Decentralized Autonomous Organization (DAO) is very popular in Decentralized Finance (DeFi) applications as it provides a decentralized governance solution through blockchain. We analyze the governance characteristics in the Maker protocol, its stablecoin DAI and governance token Maker (MKR). To achieve that, we establish several measurements of centralized governance. Our empirical analysis investigates the effect of centralized governance over a series of factors related to MKR and DAI, such as financial, transaction, network and twitter sentiment indicators. Our results show that governance centralization influences both the Maker protocol, and the distribution of voting power matters. The main implication of this study is that centralized governance in MakerDAO very much exists, while DeFi investors face a trade-off between decentralization and performance of a DeFi protocol. This further contributes to the contemporary debate on whether DeFi can be truly decentralized. centralized governance in MakerDAO very much exists, while DeFi investors face a trade-off between efficiency and decentralization. This further contributes to the contemporary debate on whether DeFi can be truly decentralized.
Mechanisms used in privacy-preserving machine learning often aim to guarantee differential privacy (DP) during model training. Practical DP-ensuring training methods use randomization when fitting model parameters to privacy-sensitive data (e.g., adding Gaussian noise to clipped gradients). We demonstrate that such randomization incurs predictive multiplicity: for a given input example, the output predicted by equally-private models depends on the randomness used in training. Thus, for a given input, the predicted output can vary drastically if a model is re-trained, even if the same training dataset is used. The predictive-multiplicity cost of DP training has not been studied, and is currently neither audited for nor communicated to model designers and stakeholders. We derive a bound on the number of re-trainings required to estimate predictive multiplicity reliably. We analyze--both theoretically and through extensive experiments--the predictive-multiplicity cost of three DP-ensuring algorithms: output perturbation, objective perturbation, and DP-SGD. We demonstrate that the degree of predictive multiplicity rises as the level of privacy increases, and is unevenly distributed across individuals and demographic groups in the data. Because randomness used to ensure DP during training explains predictions for some examples, our results highlight a fundamental challenge to the justifiability of decisions supported by differentially private models in high-stakes settings. We conclude that practitioners should audit the predictive multiplicity of their DP-ensuring algorithms before deploying them in applications of individual-level consequence.
Decentralized applications (dApps) consist of smart contracts that run on blockchains and clients that model collaborating parties. dApps are used to model financial and legal business functionality. Today, contracts and clients are written as separate programs -- in different programming languages -- communicating via send and receive operations. This makes distributed program flow awkward to express and reason about, increasing the potential for mismatches in the client-contract interface, which can be exploited by malicious clients, potentially leading to huge financial losses. In this paper, we present Prisma, a language for tierless decentralized applications, where the contract and its clients are defined in one unit and pairs of send and receive actions that "belong together" are encapsulated into a single direct-style operation, which is executed differently by sending and receiving parties. This enables expressing distributed program flow via standard control flow and renders mismatching communication impossible. We prove formally that our compiler preserves program behavior in presence of an attacker controlling the client code. We systematically compare Prisma with mainstream and advanced programming models for dApps and provide empirical evidence for its expressiveness and performance.
The sharing of public key information is central to the digital credential security model, but the existing Web PKI with its opaque Certification Authorities and synthetic attestations serves a very different purpose. We propose a new approach to decentralised public key infrastructure, designed for digital identity, in which connections between legal entities that are represented digitally correspond to genuine, pre-existing relationships between recognisable institutions. In this scenario, users can judge for themselves the level of trust they are willing to place in a given chain of attestations. Our proposal includes a novel mechanism for establishing a root of trust in a decentralised setting via independently-verifiable timestamping. We also present a reference implementation built on open networks, protocols and standards. The system has minimal setup costs and is freely available for any community to adopt as a digital public good.
In the classical supervised learning settings, classifiers are fit with the assumption of balanced label distributions and produce remarkable results on the same. In the real world, however, these assumptions often bend and in turn adversely impact model performance. Identifying bad learners in skewed target distributions is even more challenging. Thus achieving model robustness under these "label shift" settings is an important task in autonomous perception. In this paper, we analyze the impact of label shift on the task of multi-weather classification for autonomous vehicles. We use this information as a prior to better assess pedestrian detection in adverse weather. We model the classification performance as an indicator of robustness under 4 label shift scenarios and study the behavior of multiple classes of models. We propose t-RAIN a similarity mapping technique for synthetic data augmentation using large scale generative models and evaluate the performance on DAWN dataset. This mapping boosts model test accuracy by 2.1, 4.4, 1.9, 2.7 % in no-shift, fog, snow, dust shifts respectively. We present state-of-the-art pedestrian detection results on real and synthetic weather domains with best performing 82.69 AP (snow) and 62.31 AP (fog) respectively.
Voting is a means to agree on a collective decision based on available choices (e.g., candidates), where participants agree to abide by their outcome. To improve some features of e-voting, decentralized blockchain-based solutions can be employed, where the blockchain represents a public bulletin board that in contrast to a centralized bulletin board provides extremely high availability, censorship resistance, and correct code execution. A blockchain ensures that all entities in the voting system have the same view of the actions made by others due to its immutability and append-only features. The existing remote blockchain-based boardroom voting solution called Open Voting Network (OVN) provides the privacy of votes, universal & End-to-End verifiability, and perfect ballot secrecy; however, it supports only two choices and lacks robustness enabling recovery from stalling participants. We present BBB-Voting, an equivalent blockchain-based approach for decentralized voting such as OVN, but in contrast to it, BBB-Voting supports 1-out-of-$k$ choices and provides robustness that enables recovery from stalling participants. We make a cost-optimized implementation using an Ethereum-based environment respecting Ethereum Enterprise Alliance standards, which we compare with OVN and show that our work decreases the costs for voters by 13.5% in normalized gas consumption. Finally, we show how BBB-Voting can be extended to support the number of participants limited only by the expenses paid by the authority and the computing power to obtain the tally.
