Analysis of segregated witness implementation for increasing efficiency and security of the Bitcoin cryptocurrency

Kędziora, Michał; Pieprzka, Dawid; Jóźwiak, Ireneusz J.; Liu, Yongxin; Song, Houbing

doi:10.1080/24751839.2022.2122301

Cited by 6 publications

(7 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Their results provide significant evidence of information efficiency. The study by Kedziora et al (2023) investigates the reliability and safety issues pertinent to Bitcoin. 2023) study the potential diversification prospects between the green bonds and the markets of energy, crypto, and carbon using indexes.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

On a regime switching illiquid high volatile prediction model for cryptocurrencies

El-Khatib

Hatemi‐J

2023

JES

View full text Add to dashboard Cite

PurposeThe current paper proposes a prediction model for a cryptocurrency that encompasses three properties observed in the markets for cryptocurrencies—namely high volatility, illiquidity, and regime shifts. As far as the authors’ knowledge extends, this paper is the first attempt to introduce a stochastic differential equation (SDE) for pricing cryptocurrencies while explicitly integrating the mentioned three significant stylized facts.Design/methodology/approachCryptocurrencies are increasingly utilized by investors and financial institutions worldwide as an alternative means of exchange. To the authors’ best knowledge, there is no SDE in the literature that can be used for representing and evaluating the data-generating process for the price of a cryptocurrency.FindingsBy using Ito calculus, the authors provide a solution for the suggested SDE along with mathematical proof. Numerical simulations are performed and compared to the real data, which seems to capture the dynamics of the price path of two main cryptocurrencies in the real markets.Originality/valueThe stochastic differential model that is introduced and solved in this article is expected to be useful for the pricing of cryptocurrencies in situations of high volatility combined with structural changes and illiquidity. These attributes are apparent in the real markets for cryptocurrencies; therefore, accounting explicitly for these underlying characteristics is a necessary condition for accurate evaluation of cryptocurrencies.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“…Their results provide significant evidence of information efficiency. The study by Kedziora et al. (2023) investigates the reliability and safety issues pertinent to Bitcoin.…”

Section: Literature Reviewmentioning

confidence: 99%

On a regime switching illiquid high volatile prediction model for cryptocurrencies

El-Khatib

Hatemi‐J

2023

JES

View full text Add to dashboard Cite

show abstract

“…Increasing the block size is an alternate solution to the Bitcoin scalability problem as proposed in Bitcoin-NG [41], SegWit [42], Bitcoin Cash [6], and Bitcoin Classic [43]. In Bitcoin-NG [41], Ittay et al improve the performance of Bitcoin by splitting the mining process into two operations: leader election and transaction serialization.…”

Section: Related Workmentioning

confidence: 99%

“…The Bitcoin network upgrade, which is called SegWit [42], increases the transaction throughput by enlarging the size of the block from 1MB to 4 MB. The drawback of this upgrade is that the large block takes a long time to reach every miner in the network causing hard forks.…”

Section: Related Workmentioning

confidence: 99%

Cooperative Mining System to Improve Bitcoin Scalability

et al. 2023

View full text Add to dashboard Cite

Blockchain is a Distributed Ledger Technology (DLT) that allows users to exchange values directly without a need for trusted third parties. Bitcoin is one of the most popular digital cryptocurrencies that is based on blockchain technology. However, it faces scalability problems including transaction throughput, latency, and starvation. Bitcoin transaction throughput is very low compared to traditional payment methods. Additionally, many Bitcoin transactions suffer from delays and starvation as miners prefer transactions with higher fees. More of the current research focuses on how to enhance Bitcoin scalability by improving the performance of consensus techniques, dividing the network into smaller ones with different parts of the blockchain, or completely changing the blockchain data structure. Unfortunately, engaging in this problem usually affects either decentralization or security; this is called the blockchain trilemma. This paper proposes the Cooperative Mining System (CMS), which depends on enhanced proof of work consensus algorithm. This proposed system increases transaction throughput and eliminates transaction latency and starvation without affecting decentralization and security. In CMS for each epoch, miners cooperated to create one super-block that contains more transactions than the traditional Bitcoin block. Whereas miners create their traditional blocks simultaneously, broadcast them, wait to receive other miners' blocks, and lastly create a super-block that contains all the transactions of the gathered blocks. The Simulation results of the CMS and Bitcoin system using different case scenarios show a significant improvement in CMS compared to the current Bitcoin system. The CMS greatly increases the transaction throughput and eliminates transaction latency and starvation.

