Distributed Ledger Technology Research Articles

The convergence of Digital Twins and Distributed Ledger Technologies: A systematic literature review and an architectural proposal

In recent years, the emerging Digital Twin (DT) technology is playing a key role in fostering the transition towards the Industry 4.0. DTs, representing virtual replicas of physical objects, products or processes established thanks to a bidirectional continuous flow of information between the physical and the virtual world, are currently adopted in multiple domains such as manufacturing, aerospace, automotive, energy, construction, smart cities and smart mobility, etc.. DTs live together with the physical system they replicate, receiving the same data and often triggering specific control actions that directly impact on the real system status. When dealing with DTs of complex Cyber-Physical Systems (CPSs), the data sources may be heterogeneous and untrustworthy, which requires the DT to be able to address security issues related to data in transit from/to the physical twin and data at rest. A possible way to address these data security issues consists in adopting Distributed Ledger Technologies (DLTs) which provide several security guarantees on data through cryptographic hashing techniques. In this work, we present a three-fold contribution: (i) we discuss the results of a Systematic Literature Review (SLR) on the state-of-the-art of the research related to the integration between DLT and Digital Twins, aimed at clarifying relevant aspects such as, among others, what is the favourite DLT choice in existing proposals or what is the type of DT-related information to store on-chain; (ii) leveraging the SLR results and other related research, we propose an architectural framework for the integration of DT and DLTs (more specifically, blockchains); (iii) we validate the proposed architecture by means of two proof-of-concept implementations leveraging different technological stacks and taking into account two different operational scenarios. Finally, we conduct a requirements coverage analysis and compare the PoCs through a coverage matrix.

Enhancing Data Preservation and Security in Industrial Control Systems through Integrated IOTA Implementation

Within the domain of industrial control systems, safeguarding data integrity stands as a pivotal endeavor, especially in light of the burgeoning menace posed by malicious tampering and potential data loss. Traditional data storage paradigms, tethered to physical hard disks, are fraught with inherent susceptibilities, underscoring the pressing need for the deployment of resilient preservation frameworks. This study delves into the transformative potential offered by distributed ledger technology (DLT), with a specific focus on IOTA, within the expansive landscape of the Internet of Things (IoT). Through a meticulous examination of the intricacies inherent to data transmission protocols, we present a novel paradigm aimed at fortifying data security. Our approach advocates for the strategic placement of IOTA nodes on lower-level devices, thereby streamlining the transmission pathway and curtailing vulnerabilities. This concerted effort ensures the seamless preservation of data confidentiality and integrity from inception to storage, bolstering trust in the convergence of IoT and DLT technologies. By embracing proactive measures, organizations can navigate the labyrinthine terrain of data management, effectively mitigate risks, and cultivate an environment conducive to innovation and progress.

Smart Tender System in Python Using Blockchain

Abstract: A new technology that offers efficiency, security, and transparency in the tendering process is the blockchain based etendering system. The technique is intended to do away with the conventional paper-based tendering procedure, lessen corruption, and provide all bids an equal chance to win. This system makes use of distributed ledger technology, which guarantees safe, unchangeable, and open transactions. The system enables users to track and confirm the validity of tender documents, bids, and other pertinent data. The blockchain based e-tendering system also provides important advantages like cost savings, greater effectiveness, and shortened time to market. The main advantages and features of the blockchain based etendering system are discussed in this paper, along with how it is implemented and the difficulties that must be overcome before it can be successfully used.

Blockchain in IOT Security

Abstract: The Internet of Things (IoT) paradigm is rapidly transforming various industries by enabling the interconnection of billions of devices. However, the pervasive deployment of IoT devices also introduces significant security challenges, including data integrity, confidentiality, and device authentication. Blockchain technology, initially popularized by cryptocurrencies, has emerged as a promising solution to enhance the security of IoT ecosystems. This paper provides a comprehensive review of the integration of blockchain technology into IoT security frameworks. We explore various blockchain-based security mechanisms, including distributed ledger technology, smart contracts, consensus algorithms, and cryptographic techniques, and analyze their effectiveness in addressing IoT security concerns. Furthermore, we discuss the current state-of-the-art implementations, challenges, and future research directions for leveraging blockchain in IoT security.

