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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Simulation model of Blockchain System in the Higher Education</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Shmatko Olexandr</string-name>
          <email>oleksandr.shmatko@khpi.edu.ua</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Serhii Yevseiev</string-name>
          <email>serhii.yevseiev@hneu.net</email>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Vladyslav Khvostenko</string-name>
          <email>vladyslav.khvostenko@gmail.com</email>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>National Technical University "Kharkiv Polytechnic Institute" st. Kirpichova</institution>
          ,
          <addr-line>2, Kharkiv, 61000</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
      </contrib-group>
      <abstract>
        <p>This article presents a mathematical model of a distributed ledger for higher education. The main components of this network are considered, as well as their formal presentation. The model of peer-to-peer network is visualized, the research of the parameters of the centralized and decentralized data processing network is carried out. Based on the data obtained, simulation models were built and investigated. The results of the simulation simulations were analyzed and the most optimal parameters were selected.</p>
      </abstract>
      <kwd-group>
        <kwd>1 distributed ledger</kwd>
        <kwd>blockchain</kwd>
        <kwd>mathematical modeling</kwd>
        <kwd>simulation</kwd>
        <kwd>probability theory</kwd>
        <kwd>theory of random processes</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>At present in the world there is a revolutionary
transition from informatization of the main
spheres of human activity to their digitalization.</p>
      <p>
        If informatization involves, in essence, the
modernization of certain human activities through
the use of information and communication
technologies, the digital transformation (or
digitization) in its turn involves their qualitative
transformation, departure from the usual types
and forms of activity to the new ones, based on
digital models and technologies [
        <xref ref-type="bibr" rid="ref1 ref2">1,2</xref>
        ].
      </p>
      <p>The development of the digital environment
requires the support and development of both
existing conditions for the emergence of
promising end-to-end digital platforms and
technologies, as well as the creation of conditions
for the emergence of new platforms and
technologies.</p>
      <p>The main end-to-end digital technologies are:
– big data;
– neurotechnology and artificial intelligence;
– distributed registry systems (blockchain);
– quantum technologies;
– new production technologies;
– industrial internet;
– components of robotics and sensors;
– wireless communication technologies;
– virtual and augmented reality technologies.</p>
      <p>
        Continuing the cycle of work on the digital
transformation of education [
        <xref ref-type="bibr" rid="ref3 ref4">3,4</xref>
        ], the paper
conducts research on the use of blockchain
technology (blockchain) for the tokenization of
educational assets and promising areas of its
implementation in education.
      </p>
    </sec>
    <sec id="sec-2">
      <title>2. Literature review</title>
      <p>
        In [
        <xref ref-type="bibr" rid="ref5 ref6">5,6</xref>
        ] possible scenarios for using
blockchain technology in the field of education
are considered. Methods and technologies of
tokenization of assets, related to the educational
process, are investigated. It is concluded, that the
blockchain technology is decentralized and
transparent with a high degree of reliability, which
ensures the equality of all users of the chain's
services. The transparency of the technology
guarantees the participants in the process against
abuse and forgery of documents. The study of the
features of smart contracts made it possible to
form the advantages of smart contracts in the field
of education
      </p>
      <p>
        In [
        <xref ref-type="bibr" rid="ref7">7</xref>
        ], provides a critical analysis of
application of the blockchain technology
considering with its applicability opportunities
and restrictions in education; it also aims to
identify the consequences of its influence upon
the development of education.
      </p>
      <p>
        The article [
        <xref ref-type="bibr" rid="ref8">8</xref>
        ] provides an overview of the use
of blockchain for academic transcripts. The aim is
to find, among the proposed models, overlapping
aspects that solve common problems and can lead
to a universally accepted de facto standard. In
addition, since academic institutions will serve as
oracles for specific blockchain applications, a
robustness study is underway to see if the
proposed applications effectively solve the oracle
problem.
      </p>
      <p>
        The paper [
        <xref ref-type="bibr" rid="ref9">9</xref>
        ] is a Systematic Bibliometric
Review of the Literature on Blockchain
Applications Research in Higher Education. The
review includes 37 articles that provide up-to-date
knowledge on the current implications of using
blockchain technology to improve higher
education processes. The LRSB findings show
that blockchain is being used to create new
interventions to improve the prevailing ways of
sharing, delivering and protecting student
knowledge data and personal records.
