The Architecture of Coupon-Based, Semi-off-Line, Anonymous Micropayment System for Internet of Things

Part 6: Computational Systems ApplicationsInternational audienceIn the Internet of Things a lot of business opportunities may be identified. The devices in IoT may create ad-hoc temporary networks to provide services or share some resources. Such services are characterized by a great economical potential, especially while provided at mass-scale and for incidental users. However, the development of paid services or resources in IoT is hampered by relatively big transaction costs of payment operations. To deal with this problem, we propose a novel architecture of coupon based, semi off line, anonymous micropayment system to enable transactions in the scope of Internet of Things. User anonymity and security is assured by the usage of standard cryptographic techniques together with novel architectural design of the payment processes. Utilization of a hash function allows generating and verifying electronic coins in computationally efficient way, so as to be executed even in hardware- and software-restricted environment such as Internet of Things

Micropayments for Decentralized Currencies

Electronic financial transactions in the US, even those enabled by Bitcoin, have relatively high transaction costs. As a result, it becomes infeasible to make \emph{micropayments}, i.e. payments that are pennies or fractions of a penny. To circumvent the cost of recording all transactions, Wheeler (1996) and Rivest (1997) suggested the notion of a \emph{probabilistic payment}, that is, one implements payments that have \emph{expected} value on the order of micro pennies by running an appropriately biased lottery for a larger payment. While there have been quite a few proposed solutions to such lottery-based micropayment schemes, all these solutions rely on a trusted third party to coordinate the transactions; furthermore, to implement these systems in today\u27s economy would require a a global change to how either banks or electronic payment companies (e.g., Visa and Mastercard) handle transactions. We put forth a new lottery-based micropayment scheme for any ledger-based transaction system, that can be used today without any change to the current infrastructure. We implement our scheme in a sample web application and show how a single server can handle thousands of micropayment requests per second. We analyze how the scheme can work at Internet scale

Performance-Based Analysis of Blockchain Scalability Metric

Cryptocurrencies like Bitcoin and Ethereum, are widely known applications of blockchain technology, have drawn much attention and are largely recognized in recent years. Initially Bitcoin and Ethereum processed 7 and 15 Transactions Per Second (TPS) respectively, whereas VISA and Paypal process 1700 and 193 TPS respectively. The biggest challenge to blockchain adoption is scalability, defined as the capacity to change the block size to handle the growing amount of load. This paper attempts to present the existing scalability solutions which are broadly classified into three layers: Layer 0 solutions focus on optimization of propagation protocol for transactions and blocks, Layer 1 solutions are based on the consensus algorithms and data structure, and Layer 2 solutions aims to decrease the load of the primary chain by implementing solutions outside the chain. We present a classification and comparison of existing blockchain scalability solutions based on performance along with their pros and cons

SoK: A Taxonomy for Layer-2 Scalability Related Protocols for Cryptocurrencies

Blockchain based systems, in particular cryptocurrencies, face a serious limitation: scalability. This holds, especially, in terms of number of transactions per second. Several alternatives are currently being pursued by both the research and practitioner communities. One venue for exploration is on protocols that do not constantly add transactions on the blockchain and therefore do not consume the blockchain\u27s resources. This is done using off-chain transactions, i.e., protocols that minimize the interaction with the blockchain, also commonly known as Layer-2 approaches. This work relates several existing off-chain channel methods, also known as payment and state channels, channel network constructions methods, and other components as channel and network management protocols, e.g., routing nodes. All these components are crucial to keep the usability of the channel, and are often overlooked. For the best of our knowledge, this work is the first to propose a taxonomy for all the components of the Layer-2. We provide an extensive coverage on the state-of-art protocols available. We also outline their respective approaches, and discuss their advantages and disadvantages

Decentralized Anonymous Micropayments

Micropayments (payments worth a few pennies) have numerous potential applications. A challenge in achieving them is that payment networks charge fees that are high compared to “micro” sums of money. Wheeler (1996) and Rivest (1997) proposed probabilistic payments as a technique to achieve micropayments: a merchant receives a macro-value payment with a given probability so that, in expectation, he receives a micro-value payment. Despite much research and trial deployment, micropayment schemes have not seen adoption, partly because a trusted party is required to process payments and resolve disputes. The widespread adoption of decentralized currencies such as Bitcoin (2009) suggests that decentralized micropayment schemes are easier to deploy. Pass and Shelat (2015) proposed several micropayment schemes for Bitcoin, but their schemes provide no more privacy guarantees than Bitcoin itself, whose transactions are recorded in plaintext in a public ledger. We formulate and construct *decentralized anonymous micropayment* (DAM) schemes, which enable parties with access to a ledger to conduct offline probabilistic payments with one another, directly and privately. Our techniques extend those of Zerocash (2014) with a new probabilistic payment scheme; we further provide an efficient instantiation based on a new fractional message transfer protocol. Double spending in our setting cannot be prevented. Our second contribution is an economic analysis that bounds the additional utility gain of any cheating strategy, and applies to virtually any probabilistic payment scheme with offline validation. In our construction, this bound allows us to deter double spending by way of advance deposits that are revoked when cheating is detected

