Researchers at Florida Atlantic University and the University of Mississippi recently published research showing that blockchains with “complete” blocks (especially when there are transaction queues) appear to have additional protections against nefarious actors, money launderers, and potential fraudsters layer.
The team’s paper is called “Bitcoin Block Size, Custody Security, and Price.” deep dive Mt. Gox crash and other incidents of cryptocurrencies being stolen from cryptocurrency exchanges.
The premise of the study is that perpetrators of illegal activities want to complete money laundering transactions as quickly as possible.
According to the paper:
“This investigation is driven by the intuition that the closer the block size is to the limit, the more likely it is that the next transaction will be published on a later block rather than the latest block. When these cybercriminals When elements disrupt cryptocurrency exchanges or ‘shut down’ exchanges that operate fraudulently, they want to quickly launder stolen Bitcoins.”
The researchers tested their hypothesis by using historical Bitcoin blockchain data and cryptocurrency exchange “fraud reports.” Using a sample period from 2010 to 2021, they created a “completeness” score for the block to use in evaluating the data.
After creating the benchmark, the team analyzed historical data for two specific metrics: how much block fill contributes to Bitcoin (BTC) price, and how much block fill serves as a deterrent to bad actors.
According to the paper, their assessment confirmed the team’s hypothesis that “full Bitcoin blocks act as a deterrent to hackers and scammers because they signal congestion.” They also concluded that complete blocks Blocks “also mark increases in network security reflected in the price,” thus fulfilling their second hypothesis that block completeness affects Bitcoin price.
According to the team’s findings, block fill levels were 20% lower compared to an “average day” when a cryptocurrency leak or fraud event occurred.
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