{"id":63798,"date":"2023-10-27T17:46:31","date_gmt":"2023-10-27T17:46:31","guid":{"rendered":"https:\/\/egrowonline.com\/?p=63798"},"modified":"2023-10-27T17:46:31","modified_gmt":"2023-10-27T17:46:31","slug":"blockchain-congestion-and-transaction-queues-actually-deter-nefarious-actors-study","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=63798","title":{"rendered":"Blockchain congestion and transaction queues actually deter \u2018nefarious actors\u2019 \u2014 Study"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=840\/https:\/\/s3.cointelegraph.com\/uploads\/2023-10\/d4fb9bf7-976a-4f49-a7cf-5fa94c3bb9c5.jpg\" \/><\/p>\n<div data-v-8081b7b6=\"\">\n<p>Researchers from Florida Atlantic University and the University of Mississippi recently published research indicating that blockchains with \u201cfull\u201d blocks \u2014 especially when there\u2019s a transaction queue \u2014 appear to have an added layer of protection against nefarious actors, money launderers, and would-be fraudsters.\u00a0<\/p>\n<p>Dubbed, \u201cBitcoin Blocksize, Custodial Security, and Price,\u201d the team\u2019s paper takes a <a target=\"_blank\" href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4242246\" rel=\"noopener nofollow\">deep dive<\/a> into the Mt.Gox crash and other instances where cryptocurrency has been stolen from crypto exchanges. <\/p>\n<p>The study\u2019s premise lies in the notion that the perpetrators of illicit activity wish to complete laundering transactions as soon as possible. <\/p>\n<p>Per the paper:<\/p>\n<blockquote><p>\u201cThis investigation is driven by the following intuition: the closer the blocksize is to the limit, the more likely the next transaction will be published on a later block and not the most current one. When these cybercriminals breach a crypto exchange, or \u2018close\u2019 a fraudulently operated one, they want to launder the stolen bitcoin quickly.\u201d<\/p><\/blockquote>\n<p>The researchers tested their hypothesis by exploiting historical Bitcoin blockchain data and a crypto exchange \u201cscam report.\u201d Using a sample period of 2010 through 2021, they created a \u201cfullness\u201d score for blocks by which to evaluate the data. <\/p>\n<p>After creating a benchmark, the team was analyzed historical data for two specific metrics: how much block fullness contributed to the price of bitcoin, and how much block fullness acted as a deterrent for bad actors. <\/p>\n<p>Their evaluation, according to the paper, confirmed the team\u2019s hypothesis that \u201cfull Bitcoin blocks act as a deterrent to hackers and scammers because they signal congestion.\u201d They also concluded that full blocks \u201calso signal a rise in network security that is captured in price,\u201d thus realizing their second hypothesis that block fullness affected bitcoin price. <\/p>\n<p>Per the team\u2019s findings, block fullness is cited as 20% lower on the \u201caverage day\u201d that has an incidence of a cryptocurrency breach or fraud.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/blockchain-bitcoin-congestion-transaction-queues-deter-nefarious-actors-study\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Researchers from Florida Atlantic University and the University of Mississippi recently published research indicating that blockchains with \u201cfull\u201d blocks \u2014 especially when there\u2019s a transaction queue \u2014 appear to have an added layer of protection against nefarious actors, money launderers, and would-be fraudsters.\u00a0 Dubbed, \u201cBitcoin Blocksize, Custodial Security, and Price,\u201d the team\u2019s paper takes a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":63799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[38],"tags":[9706,73,4139,6763,18511,18510,82,2123],"class_list":["post-63798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-actors","tag-blockchain","tag-congestion","tag-deter","tag-nefarious","tag-queues","tag-study","tag-transaction"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2023\/10\/d4fb9bf7-976a-4f49-a7cf-5fa94c3bb9c5.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/63798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63798"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/63798\/revisions"}],"predecessor-version":[{"id":63800,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/63798\/revisions\/63800"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/63799"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63798"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}