This Week in Blockchain Research Issue #122

Issue #122


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Issue #122

Paper of the Week:

Paper Title: Decentralized Exchanges.

TLDR:

  1. Uniswap is one of the largest decentralized exchanges with a liquidity balance of over 3 billion USD and daily trading volume of over 700 million USD.

  2. It is designed as a system of smart contracts on the Ethereum blockchain, and is a new model of liquidity provision, so called automated market making.

  3. This work collects and analyzes data on all 19 million Uniswap interactions from 2018 to the current time.

  4. For this new market, it characterizes equilibrium liquidity pools and provides evidence that they are stable.

  5. It compares this automated market maker to Binance and establishes absence of arbitrage and shows conditions under which the AMM dominates a limit order market.

AuthorsChristine A. Parlour*,

Affiliations: * University of California, Berkeley.


Security:

1. Paper Title: Aggregating hash-based signatures using STARKs.

Summary: This work presents an approach for compressing regular hash-based signatures using STARKs.

Authors: Irakliy Khaburzaniya*†, Konstantinos Chalkias*†, Kevin Lewi*†, and Harjasleen Malvai*†‡,

Affiliations* Novi, † Facebook, and ‡ Cornell University.

2. Paper Title: One-time Traceable Ring Signatures.

Summary: One-time means that the security properties – unforgeability, anonymity, non-frameability – are guaranteed only as long as a signer uses the secret key at most once.

Authors: Alessandra Scafuro* and Bihan Zhang*

Affiliations* North Carolina State University.


Privacy:

No papers.


Scalability:

1. Paper Title: Aurora: a probabilistic algorithm for distributed ledgers enabling trustless synchronization and transaction inclusion verification.

Summary: A probabilistic algorithm that identifies honest nodes for transient or persistent communication in the presence of malicious nodes in a blockchain network, or ceases operation if it is unable to do so.

Authors: Federico Matteo Bencic* and Ivana Podnar Zarko*

Affiliations* University of Zagreb.


Proofs:

No papers.


Consensus:

No papers.


Tokenomics:

1. Paper Title: The Limits of Code Deference.

Summary: Litigation over smart contract outcomes may disrupt—if not destroy—decentralized ventures and may have widespread unintended negative effects upon the rights and property of other decentralized venture participants and on third parties.

AuthorsAndrew Hinkes*,

Affiliations: * New York University.

2. Paper Title: What Uncertainties Matter to Cryptocurrencies?

Summary: Identifying economic uncertainties salient to the price dynamics of cryptocurrencies.

AuthorsImtiaz Sifat*,

Affiliations: * Monash University.

3. Paper Title: Non-fungible token (NFT) markets on the Ethereum blockchain: Temporal development, cointegration and interrelations.

Summary: This study provides an introduction to NFTs and explores the 14 largest submarkets using data from the Ethereum blockchain between June 2017 and May 2021.

AuthorsLennart Ante*,

Affiliations: * Blockchain Research Lab.


Research Talks:


Upcoming Events:


Jobs:


Thanks to our sponsor

Protocol Labs

The Protocol Labs Research team is pretty enthusiastic about making knowledge free and accessible.  If you want to see some presentations on recent research, they have a public Research Seminar Series.  You can see dozens of previous talks on YouTube, and/or sign up here to get invited to future talks.  And if your talk was featured in this newsletter, and you'd like to present it, they're welcoming requests to speak at research@protocol.ai. Join the Protocol Labs team!


This newsletter is for informational purposes only. This content does not in any way constitute an offer or solicitation of an offer to buy or sell any investment solution or recommendation to buy or sell a security; nor it is to be taken as legal, business, investment, or tax advice. In fact, none of the information in this or other content on zk Capital should be relied on in any manner as advice. None of the authors, contributors, or anyone else connected with zk Capital, in any way whatsoever, can be responsible for your use of the information contained in this newsletter.

This Week in Blockchain Research Issue #121

Issue #121


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Issue #121

Paper of the Week:

Paper Title: On the Economic Design of Stablecoins.

TLDR:

  1. Stablecoins are cryptocurrencies designed to trade at par with a reference asset, typically the U.S. Dollar.

  2. While they all share the same fundamental objective of maintaining stability against their reference assets, stablecoins differ substantially in terms of their economic design, quality of backing, stability assumptions and legal protections for coin holders.

