Enes Erdin

Ahmet Kurt, Enes Erdin, Kemal Akkaya et al.

While various covert botnets were proposed in the past, they still lack complete anonymization for their servers/botmasters or suffer from slow communication between the botmaster and the bots. In this paper, we first propose a new generation hybrid botnet that covertly and efficiently communicates over Bitcoin Lightning Network (LN), called LNBot. Exploiting various anonymity features of LN, we show the feasibility of a scalable two-layer botnet which completely anonymizes the identity of the botmaster. In the first layer, the botmaster anonymously sends the commands to the command and control (C&C) servers through regular LN payments. Specifically, LNBot allows botmaster's commands to be sent in the form of surreptitious multi-hop LN payments, where the commands are either encoded with the payments or attached to the payments to provide covert communications. In the second layer, C&C servers further relay those commands to the bots in their mini-botnets to launch any type of attacks to victim machines. We further improve on this design by introducing D-LNBot; a distributed version of LNBot that generates its C&C servers by infecting users on the Internet and forms the C&C connections by opening channels to the existing nodes on LN. In contrary to the LNBot, the whole botnet formation phase is distributed and the botmaster is never involved in the process. By utilizing Bitcoin's Testnet and the new message attachment feature of LN, we show that D-LNBot can be run for free and commands are propagated faster to all the C&C servers compared to LNBot. We presented proof-of-concept implementations for both LNBot and D-LNBot on the actual LN and extensively analyzed their delay and cost performance. Finally, we also provide and discuss a list of potential countermeasures to detect LNBot and D-LNBot activities and minimize their impacts.

Ahmet Kurt, Suat Mercan, Enes Erdin et al.

Bitcoin's success as a cryptocurrency enabled it to penetrate into many daily life transactions. Its problems regarding the transaction fees and long validation times are addressed through an innovative concept called the Lightning Network (LN) which works on top of Bitcoin by leveraging off-chain transactions. This made Bitcoin an attractive micro-payment solution that can also be used within certain IoT applications (e.g., toll payments) since it eliminates the need for traditional centralized payment systems. Nevertheless, it is not possible to run LN and Bitcoin on resource-constrained IoT devices due to their storage, memory, and processing requirements. Therefore, in this paper, we propose an efficient and secure protocol that enables an IoT device to use LN's functions through a gateway LN node even if it is not trusted. The idea is to involve the IoT device only in signing operations, which is possible by replacing LN's original 2-of-2 multisignature channels with 3-of-3 multisignature channels. Once the gateway is delegated to open a channel for the IoT device in a secure manner, our protocol enforces the gateway to request the IoT device's cryptographic signature for all further operations on the channel such as sending payments or closing the channel. LN's Bitcoin transactions are revised to incorporate the 3-of-3 multisignature channels. In addition, we propose other changes to protect the IoT device's funds from getting stolen in possible revoked state broadcast attempts. We evaluated the proposed protocol using a Raspberry Pi considering a toll payment scenario. Our results show that timely payments can be sent and the computational and communication delays associated with the protocol are negligible.

Ahmet Kurt, Suat Mercan, Omer Shlomovits et al.

Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept however it has significant problems such as high transaction fees and long confirmation times. Lightning Network (LN), which was introduced much later, solves most of these problems with an innovative concept called off-chain payments. With this advancement, Bitcoin has become an attractive venue to perform micro-payments which can also be adopted in many IoT applications (e.g. toll payments). Nevertheless, it is not feasible to host LN and Bitcoin on IoT devices due to the storage, memory, and processing requirements. Therefore, in this paper, we propose an efficient and secure protocol that enables an IoT device to use LN through an untrusted gateway node. The gateway hosts LN and Bitcoin nodes and can open & close LN channels, send LN payments on behalf of the IoT device. This delegation approach is powered by a (2,2)-threshold scheme that requires the IoT device and the LN gateway to jointly perform all LN operations which in turn secures both parties' funds. Specifically, we propose to thresholdize LN's Bitcoin public and private keys as well as its commitment points. With these and several other protocol level changes, IoT device is protected against revoked state broadcast, collusion, and ransom attacks. We implemented the proposed protocol by changing LN's source code and thoroughly evaluated its performance using a Raspberry Pi. Our evaluation results show that computational and communication delays associated with the protocol are negligible. To the best of our knowledge, this is the first work that implemented threshold cryptography in LN.