      </p>
      <p>The relevance of this work is due to the
increasing popularity of distributed registry
systems, in connection with which it is necessary
to assess the quantitative parameters of this
network and determine the most optimal
parameters.</p>
      <p>The general network model is a peer-to-peer
network in which each participant has m client
applications, an application server S, an N node (a
server for communicating with other network
nodes)</p>
    </sec>
    <sec id="sec-3">
      <title>3. Simulation model</title>
      <p>Simulation is a method of research in which
the studied system is replaced by a model, with
sufficient accuracy describes the real system from
which experiments are conducted in order to
obtain information about this system.</p>
      <p>In favor of using the methods of simulation in
this situation is the impossibility of experimenting
on a real object, because then we would have to
develop two full-fledged systems. Also models
will allow to demonstrate work of two
architectures in time and to calculate indicators
for decision-making in favor of one of them.</p>
      <p>The main parameter of the study will be the
average transaction processing time of the system.</p>
      <p>To simulate the model you need to know the
following parameters:
1 Average processing time of one application;
2 Number of customers sending applications;
3 Number of servers processing these requests.</p>
      <p>Many transactions related to smart contracts
circulate on the Ethereum platform. To calculate
the average processing time of one application,
you need to include several assumptions and
simplifications:</p>
      <p>
        1) The generation time of a new block is
subject to the exponential law (the covariance
coefficient for this law is a constant equal to one)
[
        <xref ref-type="bibr" rid="ref7">7</xref>
        ].
      </p>
      <p>
        2) The Ethereum blockchain platform does not
have the maximum possible block size and limit
on the number and size of transactions, but there
is a limit on the maximum amount of gas (gas,
transaction fees) used in the block. This value can
be reduced or increased in the next block by 20
percent [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ].
      </p>
      <p>
        When developing a mathematical model, it is
assumed that the maximum number of
transactions in the block will be 77. This number
is taken from the average number of transactions
in the block of the real network Ethereum [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ],
obtained as of November 2017
      </p>
      <p>3) The emergence of new transactions (in other
words, applications) is subject to the simplest law
of distribution, namely Poisson's. In the
developed mathematical model it is considered
that the flow of incoming applications is the
simplest, because it corresponds to the properties
of stationary, ordinary and no aftereffects in the
considered conditions.</p>
      <p>Each transaction is processed sequentially and
has a strict order of writing to the decentralized
blockchain; this ensures the ordinary flow of
applications.</p>
      <p>A centralized system can also be considered in
the context of queuing theory, because the server
is a single-phase queuing system.</p>
      <p>AnyLogic software environment is used to
build a simulation model and conduct
experiments. Simulation models of two systems
were built using AnyLogic tools.</p>
      <sec id="sec-3-1">
        <title>Input parameters of the model:</title>
        <p>1 Number of customers sending requests
2 Number of miners in the blockchain network
3 Number of requests per 10 minutes from one
client
4 Number of requests from one client
Figures 1 and 2 show simulation models of
decentralized and centralized networks.
model of centralized</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>4. Results of modeling</title>
      <p>Consider the Hinchin-Polachek formula for
calculating the average waiting time of the
application:
 =
 ×  2 × (1 +  2)</p>
      <p>2 × (1 −  ×  )
where  - the intensity of the flow of
applications,</p>
      <p>b is the average processing time of one
application,</p>
      <p>v is the coefficient of variation of the
law of distribution of the average processing
time of one application.</p>
      <p>If the denominator of the formula is greater
than or equal to one, the average waiting time for
the execution of one application goes to infinity.
Indeed, if the intensity is too high, the application
will never be processed at an infinite interval. The
calculated values corresponding to the blockchain
system considered in the work. The average
processing time of one application.</p>
      <p>=</p>
      <p>ℎ 
 ℎ</p>
      <p>
        The average mining time of the block and the
average number of transactions in the block were
obtained from the average indicators of the
actually working Ethereum network in November
2017 [
        <xref ref-type="bibr" rid="ref9">9, 10</xref>
        ].
