The recent study conducted by researchers from Florida Atlantic University and the University of Mississippi reveals that the security of a blockchain is directly linked to its “fullness.” The study focuses on the concept of block fullness, particularly when there is a transaction queue, and how it provides an additional layer of protection against malicious actors, money launderers, and potential fraudsters. The researchers analyzed the Mt. Gox crash and other instances of cryptocurrency theft from crypto exchanges to support their findings.
The study suggests that individuals involved in illicit activities aim to complete their money laundering transactions as quickly as possible. The researchers hypothesized that the closer a blockchain’s blocksize is to its limit, the more likely the next transaction will be published on a later block instead of the most current one. This delay in publishing transactions can hinder cybercriminals’ efforts to launder stolen Bitcoin efficiently.
To test their hypothesis, the researchers utilized historical Bitcoin blockchain data and a scam report from a crypto exchange. They created a “fullness” score for blocks during the period from 2010 to 2021 to evaluate the data. By analyzing two specific metrics – the impact of block fullness on Bitcoin price and its deterrent effect on bad actors – the team confirmed their hypothesis. They found that full blocks not only act as a deterrent to hackers and scammers by signaling congestion but also contribute to a rise in network security, which is reflected in the price of Bitcoin.
According to the study’s findings, block fullness is approximately 20% lower on average during days when cryptocurrency breaches or fraud occur.
Summary:
– A blockchain’s “fullness” is directly related to its security.
– Full blocks with a transaction queue provide added protection against malicious actors, money launderers, and fraudsters.
– The study analyzed the Mt. Gox crash and other instances of cryptocurrency theft to support its findings.
– Cybercriminals aim to complete money laundering transactions quickly, but block fullness can hinder their efforts.
– Historical Bitcoin blockchain data and a scam report were used to test the hypothesis.
– Full blocks act as a deterrent to hackers and scammers by signaling congestion.
– Block fullness affects the price of Bitcoin, indicating a rise in network security.
– Block fullness is approximately 20% lower on average during days of cryptocurrency breaches or fraud.