Enes Erdin, Suat Mercan, Kemal Akkaya

Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks hinder the wide use of cryptocurrencies by masses. To address these challenges, payment channel network concept is touted as the most viable solution to be used for micro-payments. The idea is exchanging the ownership of money by keeping the state of the accounts locally. The users inform the blockchain rarely, which decreases the load on the blockchain. Specifically, payment channel networks can provide transaction approvals in seconds by charging a nominal fee proportional to the payment amount. Such attraction on payment channel networks inspired many recent studies which focus on how to design them and allocate channels such that the transactions will be secure and efficient. However, as payment channel networks are emerging and reaching large number of users, privacy issues are becoming more relevant that raise concerns about exposing not only individual habits but also businesses' revenues. In this paper, we first propose a categorization of the existing payment networks formed on top of blockchain-backed cryptocurrencies. After discussing several emerging attacks on user/business privacy in these payment channel networks, we qualitatively evaluate them based on a number of privacy metrics that relate to our case. Based on the discussions on the strengths and weaknesses of the approaches, we offer possible directions for research for the future of privacy based payment channel networks.

Suat Mercan, Ahmet Kurt, Enes Erdin et al.

The successful amalgamation of cryptocurrency and consumer Internet of Things (IoT) devices can pave the way for novel applications in machine-to-machine economy. However, the lack of scalability and heavy resource requirements of initial blockchain designs hinders the integration as they prioritized decentralization and security. Numerous solutions have been proposed since the emergence of Bitcoin to achieve this goal. However, none of them seem to dominate and thus it is unclear how consumer devices will be adopting these approaches. Therefore, in this paper, we critically review the existing integration approaches and cryptocurrency designs that strive to enable micro-payments among consumer devices. We identify and discuss solutions under three main categories; direct integration, payment channel network and new cryptocurrency design. The first approach utilizes a full node to interact with the payment system. Offline channel payment is suggested as a second layer solution to solve the scalability issue and enable instant payment with low fee. New designs converge to semi-centralized scheme and focuson lightweight consensus protocol that does not require highcomputation power which might mean loosening the initial designchoices in favor of scalability. We evaluate the pros and cons ofeach of these approaches and then point out future researchchallenges. Our goal is to help researchers and practitioners tobetter focus their efforts to facilitate micro-payment adoptions.

Ahmet Kurt, Suat Mercan, Enes Erdin et al.

Lightning Network (LN) addresses the scalability problem of Bitcoin by leveraging off-chain transactions. Nevertheless, it is not possible to run LN on resource-constrained IoT devices due to its storage, memory, and processing requirements. Therefore, in this paper, we propose an efficient and secure protocol that enables an IoT device to use LN's functions through a gateway LN node. The idea is to involve the IoT device in LN operations with its digital signature by replacing original 2-of-2 multisignature channels with 3-of-3 multisignature channels. Our protocol enforces the LN gateway to request the IoT device's cryptographic signature for all operations on the channel. We evaluated the proposed protocol by implementing it on a Raspberry Pi for a toll payment scenario and demonstrated its feasibility and security.

