Avoiding Smart Contract Conflicts Despite Ambiguity by Andrew Foreman (October 21, 2020)
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Securing the Chain
Securing the chain KPMG International kpmg.com/blockchain360 Foreword It’s no secret that blockchain1 is a potential game changer in financial services and other industries. This is evident by the US$1B investment2 in the technology last year alone. Or the fact that you don’t have to look very far for blockchain use cases, which are as diverse as a foreign exchange market in financial services to the pork supply chain in consumer retailing. Some even see blockchain as a “foundational” technology set to disrupt, enable and change business processing, as we know it across industries. To date, much of the blockchain frenzy has centered on its vast transformative potential across entire industries. So, organizations have focused squarely on “how” they can use blockchain for business. Yet, as more proof of concepts move toward practical implementations and cyber threats rapidly grow in number and sophistication, security and risk management can no longer take a backseat. In addition to “how”, the question then becomes, “Is blockchain secure for my business?” Simply put, it can be. But, not by just turning the key. Security will depend on a variety of factors, none the least of which requires a robust risk management framework. Consider, for example, that as many as half of vulnerability exploitations occur within 10 to 100 days after they are published according to one study3. Then add in the number of threats that are already known. Next, factor in the plethora of unknowns that accompany emerging technologies and you quickly see why a comprehensive view of your risk and threat landscape is necessary. -
Smart Contracts: Building Blocks for Digital Markets
1/25/2018 Nick Szabo -- Smart Contracts: Building Blocks for Digital Markets Smart Contracts: Building Blocks for Digital Markets Copyright (c) 1996 by Nick Szabo permission to redistribute without alteration hereby granted Glossary (This is a partial rewrite of the article which appeared in Extropy #16) Introduction The contract, a set of promises agreed to in a "meeting of the minds", is the traditional way to formalize a relationship. While contracts are primarily used in business relationships (the focus of this article), they can also involve personal relationships such as marraiges. Contracts are also important in politics, not only because of "social contract" theories but also because contract enforcement has traditionally been considered a basic function of capitalist governments. Whether enforced by a government, or otherwise, the contract is the basic building block of a free market economy. Over many centuries of cultural evolution has emerged both the concept of contract and principles related to it, encoded into common law. Algorithmic information theory suggests that such evolved structures are often prohibitively costly to recompute. If we started from scratch, using reason and experience, it could take many centuries to redevelop sophisticated ideas like property rights that make the modern free market work [Hayek]. The success of the common law of contracts, combined with the high cost of replacing it, makes it worthwhile to both preserve and to make use of these principles where appropriate. Yet, the digital revolution is radically changing the kinds of relationships we can have. What parts of our hard-won legal tradition will still be valuable in the cyberspace era? What is the best way to apply these common law principles to the design of our on-line relationships? Computers make possible the running of algorithms heretofore prohibitively costly, and networks the quicker transmission of larger and more sophsiticated messages. -
Steem an Incentivized, Blockchain-Based Social Media Platform
Steem An incentivized, blockchain-based social media platform. Daniel Larimer, Ned Scott, Valentine Zavgorodnev, Benjamin Johnson, James Calfee, Michael Vandeberg March 2016 Abstract Steem is a blockchain database that supports community building and social interaction with cryptocurrency rewards. Steem combines concepts from social media with lessons learned from building cryptocurrencies and their communities. An important key to inspiring participation in any community, currency or free market economy is a fair accounting system that consistently reflects each person's contribution. Steem is the first cryptocurrency that attempts to accurately and transparently reward an unbounded number of individuals who make subjective contributions to its community. 