We study fair division of indivisible chores among $n$ agents with additive disutility functions. Two well-studied fairness notions for indivisible items are envy-freeness up to one/any item (EF1/EFX) and the standard notion of economic efficiency is Pareto optimality (PO). There is a noticeable gap between the results known for both EF1 and EFX in the goods and chores settings. The case of chores turns out to be much more challenging. We reduce this gap by providing slightly relaxed versions of the known results on goods for the chores setting. Interestingly, our algorithms run in polynomial time, unlike their analogous versions in the goods setting. We introduce the concept of $k$ surplus which means that up to $k$ more chores are allocated to the agents and each of them is a copy of an original chore. We present a polynomial-time algorithm which gives EF1 and PO allocations with $(n-1)$ surplus. We relax the notion of EFX slightly and define tEFX which requires that the envy from agent $i$ to agent $j$ is removed upon the transfer of any chore from the $i$'s bundle to $j$'s bundle. We give a polynomial-time algorithm that in the chores case for $3$ agents returns an allocation which is either proportional or tEFX. Note that proportionality is a very strong criterion in the case of indivisible items, and hence both notions we guarantee are desirable.
Incrementality experiments compare customers exposed to a marketing action designed to increase sales to those randomly assigned to a control group. These experiments suffer from noisy responses which make precise estimation of the average treatment effect (ATE) and marketing ROI difficult. We develop a model that improves the precision by estimating separate treatment effects for three latent strata defined by potential outcomes in the experiment -- customers who would buy regardless of ad exposure, those who would buy only if exposed to ads and those who would not buy regardless. The overall ATE is estimated by averaging the strata-level effects, and this produces a more precise estimator of the ATE over a wide range of conditions typical of marketing experiments. Analytical results and simulations show that the method decreases the sampling variance of the ATE most when (1) there are large differences in the treatment effect between latent strata and (2) the model used to estimate the strata-level effects is well-identified. Applying the procedure to 5 catalog experiments shows a reduction of 30-60% in the variance of the overall ATE. This leads to a substantial decrease in decision errors when the estimator is used to determine whether ads should be continued or discontinued.
By interacting, synchronizing, and cooperating with its physical counterpart in real time, digital twin is promised to promote an intelligent, predictive, and optimized modern city. Via interconnecting massive physical entities and their virtual twins with inter-twin and intra-twin communications, the Internet of digital twins (IoDT) enables free data exchange, dynamic mission cooperation, and efficient information aggregation for composite insights across vast physical/virtual entities. However, as IoDT incorporates various cutting-edge technologies to spawn the new ecology, severe known/unknown security flaws and privacy invasions of IoDT hinders its wide deployment. Besides, the intrinsic characteristics of IoDT such as \emph{decentralized structure}, \emph{information-centric routing} and \emph{semantic communications} entail critical challenges for security service provisioning in IoDT. To this end, this paper presents an in-depth review of the IoDT with respect to system architecture, enabling technologies, and security/privacy issues. Specifically, we first explore a novel distributed IoDT architecture with cyber-physical interactions and discuss its key characteristics and communication modes. Afterward, we investigate the taxonomy of security and privacy threats in IoDT, discuss the key research challenges, and review the state-of-the-art defense approaches. Finally, we point out the new trends and open research directions related to IoDT.
The cyber-threat landscape has evolved tremendously in recent years, with new threat variants emerging daily, and large-scale coordinated campaigns becoming more prevalent. In this study, we propose CELEST (CollaborativE LEarning for Scalable Threat detection), a federated machine learning framework for global threat detection over HTTP, which is one of the most commonly used protocols for malware dissemination and communication. CELEST leverages federated learning in order to collaboratively train a global model across multiple clients who keep their data locally, thus providing increased privacy and confidentiality assurances. Through a novel active learning component integrated with the federated learning technique, our system continuously discovers and learns the behavior of new, evolving, and globally-coordinated cyber threats. We show that CELEST is able to expose attacks that are largely invisible to individual organizations. For instance, in one challenging attack scenario with data exfiltration malware, the global model achieves a three-fold increase in Precision-Recall AUC compared to the local model. We deploy CELEST on two university networks and show that it is able to detect the malicious HTTP communication with high precision and low false positive rates. Furthermore, during its deployment, CELEST detected a set of previously unknown 42 malicious URLs and 20 malicious domains in one day, which were confirmed to be malicious by VirusTotal.
While existing work in robust deep learning has focused on small pixel-level $\ell_p$ norm-based perturbations, this may not account for perturbations encountered in several real world settings. In many such cases although test data might not be available, broad specifications about the types of perturbations (such as an unknown degree of rotation) may be known. We consider a setup where robustness is expected over an unseen test domain that is not i.i.d. but deviates from the training domain. While this deviation may not be exactly known, its broad characterization is specified a priori, in terms of attributes. We propose an adversarial training approach which learns to generate new samples so as to maximize exposure of the classifier to the attributes-space, without having access to the data from the test domain. Our adversarial training solves a min-max optimization problem, with the inner maximization generating adversarial perturbations, and the outer minimization finding model parameters by optimizing the loss on adversarial perturbations generated from the inner maximization. We demonstrate the applicability of our approach on three types of naturally occurring perturbations -- object-related shifts, geometric transformations, and common image corruptions. Our approach enables deep neural networks to be robust against a wide range of naturally occurring perturbations. We demonstrate the usefulness of the proposed approach by showing the robustness gains of deep neural networks trained using our adversarial training on MNIST, CIFAR-10, and a new variant of the CLEVR dataset.