Researchers from Florida Atlantic College and the College of Mississippi lately revealed analysis indicating that blockchains with “full” blocks — particularly when there’s a transaction queue — seem to have an added layer of safety towards nefarious actors, cash launderers and would-be fraudsters.
Dubbed “Bitcoin Blocksize, Custodial Safety, and Worth,” the group’s paper takes a deep dive into the Mt. Gox crash and different situations the place cryptocurrency has been stolen from crypto exchanges.
The research’s premise lies within the notion that the perpetrators of illicit exercise want to full laundering transactions as quickly as doable.
Per the paper:
“This investigation is pushed by the next instinct: the nearer the blocksize is to the restrict, the extra probably the subsequent transaction might be revealed on a later block and never probably the most present one. When these cybercriminals breach a crypto trade, or ‘shut’ a fraudulently operated one, they wish to launder the stolen bitcoin rapidly.”
The researchers examined their speculation by exploiting historic Bitcoin blockchain knowledge and a crypto trade “rip-off report.” Utilizing a pattern interval of 2010 by means of 2021, they created a “fullness” rating for blocks by which to judge the information.
After making a benchmark, the group analyzed historic knowledge for 2 particular metrics: how a lot block fullness contributed to the value of Bitcoin (BTC), and the way a lot block fullness acted as a deterrent for dangerous actors.
Their analysis, based on the paper, confirmed the group’s speculation that “full Bitcoin blocks act as a deterrent to hackers and scammers as a result of they sign congestion.” In addition they concluded that full blocks “additionally sign an increase in community safety that’s captured in worth,” thus realizing their second speculation that block fullness affected Bitcoin worth.
Per the group’s findings, block fullness is cited as 20% decrease on the “common day” that has an incidence of a cryptocurrency breach or fraud.
