According to the recent research by Australian experts illegal activities performed with the use of Bitcoin, while dropped, still constitutes the third of all the transaction taking place worldwide. All the data points to the fact that the illegal activities peaked in 2014 and have been decreasing ever since. From the total of 106 million users only 34 to 36 million perform operations which involve the purchases in “darknet” and other nefarious activities. Foley stated, that it wasn't unexpected, because practically all the market had been established by pushing the legal limits, but the real evolution begins only when the regulators step in to clean up the perpetrators and put down the new rules.
This research paper will be a stepping stone to further examination of current digital currency trends, because it involved revolutionary analysis methods. Foley, Putnins and Karlsen had to develop new analytic models to reference recent Bitcoin seizures by authorities to real users. While Bitcoin is prised for its anonymity, the 33-character “name” still can be tied back to the end user because all the relevant information is stored in the blockchain. The next logical step was to create a detection algorithm based on the notable characteristics of nefarious activity taken from the sample of known users, involved in illegal proceedings. All this information is then used to estimate and infer other users, involved in the illegal activity.
The research is designed to help authorities adequately understand the amount of work needed to regulate the alternative currencies as an asset being quickly adopted by the ever-increasing amount of people in the world.