10 research outputs found

    Bitcoin Redux

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    We study how attempts to regulate cryptocurrencies, or at least to mitigate the harm they do, are misdirected. We started by looking at how one might blacklist stolen bitcoin, and find that two established legal principles – the nemo dat rule and the Clayton's case precedent -- make tracing crime proceeds much simpler than researchers previously thought; they support a first-in first-out rule for taint tracking, which turns out to be much more efficient. However once we published initial results and were approached by theft victims, we discovered a more serious problem. Many bitcoin exchanges do not now give their customers actual bitcoin, but rather do off-chain transactions with other exchange customers or transact on customers' behalf with outsiders. Except where customers withdraw cryptocurrency into self-hosted wallets, the ownership of these assets is unclear. The number of off-blockchain transactions has increased enormously in the last eighteen months; we can't find good figures but the volume is sufficient to raise serious concerns and the practice falls under e-money regulations that are not being enforced. In short, the security, economics and regulatory problems of cryptocurrencies in 2018 turn out to be rather different from those described in the academic literature. The real problem is that we are seeing the emergence of a shadow banking system. Cryptocurrencies do not solve the underlying problems that made bank regulation necessary, and we sadly predict that many of the familiar second-order problems will also reappear. We discuss the implications for regulating cryptocurrencies and smart contracts more generally, and suggest eight things that regulators and central banks might usefully do

    Snitches get stitches: On the difficulty of whistleblowing

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    One of the most critical security protocol problems for humans is when you are betraying a trust, perhaps for some higher purpose, and the world can turn against you if you're caught. In this short paper, we report on efforts to enable whistleblowers to leak sensitive documents to journalists more safely. Following a survey of cases where whistleblowers were discovered due to operational or technological issues, we propose a game-theoretic model capturing the power dynamics involved in whistleblowing. We find that the whistleblower is often at the mercy of motivations and abilities of others. We identify specific areas where technology may be used to mitigate the whistleblower's risk. However we warn against technical solutionism: the main constraints are often institutional.Thales e-Securit

    Blackbox Attacks on Reinforcement Learning Agents Using Approximated Temporal Information

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    Recent research on reinforcement learning (RL) has suggested that trained agents are vulnerable to maliciously crafted adversarial samples. In this work, we show how such samples can be generalised from White-box and Grey-box attacks to a strong Black-box case, where the attacker has no knowledge of the agents, their training parameters and their training methods. We use sequence-to-sequence models to predict a single action or a sequence of future actions that a trained agent will make. First, we show our approximation model, based on time-series information from the agent, consistently predicts RL agents' future actions with high accuracy in a Black-box setup on a wide range of games and RL algorithms. Second, we find that although adversarial samples are transferable from the target model to our RL agents, they often outperform random Gaussian noise only marginally. This highlights a serious methodological deficiency in previous work on such agents; random jamming should have been taken as the baseline for evaluation. Third, we propose a novel use for adversarial samplesin Black-box attacks of RL agents: they can be used to trigger a trained agent to misbehave after a specific time delay. This appears to be a genuinely new type of attack. It potentially enables an attacker to use devices controlled by RL agents as time bombs

    Facial Electromyography-based Adaptive Virtual Reality Gaming for Cognitive Training.

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    Cognitive training has shown promising results for delivering improvements in human cognition related to attention, problem solving, reading comprehension and information retrieval. However, two frequently cited problems in cognitive training literature are a lack of user engagement with the training programme, and a failure of developed skills to generalise to daily life. This paper introduces a new cognitive training (CT) paradigm designed to address these two limitations by combining the benefits of gamification, virtual reality (VR), and affective adaptation in the development of an engaging, ecologically valid, CT task. Additionally, it incorporates facial electromyography (EMG) as a means of determining user affect while engaged in the CT task. This information is then utilised to dynamically adjust the game’s difficulty in real-time as users play, with the aim of leading them into a state of flow. Affect recognition rates of 64.1% and 76.2%, for valence and arousal respectively, were achieved by classifying a DWT-Haar approximation of the input signal using kNN. The affect-aware VR cognitive training intervention was then evaluated with a control group of older adults. The results obtained substantiate the notion that adaptation techniques can lead to greater feelings of competence and a more appropriate challenge of the user’s skills
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