  3. This work surfaces two critical dimensions that underpin the economic design of every stablecoin: (1) the volatility of the reserve assets against the reference asset, which defines the risk profile of the stablecoin for coin holders; and (2) the degree to which the stablecoin is exposed to the risk of a death spiral.

  4. To address these risks, fiat-backed stablecoins must rely on reserves of high-quality, liquid assets and be subject to a framework that protects coin holders from credit risk, market risk, operational risk, as well as the insolvency or bankruptcy of the issuer.

  5. Although decentralized stablecoin designs eliminate the need to trust an intermediary, they are either exposed to death spirals, or highly capital inefficient, as they must be highly over-collateralized to account for the lack of an intermediary.

  6. While these trade-offs might be acceptable for narrow use cases within the cryptocurrency space, without a breakthrough in decentralized stablecoin design, they are likely to limit the usefulness of these coins for mainstream adoption.

AuthorsChristian Catalini*† and Alonso de Gortari‡,

Affiliations: * Diem Association, † MIT, and ‡ Novi Financial, Inc.


Security:

No papers.


Privacy:

No papers.


Scalability:

No papers.


Proofs:

1. Paper Title: Zero-Knowledge Middleboxes.

Summary: This work introduces a modular pipeline for expressing a ZKMB circuit, and applies it to three case studies: firewalling non-HTTPS traffic, blocklisting domains for encrypted DNS, and allowlisting resolvers for oblivious DNS.

Authors: Paul Grubbs*, Arasu Arun*, Ye Zhang*, Joseph Bonneau*, and Michael Walfish*,

Affiliations* NYU.


Consensus:

1. Paper Title: Sharding-Based Proof-of-Stake Blockchain Protocols: Security Analysis.

Summary: This article addresses the security of sharding-based blockchain protocols that are based on PoS and pBFT con- sensuses.

Authors: Abdelatif Hafid*, Abdelhakim Senhaji Hafid†, and Adil Senhaji*,

AffiliationsUniversity of Montreal and † Mizuho Securities.


Tokenomics:

1. Paper Title: Property rights in the Crypto age: NFTs and the auctioning of limited edition artwork.

Summary: This paper examines limited-edition auctions for the sale of digital artwork using NFTs.

AuthorsPeyman Khezr* and Vijay Mohan*,

Affiliations: * Royal Melbourne Institute of Technology.


Research Talks:


Upcoming Events:


Jobs:


Thanks to our sponsor

Protocol Labs

The Protocol Labs Research team is pretty enthusiastic about making knowledge free and accessible.  If you want to see some presentations on recent research, they have a public Research Seminar Series.  You can see dozens of previous talks on YouTube, and/or sign up here to get invited to future talks.  And if your talk was featured in this newsletter, and you'd like to present it, they're welcoming requests to speak at research@protocol.ai. Join the Protocol Labs team!


This newsletter is for informational purposes only. This content does not in any way constitute an offer or solicitation of an offer to buy or sell any investment solution or recommendation to buy or sell a security; nor it is to be taken as legal, business, investment, or tax advice. In fact, none of the information in this or other content on zk Capital should be relied on in any manner as advice. None of the authors, contributors, or anyone else connected with zk Capital, in any way whatsoever, can be responsible for your use of the information contained in this newsletter.

This Week in Blockchain Research Issue #120

Issue #120


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Issue #120

Paper of the Week:

Paper Title: A Decision Model for Decentralized Autonomous Organization Platform Selection: Three Industry Case Studies.

TLDR:

  1. Decentralized autonomous organizations as a new form of online governance are collections of smart contracts deployed on a blockchain platform that intercede groups of people.

  2. A growing number of Decentralized Autonomous Organization Platforms, such as Aragon and Colony, have been introduced in the market to facilitate the development process of such organizations.

  3. Selecting the best fitting platform is challenging for the organizations, as a significant number of decision criteria, such as popularity, developer availability, governance issues, and consistent documentation of such platforms, should be considered.

  4. Additionally, decision-makers at the organizations are not experts in every domain, so they must continuously acquire volatile knowledge regarding such platforms and keep themselves updated.

  5. Accordingly, a decision model is required to analyze the decision criteria using systematic identification and evaluation of potential alternative solutions for a development project. 

  6. This work develops a theoretical framework to assist software engineers with a set of Multi-Criteria Decision-Making problems in software production.

