In recent years, blockchain technology has introduced decentralized finance (DeFi) as an alternative to traditional financial systems. DeFi aims to create a transparent and efficient financial ecosystem using smart contracts and emerging decentralized applications. However, the growing popularity of DeFi has made it a target for fraudulent activities, resulting in losses of billions of dollars due to various types of frauds. To address these issues, researchers have explored the potential of artificial intelligence (AI) approaches to detect such fraudulent activities. Yet, there is a lack of a systematic survey to organize and summarize those existing works and to identify the future research opportunities. In this survey, we provide a systematic taxonomy of various frauds in the DeFi ecosystem, categorized by the different stages of a DeFi project's life cycle: project development, introduction, growth, maturity, and decline. This taxonomy is based on our finding: many frauds have strong correlations in the stage of the DeFi project. According to the taxonomy, we review existing AI-powered detection methods, including statistical modeling, natural language processing and other machine learning techniques, etc. We find that fraud detection in different stages employs distinct types of methods and observe the commendable performance of tree-based and graph-related models in tackling fraud detection tasks. By analyzing the challenges and trends, we present the findings to provide proactive suggestion and guide future research in DeFi fraud detection. We believe that this survey is able to support researchers, practitioners, and regulators in establishing a secure and trustworthy DeFi ecosystem.
Data Augmentation (DA) has emerged as an indispensable strategy in Time Series Classification (TSC), primarily due to its capacity to amplify training samples, thereby bolstering model robustness, diversifying datasets, and curtailing overfitting. However, the current landscape of DA in TSC is plagued with fragmented literature reviews, nebulous methodological taxonomies, inadequate evaluative measures, and a dearth of accessible, user-oriented tools. In light of these challenges, this study embarks on an exhaustive dissection of DA methodologies within the TSC realm. Our initial approach involved an extensive literature review spanning a decade, revealing that contemporary surveys scarcely capture the breadth of advancements in DA for TSC, prompting us to meticulously analyze over 100 scholarly articles to distill more than 60 unique DA techniques. This rigorous analysis precipitated the formulation of a novel taxonomy, purpose-built for the intricacies of DA in TSC, categorizing techniques into five principal echelons: Transformation-Based, Pattern-Based, Generative, Decomposition-Based, and Automated Data Augmentation. Our taxonomy promises to serve as a robust navigational aid for scholars, offering clarity and direction in method selection. Addressing the conspicuous absence of holistic evaluations for prevalent DA techniques, we executed an all-encompassing empirical assessment, wherein upwards of 15 DA strategies were subjected to scrutiny across 8 UCR time-series datasets, employing ResNet and a multi-faceted evaluation paradigm encompassing Accuracy, Method Ranking, and Residual Analysis, yielding a benchmark accuracy of 88.94 +- 11.83%. Our investigation underscored the inconsistent efficacies of DA techniques, with...
Research methods and procedures are core aspects of the research process. Metadata focused on these components is critical to supporting the FAIR principles, particularly reproducibility. The research reported on in this paper presents a methodological framework for metadata documentation supporting the reproducibility of research producing Metal Organic Frameworks (MOFs). The MOF case study involved natural language processing to extract key synthesis experiment information from a corpus of research literature. Following, a classification activity was performed by domain experts to identify entity-relation pairs. Results include: 1) a research framework for metadata design, 2) a metadata schema that includes nine entities and two relationships for reporting MOF synthesis experiments, and 3) a growing database of MOF synthesis reports structured by our metadata scheme. The metadata schema is intended to support discovery and reproducibility of metal-organic framework research and the FAIR principles. The paper provides background information, identifies the research goals and objectives, research design, results, a discussion, and the conclusion.
Central Bank Digital Currency (CBDC) is a novel form of money that could be issued and regulated by central banks, offering benefits such as programmability, security, and privacy. However, the design of a CBDC system presents numerous technical and social challenges. This paper presents the design and prototype of a non-custodial wallet, a device that enables users to store and spend CBDC in various contexts. To address the challenges of designing a CBDC system, we conducted a series of workshops with internal and external stakeholders, using methods such as storytelling, metaphors, and provotypes to communicate CBDC concepts, elicit user feedback and critique, and incorporate normative values into the technical design. We derived basic guidelines for designing CBDC systems that balance technical and social aspects, and reflect user needs and values. Our paper contributes to the CBDC discourse by demonstrating a practical example of how CBDC could be used in everyday life and by highlighting the importance of a user-centred approach.
Price movements in financial markets are well known to be very noisy. As a result, even if there are, on occasion, exploitable patterns that could be picked up by machine-learning algorithms, these are obscured by feature and label noise rendering the predictions less useful, and risky in practice. Traditional rule-learning techniques developed for noisy data, such as CN2, would seek only high precision rules and refrain from making predictions where their antecedents did not apply. We apply a similar approach, where a model abstains from making a prediction on data points that it is uncertain on. During training, a cascade of such models are learned in sequence, similar to rule lists, with each model being trained only on data on which the previous model(s) were uncertain. Similar pruning of data takes place at test-time, with (higher accuracy) predictions being made albeit only on a fraction (support) of test-time data. In a financial prediction setting, such an approach allows decisions to be taken only when the ensemble model is confident, thereby reducing risk. We present results using traditional MLPs as well as differentiable decision trees, on synthetic data as well as real financial market data, to predict fixed-term returns using commonly used features. We submit that our approach is likely to result in better overall returns at a lower level of risk. In this context we introduce an utility metric to measure the average gain per trade, as well as the return adjusted for downside risk, both of which are improved significantly by our approach.