A review of distributed ledger technologies application in medical systems interoperability

This study of the literature delves into the complex area of medical systems interoperability, focusing on mitigating variables that impact security and data transfer at the structural and semantic levels. In the era of digital healthcare, the secure sharing of medical data is crucial, and this study looks at how Distributed Ledger Technologies (DLTs) can play a major role in addressing these challenges. Complex interoperability issues that come from differences in communication protocols, data formats, established data structures, data models, and data meaning and codification methodologies face the healthcare industry. These problems typically impede the seamless transmission of electronic medical records between healthcare systems. Because of their decentralized structure and cryptographic foundation, DLTs offer a workable solution to these issues. By critically evaluating previous research and case studies, DLTs may be able to lessen these interoperability issues, as this literature review illustrates. Since DLTs provide an immutable and secure platform for the transmission of medical data, guaranteeing data integrity and confidentiality, they are a natural fit for the sensitive nature of healthcare data. Their importance in creating safe communication protocols, enhancing the meaning of data, and defining models and formats for data is emphasized in this review. A comprehensive architecture for DLT interoperability in healthcare is also recommended by the research. This framework encourages the development of DLT integration, shared data models, standardized data formats, and governance and policy. By implementing this strategy and strengthening secure medical data sharing, healthcare organizations and governments may increase the efficiency, precision, and speed of healthcare delivery. The crucial role that DLTs play in removing the structural and semantic barriers to safe medical systems interoperability is highlighted in the conclusion of this literature review. By adopting DLTs, the healthcare sector may usher in a new era of standardized, safe, and efficient medical data transmission, which will ultimately benefit both patients and healthcare providers. This study shows how distributed ledger technologies (DLTs) have the potential to revolutionize the healthcare industry by enabling the secure and meaningful exchange of medical data between different systems, thereby improving patient care and healthcare outcomes.

ПРИМЕНЕНИЕ ТЕХНОЛОГИЙ РАСПРЕДЕЛЕННОГО РЕЕСТРА ПРИ ПРОВЕДЕНИИ ФИНАНСОВЫХ ОПЕРАЦИЙ

The development of digital technologies that increase the security of payments and improve settle-ments is one of the main tasks facing regulators in the financial sector. The main reason for the in-creased attention to distributed ledger technology in the financial sector is the expectation that it will eliminate a number of problems and limitations inherent in the currently used methods of storing, ac-counting and transmitting financial information. The authors consider the advantages of the distribut-ed ledger technology in the implementation of financial transactions

Scrutinizing the level of awareness and adoption of distributed ledger technology in the Nigerian construction industry

Scrutinizing the level of awareness and adoption of distributed ledger technology in the Nigerian construction industry

Access Control System Using AI and Blockchain

The demands of a hyperconnected society that demand increased security, transparency, and user autonomy cause traditional access control to crumble. This abstract investigates how combining blockchain technology with artificial intelligence could revolutionize access control systems. By removing single points of failure and increasing accountability, blockchain's distributed ledger technology (DLT) creates irreversible trust via a shared, tamper-proof database of rights and transactions. By automating policies, smart contracts give people command over their digital assets. AI adds intelligence and flexibility. Real-time machine learning systems detect anomalies, dynamically assess behavior, and modify policy. Access requests are filtered by AI-driven risk assessment, and sensitive resources are protected by improved identity verification. The combination of AI's dynamic powers and blockchain's unchangeable base opens the door to a future where safe, user-focused access is commonplace.

