Publication Library
As Confidence Aligns - Exploring the Effect of AI Confidence on Human Self-confidence in Human-AI Decision Making
Description: Complementary collaboration between humans and AI is essential for human-AI decision making. One feasible approach to achieving it involves accounting for the calibrated confidence levels of both AI and users. However, this process would likely be made more difficult by the fact that AI confidence may influence users' self-confidence and its calibration. To explore these dynamics, we conducted a randomized behavioral experiment. Our results indicate that in human-AI decision-making, users' self-confidence aligns with AI confidence and such alignment can persist even after AI ceases to be involved. This alignment then affects users' self-confidence calibration. We also found the presence of real-time correctness feedback of decisions reduced the degree of alignment. These findings suggest that users' self-confidence is not independent of AI confidence, which practitioners aiming to achieve better human-AI collaboration need to be aware of. We call for research focusing on the alignment of human cognition and behavior with AI.
Created At: 26 January 2025
Updated At: 26 January 2025
Improving robot understanding using conversational AI - demonstration and feasibility study
Description: Explanations constitute an important aspect of successful human robot interactions and can enhance robot understanding. To improve the understanding of the robot, we have developed four levels of explanation (LOE) based on two questions: what needs to be explained, and why the robot has made a particular decision. The understandable robot requires a communicative action when there is disparity between the human s mental model of the robot and the robots state of mind. This communicative action was generated by utilizing a conversational AI platform to generate explanations. An adaptive dialog was implemented for transition from one LOE to another. Here, we demonstrate the adaptive dialog in a collaborative task with errors and provide results of a feasibility study with users.
Created At: 26 January 2025
Updated At: 26 January 2025
Blockchain Security Risk Assessment in Quantum Era, Migration Strategies and Proactive Defense
Description: The emergence of quantum computing presents a formidable challenge to the security of blockchain systems. Traditional cryptographic algorithms, foundational to digital signatures, message encryption, and hashing functions, become vulnerable to the immense computational power of quantum computers. This paper conducts a thorough risk assessment of transitioning to quantum-resistant blockchains, comprehensively analyzing potential threats targeting vital blockchain components: the network, mining pools, transaction verification mechanisms, smart contracts, and user wallets. By elucidating the intricate challenges and strategic considerations inherent in transitioning to quantum-resistant algorithms, the paper evaluates risks and highlights obstacles in securing blockchain components with quantum-resistant cryptography. It offers a hybrid migration strategy to facilitate a smooth transition from classical to quantum-resistant cryptography. The analysis extends to prominent blockchains such as Bitcoin, Ethereum, Ripple, Litecoin, and Zcash, assessing vulnerable components, potential impacts, and associated STRIDE threats, thereby identifying areas susceptible to quantum attacks. Beyond analysis, the paper provides actionable guidance for designing secure and resilient blockchain ecosystems in the quantum computing era. Recognizing the looming threat of quantum computers, this research advocates for a proactive transition to quantum-resistant blockchain networks. It proposes a tailored security blueprint that strategically fortifies each component against the evolving landscape of quantum-induced cyber threats. Emphasizing the critical need for blockchain stakeholders to adopt proactive measures and implement quantum-resistant solutions, the paper underscores the importance of embracing these insights to navigate the complexities of the quantum era with resilience and confidence.
Created At: 22 January 2025
Updated At: 22 January 2025
Metamorphic Testing for Smart Contract Validation - A Case Study of Ethereum-Based Crowdfunding Contracts
Description: Blockchain smart contracts play a crucial role in automating and securing agreements in diverse domains such as finance, healthcare, and supply chains. Despite their critical applications, testing these contracts often receives less attention than their development, leaving significant risks due to the immutability of smart contracts post-deployment. A key challenge in the testing of smart contracts is the oracle problem, where the exact expected outcomes are not well defined, complicating systematic testing efforts. Metamorphic Testing (MT) addresses the oracle problem by using Metamorphic Relations (MRs) to validate smart contracts. MRs define how output should change relative to specific input modifications, determining whether the tests pass or fail. In this work, we apply MT to test an Ethereum-based crowdfunding smart contract, focusing on core functionalities such as state transitions and donation tracking. We identify a set of MRs tailored for smart contract testing and generate test cases for these MRs. To assess the effectiveness of this approach, we use the Vertigo mutation testing tool to create faulty versions of the smart contract. The experimental results show that our MRs detected 25.65% of the total mutants generated, with the most effective MRs achieving a mutant-killing rate of 89%. These results highlight the utility of MT to ensure the reliability and quality of blockchain-based smart contracts.
Created At: 22 January 2025
Updated At: 22 January 2025
A mixture transition distribution approach to portfolio optimization
Description: Understanding the dependencies among financial assets is critical for portfolio optimization. Traditional approaches based on correlation networks often fail to capture the nonlinear and directional relationships that exist in financial markets. In this study, we construct directed and weighted financial networks using the Mixture Transition Distribution (MTD) model, offering a richer representation of asset interdependencies. We apply local assortativity measures--metrics that evaluate how assets connect based on similarities or differences--to guide portfolio selection and allocation. Using data from the Dow Jones 30, Euro Stoxx 50, and FTSE 100 indices constituents, we show that portfolios optimized with network-based assortativity measures consistently outperform the classical mean-variance framework. Notably, modalities in which assets with differing characteristics connect enhance diversification and improve Sharpe ratios. The directed nature of MTD-based networks effectively captures complex relationships, yielding portfolios with superior risk-adjusted returns. Our findings highlight the utility of network-based methodologies in financial decision-making, demonstrating their ability to refine portfolio optimization strategies. This work thus underscores the potential of leveraging advanced financial networks to achieve enhanced performance, offering valuable insights for practitioners and setting a foundation for future research.
Created At: 22 January 2025
Updated At: 22 January 2025