Improving the Efficiency of Blockchain Applications with Smart Contract based Cyber-insurance

Jia Xu, Yongqi Wu, Xiapu Luo, Dejun Yang

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

3 Citations (Scopus)

Abstract

Blockchain based applications benefit from decentralization, data privacy, and anonymity. However, they may suffer from inefficiency due to underlying blockchain. In this paper, we aim to address this limitation while still enjoying the privacy and anonymity. Taking the blockchain based crowdsourcing system as an example, we propose a new smart contract based cyber-insurance framework, which can greatly shorten the delay, and enable the workers to obtain the economic compensation for increased security risk caused by a conflict between the need to provide service quickly and delay in payment. We model the process of determining insurance premium and number of confirmations as a Stackelberg Game and prove the existence of Stackelberg Equilibria, at which the utility of the requester is maximized, and none of the workers can improve its utility by unilaterally deviating from its current strategy. The experimental results show that our framework can definitely improve the time efficiency of crowdsourcing. Particularly, it takes on average only 33% of the time required by the naive blockchain based crowdsouring solution for time-sensitive cases.

Original languageEnglish
Title of host publication2020 IEEE International Conference on Communications, ICC 2020 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1-7
ISBN (Electronic)9781728150895
DOIs
Publication statusPublished - Jun 2020
Event2020 IEEE International Conference on Communications, ICC 2020 - Dublin, Ireland
Duration: 7 Jun 202011 Jun 2020

Publication series

NameIEEE International Conference on Communications
Volume2020-June
ISSN (Print)1550-3607

Conference

Conference2020 IEEE International Conference on Communications, ICC 2020
Country/TerritoryIreland
CityDublin
Period7/06/2011/06/20

Keywords

  • blockchain
  • cyber-insurance
  • game theory
  • smart contract

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Electrical and Electronic Engineering

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