Exclusive Mining; A tool for laundering money & evading tax

Being incentivized, cryptoasset miners tend to keep to keep the transactions secret on the blockchain or exclusive which allows people to evade the taxes and launder their money.

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As you might know, the crypto miners keep the transactions secret as they are incentivized for this. This could also be used for laundering the dirty money and/ or tax evasion. The miners do not send the transactions to anyone, they keep the transactions secret in the hope of being the one who gains the transaction fee.

When a new blockchain is formed, the miner is supposed to inform the other miners of it via P2P network. There is another unintended choice to P2P propagation and that is "exclusive mining."

Exclusive mining happens when a transaction initiator and a single miner agree on collusion and by which the initiator sends a transaction via a private channel which is located outside the blockchain directly to the miner (or the mining pool) and not through the usual path which is the P2P network.

Doing this gives that miner the exclusive privilege to verify the transaction and collect the block reward. Upon confirmation, the transaction is added to the blockchain and then the other people are informed.

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Cryptocurrency(5)

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Tags

Blockchain

miner

Money Laundering

Tax Evasion

Tags

Blockchain

miner

Money Laundering

Tax Evasion