arXiv subjects

William Knottenbelt

Publications and source records attributed to William Knottenbelt.

At least 19 recordsLinked to original sources

arXiv2026

Position: Quantum Program Generation Must Prioritize Validity Over Probabilistic Scaling

The scaling hypothesis assumes that increasing model parameters yields emergent reasoning capabilities. This position paper argues that applying this probabilistic paradigm to generic quantum circuit synthesis is a directional error. Unlike natural languages, quantum circuits require strict adherence to mathematical constraints that manifest a significant syntax-semantics gap. Training on unverified quantum programs means that models learn syntax but fail to capture the physical semantics of the Hilbert space. Since the valid subset of circuit designs decays exponentially with the number of qubits, post-hoc filtering is mathematically intractable. We propose a pivot from human-centric copilots to verifier-centric agents. We integrate hierarchical constraints, topological masks, and symbolic proxies directly into generation. Our analysis suggests that scale alone cannot bridge the validity gap. Verification-aware architectures offer a viable path for modular quantum program generation. These considerations point toward generation methods that encode task-specific rules of quantum information, rather than relying on imitation alone.

cs.LG↗

arXiv2026

Can Trustless Agents Be Trusted? An Empirical Study of the ERC-8004 Decentralized AI Agent Ecosystem

As autonomous AI agents increasingly transact across organizational boundaries, a fundamental trust challenge emerges: how can an agent assess whether an unknown counterpart is trustworthy? The ERC-8004 protocol addresses this challenge with the first permissionless trust layer for AI agent economies, built around three on-chain registries for Identity, Reputation, and Validation. Despite its rapid adoption, the protocol has not been studied empirically, leaving it unclear whether the information it records provides a trustworthy basis for decision-making. To address this gap, we present the first empirical study of ERC-8004 across three chains: Ethereum, BNB Smart Chain (BSC), and Base, covering the period from protocol deployment through May 13, 2026. We crawl on-chain Identity and Reputation events, off-chain files, and x402 payment transactions. On the identity side, we find that most registrations are placeholders rather than active agents, with only a small fraction (3%, 4%, and 15% across Ethereum, BSC, and Base) exposing a valid ERC-8004 registration file with at least one live service endpoint. On the reputation side, we show that the Registry, as currently deployed, cannot function as a trust signal: values are not commensurable, feedback records are rarely grounded in verifiable interactions, and reputation can be manipulated at minimal cost. Consistent with these design weaknesses, we find that a substantial fraction of reviewers (73.5%, 59.2%, and 90.6% across Ethereum, BSC, and Base) exhibit coordinated Sybil behavior. After removing Sybil-flagged feedback, 15.8%, 77.9%, and 86.8% of rated agents, respectively, are left with no valid feedback. We then turn these findings into concrete recommendations for future revisions of ERC-8004. Our study yields actionable protocol-design implications and establishes an empirical baseline for research on AI agent markets.

cs.CR↗

arXiv2026

IsabeLLM: Automated Theorem Proving Applied to Formally Verifying Consensus

Advances in Artificial Intelligence (AI) have led AI for Theorem Proving to become a promising means of formally verifying computer systems. Whilst formal verification is traditionally reserved for safety-critical systems due to the required amount of expertise and effort, AI can help to automate a large amount of this workload and make it far more accessible. Blockchain-based systems are becoming increasingly popular and are frequently targeted by malicious actors, often resulting in huge financial losses, highlighting the need to better verify these systems and mitigate vulnerabilities. Arguably the most important component of these systems is the consensus protocol, which allows nodes to agree on decisions in a potentially adversarial environment. In this paper, we improve upon IsabeLLM, the automated theorem proving tool in Isabelle. Namely, we implement a Retrieval-Augmented Generation framework, Error tracing and counterexample generation for improved context supplied to the Large Language Model. Compatibility with the latest version of Isabelle and Sledgehammer is also implemented for improved efficiency. We compare the performance of the two versions of IsabeLLM in their ability to complete the verification of Bitcoin's Proof of Work consensus.