Suat Mercan, Enes Erdin, Kemal Akkaya

The last decade has experienced a vast interest in Blockchain-based cryptocurrencies with a specific focus on the applications of this technology. However, slow confirmation times of transactions and unforeseeable high fees hamper their wide adoption for micro-payments. The idea of establishing payment channel networks is one of the many proposed solutions to address this scalability issue where nodes, by utilizing smart contracting, establish payment channels between each other and perform off-chain transactions. However, due to the way these channels are created, both sides have a certain one-way capacity for making transactions. Consequently, if one sides exceeds this one-way capacity, the channel becomes useless in that particular direction, which causes failures of payments and eventually creates an imbalance in the overall network. To keep the payment channel network sustainable, in this paper, we aim to increase the overall success rate of payments by effectively exploiting the fact that end-users are usually connected to the network at multiple points (i.e., gateways) any of which can be used to initiate the payment. We propose an efficient method for selection of the gateway for a user by considering the gateway's inbound and outbound payment traffic ratio. We then augment this proposed method with split payment capability to further increase success rate especially for large transactions. The evaluation of the proposed method shows that compared to greedy and maxflow-based approaches, we can achieve much higher success rates, which are further improved with split payments.

Suat Mercan, Enes Erdin, Kemal Akkaya

Blockchain-based cryptocurrencies received a lot of attention recently for their applications in many domains. IoT domain is one of such applications, which can utilize cryptocur-rencies for micro payments without compromising their payment privacy. However, long confirmation times of transactions and relatively high fees hinder the adoption of cryptoccurency based micro-payments. The payment channel networks is one of the proposed solutions to address these issue where nodes establish payment channels among themselves without writing on blockchain. IoT devices can benefit from such payment networks as long as they are capable of sustaining their overhead. Payment channel networks pose unique characteristics as far as the routing problem is concerned. Specifically, they should stay balanced to have a sustainable network for maintaining payments for longer times, which is crucial for IoT devices once they are deployed.In this paper, we present a payment channel network design that aims to keep the channels balanced by using a common weight policy across the network. We additionally propose using multi-point connections to nodes for each IoT device for unbalanced payment scenarios. The experiment results show that we can keep the channels in the network more equally balanced compared to the minimal fee approach. In addition, multiple connections from IoT devices to nodes increase the success ratio significantly.

Ahmet Kurt, Enes Erdin, Mumin Cebe et al.

While various covert botnets were proposed in the past, they still lack complete anonymization for their servers/botmasters or suffer from slow communication between the botmaster and the bots. In this paper, we propose a new generation hybrid botnet that covertly and efficiently communicates over Bitcoin Lightning Network (LN), called LNBot. LN is a payment channel network operating on top of Bitcoin network for faster Bitcoin transactions with negligible fees. Exploiting various anonymity features of LN, we designed a scalable two-layer botnet which completely anonymize the identity of the botmaster. In the first layer, the botmaster sends commands anonymously to the C&C servers through LN transactions. Specifically, LNBot allows botmaster's commands to be sent in the form of surreptitious multihop LN payments, where the commands are encoded with ASCII or Huffman encoding to provide covert communications. In the second layer, C&C servers further relay those commands to the bots they control in their mini-botnets to launch any type of attacks to victim machines. We implemented a proof-of-concept on the actual LN and extensively analyzed the delay and cost performance of LNBot. Our analysis show that LNBot achieves better scalibility compared to the other similar blockchain botnets with negligible costs. Finally, we also provide and discuss a list of potential countermeasures to detect LNBot activities and minimize its impacts.

Mumin Cebe, Enes Erdin, Kemal Akkaya et al.

Today's vehicles are becoming cyber-physical systems that do not only communicate with other vehicles but also gather various information from hundreds of sensors within them. These developments help create smart and connected (e.g., self-driving) vehicles that will introduce significant information to drivers, manufacturers, insurance companies and maintenance service providers for various applications. One such application that is becoming crucial with the introduction of self-driving cars is the forensic analysis for traffic accidents. The utilization of vehicle-related data can be instrumental in post-accident scenarios to find out the faulty party, particularly for self-driving vehicles. With the opportunity of being able to access various information on the cars, we propose a permissioned blockchain framework among the various elements involved to manage the collected vehicle-related data. Specifically, we first integrate Vehicular Public Key Management (VPKI) to the proposed blockchain to provide membership establishment and privacy. Next, we design a fragmented ledger that will store detailed data related to vehicle such as maintenance information/history, car diagnosis reports, etc. The proposed forensic framework enables trustless, traceable and privacy-aware post-accident analysis with minimal storage and processing overhead.