Analysis Claims Discovery of Selective Transaction Filtering in Bitcoin Mining Pools

A caller investigation by 0xB10C, a developer and onchain analyst, has uncovered intriguing findings successful the Bitcoin network. The study, which focuses connected the mining pools’ transaction enactment processes, revealed that definite transactions from U.S. Treasury-sanctioned addresses were missing from blocks. This penetration raises questions astir the practices of mining pools and their power connected the network’s censorship-resistant qualities.

Study Highlights Potential Censorship successful Bitcoin Network

The probe by 0xB10C, elaborate successful a comprehensive report, scrutinized the enactment of today’s astir salient bitcoin mining pools. It focused connected six circumstantial transactions linked to addresses sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

This investigation is portion of a broader project, the developer’s miningpool-observer, aimed astatine detecting instances wherever bitcoin mining pools whitethorn not see transactions that they could beryllium mining. The findings suggest a signifier of selective transaction filtering, a signifier that could person important implications for the network’s decentralized nature.

In September and October 2023, 0xB10C’s miningpool-observer reported six blocks missing an OFAC-sanctioned transaction. These transactions were notably absent from blocks mined by 3 antithetic pools: Viabtc, Foundry USA, and F2pool.

The survey meticulously analyzed the transaction patterns and artifact compositions to recognize whether these omissions were intentional acts of filtering oregon coincidental outcomes based connected different factors similar transaction fees oregon propagation times.

The study concludes that the missing transactions successful blocks mined by Viabtc and Foundry were apt “false positives” and not owed to intentional filtering. However, the script was antithetic for the transactions missing from F2pool’s blocks.

After a elaborate examination, 0xB10C inferred that these transactions were apt filtered retired by F2pool. This reflection is peculiarly noteworthy arsenic it marks a deviation from the expected norm of transaction inclusion by mining pools and suggests compliance with U.S. OFAC sanctions.

0xB10C Confirms the Transactions ‘Were All Picked Up by Other Miners’

0xB10C’s investigation delved into the technicalities of transaction sizes, fees, and artifact abstraction allocation. The developer notes, “Each node has its ain acceptable of valid transactions. A excavation mightiness besides prioritize transactions for which it received an out-of-band payment. However, it mightiness besides deprioritize oregon filter transactions.”

This connection underlines the complexity of transaction enactment wrong the Bitcoin web and the autonomy of mining pools successful deciding which transactions to see successful their blocks. The implications of the developer’s find are important for the Bitcoin ecosystem.

It raises questions astir the grade of decentralization and censorship absorption wrong the network. While a azygous pool’s actions whitethorn not drastically change the network’s wide absorption to censorship, it does acceptable a precedent.

The study highlights the value of ongoing monitoring of mining pools’ transaction enactment practices to guarantee the integrity and foundational principles of the Bitcoin network. After releasing the report, 0xB10C said that eventually, each of the OFAC-flagged transfers were “picked up by different miners.”

What bash you deliberation astir 0xB10C’s study? Share your thoughts and opinions astir this taxable successful the comments conception below.