cs.AI↗

arXiv2026

SUDP: Secret-Use Delegation Protocol for Agentic Systems

Agentic systems increasingly act with user secrets for APIs, messaging platforms, and cloud services. Today's agent runtimes typically implement authorization by exposure: enabling action often means placing a reusable secret, or a reusable artifact derived from it, inside the runtime, so a transient prompt-injection or tool-side compromise becomes durable account compromise. Existing defenses cover adjacent pieces such as secret storage, scoped delegation, sender-constrained tokens, and runtime monitoring, but leave the combined agentic obligation without a common specification: an untrusted autonomous requester should be able to cause a user-authorized secret-backed operation without gaining reusable authority over it. We formalize this as the Agent Secret Use (ASU) problem and identify seven security properties any solution must satisfy, spanning authorization integrity and secret confidentiality. We propose the Secret-Use Delegation Protocol (SUDP), in which a requester proposes a canonical operation, the user authorizes it with a fresh authenticator-backed grant, and a custodian redeems the grant to perform the bounded use; reusable authority never crosses the requester boundary. We specialize SUDP for LLM-driven agents, where it applies whenever a tool call would exercise user-enrolled authority-bearing material. Under standard cryptographic assumptions, SUDP satisfies all seven properties when integrated with a hardware-rooted runtime. A reference implementation is available at https://github.com/xhyumiracle/sudp.

cs.CR↗

arXiv2026

LOCARD: An Agentic Framework for Blockchain Forensics

Blockchain forensics inherently involves dynamic and iterative investigations, while many existing approaches primarily model it through static inference pipelines. We propose a paradigm shift towards Agentic Blockchain Forensics (ABF), modeling forensic investigation as a sequential decision-making process. To instantiate this paradigm, we introduce LOCARD, the first agentic framework for blockchain forensics. LOCARD operationalizes this perspective through a Tri-Core Cognitive Architecture that decouples strategic planning, operational execution, and evaluative validation. Unlike generic LLM-based agents, it incorporates a Structured Belief State mechanism to enforce forensic rigor and guide exploration under explicit state constraints. To demonstrate the efficacy of the ABF paradigm, we apply LOCARD to the inherently complex domain of cross-chain transaction tracing. We introduce Thor25, a benchmark dataset comprising over 151k real-world cross-chain forensic records, and evaluate LOCARD on the Group-Transfer Tracing task for dismantling Sybil clusters. Validated against representative laundering sub-flows from the Bybit hack, LOCARD achieves high-fidelity tracing results, providing empirical evidence that modeling blockchain forensics as an autonomous agentic task is both viable and effective. These results establish a concrete foundation for future agentic approaches to large-scale blockchain forensic analysis. Code and dataset are publicly available at https://github.com/xhyumiracle/locard and https://github.com/xhyumiracle/thorchain-crosschain-data.

cs.CR↗

arXiv2026

Stablecoins as Dry Powder: A Copula-Based Risk Analysis of Cryptocurrency Markets

Stablecoins serve as the fundamental infrastructure for Decentralised Finance (DeFi), acting as the primary bridge between fiat currencies and the digital asset ecosystem. While peg stability is well-documented, the structural role stablecoins play in transmitting systemic risk to the broader market remains under-explored. This study uses copula-based approaches to quantify the transmission of volatility and activity from stablecoin to cryptocurrency markets. We demonstrate in-sample causality across daily, weekly, and monthly horizons. Furthermore, we show that incorporating stablecoin factors significantly reduces Mean Squared Error in cryptocurrency forecasting. Specifically, we link stablecoin volume and upside volatility to broader market volatility, indicating its role as dry powder. Finally, we establish economic value by demonstrating reduced risk in a cryptocurrency volatility targeting model when stablecoin factors are employed.

cs.CE↗

arXiv2026

SoK: Blockchain-Based Decentralized AI (DeAI)

Centralization enhances the efficiency of Artificial Intelligence (AI) but also introduces critical challenges, including single points of failure, inherent biases, data privacy risks, and scalability limitations. To address these issues, blockchain-based Decentralized Artificial Intelligence (DeAI) has emerged as a promising paradigm that leverages decentralization and transparency to improve the trustworthiness of AI systems. Despite rapid adoption in industry, the academic community lacks a systematic analysis of DeAI's technical foundations, opportunities, and challenges. This work presents the first Systematization of Knowledge (SoK) on DeAI, offering a formal definition, a taxonomy of existing solutions based on the AI lifecycle, and an in-depth investigation of the roles of blockchain in enabling secure and incentive-compatible collaboration. We further review security risks across the DeAI lifecycle and empirically evaluate representative mitigation techniques. Finally, we highlight open research challenges and future directions for advancing blockchain-based DeAI.

