The study conducted by researchers from Florida Atlantic University and the University of Mississippi suggests that the level of “fullness” in a blockchain directly correlates with its security. The researchers found that blockchains with full blocks, especially when there is a transaction queue, provide an additional layer of protection against malicious actors, money launderers, and potential fraudsters. The study focuses on the Mt. Gox crash and other instances of cryptocurrency theft from crypto exchanges. The researchers propose that criminals involved in illicit activities aim to complete their laundering transactions quickly, and therefore, the closer a block is to its size limit, the more likely the next transaction will be published on a later block rather than the most current one. By analyzing historical Bitcoin blockchain data and a scam report from a crypto exchange, the researchers confirmed their hypothesis that full blocks act as a deterrent to hackers and scammers by signaling congestion. They also found that full blocks contribute to a rise in network security, which is reflected in the price of Bitcoin. The study concludes that on average days with cryptocurrency breaches or fraud, block fullness is 20% lower compared to normal days.
Summary:
– Full blocks in a blockchain provide added security against malicious actors, money launderers, and fraudsters.
– Criminals involved in illicit activities aim to complete laundering transactions quickly.
– The closer a block is to its size limit, the more likely the next transaction will be published on a later block.
– Historical data analysis confirmed that full blocks act as a deterrent to hackers and scammers by signaling congestion.
– Full blocks also contribute to a rise in network security, which affects the price of Bitcoin.
– On average days with cryptocurrency breaches or fraud, block fullness is 20% lower compared to normal days.