AuthorsElena Baninemeh*, Siamak Farshidi†, and Slinger Jansen*,

Affiliations: * Utrecht University and † University of Amsterdam.


Security:

1. Paper Title: Estimating the Node Degree of Public Peers and Detecting Sybil Peers Based on Address Messages in the Bitcoin P2P Network.

Summary: The behavior of the spamming peers can be used to determine the number of neighbors of public peers and to find Sybil peers (peers that have multiple addresses).

Authors: Matthias Grundmann* and Max Baumstark*,

Affiliations* Karlsruhe Institute of Technology.


Privacy:

No papers.


Scalability:

No papers.


Proofs:

No papers.


Consensus:

1. Paper Title: RingBFT: Resilient Consensus over Sharded Ring Topology.

Summary: A novel meta-Bft protocol RingBFT that aims to be secure against byzantine attacks, achieves high throughputs, and incurs low latencies.

Authors: Sajjad Rahnama*, Suyash Gupta*, Rohan Sogani*, Dhruv Krishnan*, and Mohammad Sadoghi*,

Affiliations* University of California Davis.

2. Paper Title: Using Throughput-Centric Byzantine Broadcast to Tolerate Malicious Majority in Blockchains.

Summary: Can practically usable blockchains tolerate a malicious majority, i.e., f ≥ 1/2 ?

Authors: Ruomu Hou*, Haifeng Yu*, and Prateek Saxena*,

Affiliations* National University of Singapore.

3. Paper Title: Accountability and Forensics in Blockchains: XDC Consensus Engine DPoS 2.0.

Summary: The proposed next generation decentralized consensus engine for the XinFin XDC Network.

Authors: Gerui Wang*, Jerome Wang*, Liam Lai*, and Fisher Yu*,

Affiliations* Hash Laboratories.


Tokenomics:

1. Paper Title: Smart Contracts, Real-Virtual World Convergence and Economic Implications.

Summary: The goal of this paper is to provide an overview of the rapidly evolving multidisciplinary literature on Smart Contracts to provide a synthesis perspective on the economic implications of smart contracts.

AuthorsWilliam Lehr*,

Affiliations: * MIT.


Research Talks:


Upcoming Events:


Jobs:


Thanks to our sponsor

Protocol Labs

The Protocol Labs Research team is pretty enthusiastic about making knowledge free and accessible.  If you want to see some presentations on recent research, they have a public Research Seminar Series.  You can see dozens of previous talks on YouTube, and/or sign up here to get invited to future talks.  And if your talk was featured in this newsletter, and you'd like to present it, they're welcoming requests to speak at research@protocol.ai. Join the Protocol Labs team!


This newsletter is for informational purposes only. This content does not in any way constitute an offer or solicitation of an offer to buy or sell any investment solution or recommendation to buy or sell a security; nor it is to be taken as legal, business, investment, or tax advice. In fact, none of the information in this or other content on zk Capital should be relied on in any manner as advice. None of the authors, contributors, or anyone else connected with zk Capital, in any way whatsoever, can be responsible for your use of the information contained in this newsletter.

This Week in Blockchain Research Issue #119

Issue #119


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Issue #119

Paper of the Week:

Paper Title: Kadcast-NG: A Structured Broadcast Protocol for Blockchain Networks.

TLDR:

  1. In order to propagate transactions and blocks, today’s blockchain systems rely on unstructured peer-to-peer overlay networks.

  2. In such networks, broadcast is known to be an inefficient operation in terms of message complexity and overhead.

  3. In addition to the impact on the system performance, inefficient or delayed block propagation may have severe consequences regarding security and fairness of the consensus layer.

  4. In contrast, the Kadcast protocol is a structured peer-to-peer protocol for block and transaction propagation in blockchain networks.

  5. Kadcast utilizes the well-known overlay topology of Kademlia to realize an efficient broadcast operation with tunable overhead.

  6. This work studies the security and privacy of the Kadcast protocol based on probabilistic models and analyzes its resilience to packet losses and node failures.

  7. Moreover, it evaluates Kadcast’s block delivery performance, broadcast reliability, efficiency, and security based on advanced network simulations.

  8. Lastly, it introduces a QUIC-based prototype implementation of the Kadcast protocol and shows its merits through deployment in a large-scale cloud-based testbed.

AuthorsElias Rohrer* and Florian Tschorsch*,

Affiliations: * Technical University of Berlin.