cs.LG↗

arXiv2026

Data Verification is the Future of Quantum Computing Copilots

Quantum program generation demands a level of precision that may not be compatible with the statistical reasoning carried out in the inference of large language models (LLMs). Hallucinations are mathematically inevitable and not addressable by scaling, which leads to infeasible solutions. We argue that architectures prioritizing verification are necessary for quantum copilots and AI automation in domains governed by constraints. Our position rests on three key points: verified training data enables models to internalize precise constraints as learned structures rather than statistical approximations; verification must constrain generation rather than filter outputs, as valid designs occupy exponentially shrinking subspaces; and domains where physical laws impose correctness criteria require verification embedded as architectural primitives. Early experiments showed LLMs without data verification could only achieve a maximum accuracy of 79% in circuit optimization. Our positions are formulated as quantum computing and AI4Research community imperatives, calling for elevating verification from afterthought to architectural foundation in AI4Research.

quant-ph↗

arXiv2026

Towards Automating Blockchain Consensus Verification with IsabeLLM

Consensus protocols are crucial for a blockchain system as they are what allow agreement between the system's nodes in a potentially adversarial environment. For this reason, it is paramount to ensure their correct design and implementation to prevent such adversaries from carrying out malicious behaviour. Formal verification allows us to ensure the correctness of such protocols, but requires high levels of effort and expertise to carry out and thus is often omitted in the development process. In this paper, we present IsabeLLM, a tool that integrates the proof assistant Isabelle with a Large Language Model to assist and automate proofs. We demonstrate the effectiveness of IsabeLLM by using it to develop a novel model of Bitcoin's Proof of Work consensus protocol and verify its correctness. We use the DeepSeek R1 API for this demonstration and found that we were able to generate correct proofs for each of the non-trivial lemmas present in the verification.

cs.CR↗

arXiv2025

On the Periodic Orbits of the Dual Logarithmic Derivative Operator

We study the periodic behaviour of the dual logarithmic derivative operator $\mathcal{A}[f]=\mathrm{d}\ln f/\mathrm{d}\ln x$ in a complex analytic setting. We show that $\mathcal{A}$ admits genuinely nondegenerate period-$2$ orbits and identify a canonical explicit example. Motivated by this, we obtain a complete classification of all nondegenerate period-$2$ solutions, which are precisely the rational pairs $(c a x^{c}/(1-ax^{c}),\, c/(1-ax^{c}))$ with $ac\neq 0$. We further classify all fixed points of $\mathcal{A}$, showing that every solution of $\mathcal{A}[f]=f$ has the form $f(x)=1/(a-\ln x)$. As an illustration, logistic-type functions become pre-periodic under $\mathcal{A}$ after a logarithmic change of variables, entering the period-$2$ family in one iterate. These results give an explicit description of the low-period structure of $\mathcal{A}$ and provide a tractable example of operator-induced dynamics on function spaces.

math.DS↗

arXiv2025

CoxKAN: Kolmogorov-Arnold Networks for Interpretable, High-Performance Survival Analysis

Motivation: Survival analysis is a branch of statistics that is crucial in medicine for modeling the time to critical events such as death or relapse, in order to improve treatment strategies and patient outcomes. Selecting survival models often involves a trade-off between performance and interpretability; deep learning models offer high performance but lack the transparency of more traditional approaches. This poses a significant issue in medicine, where practitioners are reluctant to use black-box models for critical patient decisions. Results: We introduce CoxKAN, a Cox proportional hazards Kolmogorov-Arnold Network for interpretable, high-performance survival analysis. Kolmogorov-Arnold Networks (KANs) were recently proposed as an interpretable and accurate alternative to multi-layer perceptrons. We evaluated CoxKAN on four synthetic and nine real datasets, including five cohorts with clinical data and four with genomics biomarkers. In synthetic experiments, CoxKAN accurately recovered interpretable hazard function formulae and excelled in automatic feature selection. Evaluations on real datasets showed that CoxKAN consistently outperformed the traditional Cox proportional hazards model (by up to 4% in C-index) and matched or surpassed the performance of deep learning-based models. Importantly, CoxKAN revealed complex interactions between predictor variables and uncovered symbolic formulae, which are key capabilities that other survival analysis methods lack, to provide clear insights into the impact of key biomarkers on patient risk. Availability and implementation: CoxKAN is available at GitHub and Zenodo

cs.LG↗

arXiv2025

Toxic Ink on Immutable Paper: Content Moderation for Ethereum Input Data Messages (IDMs)