Development of the circulation of digital financial assets in the world in the context of digital transformation

Aim. To study and describe the main trends in the development of the world market of digital financial assets in the conditions of digital transformation. Objectives. To disclose the essence and role of digital transformation at the present stage; to consider the emergence of digital financial assets and the possibilities of their application against the background of high growth rates of the cryptoasset market; to analyze the main indicators of digital currencies as of February 2024; to identify the key characteristics of the use of cryptocurrencies by different countries; to rank countries according to the index of cryptocurrency ownership for 2023; to describe the development trends of the circulation of digital financial assets in the world in the conditions of digital transformation.Methods. The study uses complex and logical approaches, general scientific methods (analysis, synthesis), methods of comparative and economic analysis, analytical processing and graphical presentation of information.Results. The leading trends in the development of the global market of digital financial assets in the conditions of digital transformation have been considered. The indicators of the top 10 largest digital currencies by market capitalization are highlighted. Based on the results of the study, the ranking of countries by the index of cryptocurrency ownership for 2023 was compiled. The main indicators of digital currencies for February 2024 were analyzed. The key characteristics of cryptocurrency use by different countries in the context of high rate of digital transformation were described.Conclusions. The results of the conducted research allowed us to conclude that the current transformation of the global economy, associated with the active development of breakthrough technologies, including distributed ledger technologies (DLT) and blockchain, has become a trigger for the emergence of digital financial assets and expanded the possibilities of their application in the context of high growth rate of the cryptoasset market. The analysis of the current state and development of the circulation of digital financial assets in the world under the conditions of digital transformation shows the growing interest in the use of cryptocurrencies and the introduction of blockchain technologies in the financial systems of various countries, as well as the growing use of cryptocurrencies by companies and individuals. Taking into account the review of global trends, development of fintech technologies, the conclusion is made about the inevitability of the processes of digitalization of financial assets, the emergence of new forms of digital assets, which dictate the need for advanced development of their legal regulation. In the future, the development of digital assets will give them the official status of a means of payment and expand their use in the system of financial relations in the conditions of digital transformation both in Russia and abroad.

Private law framework for blockchain

Current attempts to regulate blockchain technology are mainly based on securities law framework, which considers crypto tokens and digital assets as either securities, currencies or derivatives thereof. The main limitation of such approach lies in its inability to accommodate the diverse legal rights, obligations and assets that blockchain technology can virtually reproduce. Already in 2017–2018 there were attempts to tokenize rights outside of securities law framework, these initiatives served more as makeshift solutions to circumvent securities regulations than as thorough frameworks for managing real-world assets and commercial activities. This article conducts a comparative and historical analysis of blockchain regulatory initiatives in Europe and the US, positing that the regulation of blockchain technology through a securities law lens is driven by reactionary opportunism. Such a basis is deemed inappropriate and insufficient, as securities laws being a field of public law were not designed to govern real-world assets and commerce, which fundamentally rely on the principles of laissez-faire and freedom of contract inherent in private law. A regulatory stance focused solely on public law overlooks the full potential of blockchain technology, and risks stifling innovation and practical applications. To illustrate this, the article presents case study of tokenization of contractual rights demonstrating that securities law-focused legal regulations, such as the EU Regulation 2023/1114 on Markets in Crypto-Assets (MiCA) and Regulation 2022/858 on Distributed Ledger Technology (DLT), inadequately address the field of private commerce. Based on the analysis, the article concludes that comprehensive legal framework for blockchain technology shall combine public and private law regime akin to the regulation of traditional rights, obligations and assets.

An All-Inclusive Taxonomy and Critical Review of Blockchain-Assisted Authentication and Session Key Generation Protocols for IoT