2 of 44 Table of Contents Abstract Table of Contents Introduction Recognizing Contribution Ways to Contribute Capital Contributions Steem (STEEM) Steem Power (SP) Steem Dollars (SMD) Minimizing Fraudulent Feeds Mitigating Timing Attacks Minimizing Abuse of Conversions Liquidity Sustainable Debt to Ownership Ratios Interest Setting Price Feeds Subjective Contributions Distributing Currency Voting on Distribution of Currency Voting Collusion The Story of the Crab Bucket Rate Limited Voting Delayed Payouts Payout Distribution Rewarding Parent Posts Payouts Consensus Algorithm Consensus in Steem Mining in Steem Mining Rewards require Steem Power Mining Algorithm Botnet Resistant Mining Pool Resistant Eliminating Transaction Fees The Problem With Fees Micropayments Don’t Work Fees are a Barrier to Entry Changing Fees Sybil Attacks Full Reserve vs Fractional Reserve 3 of 44 Iterating Beyond Micropayments Example Implementation Case Study: Bitcoin Impact of Capacity Maximum Number of Unique Users Comparison to Fees Account Creation Justifying Minimum Balances Adjusting the Reserve Ratio Effectiveness Relative to Fees Renting vs. -
Blockchain Based Daily Pixel Art Competition
The Blockchain Based Daily Pixel Art Competition Bachelor Thesis Kees Fani Manuel Borba da Silva Falcão Ferreira Pavel Hoogland 25/06/2018 TU Coach: Dr. Ir. Rafael Bidarra Client adviser: MSc. Marco van Etten Coordinator: Dr. Ir. Otto Visser 1 Table of Contents Table of Contents 1 PREFACE 8 Summary 9 Introduction 10 Blockchain Developments 10 New possibilities 10 Client and Supervision 11 Structure 12 Problem Definition 13 Decentralized vs Centralized 13 Conflicts in Gaming 13 Creation of a Blockchain Game 14 Problem Analysis 15 Cost of Centralization 15 Persistent Games 15 Other Benefits of Decentralization 16 Challenges of the Problem 16 Blockchain 17 Bitcoin 17 Mining 18 Ethereum and Smart Contracts 18 Flaws and possible solutions 18 Mining pools 18 Bitcoin Scalability 19 Proof of Stake 19 Steem & EOS 20 Steem 20 Delegated Proof of Stake 20 EOS 21 Current Activity 22 2 Game Design Phase 24 Client Requirements 24 Search-Space Reduction 25 No fast-paced games 25 No games relying on asymmetric information 25 No games relying on randomness 25 Game must rely on a token 25 Casual gameplay 25 No Complex games 25 Search-Space Exploration 26 Deposit Based Play 26 Collaborative Content Creation 26 Deathmatch Free For All 26 Turn Based Strategy 26 Category Elimination 27 Deposit Based Play 27 Deathmatch Free For All 27 Turn based strategy 27 Collaborative Content Creation 27 Search-Space Exploitation 28 Collaborative Music Creation 28 Collaborative Sculpting 28 Collaborative Drawing 28 Our Preference 28 Refined Game Concept 29 Drawing Mechanism -
Read the Report Brief
A REVOLUTION IN TRUST Distributed Ledger Technology in Relief & Development MAY 2017 “The principal challenge associated with [DLT] is a lack of awareness of the technology, especially in sectors other than banking, and a lack of widespread understanding of how it works.” - Deloitte Executive Summary1 The Upside In 2016, the blockchain was recognized as one of the top 10 In a recent report, Accenture surveyed emerging technologies by the World Economic Forum.2 The cost data from eight of the world’s ten potential of the blockchain and distributed ledger technology largest investment banks, with the goal of putting a dollar figure against potential (hereinafter “DLT”) to deliver benefits is significant. Gartner cost savings that might be achieved with estimates that DLT will result in $176 billion in added business DLT. The report concluded that the value by 2025; that total reaches $3.1 trillion by 2030.3 banks analyzed could reduce infrastructure costs by an average $8 to Investment in the field reflects the widespread belief that the $12 billion a year. The survey mapped technology can deliver value. Numerous trials, and some more than 50 operational cost metrics deployments, can be found across multiple sectors. and found the savings would break down as follows: Over two dozen countries are investing in DLT 70% savings on central financial More than 2,500 patents have been filed in the last 3 reporting 4 30-50% savings on compliance years 50% savings on centralized operations As of Q4, 2016, 28 of the top 30 banks were engaged in 50% savings on business blockchain proofs-of-concept operations. -
On Trade-Offs of Applying Block Chains for Electronic Voting Bulletin
On Trade-offs of Applying Block Chains for Electronic Voting Bulletin Boards Sven Heiberg1, Ivo Kubjas1, Janno Siim3;4, and Jan Willemson2;3 1 Smartmatic-Cybernetica Centre of Excellence for Internet Voting Ulikooli¨ 2, 51003 Tartu, Estonia fsven,[email protected] 2 Cybernetica AS, Ulikooli¨ 2, 51003 Tartu, Estonia [email protected] 3 Software Technology and Applications Competence Center Ulikooli¨ 2, 51003 Tartu, Estonia 4 Institute of Computer Science, University of Tartu Ulikooli¨ 18, 50090 Tartu, Estonia [email protected] Abstract. This paper takes a critical look at the recent trend of building electronic voting systems on top of block chain technology. Even though being very appealing from the election integrity perspective, block chains have numerous technical, economical and even political drawbacks that need to be taken into account. Selecting a good trade-off between de- sirable properties and restrictions imposed by different block chain im- plementations is a highly non-trivial task. This paper aims at bringing some clarity into performing this task. We will mostly be concentrating on public permissionless block chains and their applications as bulletin board implementations as these are the favourite choices in majority of the recent block chain based voting protocol proposals. 