Indonesian Cryptocurrencies Legislative Readiness: Lessons from the United States

Cryptocurrencies can facilitate cross-border global transfers easily and pseudonymously. It can be converted into fiat currencies, making it suitable for money laundering crimes. This study compared legal regulations in the United States that analysed the readiness of regulations and Indonesia's legal loopholes in responding to the development of the cryptocurrency business. As a result, cryptocurrency in Indonesia is susceptible to being used as a money-laundering tool due to the novelty of the technology, the anonymity it provides its users, and the immaturity of the regulations governing it. Therefore, it is necessary to create a cryptocurrency that can follow the “Travel Rule” and collect and share information about the people who send and receive cryptocurrency, like in the US. The study also argues that passive detection is used to detect the identity of cryptocurrency users through a centralised service. However, several cryptocurrency developers have responded to the increase in pseudonymity tracking methods by developing cryptocurrencies with greater secrecy change

Social Network Analysis of Cryptocurrency using Business Intelligence Dashboard

There are currently more than 10.000 cryptocurrencies available to buy from the online market, with a vast range of prices for each coin it sells. The fluctuation of each coin is affected by any social events or by several important companies or people behind it. The aim of this research is to compare three cryptocurrencies, which are Bitcoin, Ethereum, and Binance Coin, using Social Network Analysis (SNA) by visualizing them using Business Intelligence (BI Dashboard). This study uses the SNA parameters of degree, diameter, modularity, centrality, and path length for each network and its actors and their actual market price by crawling(data collecting process) from Twitter as one of the social media platforms. From the research conducted, the popularity of cryptocurrencies is affected by their market price and the activeness of their actors on social media. These results are important because they could help in the decision-making to buy cryptocurrencies with high popularity on social media because they tend to retain their value over time and could benefit from price spikes from influential people. Doi: 10.28991/HIJ-2022-03-02-09 Full Text: PD

Implications of Dissemination Strategies on the Security of Distributed Ledgers

This paper describes a simulation study on security attacks over Distributed Ledger Technologies (DLTs). We specifically focus on attacks at the underlying peer-to-peer layer of these systems, that is in charge of disseminating messages containing data and transaction to be spread among all participants. In particular, we consider the Sybil attack, according to which a malicious node creates many Sybils that drop messages coming from a specific attacked node, or even all messages from honest nodes. Our study shows that the selection of the specific dissemination protocol, as well as the amount of connections each peer has, have an influence on the resistance to this attack.Comment: Proceedings of the 3rd Workshop on Cryptocurrencies and Blockchains for Distributed Systems (CryBlock 2020

Considerações sobre Anonimato, Pseudoanonimato e Criptomoedas

O presente artigo avalia a temática do anonimato e do pseudoanonimato para as criptomoedas. A pergunta de pesquisa avalia se existe, no ordenamento jurídico nacional, algum elemento restritivo para a transação de criptomoedas com o intuito de anonimato. Sob o prisma jurídico, a Lei Geral de Proteção de Dados Pessoais e as normativas da do Banco Central e da Receita Federal integram o quadro de avaliação. Sob o prisma tecnológico, o modo de funcionamento e a relação com anonimato ou pseudoanonimato do Bitcoin, do Monero, do Zcash e do Dash compõem a análise. A conclusão é a de que, até o momento, a transação de criptomoedas verdadeiramente anônimas não encontra vedações expressas na legislação nacional

Deanonymization and linkability of cryptocurrency transactions based on network analysis

Bitcoin, introduced in 2008 and launched in 2009, is the first digital currency to solve the double spending problem without relying on a trusted third party. Bitcoin provides a way to transact without any trusted intermediary, but its privacy guarantees are questionable. Despite the fact that Bitcoin addresses are not linked to any identity, multiple deanonymization attacks have been proposed. Alternative cryptocurrencies such as Dash, Monero, and Zcash aim to provide stronger privacy by using sophisticated cryptographic techniques to obfuscate transaction data. Previous work in cryptocurrency privacy mostly focused on applying data mining algorithms to the transaction graph extracted from the blockchain. We focus on a less well researched vector for privacy attacks: network analysis. We argue that timings of transaction messages leak information about their origin, which can be exploited by a well connected adversarial node. For the first time, network level attacks on Bitcoin and the three major privacy-focused cryptocurrencies have been examined. We describe the message propagation mechanics and privacy guarantees in Bitcoin, Dash, Monero, and Zcash. We propose a novel technique for linking transactions based on transaction propagation analysis. We also unpack address advertisement messages (ADDR), which under certain assumptions may help in linking transaction clusters to IP addresses of nodes. We implement and evaluate our method, deanonymizing our own transactions in Bitcoin and Zcash with a high level of accuracy. We also show that our technique is applicable to Dash and Monero. We estimate the cost of a full-scale attack on the Bitcoin mainnet at hundreds of US dollars, feasible even for a low budget adversary

Advances in Information Security and Privacy

With the recent pandemic emergency, many people are spending their days in smart working and have increased their use of digital resources for both work and entertainment. The result is that the amount of digital information handled online is dramatically increased, and we can observe a significant increase in the number of attacks, breaches, and hacks. This Special Issue aims to establish the state of the art in protecting information by mitigating information risks. This objective is reached by presenting both surveys on specific topics and original approaches and solutions to specific problems. In total, 16 papers have been published in this Special Issue

Lost In The Web: The Dark Sides Of Smart Contracts. Except There Is Still Hope

This article addresses the issue related to the potential harms and the abuses arising from the application of the latest and disruptive decentralized ledger technologies (DLTs) to self-executing software, commonly known as smart contracts. To this end, the article identifies and describes the main features of the DLT– namely the blockchain – most frequently underlying smart contracts, showing their innovative yet challenging profiles. As a matter of fact, these same features may lead to mishandlings and distorted uses when applied to smart contracts, as it happened in the case study presented. Notwithstanding these undeniable ‘dark sides’ then, this paper suggests that it is still possible to balance the need for regulation and the development and encouragement of an (informed) implementation of the new information technologies, through a law by design approach