Authentication and Session Key Generation Protocols (SKGPs) play an essential role in securing the communication channels of connected Internet of Things (IoT) devices. Recently, through blockchain integration, scholars have tried to enhance the security and applicability of SKGPs. In brief, blockchain is a distributed ledger technology that can provide interesting features such as immutability, transparency, and accountability without any need for the active participation of trusted parties. This survey presents a comprehensive critical review of blockchain-assisted authentication and SKGPs, suggested for different IoT domains, including Internet of Vehicles, Internet of Drones, and Industrial IoT. Our survey categorizes existing schemes based on several criteria, including IoT application domains, security aspects, and blockchain components. By presenting an unbiased critical review and taxonomy of protocols, we aim to clarify the key challenges. Our review will specifically indicate what properties authors gained or lost through the integration of blockchain. To our best knowledge, this survey is the only one that offers all prerequisites for interested readers in blockchain-integrated SKGPs, such as security features and attacks, attack models, verification tools, blockchain types, blockchain platforms, and consensus mechanisms. Further, our survey elaborates existing research gaps in blockchain-assisted SKGPs. In doing so, we aim to guide future research in this field and provide researchers with the essential information they require.

The Regulation of Cryptocurrency in China

Abstract As a distributed ledger technology (DLT) application, cryptocurrency has impacted the current financial legal relationship, and its regulation is becoming increasingly important. Some international organizations and countries have ratified laws and regulations concerning cryptocurrency. However, the supervision and regulation of cryptocurrency in China are still encountered some problems, such as consumer protection, the opposition between the global asset flow and the supervision of a single sovereign state, and the difficulty in determining the subject of legal responsibility. To seek solutions to these problems in China, the primary task is to define the legal attribute of cryptocurrency, to balance blockchain innovation and financial risk. At the same time, the regulatory sandbox can be used to regulate blockchain-based cryptocurrency. Among others, the core regulatory measures are establishing the technical standard access system, financing audit registration system, and investor suitability management system of blockchain financial enterprises.

Forecasting and Analysis of Cryptocurrency Trends

The development of financial technology has given rise to a new class of asset known as cryptocurrency, which has presented a significant potential for study. Forecasting cryptocurrency prices is challenging because of their dynamic and volatile nature. There are hundreds of different cryptocurrencies in circulation today. With prospects in peer-to-peer payments, remittance, e-commerce and retail, and media & entertainment, the cryptocurrency business appears to have a bright future. From 2019 to2024, the worldwide cryptocurrency industry is anticipated to expand at a 32% CAGR. The distributed ledger technology's immutability and transparency, the rise in remittances from poor nations, shifting monetary laws, and a sharp rise in venture capital investments are the main factors propelling this market's growth. We created a short-term prediction (between five and thirty days) for the cryptocurrencies using the ARIMA model. When it came to predicting cryptocurrency time series, we discovered that the suggested method outperformed the ARIMA-ARFIMA models in both periods of gradual rising (falling) and transition dynamics (change of trend). Index Terms: digital currency,cryptocurrency, and ARIMA model.

Blockchain based Banking System Using Ethereum

This paper proposes a novel blockchain-based advanced banking system that leverages the distributed ledger technology of Ethereum to create a secure, transparent, and efficient financial system. The system utilizes a permission blockchain network, where participants are pre-authorized to join and contribute to the network. This ensures the security and integrity of the system, while still allowing for a wider range of participants than a fully public blockchain network. The system works by first having a user initiate a transaction request. The system then verifies the user's identity and ensures the authenticity of the request. The transaction is entered into the blockchain ledger after it has been validated. This ensures that the transaction is immutable and transparent, as all participants in the network can view the transaction details. The system also includes a fraud detection mechanism that can detect any changes made to the transaction after it has been recorded on the blockchain. This helps to ensure the security of the system and protect users from fraudulent activity. The proposed system has the potential to revolutionize the banking industry by providing a more secure, transparent, and efficient way to conduct financial transactions. Keywords: blockchain, online banking, ethereum, ganache, hash, smart contract, blocks

Efficient and secure confidential transaction scheme based on commitment and aggregated zero-knowledge proofs