Decentralized communication is becoming an important use case within Web3. On Ethereum, users can repurpose the transaction input data field to embed natural-language messages, commonly known as Input Data Messages (IDMs). However, as IDMs gain wider adoption, there has been a growing volume of toxic content on-chain. This trend is concerning, as Ethereum provides no protocol-level support for content moderation. We propose two moderation frameworks for Ethereum IDMs: (i) BUILDERMOD, where builders perform semantic checks during block construction; and (ii) USERMOD, where users proactively obtain moderation proofs from external classifiers and embed them in transactions. Our evaluation reveals that BUILDERMOD incurs high block-time overhead, which limits its practicality. In contrast, USERMOD enables lower-latency validation and scales more effectively, making it a more practical approach in moderation-aware Ethereum environments. Our study lays the groundwork for protocol-level content governance in decentralized systems, and we hope it contributes to the development of a decentralized communication environment that is safe, trustworthy, and socially responsible.

cs.CR↗

arXiv2025

zkFL: Zero-Knowledge Proof-based Gradient Aggregation for Federated Learning

Federated learning (FL) is a machine learning paradigm, which enables multiple and decentralized clients to collaboratively train a model under the orchestration of a central aggregator. FL can be a scalable machine learning solution in big data scenarios. Traditional FL relies on the trust assumption of the central aggregator, which forms cohorts of clients honestly. However, a malicious aggregator, in reality, could abandon and replace the client's training models, or insert fake clients, to manipulate the final training results. In this work, we introduce zkFL, which leverages zero-knowledge proofs to tackle the issue of a malicious aggregator during the training model aggregation process. To guarantee the correct aggregation results, the aggregator provides a proof per round, demonstrating to the clients that the aggregator executes the intended behavior faithfully. To further reduce the verification cost of clients, we use blockchain to handle the proof in a zero-knowledge way, where miners (i.e., the participants validating and maintaining the blockchain data) can verify the proof without knowing the clients' local and aggregated models. The theoretical analysis and empirical results show that zkFL achieves better security and privacy than traditional FL, without modifying the underlying FL network structure or heavily compromising the training speed.

cs.AI↗

arXiv2025

BRC20 Pinning Attack

BRC20 tokens are a type of non-fungible asset on the Bitcoin network. They allow users to embed customised content within Bitcoin's satoshis. The token frenzy reached a market size of US\$2.811\,b (2023Q3--2025Q1). However, this intuitive design has not undergone serious security scrutiny. We present the first analysis of BRC20's \emph{transfer} mechanism and identify a new attack vector. A typical BRC20 transfer involves two "bundled" on-chain transactions with different fee levels: the first (i.e., \textbf{Tx1}) with a lower fee inscribes the \textsf{transfer} request, while the second (i.e., \textbf{Tx2}) with a higher fee finalizes the actual transfer. An adversary can send a manipulated fee transaction (falling between the two fee levels), which causes \textbf{Tx1} to be processed while \textbf{Tx2} is pinned in the mempool. This locks BRC20 liquidity and disrupts normal withdrawal requests from users. We term this the \emph{BRC20 pinning attack}. We validated the attack in real-world settings in collaboration with Binance researchers. With their knowledge and permission, we conducted a controlled test against Binance's ORDI hot wallet, resulting in a temporary suspension of ORDI withdrawals for 3.5 hours. Recovery was performed shortly after. Further analysis confirms that the attack can be applied to over \textbf{90\%} of inscription-based tokens within the Bitcoin ecosystem.

cs.CR↗

arXiv2025

Talking Transactions: Decentralized Communication through Ethereum Input Data Messages (IDMs)

Can you imagine, blockchain transactions can talk! In this paper, we study how they talk and what they talk about. We focus on the input data field of Ethereum transactions, which is designed to allow external callers to interact with smart contracts. In practice, this field also enables users to embed natural language messages into transactions. Users can leverage these Input Data Messages (IDMs) for peer-to-peer communication. This means that, beyond Ethereum's well-known role as a financial infrastructure, it also serves as a decentralized communication medium. We present the first large-scale analysis of Ethereum IDMs from the genesis block to February 2024 (3134 days). We filter IDMs to extract 867,140 transactions with informative IDMs and use LLMs for language detection. We find that English (95.4%) and Chinese (4.4%) dominate the use of natural languages in IDMs. Interestingly, English IDMs center on security and scam warnings (24%) with predominantly negative emotions, while Chinese IDMs emphasize emotional expression and social connection (44%) with a more positive tone. We also observe that longer English IDMs often transfer high ETH values for protocol-level purposes, while longer Chinese IDMs tend to involve symbolic transfer amounts for emotional intent. Moreover, we find that the IDM participants tend to form small, loosely connected communities (59.99%). Our findings highlight culturally and functionally divergent use cases of the IDM channel across user communities. We further examine the security relevance of IDMs in on-chain attacks. Many victims use them to appeal to attackers for fund recovery. IDMs containing negotiations or reward offers are linked to higher reply rates. We also analyze IDMs' regulatory implications. Their misuse for abuse, threats, and sexual solicitation reveals the urgent need for content moderation and regulation in decentralized systems.

