Volume 13, Number 6

ADPP: A Novel Anomaly Detection and Privacy-Preserving Framework using Blockchain
and Neural Networks in Tokenomics


Wei Yao, Jingyi Gu, Wenlu Du, Fadi P. Deek and Guiling Wang, New Jersey Institute of Technology, USA


The increasing popularity of crypto assets has resulted in greater cryptocurrency investor interest and more exposure in both industry and academia. Despite the substantial socioeconomic benefits, the anonymous character of cryptocurrency trading makes it prone to abuse and a magnet for illicit purposes, which cause monetary losses for individual traders and erosion in the standing of the tokenomics industry. To regulate the illicit behavior and secure users' privacy for cryptocurrency trading, we present an Anomaly Detection and Privacy-Preserving (ADPP) Framework integrating blockchain and deep learning technologies. Specifically, ADPP leverages blockchain technologies to build a user management platform that ensures anonymity and enhances the privacy-preservation of user information. Atop the user management system, an Anomaly Detection System adapts neural networks and imbalanced learning on topological cryptocurrency flow among users to identify anomalous addresses and maintain a sanction list repository. The experiments on the real-world dataset demonstrate the effectiveness and superior performance of ADPP. The flexible framework can be easily generalized to the crypto assets with public real-time transaction (e.g., Non-fungible Token), which takes up a significant proportion of market capitalization in the domain of tokenomics.


Cryptocurrency Anomaly Detection, Privacy-Preservation, Graph Neural Networks, Blockchain, Imbalanced Learning.