The first six months of 2018 have seen cryptocurrency thefts of $761 million, and the technology is also the latest and greatest tool for money laundering. This increase in crime has caused both researchers and law enforcement to look for ways to trace criminal proceeds. Although tracing algorithms have improved recently, they still yield an enormous amount of data of which very few datapoints are relevant or interesting to investigators, let alone ordinary bitcoin owners interested in provenance. In this work we describe efforts to visualize relevant data on a blockchain. To accomplish this we come up with a graphical model to represent the stolen coins and then implement this using a variety of visualization techniques.
A more mature system was BitConeView, presented by Battista and Donato in 2015 @cite_4 . This was among the first to provide a sensible GUI to inspect how a particular UTXO propagated through the network. In order to explain what it means for money to move, the authors came up with purity' -- basically a version of haircut tainting. They only evaluated the usability of their system informally, and came to the conclusion that more improvements were necessary to the way purity was presented to the user.
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The Bitcoin protocol is a significant milestone in the history of money. However, its adoption is currently constrained by the transaction limits of the system. As the chief problem of blockchain technology, the scaling issue has attracted many valuable solutions both on-chain and off-chain. In this paper, our goal is to explore the notion of unspent transaction outputs (UTXOs) to propose an augmented Bitcoin protocol that can scale gracefully. Our proposal aims to increase the transaction throughput by partitioning the UTXO space and splitting the blockchain. In addition, a new type of Bitcoin node is introduced to preserve the capability to run validating nodes in low-bandwidth environments, despite the increased transaction throughput. Abstract This work presents a systemic top-down visualization of Bitcoin transaction activity to explore dynamically generated patterns of algorithmic behavior. Bitcoin dominates the cryptocurrency markets and presents researchers with a rich source of real-time transactional data. The pseudonymous yet public nature of the data presents opportunities for the discovery of human and algorithmic behavioral patterns of interest to many parties such as financial regulators, protocol designers, and security analysts. However, retaining visual fidelity to the underlying data to retain a fuller understanding of activity within the network remains challenging, particularly in real time. We expose an effective force-directed graph visualization employed in our large-scale data observation facility to accelerate this data exploration and derive useful insight among domain experts and the general public alike. The high-fidelity visualizations demonstrated in this article allowed for collaborative discovery of unexpec... A shuffle consists of a permutation and re-encryption of a set of input ciphertexts. One application of shuffles is to build mix-nets. We suggest an honest verifier zero-knowledge argument for the correctness of a shuffle of homomorphic encryptions. Our scheme is more efficient than previous schemes both in terms of communication and computation. The honest verifier zero-knowledge argument has a size that is independent of the actual cryptosystem being used and will typically be smaller than the size of the shuffle itself. Moreover, our scheme is well suited for the use of multi-exponentiation and batch-verification techniques. Additionally, we suggest a more efficient honest verifier zero-knowledge argument for a commitment containing a permutation of a set of publicly known messages. We also suggest an honest verifier zero-knowledge argument for the correctness of a combined shuffle-and-decrypt operation that can be used in connection with decrypting mix-nets based on ElGamal encryption. All our honest verifier zero-knowledge arguments can be turned into honest verifier zero-knowledge proofs. We use homomorphic commitments as an essential part of our schemes. When the commitment scheme is statistically hiding we obtain statistical honest verifier zero-knowledge arguments; when the commitment scheme is statistically binding, we obtain computational honest verifier zero-knowledge proofs. Bitcoin is a potentially disruptive new crypto-currency based on a decentralized opensource protocol which is gradually gaining popularity. Perhaps the most important question that will affect Bitcoin’s success, is whether or not it will be able to scale to support the high volume of transactions required from a global currency system. We investigate the restrictions on the rate of transaction processing in Bitcoin as a function of both the bandwidth available to nodes and the network delay, both of which lower the efficiency of Bitcoin’s transaction processing. The security analysis done by Bitcoin’s creator Satoshi Nakamoto [12] assumes that block propagation delays are negligible compared to the time between blocks—an assumption that does not hold when the protocol is required to process transactions at high rates. We improve upon the original analysis and remove this assumption. Using our results, we are able to give bounds on the number of transactions per second the protocol can handle securely. Building on previously published measurements by Decker and Wattenhofer [5], we show these bounds are currently more restrictive by an order of magnitude than the bandwidth needed to stream all transactions. We additionally show how currently planned improvements to the protocol, namely the use of transaction hashes in blocks (instead of complete transaction records), will dramatically alleviate these restrictions. Finally, we present an easily implementable modification to the way Bitcoin constructs its main data structure, the blockchain, that immensely improves security from attackers, especially when the network operates at high rates. This improvement allows for further increases in the number of transactions processed per second. We show that with our proposed modification, significant speedups can be gained in confirmation time of transactions as well. The block generation rate can be securely increased to more than one block per second – a 600 fold speedup compared to today’s rate, while still allowing the network to processes many transactions per second.