Security:

1. Paper Title: A Lattice-based Provably Secure Multisignature Scheme in Quantum Random Oracle Model.

Summary: A first lattice-based multisignature scheme whose security is proven in QROM.

Authors: Masayuki Fukumitsu* and Shingo Hasegawa†,

Affiliations* Hokkaido Information University and † Tohoku University.

2. Paper Title: AToM: Active Topology Monitoring for the Bitcoin Peer-to-Peer Network.

Summary: This work thoroughly reviews network-level attacks and empirically shows that topology obfuscation is not an effective countermeasure.

Authors: Federico Franzoni*, Xavier Salleras*, and Vanesa Daza*,

Affiliations* Universitat Pompeu Fabra.

3. Paper Title: Rectifying Administrated ERC20 Tokens.

Summary: Many smart contracts are administrated, which means that their owners solely possess an omnipotent power over these contracts.

Authors: Nikolay Ivanov*, Hanqing Guo*, and Qiben Yan*,

Affiliations* Michigan State University.

4. Paper Title: Combining Graph Neural Networks with Expert Knowledge for Smart Contract Vulnerability Detection.

Summary: This work casts the rich control and data flow semantics of the source code into a contract graph.

Authors: Zhenguang Liu*†, Peng Qian*†, Xiaoyang Wang§, Yuan Zhuang‡, Lin Qiu§, and Xun Wang*†

AffiliationsZhejiang Gongshang University, † Zhejiang University, ‡ National University of Singapore, and § Southern University of Science and Technology.


Privacy:

No papers.


Scalability:

1. Paper Title: Cross-Referencing Method for Scalable Public Blockchain.

Summary: Transaction processing capacity will increase to 56,000 transactions per second, which is as much as that of a VISA credit card system.

Authors: Takaaki Yanagihara* and Akihiro Fujihara*,

Affiliations* Chiba Institute of Technology.

2. Paper Title: Layer 2 Blockchain Scaling: a Survey.

Summary: This discussion aims at analyzing the state of the art of current available Layer II solutions to overcome these limitations, both focusing on theoretical and practical aspects and highlighting the main differences among the examined frameworks.

Authors: Cosimo Sguanci*, Roberto Spatafora*, and Andrea Mario Vergani*,

Affiliations* Politecnico.


Proofs:

No papers.


Consensus:

No papers.


Tokenomics:

1. Paper Title: MiCA and DeFi ('Proposal for a Regulation on Market in Crypto-Assets' and 'Decentralised Finance').

Summary: This paper aims to analyze the relation between the proposal for a Regulation on Markets in Crypto-assets (MiCA), an element of the Digital Finance Package of the European Commission, and DeFi.

AuthorsGuilherme Maia* & João Vieira dos Santos†,

Affiliations: * Universidade de Lisboa and † University of Porto.


Research Talks:


Upcoming Events:


Jobs:


Thanks to our sponsor

Protocol Labs

The Protocol Labs Research team is pretty enthusiastic about making knowledge free and accessible.  If you want to see some presentations on recent research, they have a public Research Seminar Series.  You can see dozens of previous talks on YouTube, and/or sign up here to get invited to future talks.  And if your talk was featured in this newsletter, and you'd like to present it, they're welcoming requests to speak at research@protocol.ai. Join the Protocol Labs team!


This newsletter is for informational purposes only. This content does not in any way constitute an offer or solicitation of an offer to buy or sell any investment solution or recommendation to buy or sell a security; nor it is to be taken as legal, business, investment, or tax advice. In fact, none of the information in this or other content on zk Capital should be relied on in any manner as advice. None of the authors, contributors, or anyone else connected with zk Capital, in any way whatsoever, can be responsible for your use of the information contained in this newsletter.

This Week in Blockchain Research Issue #118

Issue #118


BROUGHT TO YOU BY

Issue #118

Paper of the Week:

Paper Title: Secure Access Control for DAG-based Distributed Ledgers.

TLDR:

  1. Access control is a fundamental component of the design of distributed ledgers, influencing many aspects of their design, such as fairness, efficiency, traditional notions of network security, and adversarial attacks such as Denial-of-Service (DoS) attacks.

  2. This work considers the security of a recently proposed access control protocol for Directed Acyclic Graph-based distributed ledgers.

  3. It presents a number of attack scenarios and potential vulnerabilities of the protocol and introduces a number of additional features which enhance its resilience.

