kravietz 🦇  

Someone just made a $2.6 million mistake on

decrypt.co/31830/someone-just-

1
Nikola Lakić :arch:  

@kravietz
I've heard that this might be crypto washing, but I don't get the concept behid it

1
Rumblestiltskin  

@nikolal
Basically you don't broadcast your transaction that has the large miner fee and only include it in a block if you make the block yourself. This makes it look like you got the Eth from mining and not from whatever shady business you really got it from.
@kravietz

1
Nikola Lakić :arch:  

@rumblestiltskin
How can you be sure as miner to mine next block?
@kravietz

1
Rumblestiltskin  

@nikolal @kravietz You can't. But since you didn't broadcast the transaction it only sits in your pool of transactions. It stays there until you do mine a block.

1
Nikola Lakić :arch:  

@rumblestiltskin
This is major flaw if cryptocurrency such as eth want to achieve mass adoption. Regulators won't like that. So basically person puts transaction with condition not to broadcast it until he mines it himself? How much time does one need to wait on average? My guess is pretty long even with good hash power
@kravietz

1
kravietz 🦇
Follow

@nikolal @rumblestiltskin

Well, you can do it because it's P2P and you choose what you send to the others.

Also the decentralization is largely fiction if 70% of hashing power is in one country and ~5 largest pools.

· · 2 · 0 · 1
Nikola Lakić :arch:  

@kravietz
True, but those are pools that we are talking about. This is case of miner that has some percentage of hash rate in that pool, still seems like you need long period of time for this strategy of crypto washing to work, for you to be that specific miner that got block reward. Unless you have some serious hash rate, then I guess you don't have to wait too long. Maybe I understood something wrong about how individuals in pools share block rewards?
@rumblestiltskin

1
Rumblestiltskin  

@nikolal @kravietz If you ran one of those pools then you may be able to accomplish inserting this transaction into any block your pool creates. I agree, a single miner would need to wait a long time or have a huge amount of hash power to accomplish this themselves.

0
Rumblestiltskin  

@kravietz @nikolal This example of trying to launder money would be pretty easy to identify using chain analysis tools available today. There are many other techniques that regulators will like much less.

0
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