ABSTRACT As a distributed ledger technology, blockchain has broad applications in many areas such as finance, agriculture, and contract signing due to its advantages of being tamperproof and difficult to forge. However, the open nature of blockchain also introduces severe privacy issues, currently cryptocurrency privacy protection solutions under account-based models cannot balance the internal verification time and confidentiality of transactions. In order to improve the confidentiality and efficiency of transactions under the account-based model, this paper proposes an access control anonymous payment scheme based on homomorphic commitment and aggregated zero-knowledge proofs, focusing on the realization of a one-to-many anonymous transfer function, one-to-one transfer function, deposit function and withdraw function, to ensure the privacy of a transaction data while reducing verification time and Gas costs. We evaluated our approach on a proof-of-concept implementation by generating Solidity contracts and implemented some interesting contracts. The experimental results show that this scheme not only consumes lower gas, but also reduces the internal time during transaction generation. In addition, our solution has established a one to many transfer transaction scheme, and the proof verification time after aggregation is constant. Thus the efficiency of this scheme is particularly well suited for the digital finance scenarios.

Tokenized Assets on Public Blockchains: How Transparent is the Blockchain?

With the proliferation of programmable blockchains with smart contract capabilities, new blockchain technology use cases have emerged that involve the tokenization of conventional financial assets and related smart contract-based financial services. While early blockchains like Bitcoin introduced native cryptocurrencies as new asset classes, in recent years, market participants have noted the potential for blockchain and distributed ledger technologies (DLT) to be used to trade tokenized versions of bonds, money funds, and commodities, among other assets (GFMA, 2023, p. 6).

가상자산의 物件性 여부 및 물권법 법리에의 포섭 가능성에 관한 논의

Whether virtual assets can be regarded as a ‘thing’ or ‘property has been widely discussed, because it can be a prerequisite to whether legal theories in property law and in bankruptcy law would be applied to virtual assets. Although financial regulatory Acts on virtual asset law are being legislated around the world, few countries have legislated how virtual assets will be understood in civil law. In this situation, Liechtenstein has in 2019 and Switzerland has in 2021 partially regulated civil legal issues of virtual assets in their Acts and UNIDROIT adopted its principles on digital assets in 2023. Liechtenstein’s TVTG(Token- und VT-Dienstleister-Gesetz) does not recognize virtual assets (tokens) as a thing, but restricts the concept and legal effects of tokens only within the Act. The Act distinguishes between de facto powers of disposition and justified right of disposition, but a person who has de facto power over a VT-key is considered to have legitimate right over the tokens associated with that key. In addition the disposal of tokens does not depend on the existence of a legal title (principle of abstraction), while the so-called causality principle prevails in Liechtenstein property law. If a token is disposed of without a legal title or if an initially existing legal title later ceases to exist, the legal transaction must be rescinded ex-nunc in accordance with the law of unjust enrichment. Considering the characteristics that the VT-system fulfills the registration function and has a high level of reliability, the possibility of acquisition in good faith is recognized. A significant part on civil legal issues in the DLT(Distributed Ledger Technologie) Act of Switzerland relates to ‘register uncertificated security’ (Registerwertrecht) which dematerializes securities using distributed ledger technology. The Swiss legislators additionally reviewed whether cryptocurrency could be considered a thing and concluded that it is unreasonable to extend the concept of natural forces to cryptocurrencies such as Bitcoin and that legal status on the blockchain can be claimed only to the participants in the blockchain system. Considering that cryptocurrency is not recognized as movable property, it is recognized as a type of intangible property. However, the Act recognized the right to separation for crypto-assets in general. This provision is enacted because it was practically necessary to determine whether crypto-assets belong to the bankruptcy estate when the wallet provider goes bankrupt. The DLT Act does not recognize general crypto-assets as a thing, but the right to separation of crypto-assets is recognized under certain conditions. The UNIDROIT Principles treat digital assets as being susceptible to being the subject of proprietary rights, without addressing whether they are considered ‘property’ under the other law of a State. The Principles don’t prescribe the specific requirements for a valid right of ownership in a digital asset or for it’s valid transfer. Instead, the principles provide a detailed definition of control, which assumes a role that is a functional equivalent to that of ‘possession’ of movables. However, ‘possession’ in this context is a purely factual matter and not a legal concept. But the concept of control serves as a necessary requirement for qualifying for protection as an innocent acquirer of a digital asset and as a method of third-party effectiveness and a basis of priority of security rights in a digital asset. It should be noted that a security right in a digital asset that is made effective against third parties by control has priority over a security right in the digital asset that is made effective against third parties only by a method other than control. A proprietary right in the digital asset remains effective on insolvency, but difficulties are expected if the insolvent person might refuse to reveal the password. In conclusion considering the char