1 Introduction In virtually all of the modern democratic societies, democracy (translated from Greek roughly as rule of the people) is implemented via some sort of public opinion polling e.g. voting on the elections of representative bodies. Regrettably, the process of public polling is very fragile. Many things can go wrong, and have gone wrong in the history of elections. To address the his- torically experienced problems, many requirements have been put forward and many measures have been developed to meet them. -
Smart Contracts and Distributed Ledger Technology: a Lawyer’S Guide
Smart Contracts and Distributed Ledger Technology: A Lawyer’s Guide Presented by: Ken Moyle Clear Law Institute | 4601 N. Fairfax Dr., Ste 1200 | Arlington | VA | 22203 www.clearlawinstitute.com Questions? Please call us at 703-372-0550 or email us at [email protected] All-Access Membership Program ● Earn continuing education credit (CLE, CPE, SHRM, HRCI, etc.) in all states at no additional cost ● Access courses on a computer, tablet, or smartphone ● Access more than 75 liVe webinars each month ● Access more than 750 on-demand courses Register within 7 days after the webinar using promo code “7member” to receive a $200 discount off the $799 base price. Learn more and register here: http://clearlawinstitute.com/member Clear Law Institute, © 2018 Smart Contracts and Distributed Ledger Technology A Lawyer’s Guide Agenda Smart Contracts: Theory and Reality Concepts and Confusion • Legal vs. Technical viewpoints The Lexicon • Common Accord • Distributed Ledger Initial Coin Offerings and SAFTs • Blockchain Regulatory Developments • Cryptocurrency • State blockchain statutes • Smart Contracts • Delaware Resources www.ClearLawInstitute.com (703) 372-0550 Clear Law Institute, © 2018 “ The digital revolution is radically changing the kinds of relationships we can have. What parts of our hard- won legal tradition will still be valuable in the cyberspace era? ” - Nick Szabo, 1996 “What is the best way to apply these common law principles to the design of our on-line relationships?” Integrity of record Trust in the Enforceability outcome -
CRYPTO CURRENCY Technical Competence & Rules of Professional Responsibility
CRYPTO CURRENCY Technical Competence & Rules of Professional Responsibility Marc J. Randazza Rule 1.1 Comment 8 To maintain the requisite knowledge and skill, a lawyer should keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology, engage in continuing study and education and comply with all continuing legal education requirements to which the lawyer is subject. Crypto Currency 1. What is Crypto Currency? 2. How does it work? 3. How could you screw this up? Blockchain •Decentralized •Transparent •Immutable Blockchain Blockchain • Time-stamped series of immutable records of data • Managed by a cluster of de-centralized computers • Each block is secured and bound to another, cryptographically • Shared • Immutable • Open for all to see – how you keep it honest Blockchain Blockchain • Transparent but also pseudonymous • If you look on the ledger, you will not see “Darren sent 1 BTC to Trixie” • Instead you will see “1MF1bhsFLkBzzz9vpFYEmvwT2TbyCt7NZJ sent 1 BTC” • But, if you know someone’s wallet ID, you could trace their transactions Crypto Roller Coaster – 5 years Crypto Roller Coaster – 1 day How can you screw this up? Quadriga You can lose it & Bankruptcy Your mind • C$190 million turned to digital dust • Thrown away with no back up • Death of CEO turned death of • $127 million in the trash – gone business • 7,500 BTC – Fluctuates WILDLY Ethical Considerations You might be surprised at what violates Rule 1.8 Which Rules? Rule 1.2 (d) – Criminal or Fraudulent Activity Rule 1.5 (a) – Reasonable Fee Rule 1.6 – Confidentiality Rule 1.8 (a) – Business Dealings With Clients Rule 1.8(f) – Compensation From Other Than Your Client Rule 1.15 (a) – Safekeeping Property Rule 1.15 (c) – Trust Accounts Rule 1.2(d) – Criminal or Fraudulent Activity • Crypto *can* be used for criminal activity • Tends to be difficult, but not A lawyer shall not .. -
Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners — Chris Dannen Introducing Ethereum and Solidity
Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners — Chris Dannen Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners Chris Dannen Introducing Ethereum and Solidity: Foundations of Cryptocurrency and Blockchain Programming for Beginners Chris Dannen Brooklyn, New York, USA ISBN-13 (pbk): 978-1-4842-2534-9 ISBN-13 (electronic): 978-1-4842-2535-6 DOI 10.1007/978-1-4842-2535-6 Library of Congress Control Number: 2017936045 Copyright © 2017 by Chris Dannen This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image, we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. -