  4. Specifically, a blacklisting algorithm, which is based on a reputation-weighted threshold, is introduced to handle both spamming and multi-rate malicious attackers.

  5. The introduction of a solidification request component is also introduced to ensure the fairness and consistency of network in the presence of attacks.

  6. Finally, a timestamp component is also introduced to maintain the consistency of the network in the presence of multi-rate attackers.

  7. Simulations to illustrate the efficacy and robustness of the revised protocol are also described.

Authors: L. Zhao*, L. Vigneri†, A. Cullen*, W. Sanders†, P. Ferraro*, and R. Shorten*

Affiliations: * Imperial College London and † IOTA Foundation.


Security:

1. Paper Title: Assessment of Quantum Threat To Bitcoin and Derived Cryptocurrencies.

Summary: When will a quantum computer be powerful enough to execute Shor’s algorithm? How fast would a quantum computer need to be to break a specific cryptocurrency?

Authors: Stephen Holmes* and Liqun Chen*,

Affiliations* University of Surrey.


Privacy:

1. Paper Title: Anonymous Blockchain-based System for Consortium.

Summary: A Multi-center Anonymous Blockchain-based (MAB) system, with joint management for the consortium and privacy protection for the participants.

Authors: Qin Wang*†, Shiping Chen†, and Yang Xiang*,

Affiliations* Swinburne University of Technology and † CSIRO Data61.


Scalability:

1. Paper Title: Improving Blockchain Consistency by Assigning Weights to Random Blocks.

Summary: Enabling a much faster (10 ∼ 50 times with normal parameter settings) block production rate than Nakamoto protocol under the same security guarantee with the same proportion of malicious mining power.

Authors: Qing Zhang*, Xueping Gong*, Huizhong Li†, Hao Wu†, and Jiheng Zhang*,

Affiliations* The Hong Kong University of Science and Technology and † WeBank Co., Ltd.


Proofs:

1. Paper Title: Constant-Overhead Zero-Knowledge for RAM Programs.

Summary: A ZK proof in which the communication complexity as well as the running times of the prover and verifier scale linearly in the size of the memory N and the running time T of the underlying RAM program.

Authors: Nicholas Franzese*, Jonathan Katz†, Steve Lu‡, Rafail Ostrovsky§, Xiao Wang*, and Chenkai Weng*,

Affiliations* Northwestern University, † University of Maryland, ‡ Stealth Software Technologies, Inc., and § UCLA.

2. Paper Title: Shorter and Faster Post-Quantum Designated-Verifier zkSNARKs from Lattices.

Summary: The focus in this work is on post-quantum zkSNARKs, with a focus on minimizing proof size.

AuthorsYuval Ishai*, Hang Su†, and David J. Wu‡.

Affiliations: * Technion, † University of Virginia, and ‡ UT Austin.


Consensus:

No papers.


Tokenomics:

1. Paper Title: A Cooperative Optimal Mining Model for Bitcoin.

Summary: Analyzing Bitcoin mining from the perspective of a game and proposing an optimal mining model that maximizes profits of pools and miners.

AuthorsDavid Lajeunesse* and Hugo D. Scolnik*,

Affiliations: * University of Buenos Aires.

2. Paper Title: Factors determining maximum energy consumption of Bitcoin miners.

Summary: A basic equation that determines energy consumption based on some specific factors: minting, transaction fees, exchange rate, energy price, and amortization cost.

AuthorsJesus M. Gonzalez-Barahona*,

Affiliations: * undisclosed.


Research Talks:


Upcoming Events:


Jobs:


Thanks to our sponsor

Protocol Labs

The Protocol Labs Research team is pretty enthusiastic about making knowledge free and accessible.  If you want to see some presentations on recent research, they have a public Research Seminar Series.  You can see dozens of previous talks on YouTube, and/or sign up here to get invited to future talks.  And if your talk was featured in this newsletter, and you'd like to present it, they're welcoming requests to speak at research@protocol.ai. Join the Protocol Labs team!


This newsletter is for informational purposes only. This content does not in any way constitute an offer or solicitation of an offer to buy or sell any investment solution or recommendation to buy or sell a security; nor it is to be taken as legal, business, investment, or tax advice. In fact, none of the information in this or other content on zk Capital should be relied on in any manner as advice. None of the authors, contributors, or anyone else connected with zk Capital, in any way whatsoever, can be responsible for your use of the information contained in this newsletter.

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