Blockchain technology as a paradigm shift in banking security: Theoretical and practical insights

This paper explores the theoretical underpinnings of blockchain technology and its practical applications in enhancing banking security. The financial landscape is experiencing a seismic shift as disruptive technologies like blockchain emerge. Blockchain, with its core tenets of decentralization, immutability, and transparency, offers a transformative approach to banking security. This paper delves into the theoretical foundations of blockchain and explores its practical applications in bolstering bank security. Theoretical Underpinnings at its core, blockchain is a Distributed Ledger Technology (DLT). Imagine a digital record of transactions, not held by a single entity, but replicated and synchronized across a vast network of computers. This distributed nature eliminates the need for a central authority, fostering trust and transparency within the system. Cryptographic hashing adds another layer of security. Each transaction on the blockchain is cryptographically hashed, generating a unique fingerprint. This fingerprint is linked to the previous transaction's hash, creating an immutable chain of blocks. Any attempt to tamper with data would invalidate the entire chain, ensuring the integrity of every transaction. Consensus mechanisms play a vital role in ensuring network agreement. These mechanisms, like Proof of Work or Proof of Stake ensure all participants on the network agree on the validity of transactions and the current state of the ledger. Practical Applications in Banking Security, Traditional banking systems rely on centralized ledgers, susceptible to fraud and manipulation. Blockchain disrupts this paradigm by offering, Enhanced Transaction Security, by eliminating intermediaries and using cryptography, blockchain significantly reduces the risk of fraud and errors in financial transactions. The immutable nature of the ledger ensures transactions cannot be reversed or altered once recorded. Streamlined Regulatory Compliance, regulatory compliance is a constant challenge for banks. Blockchain simplifies the process by providing an auditable and transparent record of all transactions

The Function of Software in Satellite System and Its Reliability Analysis

This paper aims to discuss the function of software in satellite system and the reliability analysis of satellite software. Firstly, the overview of satellite system and the importance of software in it are introduced. Then, the concept of reliability, reliability evaluation method and factors affecting reliability of satellite software are expounded in detail. Then, the strategy to improve the reliability of satellite software is discussed. Finally, the article looks forward to the future development trend of satellite software reliability, including the application of artificial intelligence, machine learning, and distributed ledger technology. These new technologies are expected to further improve the reliability of satellite pieces and provide a solid guarantee for the safety of satellite communication.

Agent-Based Model of Initial Token Allocations: Simulating Distributions post Fair Launch

With advancements in distributed ledger technologies and smart contracts, tokenized voting rights gained prominence within decentralized finance (DeFi). Voting rights tokens (a.k.a. governance tokens) are fungible tokens that grant individual holders the right to vote upon the fate of a project. The motivation behind these tokens is to achieve decentral control within a decentralized autonomous organization (DAO). Because the initial allocations of these tokens is often undemocratic, the DeFi project and DAO of Yearn Finance experimented with a fair launch allocation where no tokens are pre-mined and all participants have an equal opportunity to receive them. Regardless, research on voting rights tokens highlights the formation of timocracies over time. The consideration is that the tokens’ tradability is the cause of concentration. To examine this proposition, this article uses an agent-based model to simulate and analyze the concentration of voting rights tokens post three fair launch allocation scenarios under different trading modalities. The results show that regardless of the allocation, concentration persistently occurs. It confirms the consideration that the ‘disease’ is endogenous: the cause of concentration is the tokens’ tradability. The findings inform theoretical understandings and practical implications for on-chain governance mediated by tokens.