Resilient payment systems

There have been decades of attempts to evolve or revolutionise the traditional financial system, but not all such efforts have been transformative or even successful. From Chaum’s proposals in the 1980s for private payment systems to micropayments, previous attempts failed to take off for a variety of reasons, including non-existing markets, or issues pertaining to usability, scalability and performance, resilience against failure, and complexity of protocols. Towards creating more resilient payment systems, we investigated issues related to security engineering in general, and payment systems in particular. We identified that network coverage, central points of failure, and attacks may cripple system performance. The premise of our research is that offline capabilities are required to produce resilience in critical systems. We focus on issues related to network problems and attacks, system resilience, and scalability by introducing the ability to process payments offline without relying on the availability of network coverage; a lack of network coverage renders some payment services unusable for their customers. Decentralising payment verification, and outsourcing some operations to users, alleviates the burden of contacting centralised systems to process every transaction. Our secondary goal is to minimise the cost of providing payment systems, so providers can cut transaction fees. Moreover, by decentralising payment verification that can be performed offline, we increase system resilience, and seamlessly maintain offline operations until a system is back online. We also use tamper-resistant hardware to tackle usability issues, by minimising cognitive overhead and helping users to correctly handle critical data, minimising the risks of data theft and tampering. We apply our research towards extending financial inclusion efforts, since the issues discussed above must be solved to extend mobile payments to the poorest demographics. More research is needed to integrate online payments, offline payments, and delay-tolerant networking. This research extends and enhances not only payment systems, but other electronically-enabled services from pay-as-you-go solar panels to agricultural subsidies and payments from aid donors. We hope that this thesis is helpful for researchers, protocol designers, and policy makers interested in creating resilient payment systems by assisting them in financial inclusion efforts

Three Risky Decades: A Time for Econophysics?

Our Special Issue we publish at a turning point, which we have not dealt with since World War II. The interconnected long-term global shocks such as the coronavirus pandemic, the war in Ukraine, and catastrophic climate change have imposed significant humanitary, socio-economic, political, and environmental restrictions on the globalization process and all aspects of economic and social life including the existence of individual people. The planet is trapped—the current situation seems to be the prelude to an apocalypse whose long-term effects we will have for decades. Therefore, it urgently requires a concept of the planet's survival to be built—only on this basis can the conditions for its development be created. The Special Issue gives evidence of the state of econophysics before the current situation. Therefore, it can provide excellent econophysics or an inter-and cross-disciplinary starting point of a rational approach to a new era

Twenty Percent and a Few Days–Optimising a Bitcoin Majority Attack

Bitcoin is a distributed online payment system that organises transactions into blocks. The size of blocks is limited to 1 megabyte, which also limits the number of transactions per second that can be confirmed. This year several attempts have been made to create a fork or a split that removes this restriction. One such alternative is Bitcoin Unlimited (BTU). Proponents of BTU have suggested to use a type of majority attack to force other Bitcoin miners to adopt BTU. In this paper we model this attack in Uppaal, and analyse how long it will take for an attack to succeed, depending on the share the attacker has of the total network, and the so-called confirmation depth. The analysis shows that with a share of 20% an attack will be successful within a few days. This paper also looks at the effect of increasing the confirmation depth as a countermeasure

Twenty Percent and a Few Days: Optimising a Bitcoin Majority Attack

Bitcoin is a distributed online payment system that organises transactions into blocks. The size of blocks is limited to 1 megabyte, which also limits the number of transactions per second that can be confirmed. This year several attempts have been made to create a fork or a split that removes this restriction. One such alternative is Bitcoin Unlimited (BTU). Proponents of BTU have suggested to use a type of majority attack to force other Bitcoin miners to adopt BTU

A Model For Improving Ethics In Construction Materials And Products Supply Chain Using Blockchain

