Centrally governed blockchains: optimizing security, cost, and availability

Title: Centrally governed blockchains: optimizing security, cost, and availability
Authors: Lundbaek, L
Callia d'Iddio, A
Huth, MRA
Item Type: Chapter
Abstract: We propose the formal study of blockchains that are owned and controlled by organizations and that neither create cryptocurrencies nor provide incentives to solvers of cryptographic puzzles. We view such approaches as frameworks in which system parts, such as the cryptographic puzzle, may be instantiated with different technology. Owners of such a blockchain procure puzzle solvers as resources they control, and use a mathematical model to compute optimal parameters for the cryptographic puzzle mechanism or other parts of the blockchain. We illustrate this approach with a use case in which blockchains record hashes of financial process transactions to increase their trustworthiness and that of their audits. For Proof of Work as cryptographic puzzle, we develop a detailed mathematical model to derive MINLP optimization problems for computing optimal Proof of Work configuration parameters that trade off potentially conflicting aspects such as availability, resiliency, security, and cost in this governed setting. We demonstrate the utility of such a mining calculus by applying it on some instances of this problem. We hope that our work may facilitate the creation of domain-specific blockchains for a wide range of applications such as trustworthy information in Internet of Things systems and bespoke improvements of legacy financial services.
Issue Date: 25-Jul-2017
URI: http://hdl.handle.net/10044/1/51048
DOI: https://dx.doi.org/10.1007/978-3-319-63121-9_29
Publisher: Springer
Start Page: 578
End Page: 599
Journal / Book Title: Models, Algorithms, Logics and Tools
Lecture Notes in Computer Science
Volume: 10460
Copyright Statement: © ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering 2016. The final publication is available at Springer via https://link.springer.com/chapter/10.1007/978-3-319-63121-9_29
Sponsor/Funder: Engineering & Physical Science Research Council (EPSRC)
Engineering & Physical Science Research Council (E
Engineering & Physical Science Research Council (EPSRC)
Funder's Grant Number: EP/K503381/1
Appears in Collections:Faculty of Engineering

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