A Closed-loop Hybrid Supervision Framework of Cryptocurrency Transactions for Data Trading in IoT

Abstract

The Device-as-a-service (DaaS) Internet of Things (IoT) business model enables distributed IoT devices to sell collected data to other devices, paving the way for machine-to-machine (M2M) economy applications. Cryptocurrencies are widely used by various IoT devices to undertake the main settlement and payment task in the M2M economy. However, the cryptocurrency market, which lacks effective supervision, has fluctuated wildly in the past few years. These fluctuations are breeding grounds for arbitrage in IoT data trading. Therefore, a practical cryptocurrency market supervision framework is very imperative in the process of IoT data trading to ensure that the trading is completed safely and fairly. The difficulty stems from how to combine these unlabeled daily trading data with supervision strategies to punish abnormal users, who disrupt the data trading market in IoT. In this article, we propose a closed-loop hybrid supervision framework based on the unsupervised anomaly detection to solve this problem. The core is to design the multi-modal unsupervised anomaly detection methods on trading prices to identify malicious users. We then design a dedicated control strategy with three levels to defend against various abnormal behaviors, according to the detection results. Furthermore, to guarantee the reliability of this framework, we evaluate the detection rate, accuracy, precision, and time consumption of single-modal and multi-modal detection methods and the contrast algorithm Adaptive KDE [ 19 ]. Finally, an effective prototype framework for supervising is established. The extensive evaluations prove that our supervision framework greatly reduces IoT data trading risks and losses.