Simulating a Double-Spending Attack in Blockchain

Project Domain / Category

Blockchain

Abstract / Introduction

Blockchain technology has revolutionized digital transactions by providing a decentralized and immutable ledger system. However, despite its robustness, blockchain networks are vulnerable to various types of attacks, including the double-spending attack. A double-spending attack occurs when a malicious actor spends the same cryptocurrency more than once before the network confirms the transaction, potentially leading to financial losses.

This project aims to simulate a double-spending attack on a blockchain system using Python. By developing a prototype blockchain network and demonstrating how an attacker can exploit its weaknesses, this project will provide a better understanding of blockchain security and possible mitigation strategies. The simulation will help in analyzing different attack scenarios, their success rates, and potential countermeasures that can be implemented to strengthen the blockchain against such vulnerabilities.

Functional Requirements:

The simulation will focus on developing a simplified blockchain system along with an attacker module to test the double-spending vulnerability. The key functional requirements of the project include:

1.      Blockchain Implementation:

o    Develop a basic blockchain system in Python.

o    Implement fundamental features such as blocks, transactions, and proof-of-work (PoW) consensus.

2.      Transaction Processing:

o    Implement a transaction validation system.

o    Ensure transactions are broadcasted and verified by network nodes.

3.      Network Simulation:

o    Create a peer-to-peer (P2P) network to simulate blockchain nodes.

o    Implement a communication protocol for transaction propagation.

4.      Double-Spending Attack Simulation:

o    Develop an attacker node capable of executing a double-spending attack.

o    Test attack success rates under different conditions (e.g., network delay, hash rate dominance).

5.      Security Analysis and Countermeasures:

o    Evaluate the effectiveness of different attack strategies.

o    Implement security enhancements such as confirmations and fork resolution.

o    Provide a report on how to mitigate double-spending vulnerabilities.

Tools:

The following tools and technologies will be used to develop the project:

1.      Programming Language: Python

2.      Blockchain Libraries: hashlib, json, time, random

3.      Networking Libraries: Flask (for creating P2P communication)

4.      Data Visualization: Matplotlib, Pandas (for analyzing attack outcomes)

5.      Development Environment: Jupyter Notebook, VS Code, or PyCharm

6.      Version Control: Git/GitHub for project management and collaboration

Supervisor:

Name: Fouzia Jumani

Email ID: fouziajumani@vu.edu.pk

Skype ID: fouziajumani