cs.CR↗

arXiv2025

Behavior Preference Regression for Offline Reinforcement Learning

Offline reinforcement learning (RL) methods aim to learn optimal policies with access only to trajectories in a fixed dataset. Policy constraint methods formulate policy learning as an optimization problem that balances maximizing reward with minimizing deviation from the behavior policy. Closed form solutions to this problem can be derived as weighted behavioral cloning objectives that, in theory, must compute an intractable partition function. Reinforcement learning has gained popularity in language modeling to align models with human preferences; some recent works consider paired completions that are ranked by a preference model following which the likelihood of the preferred completion is directly increased. We adapt this approach of paired comparison. By reformulating the paired-sample optimization problem, we fit the maximum-mode of the Q function while maximizing behavioral consistency of policy actions. This yields our algorithm, Behavior Preference Regression for offline RL (BPR). We empirically evaluate BPR on the widely used D4RL Locomotion and Antmaze datasets, as well as the more challenging V-D4RL suite, which operates in image-based state spaces. BPR demonstrates state-of-the-art performance over all domains. Our on-policy experiments suggest that BPR takes advantage of the stability of on-policy value functions with minimal perceptible performance degradation on Locomotion datasets.

cs.LG↗

arXiv2025

Leverage Staking with Liquid Staking Derivatives (LSDs): Opportunities and Risks

In the Proof of Stake (PoS) Ethereum ecosystem, users can stake ETH on Lido to receive stETH, a Liquid Staking Derivative (LSD) that represents staked ETH and accrues staking rewards. LSDs improve the liquidity of staked assets by facilitating their use in secondary markets, such as for collateralized borrowing on Aave or asset exchanges on Curve. The composability of Lido, Aave, and Curve enables an emerging strategy known as leverage staking, an iterative process that enhances financial returns while introducing potential risks. This paper establishes a formal framework for leverage staking with stETH and identifies 442 such positions on Ethereum over 963 days. These positions represent a total volume of 537,123 ETH (877m USD). Our data reveal that 81.7% of leverage staking positions achieved an Annual Percentage Rate (APR) higher than conventional staking on Lido. Despite the high returns, we also recognize the potential risks. For example, the Terra crash incident demonstrated that token devaluation can impact the market. Therefore, we conduct stress tests under extreme conditions of significant stETH devaluation to evaluate the associated risks. Our simulations reveal that leverage staking amplifies the risk of cascading liquidations by triggering intensified selling pressure through liquidation and deleveraging processes. Furthermore, this dynamic not only accelerates the decline of stETH prices but also propagates a contagion effect, endangering the stability of both leveraged and ordinary positions.

q-fin.GN↗

arXiv2024

Market Misconduct in Decentralized Finance (DeFi): Analysis, Regulatory Challenges and Policy Implications

Technological advancement drives financial innovation, reshaping the traditional finance landscape and redefining user-market interactions. The rise of blockchain and Decentralized Finance (DeFi) underscores this intertwined evolution of technology and finance. While DeFi has introduced exciting opportunities, it has also exposed the ecosystem to new forms of market misconduct. This paper aims to bridge the academic and regulatory gaps by addressing key research questions about market misconduct in DeFi. We begin by discussing how blockchain technology can potentially enable the emergence of novel forms of market misconduct. We then offer a comprehensive definition and taxonomy for understanding DeFi market misconduct. Through comparative analysis and empirical measurements, we examine the novel forms of misconduct in DeFi, shedding light on their characteristics and social impact. Subsequently, we investigate the challenges of building a tailored regulatory framework for DeFi. We identify key areas where existing regulatory frameworks may need enhancement. Finally, we discuss potential approaches that bring DeFi into the regulatory perimeter.

q-fin.CP↗