Deconstructing the Blockchain to Approach Physical Limits

Transaction throughput, confirmation latency and confirmation reliability are fundamental performance measures of any blockchain system in addition to its security. In a decentralized setting, these measures are limited by two underlying physical network attributes: communication capacity and speed-of-light propagation delay. Existing systems operate far away from these physical limits. In this work we introduce Prism, a new proof-of-work blockchain protocol, which can achieve 1) security against up to 50% adversarial hashing power; 2) optimal throughput up to the capacity C of the network; 3) confirmation latency for honest transactions proportional to the propagation delay D, with confirmation error probability exponentially small in CD ; 4) eventual total ordering of all transactions. Our approach to the design of this protocol is based on deconstructing the blockchain into its basic functionalities and systematically scaling up these functionalities to approach their physical limits.Comment: Computer and Communications Security, 201

Understanding smart contracts as a new option in transaction cost economics

Among different concepts associated with the term blockchain, smart contracts have been a prominent one, especially popularized by the Ethereum platform. In this study, we unpack this concept within the framework of Transaction Cost Economics (TCE). This institutional economics theory emphasizes the role of distinctive (private and public) contract law regimes in shaping firm boundaries. We propose that widespread adoption of the smart contract concept creates a new option in public contracting, which may give rise to a smart-contract-augmented contract law regime. We discuss tradeoffs involved in the attractiveness of the smart contract concept for firms and the resulting potential for change in firm boundaries. Based on our new conceptualization, we discuss potential roles the three branches of government – judicial, executive, and legislative – in enabling and using this new contract law regime. We conclude the paper by pointing out limitations of the TCE perspective and suggesting future research directions

Evaluation of (De-)Centralized IT technologies in the fields of Cyber-Physical Production Systems

In the course of the digital transformation, organizations are not only facing increasing volatility of the markets, but also increasing customer requirements and thus an increasing complexity in production and logistics systems. Therefore, production plants need to become more flexible by transforming conventional production systems to Cyber-physical Production Systems (CPPS). CPPS allow organizations to dynamically react to fluctuations in demand and markets and to introduce new product lines quickly and effectively. The challenge in implementing CPPS is to handle and store relevant data streams between Cyber-physical objects in a secure but transparent way. As CPPS involve a high level of decentralization, the data storage can either be combined with centralized IT-solutions like a Cloud or utilize decentralized IT-technologies like Edge Computing or Distributed Ledger Technologies (DLT) like Blockchains. The paper addresses the suitability of centralized and decentralized technologies in terms of dealing with data streams in the fields of CPPS. For this purpose, based on a paper exploration, appropriate evaluation criteria are derived, followed by a comparison of exemplary centralized and decentralized technologies. The outcome is a qualitative evaluation of the supplement of each technology regarding its suitability of dealing with data streams

Democracy Through The Blocks: Towards the Era of Law Engineering

As we enter the age of decentralization, technological and political tensions stress the fabric of modern Democracies. Understanding the theoretical and practical challenges that we will be forced to face is the focus of this project. From the technological choices and their implementations, passing through their political and philosophical consequences, a new path needs to be drawn in order to understand whether DLTs will fundamentally change the very concepts of eDemocracy and governance, or improve existing models

Has the 2016 General Data Protection Regulation really given consumers more control over their personal data?