There are countless materials and products that make up a building, including cladding, glazing, roofing, floors, ceilings, systems, etc., and the hidden and fragmented structure of the supply chain makes it highly vulnerable to several forms of ethical breaches at different tiers. Consumers also are increasingly concerned about where the products they are buying come from, highlighting important areas of concern that include the ethical, environmental, and social issues. Whereas current research identifies digitalization as a key part of providing transparency and increasing fairness in supply chains, and blockchain technology is lauded as having the potential to deliver this. However, while there has been a growing emphasis on ethics in construction in recent years, and an increase in studies around blockchain, there remains a paucity of studies related to how blockchain may help to improve the environmental and social dimensions of ethics in construction supply chains. A gap that this study fills through a holistic triple bottom line (TBL) approach. To achieve this, the study aims to develop and validate a model for improving ethics in construction materials and products supply chains (CMPSC) following the TBL construct using blockchain technology. The study also explores the current state of ethics in the CMPSC and the implementations of blockchain for ethics and applies the learnings to develop a conceptual model to improve environmental, social and business ethics in the CMPSC using blockchain. The model was then refined and validated via a dual-phase validation protocol consisting of expert interviews and focus group discussions. A total of 30 participants participated in this study, this comprised of 16 construction industry supply chain professionals, 10 professionals in the ethics/ sustainability in construction and 4 blockchain technology experts. NVivo 12 was utilised to thematically analyse both the interviews and the focus group data. This approach was utilised to investigate the data from both a data-driven perspective (a perspective based on coding in an inductive way); and from the research question perspective (to check if the data is consistent with the research questions and if it provides sufficient information). The 30 interviews resulted in 4 high-level themes, 15 mid-level themes and 28 low-level themes, with the total number of codes within the themes being 721. The analysis of the focus group data resulted in 3 high-level themes and 10 mid-level themes, bringing the total number of codes within all themes to 74. Results from this study revealed that the effectiveness of current ethical measures in the CMPSC has been limited due to weak implementation and compliance, the inability of the government to play its role, and the outright denial of unethical practises within supply chains. Results also show that even though greater emphasis is placed on the business component of ethics while the environmental or social component may only receive as much attention if it can be monetised or if it is demanded; nonetheless, the current state of ethics in the CMPSC remains weak across the three dimensions examined. Further results show that while blockchain may help improve ethics in the CMPSC, in addition to the transparency and digitization that technology provides, the need for education and the upholding of personal ethical values by supply chain players are key to the success of both current and new ethical supply chain initiatives. Individuals must first be made ethically aware in order to act ethically; only then may the implementation of a technological tool prosper. The main contribution of this study to knowledge is the development of a model for improving ethics in the CMPSC within the TBL construct through blockchain technology. The model developed in this study provides practical clarity on how blockchain may be implemented within fragmented supply chains and a significant understanding of a socio-technical approach to addressing the issue of ethics within construction supply chains. It also has a vital role in helping the intended users and actors improve their knowledge of the technology and how blockchain can help to improve ethics in the CMPSC and also understand their roles and responsibilities on the network, thereby providing a framework and prerequisite guidance for the Blockchain-as-a-Service (BaaS) providers in the development of the computer model (blockchain network). The findings of this thesis demonstrate new insights and contribute to the existing body of knowledge by further advancing the discussion on the role of the blockchain in the construction industry

Secure and Sustainable Energy System

This special issue aims to contribute to the climate actions which called for the need to address Greenhouse Gas (GHG) emissions, keeping global warming to well below 2°C through various means, including accelerating renewables, clean fuels, and clean technologies into the entire energy system. As long as fossil fuels (coal, gas and oil) are still used in the foreseeable future, it is vital to ensure that these fossil fuels are used cleanly through abated technologies. Financing the clean and energy transition technologies is vital to ensure the smooth transition towards net zero emission by 2050 or beyond. The lack of long‐term financing, the low rate of return, the existence of various risks, and the lack of capacity of market players are major challenges to developing sustainable energy systems.This special collected 17 high-quality empirical studies that assess the challenges for developing secure and sustainable energy systems and provide practical policy recommendations. The editors of this special issue wish to thank the Economic Research Institute for ASEAN and East Asia (ERIA) for funding several papers that were published in this special issue

Linguistic Threat Assessment: Understanding Targeted Violence through Computational Linguistics

Language alluding to possible violence is widespread online, and security professionals are increasingly faced with the issue of understanding and mitigating this phenomenon. The volume of extremist and violent online data presents a workload that is unmanageable for traditional, manual threat assessment. Computational linguistics may be of particular relevance to understanding threats of grievance-fuelled targeted violence on a large scale. This thesis seeks to advance knowledge on the possibilities and pitfalls of threat assessment through automated linguistic analysis. Based on in-depth interviews with expert threat assessment practitioners, three areas of language are identified which can be leveraged for automation of threat assessment, namely, linguistic content, style, and trajectories. Implementations of each area are demonstrated in three subsequent quantitative chapters. First, linguistic content is utilised to develop the Grievance Dictionary, a psycholinguistic dictionary aimed at measuring concepts related to grievance-fuelled violence in text. Thereafter, linguistic content is supplemented with measures of linguistic style in order to examine the feasibility of author profiling (determining gender, age, and personality) in abusive texts. Lastly, linguistic trajectories are measured over time in order to assess the effect of an external event on an extremist movement. Collectively, the chapters in this thesis demonstrate that linguistic automation of threat assessment is indeed possible. The concluding chapter describes the limitations of the proposed approaches and illustrates where future potential lies to improve automated linguistic threat assessment. Ideally, developers of computational implementations for threat assessment strive for explainability and transparency. Furthermore, it is argued that computational linguistics holds particular promise for large-scale measurement of grievance-fuelled language, but is perhaps less suited to prediction of actual violent behaviour. Lastly, researchers and practitioners involved in threat assessment are urged to collaboratively and critically evaluate novel computational tools which may emerge in the future