Privacy-Preserving Protocols for Vehicular Transport Systems

La present tesi es centra en la privadesa dels ciutadans com a usuaris de mitjans de transport vehiculars dins del marc d'una e-society. En concret, les contribucions de la tesi es focalitzen en les subcategories d'estacionament de vehicles privats en zones públiques regulades i en la realització de transbordaments entre línies intercomunicades en l'àmbit del transport públic. Una anàlisi acurada de les dades recopilades pels proveedors d'aquests serveis, sobre un determinat usuari, pot proporcionar informació personal sensible com per exemple: horari laboral, professió, hobbies, problemes de salut, tendències polítiques, inclinacions sexuals, etc. Tot i que existeixin lleis, com l'europea GDPR, que obliguin a utilitzar les dades recollides de forma correcta per part dels proveedors de serveis, ja sigui a causa d'un atac informàtic o per una filtració interna, aquestes dades poden ser utilitzades per finalitats il·legals. Per tant, el disseny protocols que garanteixin la privadesa dels ciutadans que formen part d'una e-society esdevé una tasca de gran importància.La presente tesis se centra en la privacidad de los ciudadanos en el transporte vehicular dentro del marco de una e-society. En concreto, las contribuciones de la tesis se centran en las subcategorías de estacionamiento de vehículos privados en zonas públicas reguladas y en la realización de transbordos entre líneas interconectadas en el ámbito del transporte público. Una análisi acurada de los datos recopilados por los proveedores de los servicios, sobre un determinado usuario, puede proporcionar información personal sensible como por ejemplo: horario laboral, profesión, hobbies, problemas de salud, tendencias políticas, inclinaciones sexuales, etc. A pesar que hay leyes, como la europea GDPR, que obligan a usar de forma correcta los datos recopilados por parte de los proveedores de servicios, ya sea por un ataque informático o por una filtración interna, estos datos pueden utilizarse para fines ilegales. Por lo tanto, es vital diseñar protocolos que garanticen la privacidad de los ciudadanos que forman parte de una e-society.This thesis is focused on the privacy of citizens while using vehicular transport systems within an e-society frame. Specifically, the thesis contributes to two subcategories. The first one refers to pay-by-phone systems for parking vehicles in regulated public areas. The second one is about the use of e-tickets in public transport systems allowing transfers between connecting lines. A careful analysis of data collected by service providers can provide sensitive personal information such as: work schedule, profession, hobbies, health problems, political tendencies, sexual inclinations, etc. Although the law, like the European GDPR, requires the correct use of the data collected by service providers, data can be used for illegal purposes after being stolen as a result of a cyber-attack or after being leaked by an internal dishonest employee. Therefore, the design of privacy-preserving solutions for mobility-based services is mandatory in the e-society

Experimenting with new strategies to run a media startup

Professional project report submitted in partial fulfillment of the requirements for the degree of Masters of Arts in Journalism from the School of Journalism, University of Missouri--Columbia.Media entrepreneurs turn their journalistic passion into running a startup newsroom. Many embrace the benefits and challenges of launching online products with grant or foundation money. They experiment with both traditional and innovative strategies to make their products sustainable. They work hard to create new sources of revenue while keeping their loyal customers. They seek sponsorships and partnerships both within and outside the media industry. Researchers and professionals can learn about the challenges that media start-ups are up against and strategic solutions they come up with. Future research can compare nonprofit and for-profit media business models and find out the key solutions to the success of media entrepreneurships.Includes bibliographic references

Formal Methods for Secure Bitcoin Smart Contracts

The notion of smart contracts was introduced in 1997 by Nick Szabo, to describe agreements among mutually distrusting parties that can be automatically enforced without resorting to a trusted intermediary. Then, the idea was mostly forgotten due to the technical impossibility to implement it. The advent of distributed ledger technologies, pioneered by Bitcoin, provided a technical foundation to reshape and develop smart contracts. Since smart contracts handle the ownership of valuable assets, attackers may be tempted to exploit vulnerabilities in their implementation to steal or tamper with these assets. For instance, a series of vulnerabilities in Ethereum contracts have been exploited, causing money losses in the order of hundreds of millions of dollars. Over the last years, a variety of smart contracts for Bitcoin have been proposed, both by the academic community and by that of developers. However, the heterogeneity in their treatment, the informal (often incomplete or imprecise) descriptions, and the use of poorly documented Bitcoin features, poses obstacles to the development of secure smart contracts. Using formal models and domain-specific languages to describe the behaviour of the underlying platform, and to model contracts, could help to overcome these security issues, by reducing the distance between the intended behaviour of a contract and the implementation. In this thesis, we propose a formal model of Bitcoin transactions, which is the foundation for a new process algebra for defining Bitcoin smart contracts. Furthermore, we present a toolchain for developing smart contracts in BitML, a domain-specific language based on the contributions of this thesis. Moreover, we propose a new extension to Bitcoin, called neighbourhood covenants, which extends its expressiveness as a smart contract platform. We then exploit neighbourhood covenants to implement fungible tokens on Bitcoin

Virtual money, virtual control?: electronic money, electronic cash and governance

The modern monetary system is comprised of a number of different types of money, many of which are in forms connected with developing information and communications technologies. This category of money is generally referred to as electronic money. This thesis explores whether these new forms of money are in part responsible for the apparently changing abilities of central banks to govern monetary policy. Lastly, I seek to determine whether theorized trends of money toward electronic cash are likely, and if so, what sort of impact they will have on central banks\u27 monetary policy efficacy