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Blockchain Economical Models, Delegated Proof of Economic Value and Delegated Adaptive Byzantine Fault Tolerance and their implementation in Artificial Intelligence BlockCloud

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  • Qi Deng

    (Accounting and Finance Group, International Business School Suzhou, Xi’an Jiaotong-Liverpool University, Suzhou 215123, China
    Cofintelligence Financial Technology Ltd., Hong Kong, China
    Cofintelligence Financial Technology Ltd., Shanghai 201106, China)

Abstract

The Artificial Intelligence BlockCloud (AIBC) is an artificial intelligence and blockchain technology based large-scale decentralized ecosystem that allows system-wide low-cost sharing of computing and storage resources. The AIBC consists of four layers: a fundamental layer, a resource layer, an application layer, and an ecosystem layer (the latter three are the collective “upper-layers”). The AIBC layers have distinguished responsibilities and thus performance and robustness requirements. The upper layers need to follow a set of economic policies strictly and run on a deterministic and robust protocol. While the fundamental layer needs to follow a protocol with high throughput without sacrificing robustness. As such, the AIBC implements a two-consensus scheme to enforce economic policies and achieve performance and robustness: Delegated Proof of Economic Value (DPoEV) incentive consensus on the upper layers, and Delegated Adaptive Byzantine Fault Tolerance (DABFT) distributed consensus on the fundamental layer. The DPoEV uses the knowledge map algorithm to accurately assess the economic value of digital assets. The DABFT uses deep learning techniques to predict and select the most suitable BFT algorithm in order to enforce the DPoEV, as well as to achieve the best balance of performance, robustness, and security. The DPoEV-DABFT dual-consensus architecture, by design, makes the AIBC attack-proof against risks such as double-spending, short-range and 51% attacks; it has a built-in dynamic sharding feature that allows scalability and eliminates the single-shard takeover. Our contribution is four-fold: that we develop a set of innovative economic models governing the monetary, trading and supply-demand policies in the AIBC; that we establish an upper-layer DPoEV incentive consensus algorithm that implements the economic policies; that we provide a fundamental layer DABFT distributed consensus algorithm that executes the DPoEV with adaptability; and that we prove the economic models can be effectively enforced by AIBC’s DPoEV-DABFT dual-consensus architecture.

Suggested Citation

  • Qi Deng, 2019. "Blockchain Economical Models, Delegated Proof of Economic Value and Delegated Adaptive Byzantine Fault Tolerance and their implementation in Artificial Intelligence BlockCloud," JRFM, MDPI, vol. 12(4), pages 1-27, November.
  • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:4:p:177-:d:290675
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    References listed on IDEAS

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    1. Robert F. Engle & Kevin Sheppard, 2001. "Theoretical and Empirical properties of Dynamic Conditional Correlation Multivariate GARCH," NBER Working Papers 8554, National Bureau of Economic Research, Inc.
    2. Engle, Robert, 2002. "Dynamic Conditional Correlation: A Simple Class of Multivariate Generalized Autoregressive Conditional Heteroskedasticity Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(3), pages 339-350, July.
    3. Goldberg, Dror, 2005. "Famous Myths of "Fiat Money"," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(5), pages 957-967, October.
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    Cited by:

    1. Gabriela Menet & Marek Szarucki, 2020. "Impact of Value Co-Creation on International Customer Satisfaction in the Airsoft Industry: Does Country of Origin Matter?," JRFM, MDPI, vol. 13(10), pages 1-23, September.

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