      </p>
      <p>=
15
77</p>
      <p>≈ 0.195</p>
      <p>The coefficient of variation for the exponential
law, which determines the processing time of one
application, is equal to one. Thus, we obtain the
formula of the average waiting time for
processing one application, which depends on the
intensity of the input stream:
 =</p>
      <p>× 0.038
1 −  × 0.195</p>
      <sec id="sec-4-1">
        <title>For the centralized model:</title>
        <p>b = average time of application processing on
the application server + average time of
application processing by the database server =
200ms + 103ms. = 0.303 sec.</p>
        <p>Then the formula for the average waiting time
for processing one application, which depends on
the intensity of the input stream for the centralized
network model:
 =</p>
        <p>× 0.091
1 −  × 0.303</p>
        <p>It is proposed to conduct several experiments,
with different indicators of the intensity of the
flow of requests and the number of customers.</p>
        <p>Parameters of first experiment.</p>
        <p>Number of clients: 5
Miner's number: 10</p>
        <p>Number of transactions from the client per
minute: 0.2</p>
        <p>Number of requests: 10</p>
        <p>First of all, you should calculate the intensity
of the flow of applications per second:</p>
        <p> = 0.2 / 60 = 0.003 sec</p>
        <p>The next step is to calculate the average
waiting time for processing one application for a
centralized system:
 = (  0.091) / (1-  0.303) = 0.00027 sec.
And for centralized respectively:
 = ( 0.038) / (1- 0.195) = 0.00011 sec.</p>
        <p>The experiment will run for 10 minutes. The
centralized system processed requests in
3190,767 seconds, and the decentralized system
in 66,880 seconds. A total of 50 requests were
processed, as evidenced by the green colors of
both rectangles.</p>
        <p>Conduct experiment 2 with another data set:
Number of clients: 20
Miner's number: 15</p>
        <p>Number of transactions from the client per
minute: 1</p>
        <p>Number of requests: 20
Let's calculate the values for modeling:
 = 0.2 / 600 = 0.016 sec.
 = (  0.091) / (1-  0.303) = 0.0014 sec.
And for centralized respectively:
 = (  0.038) / (1-  0.195) = 0.00060 sec.</p>
        <p>The experiment will run for 10 minutes. In the
decentralized system, this experiment ends at
79.833 seconds of simulation, and the centralized
system completed its work in 6673.53 seconds,
processing only 124 applications.</p>
        <p>Based on this, we can conclude that the
processing of transactions in the decentralized
network model is almost 47 times faster than in
the centralized. At the same time, the centralized
system has less fault tolerance than the
decentralized one, as experiment 2 showed. In
addition, the centralized system is vulnerable to
DDoS attacks, while in the decentralized model,
one of the nodes would have to take at least 51%
of the load, which is completely unrealistic. That
is why the confidentiality of data in a
decentralized system is an order of magnitude
higher than in a centralized one.</p>
        <p>In order to clearly demonstrate the importance
of the data, it was decided to conduct 23
experiments on different data sets and to track
how each of the systems will behave as the
number of queries increases. A constant number
of clients was selected for the experiments - 5
pieces and the range of requests from 5 to 205.
This means that each client will send 1,3,5,7 ... 41
requests. The results of these experiments are
presented in Figure 3.</p>
        <p>As can be seen from the figure, after 25
requests, the centralized system does not process
the total number of requests coming into the
system. This means that the load of 5 requests
from each of the 5 customers per minute for her
was the maximum. The decentralized system
processed all incoming requests.</p>
        <p>The graph clearly shows that the curve of the
centralized system breaks at the coordinate
(183,132; 25). And the curve of the decentralized
system is growing</p>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>5. Conclusions</title>
      <p>The experiment showed that the performance
of the network depends on the intensity of the
appearance of applications, while for the correct
operation of the blockchain technology of the
presented type, it is possible to vary the values of
the intensity of nodes and the values
buffer size.</p>
      <p>The authors did not consider internal
connections between network elements when
building the models, which could affect the
results. Also, the simulation model does not
provide the possibility of obtaining a point
estimate of the investigated parameter, but allows
one to obtain interval estimates, the accuracy of
which depends on the methods and scope of
observations, the initial state, and the
pseudorandom number generator.</p>
      <p>It should be noted that modeling the
performance of blockchain technology using the
AnyLogic system can be convenient for analysis
when changing various parameters. However, for
more accurate results, it is necessary to carry out
additional research in the field of blockchain
modeling on the AnyLogic emulator.</p>
      <p>The analysis of the models showed the
applicability of separate simulation systems for
assessing the impact of blockchain technology on
data transmission and processing networks.</p>
      <p>In this paper, an overview of solutions based
on blockchain technologies in the field of higher
education was carried out and presented, as well
as simulation models with an emphasis on
queuing systems were presented. The results of
comparison of decentralized and centralized
systems are presented.</p>
      <p>In the future, it is planned to expand the system
indicators to obtain more accurate results using
the AnyLogic system and propose a methodology
for calculating the network infrastructure, taking
into account the characteristics of the traffic and
the received data.</p>
    </sec>
    <sec id="sec-6">
      <title>6. References</title>
    </sec>
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