show abstract

“…Data to witness a transaction for the inputs is excluded from the scope of measuring the size of the transaction. [159]…”

Section: Blocksmentioning

confidence: 99%

Blockchains in public administration : A RADIUS on blockchain framework for public administration

Lang

View full text Add to dashboard Cite

The emergence of blockchain technology has generated a great deal of attention, as reflected in numerous scientific and journalistic articles. However, the implementation of blockchain for public administrations in Germany has encountered a setback owing to unsuccessful initiatives. Initial enthusiasm was followed by disillusionment. Nevertheless, technology continues to evolve. This paper examines whether the use of a blockchain can still optimize the processes of public administrations. Not only the failed projects are analysed, but also more current applications of the technology and their potential relevance for the administration, especially in the state of Hesse. To answer if blockchains are promising to administrations, a Design Science Research (DSR) research approach is chosen. The DSR method is a research-based approach that aims to create new and innovative solutions to real-world problems through the development and evaluation of artefacts such as models, methods, or prototypes. For this work, the implementation of a framework to realize an Authentication, Authorization, and Accounting (AAA) system on the blockchain was identified as profitable. The framework aims to implement the aforementioned AAA tasks using a blockchain. The Remote Authentication Dial-In User Service (RADIUS) protocol has been identified as a potential protocol of the AAA system. The goal is to create a way to implement the system either entirely on a blockchain or as a hybrid system. Various blockchain technologies will be considered. Suitable for development, the framework AAA-me is named. The development of AAA-me has shown that the desired framework for implementing RADIUS on the blockchain is possible in various degrees of implementation. Previous work mostly relied on full development. Additionally, it has been shown that AAA-me can be used to perform hybrid integration at different implementation levels. This makes AAA-me stand out from the few hybrid previous approaches. Furthermore, AAA-me was investigated in different laboratory environments. This was to determine the expected resilience against Single Point of Failure (SPOF). The results of the lab investigation indicated that a RADIUS system on top of a blockchain can provide benefits in terms of security and performance. In the lab environment, times were measured within which a series of authorization requests were processed. In addition, it was illustrated how a RADIUS system implemented using blockchain can protect itself against Man-in-the-Middle (MITM) attacks. Finally, in collaboration with the Hessian Central Office for Data Processing (German: Hessische Zentrale für Datenverarbeitung) (HZD), another test lab demonstrated how a RADIUS system on the blockchain can integrate with the existing IT systems of the German state of Hesse. Based on these findings, this work reevaluated the applicability of blockchain technology for public administration processes. The work has thus shown that the use of a blockchain can still be purposeful. However, it has also been shown that an implementation can bring many problems with it. The small number of blockchain developers and engineers also poses the risk of finding people to develop and maintain a system. In addition, one faces the problem of determining an architecture now that will be applied to many projects in the future. However, each project can, in turn, have an impact on the choice of architecture. Once one has solved this problem and a blockchain infrastructure is available, it can be established quickly and be more SPOF resistant, for example, for Public Key Infrastructure (PKI) systems. AAA-me was only applied in lab and test environments. As a result, no real data ran over its own infrastructure. This allowed the necessary flexibility for development. However, system-related properties could appear in real situations that are not detectable here in this way. Furthermore, the initial stage of AAA-me’s development is still in its infancy. Many manual adjustments need to be made in order for this to integrate with an existing RADIUS system. Also, no system security effort in and of itself has been carried out in the lab environments. Thus, vulnerabilities can quickly open up on web servers due to misconfigurations and missing updates. For the above reasons, productive use should be discouraged unless major developments are carried out.

show abstract

Analysis of segregated witness implementation for increasing efficiency and security of the Bitcoin cryptocurrency

Cited by 6 publications

References 9 publications

On a regime switching illiquid high volatile prediction model for cryptocurrencies

On a regime switching illiquid high volatile prediction model for cryptocurrencies

Cooperative Mining System to Improve Bitcoin Scalability

Blockchains in public administration : A RADIUS on blockchain framework for public administration

Contact Info

Product

Resources

About