We consider a fully-decentralized scenario in which no central trusted entity exists and all clients are honest-but-curious. The state-of-the-art approaches to this problem often rely on cryptographic protocols, such as multiparty computation (MPC), that require mapping real-valued data to a discrete alphabet, specifically a finite field. These approaches, however, can result in substantial accuracy losses due to computation overflows. To address this issue, we propose A-MPC, a private analog MPC protocol that performs all computations in the analog domain. We characterize the privacy of individual datasets in terms of $(\epsilon, \delta)$-local differential privacy, where the privacy of a single record in each client's dataset is guaranteed against other participants. In particular, we characterize the required noise variance in the Gaussian mechanism in terms of the required $(\epsilon,\delta)$-local differential privacy parameters by solving an optimization problem. Furthermore, compared with existing decentralized protocols, A-MPC keeps the privacy of individual datasets against the collusion of all other participants, thereby, in a notably significant improvement, increasing the maximum number of colluding clients tolerated in the protocol by a factor of three compared with the state-of-the-art collaborative learning protocols. Our experiments illustrate that the accuracy of the proposed $(\epsilon,\delta)$-locally differential private logistic regression and linear regression models trained in a fully-decentralized fashion using A-MPC closely follows that of a centralized one performed by a single trusted entity.
Sharding is essential for improving blockchain scalability. Existing protocols overlook diverse adversarial attacks, limiting transaction throughput. This paper presents Reticulum, a groundbreaking sharding protocol addressing this issue, boosting blockchain scalability. Reticulum employs a two-phase approach, adapting transaction throughput based on runtime adversarial attacks. It comprises "control" and "process" shards in two layers. Process shards contain at least one trustworthy node, while control shards have a majority of trusted nodes. In the first phase, transactions are written to blocks and voted on by nodes in process shards. Unanimously accepted blocks are confirmed. In the second phase, blocks without unanimous acceptance are voted on by control shards. Blocks are accepted if the majority votes in favor, eliminating first-phase opponents and silent voters. Reticulum uses unanimous voting in the first phase, involving fewer nodes, enabling more parallel process shards. Control shards finalize decisions and resolve disputes. Experiments confirm Reticulum's innovative design, providing high transaction throughput and robustness against various network attacks, outperforming existing sharding protocols for blockchain networks.
Face recognition technology has advanced significantly in recent years due largely to the availability of large and increasingly complex training datasets for use in deep learning models. These datasets, however, typically comprise images scraped from news sites or social media platforms and, therefore, have limited utility in more advanced security, forensics, and military applications. These applications require lower resolution, longer ranges, and elevated viewpoints. To meet these critical needs, we collected and curated the first and second subsets of a large multi-modal biometric dataset designed for use in the research and development (R&D) of biometric recognition technologies under extremely challenging conditions. Thus far, the dataset includes more than 350,000 still images and over 1,300 hours of video footage of approximately 1,000 subjects. To collect this data, we used Nikon DSLR cameras, a variety of commercial surveillance cameras, specialized long-rage R&D cameras, and Group 1 and Group 2 UAV platforms. The goal is to support the development of algorithms capable of accurately recognizing people at ranges up to 1,000 m and from high angles of elevation. These advances will include improvements to the state of the art in face recognition and will support new research in the area of whole-body recognition using methods based on gait and anthropometry. This paper describes methods used to collect and curate the dataset, and the dataset's characteristics at the current stage.
A fundamental goal of scientific research is to learn about causal relationships. However, despite its critical role in the life and social sciences, causality has not had the same importance in Natural Language Processing (NLP), which has traditionally placed more emphasis on predictive tasks. This distinction is beginning to fade, with an emerging area of interdisciplinary research at the convergence of causal inference and language processing. Still, research on causality in NLP remains scattered across domains without unified definitions, benchmark datasets and clear articulations of the remaining challenges. In this survey, we consolidate research across academic areas and situate it in the broader NLP landscape. We introduce the statistical challenge of estimating causal effects, encompassing settings where text is used as an outcome, treatment, or as a means to address confounding. In addition, we explore potential uses of causal inference to improve the performance, robustness, fairness, and interpretability of NLP models. We thus provide a unified overview of causal inference for the computational linguistics community.
Large knowledge graphs often grow to store temporal facts that model the dynamic relations or interactions of entities along the timeline. Since such temporal knowledge graphs often suffer from incompleteness, it is important to develop time-aware representation learning models that help to infer the missing temporal facts. While the temporal facts are typically evolving, it is observed that many facts often show a repeated pattern along the timeline, such as economic crises and diplomatic activities. This observation indicates that a model could potentially learn much from the known facts appeared in history. To this end, we propose a new representation learning model for temporal knowledge graphs, namely CyGNet, based on a novel timeaware copy-generation mechanism. CyGNet is not only able to predict future facts from the whole entity vocabulary, but also capable of identifying facts with repetition and accordingly predicting such future facts with reference to the known facts in the past. We evaluate the proposed method on the knowledge graph completion task using five benchmark datasets. Extensive experiments demonstrate the effectiveness of CyGNet for predicting future facts with repetition as well as de novo fact prediction.
One of the key requirements to facilitate semantic analytics of information regarding contemporary and historical events on the Web, in the news and in social media is the availability of reference knowledge repositories containing comprehensive representations of events and temporal relations. Existing knowledge graphs, with popular examples including DBpedia, YAGO and Wikidata, focus mostly on entity-centric information and are insufficient in terms of their coverage and completeness with respect to events and temporal relations. EventKG presented in this paper is a multilingual event-centric temporal knowledge graph that addresses this gap. EventKG incorporates over 690 thousand contemporary and historical events and over 2.3 million temporal relations extracted from several large-scale knowledge graphs and semi-structured sources and makes them available through a canonical representation.