Crypto Mining News

There Are Really Bad Effects of Exclusive Mining – Experts

“No incentive to forward new transactions to peers.”

This is the warning of Dr. Elias Strehle of the Blockchain Research Lab and Lennar Ante of the University of Hamburg recently to the blockchain nodes engaging in exclusive mining thinking that such activities are leading to some bigger things for them.

Part of the background as well of this message was the speculation that crypto miners may instead be incentivized to keep transactions as classified as possible “in the hope of being the only one who can earn the associated transaction fees.”

By definition, exclusive mining is a type of collaboration between a transaction initiator and a single miner or pool, utilizing some private channels to check transactions instead of some broadcasting method on the public blockchain.

After this transaction, recording in a block comes where public blockchain users become aware of such transactions.

Moreover, the authors poised that, since transaction costs signify fixed income for miners, “significantly increased transaction costs could be used to launder money” by colluding with a miner.

Thus, criminals may see smaller blockchain networks “as more suitable vehicles for money laundering or tax evasion via exclusive mining,” the researchers noted.

Dr. Strehle and Ante identified two other probable motivations for engaging in exclusive mining: reducing transaction cost volatility and hiding unconfirmed transactions from the network to prevent frontrunning.

In June, it was reported that various mysterious transactions had confused the wider community.

Others suggest they could be examples of money laundering or pacy back from a disgruntled exchange employee.

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