How to detect and contain suspicious transactions in distributed ledgers

Abstract

Distributed Ledger Technology (DLT) like Blockchain Technology (BCT) enables the development of trust-free P2P networks, consisting of nodes that process and propagate transactions in form of messages. Trust into other nodes and/or messages is replaced by trust into the protocols that are governing the network; most notably the message signature and consensus protocols. Depending on the chosen consensus protocols, resilience towards malicious/faulty nodes and messages ranges between (Formula Presented) of all nodes. However, an often overlooked aspect within the resilience/security aspects of DLT networks is that they tend to interact with other components that are often less resilient e.g. clients/wallets. This, in turn, allows attackers to issue forged transactions that are formally correct. This paper focuses on detecting and containing such transaction using metadata and event propagation.