Reputation-based PoS for the Restriction of Illicit Activities on Blockchain: Algorand Usecase

Fuente: arXiv
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Main Authors: Pandey, Mayank, Agarwal, Rachit, Shukla, Sandeep Kumar, Verma, Nishchal Kumar
Format: Preprint
Published: 2021
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author Pandey, Mayank
Agarwal, Rachit
Shukla, Sandeep Kumar
Verma, Nishchal Kumar
author_facet Pandey, Mayank
Agarwal, Rachit
Shukla, Sandeep Kumar
Verma, Nishchal Kumar
contents In cryptocurrency-based permissionless blockchain networks, the decentralized structure enables any user to join and operate across different regions. The criminal entities exploit it by using cryptocurrency transactions on the blockchain to facilitate activities such as money laundering, gambling, and ransomware attacks. In recent times, different machine learning-based techniques can detect such criminal elements based on blockchain transaction data. However, there is no provision within the blockchain to deal with such elements. We propose a reputation-based methodology for response to the users detected carrying out the aforementioned illicit activities. We select Algorand blockchain to implement our methodology by incorporating it within the consensus protocol. The theoretical results obtained prove the restriction and exclusion of criminal elements through block proposal rejection and attenuation of the voting power as a validator for such entities. Further, we analyze the efficacy of our method and show that it puts no additional strain on the communication resources.
format Preprint
id arxiv_https___arxiv_org_abs_2112_11024
institution arXiv
publishDate 2021
record_format arxiv
spellingShingle Reputation-based PoS for the Restriction of Illicit Activities on Blockchain: Algorand Usecase
Pandey, Mayank
Agarwal, Rachit
Shukla, Sandeep Kumar
Verma, Nishchal Kumar
Cryptography and Security
Computers and Society
Distributed, Parallel, and Cluster Computing
In cryptocurrency-based permissionless blockchain networks, the decentralized structure enables any user to join and operate across different regions. The criminal entities exploit it by using cryptocurrency transactions on the blockchain to facilitate activities such as money laundering, gambling, and ransomware attacks. In recent times, different machine learning-based techniques can detect such criminal elements based on blockchain transaction data. However, there is no provision within the blockchain to deal with such elements. We propose a reputation-based methodology for response to the users detected carrying out the aforementioned illicit activities. We select Algorand blockchain to implement our methodology by incorporating it within the consensus protocol. The theoretical results obtained prove the restriction and exclusion of criminal elements through block proposal rejection and attenuation of the voting power as a validator for such entities. Further, we analyze the efficacy of our method and show that it puts no additional strain on the communication resources.
title Reputation-based PoS for the Restriction of Illicit Activities on Blockchain: Algorand Usecase
topic Cryptography and Security
Computers and Society
Distributed, Parallel, and Cluster Computing
url https://arxiv.org/abs/2112.11024