduced day by day. Though new cryptocurrencies are being introduced, they are based on the same Blockchain technology. Cryptocurrencies are virtual currencies and differ from traditional money in a way which made them very popular among the users. Bitcoin which was the first cryptocurrency introduced by Satoshi Nakamoto in late 2008 as a Peer-to-Peer Electronic cash system. The most important feature of this system was that it was de-centralized meaning that there is no centralized authority controlling the payment network. Instead, every single entity of the network realizes all the tasks of the centralized server. Cryptocurrencies rely on miners who verify the transactions and add the block to the blockchain. Miners depend on high computation power to solve a mathematical problem following a mining algorithm which also rewards them with some cryptocurrency. This paper provides a comprehensive overview of the technology behind cryptocurrencies and explores the security and privacy issues that are involved with cryptocurrencies and introduces a mechanism to create fake cryptocurrency units

A cybersecurity control framework for blockchain ecosystems

This paper proposes a cybersecurity control framework for blockchain ecosystems, drawing from risks identified in the practitioner and academic literature. The framework identifies thirteen risks for blockchain implementations, ten common to other information systems and three risks specific to blockchains: centralization of computing power, transaction malleability, and flawed or malicious smart contracts. It also proposes controls to mitigate the risks identified; some were identified in the literature and some are new. Controls that apply to all types of information systems are adapted to the different components of the blockchain ecosystem