The General Data Protection Regulation (GDPR) - which came into force in May 2018 - introduced a complete change to data privacy law. Arguably one of the most comprehensive pieces of European Union legislation, the GDPR appears to put data subjects in charge, with new and improved subject rights, wider territorial scope and increased accountability and enforcement mechanisms, all of which aim to strengthen their individual rights. The digital revolution presented the existing data protection legislation, namely the Data Protection Directive (DPD) (1995), with significant challenges. New means of processing personal information have led to increasingly acute consumer concerns over how personal data is gathered, handled, and stored. Modern - and largely intangible - processing methods may result in data subjects lacking control over their personal data. Control is in itself an essential aspect of data protection, not only in terms of privacy, but to uphold informational autonomy. As their own data is affected, a consumer should be able to ‘…predict with sufficient certainty which information about himself in certain areas is known to his social milieu…’ in order to have control over it. This may be done by having the right to choose how data is dealt with and where it will eventually end up. This article analyses what the Regulation has achieved in relation to giving consumers more control over their personal data. The wording and principles of the GDPR appear to prioritise consumer control, more so than any other European legal instrument. The issue of how GDPR has affected consumers has however received far less attention than the repercussions of the legislation upon organisations. Much academic commentary has focused upon commending, comparing or criticising the European initiative: this article will look to these to gauge whether this ‘gold standard’ reform really ‘does what it says on the tin.’ It compares GDPR with DPD to set out the rationale for reform, having regard to the increased influence and advance of modern technologies in a globalised market; it then argues that the breakdown of technological boundaries means that the DPD had perhaps lost touch, in terms of territorial scope, definitions, and terminologies. It therefore then examines those rights and principles that give rise to greater consumer control over personal data, not least transparency, fairness, lawfulness and accountability. Arguably, changes were not truly ground breaking, given that these principles are similar to those set out in the earlier Directive. The rights contained in the 2016 Regulation clearly reinforce these core principles however, not least the rights to be forgotten, to have data access, and portability.  An enforcement mechanism is a crucial aspect of consumer control. The conclusion argues that, despite clearly improving individual control, the Regulation may still not provide adequate protection when it comes to the most advanced areas in the technological field, namely, where mechanisms automatically or unknowingly process personal data. With this area of law constantly developing, however, it may be premature to critique certain obscure methods of processing: UK citizens similarly face a perhaps unknowable future post-Brexit. The concept of  data protection remains a fundamental right however, given how the Charter of Fundamental Rights of the European Union works alongside the GDPR to uphold individual rights. In other words, both the Regulation – and the concept of a right to data protection  - may be redundant if existing in isolation; they must rely upon each other to operate effectively.   &nbsp

SoK: Diving into DAG-based Blockchain Systems

Blockchain plays an important role in cryptocurrency markets and technology services. However, limitations on high latency and low scalability retard their adoptions and applications in classic designs. Reconstructed blockchain systems have been proposed to avoid the consumption of competitive transactions caused by linear sequenced blocks. These systems, instead, structure transactions/blocks in the form of Directed Acyclic Graph (DAG) and consequently re-build upper layer components including consensus, incentives, \textit{etc.} The promise of DAG-based blockchain systems is to enable fast confirmation (complete transactions within million seconds) and high scalability (attach transactions in parallel) without significantly compromising security. However, this field still lacks systematic work that summarises the DAG technique. To bridge the gap, this Systematization of Knowledge (SoK) provides a comprehensive analysis of DAG-based blockchain systems. Through deconstructing open-sourced systems and reviewing academic researches, we conclude the main components and featured properties of systems, and provide the approach to establish a DAG. With this in hand, we analyze the security and performance of several leading systems, followed by discussions and comparisons with concurrent (scaling blockchain) techniques. We further identify open challenges to highlight the potentiality of DAG-based solutions and indicate their promising directions for future research.Comment: Full versio

Integrating Blockchains and Intelligent Agents in the Pursuit of Artificial General Intelligence

Artificial General Intelligence (AGI) is the next greatest technological milestone. AGI can be defined as a realized artificial intelligence (AI) with the ability to understand and solve problems of various scope within constantly changing environments. To take steps toward this goal, a baseline of information will be provided regarding surrounding topics and the current state of AGI, itself. Through the culmination of swarms of highly optimized narrow AI agents, a collaborative effort will be extended toward general intelligence. Blockchains have been selected to facilitate this connection. A software deliverable will accompany this thesis to illustrate how this idea might be realized. The SingularityNET platform is utilized for this end due to its advanced protocols and methods for inter-AI communication