The Anatomy of a Cryptocurrency Pump-And-Dump Scheme
The Anatomy of a Cryptocurrency Pump-and-Dump Scheme Jiahua Xu, École polytechnique fédérale de Lausanne (EPFL); Benjamin Livshits, Imperial College London https://www.usenix.org/conference/usenixsecurity19/presentation/xu-jiahua This paper is included in the Proceedings of the 28th USENIX Security Symposium. August 14–16, 2019 • Santa Clara, CA, USA 978-1-939133-06-9 Open access to the Proceedings of the 28th USENIX Security Symposium is sponsored by USENIX. The Anatomy of a Cryptocurrency Pump-and-Dump Scheme Jiahua Xu Benjamin Livshits École Polytechnique Fédérale de Lausanne (EPFL) Imperial College London Imperial College London UCL Centre for Blockchain Technologies Harvard University Brave Software Abstract Regulation: In February 2018, the CFTC (Commodity Fu- tures Trading Commission) issued warnings to consumers [8] While pump-and-dump schemes have attracted the atten- about the possibility of cryptocurrency pump-and-dump tion of cryptocurrency observers and regulators alike, this schemes. It also offered a substantial reward to whistle- paper represents the first detailed empirical query of pump- blowers around the same time [12]. and-dump activities in cryptocurrency markets. We present In October 2018, the SEC (Securities and Exchange Com- a case study of a recent pump-and-dump event, investigate mission) filed a subpoena enforcement against an investment 412 pump-and-dump activities organized in Telegram chan- company trust and trustee for an alleged pump-and-dump ICO nels from June 17, 2018 to February 26, 2019, and discover scheme [27]. patterns in crypto-markets associated with pump-and-dump Clearly, regulators are aiming to find perpetrators of pump- schemes. -
XTRD Whitepaper
Version 1.5 WHITE PAPER VERSION 1.5 1 3 / 07/3/07/20182018 Version 1.4 Disclaimer PLEASE READ THIS DISCLAIMER SECTION CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTHER PROFESSIONAL ADVISOR(S). This white paper is for informational purposes only. The information set forth below and elsewhere in this white paper may not be exhaustive and does not imply any elements of a contractual relationship. While we make every effort to ensure that any material in this white paper is accurate and up to date, such material in no way constitutes the provision of professional advice. XTRD Digital Assets Inc. does not guarantee, and accepts no legal liability whatsoever arising from or connected to the accuracy, reliability, currency, or completeness of any material contained in this white paper. Any potential XTRD token holders or investors should seek appropriate independent professional advice prior to relying on, or entering into any commitment or transaction based on, material published in this white paper, which material is purely published for reference purposes alone. XTRD tokens will not be intended to constitute securities in any jurisdiction. This white paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. TRD Digital Assets, Inc. does not provide any opinion on any advice to purchase, sell, or otherwise transact with XTRD tokens and the fact of presentation of this white paper shall not form the basis of, or be relied upon in connection with, any contract or investment decision. -
Books and Papers
APPENDIX A Books and Papers Books Economics Economics in One Lesson, Henry Hazlitt, ISBN-13: 978-0517548233 Basic Economics, Thomas Sowell, ISBN-13: 978-0465060733 Crashed: How a Decade of Financial Crises Changed the World, Adam Tooze, ISBN-13: 978-0670024933 The Ascent of Money, Niall Ferguson, ISBN-13: 978-0143116172 The Ethics of Money Production, Jörg Guido Hülsmann, ASIN: B003NX6Z3W Denationalisation of Money, F. A. Hayek, ASIN: B005DTKORM Society The Sovereign Individual, James Dale Davidson and Lord William Rees-Mogg, ISBN-13: 978-0684832722 Exit, Voice, and Loyalty, Albert O. Hirschman, ASIN: 0674276604 © Harris Brakmić 2019 349 H. Brakmić, Bitcoin and Lightning Network on Raspberry Pi, https://doi.org/10.1007/978-1-4842-5522-3 APPENDIX A BOOKS and PaPERS Technology Mastering Bitcoin 2nd Edition, Andreas Antonopoulos, ASIN: B071K7FCD4 Programming Bitcoin, Jimmy Song, ISBN-13: 978-1492031499 A Dissection of Bitcoin, Paul Huang, ASIN: B0198LXI5K Bitcoin Internals, Chris Clark, ASIN: B00DG8EPT0 Applied Cryptography, Bruce Schneier, ISBN-13: 978-1119096726 Essays and Papers Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto, https://bitcoin.org/en/bitcoin-paper Bitcoin’s Academic Pedigree, Arvind Narayanan and Jeremy Clark, https://queue.acm.org/detail.cfm?id=3136559 Blockchain Proof-of-Work is a Decentralized Clock, Gregory Trubetskoy, https://grisha.org/blog/2018/01/23/explaining-proof- of-work/ Shelling Out: The Origins of Money, Nick Szabo, https://nakamoto institute.org/shelling-out/ Money, Blockchains, and