BitMex Research: Bitcoin Lightning Nodes Claim 2.2 BTC in ‘Justice Transactions’ Against Bad Actors
Bitmex analysts published on July 15, 2019, has announced in details, the content of their report, which revealed that Bitcoin Lightning nodes have claimed 2.2 BTC in ‘’justice transaction’’ to discourage potential thieves from the network.
In a bid to deter potential thieves, a mechanism, dubbed Justice transaction was initiated. The process involves the closure of a Lightning channel that is suspected to be an attempted theft.
The study further explained the mechanism:
‘’By design, when a thief attempts to steal funds on the lightning network, if caught, they will lose the money they tried to steal, and also lose the funds in the relevant channel. The punishment is meant to act as a deterrent to others who might attempt to try such, and it's sometimes regarded to as Justice.’’
According to the team of BitMex researchers, they have been able to identify well over 240 justice transactions since the second layer network’s in December 2017- while noting all the while that there is a very big possibility that the available data presented include false positives and that other more robust tools exist to identify such transactions than the basic search methodology that is been used for their report.
The report further indicates that the highest number of Justice transactions, which are well over 60% occurred in October 2018, while the second-highest number was experienced in April 2018, which is well over 30%.’
Varying Degrees of Justice Transactions
The turn of the new year has witnessed a rather high number of Justice transactions, especially between February to April 2019, which is between 20 and 30 instances- and consequently eclipsed both October 2018 and April 2018 in terms of the absolute value in BTC claimed by honest nodes via the same mechanism.
The Climax of it all was in February 2019, which was the peak in terms of monthly total, at roughly 0.67 BTC.
The report meanwhile tried to explain some grey areas, stating categorically that 2.22 BTC does not actually mean that thieves tried and failed to steal that amount- which indicates that some aspiring thieves may have been severely dealt with by an amount that is way bigger than the value of what they actually want to steal.
The report concluded, stating that the total number of Justice Transaction on Lightening since its creation represents a meagre 0.7% of the number of currently active channels.
The analysts thus noted that the number is sufficient to prevent the risk of a very large and systematic channel theft in the foreseeable future.
The Cryptocurrency society is worried about the fraud and other illicit transactions, that has given the industry a bad name on Wall Street. Bitcoin Exchange Guide in June reported that the American Stock Exchange blocked the listing of Reg A+ IPOs, due to fraudulent allegations and concerns.
But with innovative and new incentives in the Crypto space, steal, fraud and others might just be soundly defeated and totally eradicated within the crypto community.