Dr. Elias Strehl of the Blockchain Research Laboratory and Lennar Ante at the University of Hamburg recently warned that blockchain nodes involved in exclusive mining “have no incentive to send new transactions to their peers.”

Instead, miners speculate that cryptocurrency miners may be interested in keeping transactions secret, “in the hope that they will be the only person who can earn the right transaction fees.”

Exclusive mining, which is a kind of interaction between the initiator of a transaction and a single miner or pool, uses private channels to confirm transactions, instead of broadcasting them on a public blockchain. Only after they have been written to the block will users know about these transactions.

The authors argue that since transaction costs represent a regular income for miners, “significantly increased transaction costs can be used to launder money” as a result of collaboration with the miner.

As a result, criminals may look at small blockchain networks “as a more convenient way to launder money or evade taxes through exclusive mining,” the researchers note.

Dr Strehle and Ante identified two other potential factors for participating in exclusive mining operations: reducing the volatility of transaction costs and hiding unconfirmed transactions from the network to prevent direct operations.

In June, the Cointelegraph reported on a series of mysterious transactions that stunned society. Some speculate that these may be examples of money laundering or revenge on a dissatisfied cashier.

Source: CoinTelegraph

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