One more question.
Your thesis proposes a method for tracking and visualizing coin transaction changes based on exchange platforms as a way to prevent illegal transactions.
You suggested a way to track and visualize the UTXO change of the Bitcoin wallet, how can you interpret the change in the parsing of the wallet transaction as a semantic analysis of whether it is an illegal transaction?
And, the more illegal transactions are, the higher the possibility of conducting transactions in P2P by utilizing the secret of cryptocurrency.
How can you ensure the rationality of the assumptions of the coin exchange platform implementation?
Thank you again of your question. And you are right. In fact, as far as our knowledge, we can’t determine the transaction is whether legal or illegal only depend on the transaction patterns. The only way to confirm the financial crime of cryptocurrency is to investigate the identity of the address and other personal evidences which can merely accessible by law enforcement officers but not normal people. Therefore, the objective of our research is not identify the illegal transactions. The rules of this research is for eliminating change wallet which are usually noises in financial transaction analysis so as to facilitate the effectiveness of investigation. As the second question, we assume that the transaction records of cryptocurrency are public ledgers and can be accessible by internet users from exchange platform. The common cryptocurrencies, such as bitcoin, ethereum and litecoin are all conducted by P2P network. And the transaction records of these cryptocurrencies are all public and accessible by internet users. The anonymity principal of cryptocurrency is to ensure that the personal identity can’t be traced by addresses. Therefore, although the addresses and transaction records are public, there is still no way to obtain the identify from the public information. Of course, the two criminals can use unique cryptocurrency that only confirmed by both parties, however, this method will also affect the openness and fairness of the currency. Therefore, our assumption is still based on the fact that cryptocurrency must comply with the principle of openness in order to ensure currency value.
