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🚨Dust attacks in Bitcoin network🚨 Did you know that low-amount Bitcoin transactions, called dust, affect the privacy and anonymity of Bitcoin users? Dust transactions are very small amounts of Bitcoin that are usually unprofitable to spend because of the high transaction fees. However, dust transactions can also be used to track and reveal the identities of Bitcoin users by linking their addresses together. This is called a dust attack, and it is a serious threat to the pseudonymity of Bitcoin. A research paper published in Applied Network Science* finds that dust transactions are very common in the Bitcoin network, and that they can significantly reduce the privacy of Bitcoin users, especially if they are targeted by dust attacks. The paper shows that dust transactions are mostly created by gambling services, and illegal marketplaces. The paper also shows that dust transactions are mostly consumed by compromised addresses, whose private keys have been leaked to the public. The paper reveals that dust transactions have different consumption patterns than non-dust transactions, and that they take longer to be spent. The paper also finds that dust attacks are relatively rare, but very effective in clustering Bitcoin addresses. The paper estimates that only 4.86% of all dust creating transactions and 0.008% of all transactions overall are likely related to dust attacks. However, these transactions allow to cluster 66.43% of all addresses affected by dust transactions and 0.14% of all addresses. Dust attacks can significantly increase the effectiveness of address clustering, and thus reduce the pseudonymity of Bitcoin users. $BTC #BTC #dust #crypto2023 *Source: Loporchio, M., Bernasconi, A., Di Francesco Maesa, D. et al. Is Bitcoin gathering dust? An analysis of low-amount Bitcoin transactions. Appl Netw Sci 8, 34 (2023).

🚨Dust attacks in Bitcoin network🚨

Did you know that low-amount Bitcoin transactions, called dust, affect the privacy and anonymity of Bitcoin users? Dust transactions are very small amounts of Bitcoin that are usually unprofitable to spend because of the high transaction fees. However, dust transactions can also be used to track and reveal the identities of Bitcoin users by linking their addresses together. This is called a dust attack, and it is a serious threat to the pseudonymity of Bitcoin.

A research paper published in Applied Network Science* finds that dust transactions are very common in the Bitcoin network, and that they can significantly reduce the privacy of Bitcoin users, especially if they are targeted by dust attacks. The paper shows that dust transactions are mostly created by gambling services, and illegal marketplaces. The paper also shows that dust transactions are mostly consumed by compromised addresses, whose private keys have been leaked to the public. The paper reveals that dust transactions have different consumption patterns than non-dust transactions, and that they take longer to be spent.

The paper also finds that dust attacks are relatively rare, but very effective in clustering Bitcoin addresses. The paper estimates that only 4.86% of all dust creating transactions and 0.008% of all transactions overall are likely related to dust attacks. However, these transactions allow to cluster 66.43% of all addresses affected by dust transactions and 0.14% of all addresses. Dust attacks can significantly increase the effectiveness of address clustering, and thus reduce the pseudonymity of Bitcoin users.

$BTC #BTC #dust #crypto2023

*Source: Loporchio, M., Bernasconi, A., Di Francesco Maesa, D. et al. Is Bitcoin gathering dust? An analysis of low-amount Bitcoin transactions. Appl Netw Sci 8, 34 (2023).

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How Cryptocurrencies Are Reported Differently Around the World ⁉️ Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. They have become increasingly popular in recent years, attracting the attention of investors, regulators, and researchers. However, there is no clear guidance on how to account for and report cryptocurrencies in financial statements. This can lead to inconsistencies and distortions in the financial information that users rely on to make decisions. Researchers* compared and contrasted the accounting and financial reporting practices for cryptocurrencies under US and international accounting frameworks. They analyzed the financial statements of 40 global companies that have exposure to cryptocurrencies, such as purchases, mining, payments, trading, and investments in ICOs and early-stage blockchain ventures. They found that the current accounting standards lead to inconsistencies and distortions in assessing the firms' asset value, liquidity, profitability, and cash-generating abilities. For example, some firms report cryptocurrencies as intangible assets, while others report them as inventory or cash equivalents. Some firms measure cryptocurrencies at cost, while others measure them at fair value. Some firms recognize gains or losses from cryptocurrency transactions in income, while others report them in other comprehensive income or equity. These differences can affect the comparability and reliability of the financial information across firms and jurisdictions. The article suggests that understanding the financial and valuation implications of these new virtual assets is vital for future accounting research and professional practice. It also calls for more guidance and standardization from accounting standard setters and regulators to address the challenges and opportunities posed by cryptocurrencies. #crypto2023 #CryptoTalks #transparency *Luo, M., Yu, S. Financial reporting for cryptocurrency. Rev Account Stud (2022).
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