BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”
-
Upload
bigdataeurope -
Category
Data & Analytics
-
view
1.476 -
download
0
Transcript of BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”
![Page 1: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/1.jpg)
Insight into Virtual Currency Ecosystems(by making use of Big Data technology)
Dr. Bernhard Haslhofer, Austrian Institute of Technology (AIT)
BDE SC6 Webinar, 2017-02-16
![Page 2: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/2.jpg)
About me• Data Scientist @ Austrian Institute of
Technology / Digital Insight Lab
• Research Interest: gain insight from large, connected datasets using machine learning, network analytics and text mining methods
• Current focus: virtual currency analytics
• Project(s): GraphSense
2http://www.graphsense.info http://bernhardhaslhofer.info
![Page 3: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/3.jpg)
Plan for today
• What are Virtual Currency Ecosystems?
• GraphSense | Goals, Features and Demo
• GraphSense | Technical Aspects
• Outlook and Challenges
3
![Page 4: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/4.jpg)
4
What are Virtual Currency Ecosystems?
![Page 5: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/5.jpg)
Virtual Currency• “A type of unregulated, digital money, which is issued and
usually controlled by its developers, and used and accepted among the members of a specific virtual community.” (ECB)
• Functions: measure of value, medium of exchange, store of value
• Currency codes: XBT, ETH, XMR, ….
• Currency symbols: B⃦, Ξ, ɱ, …
• Exchange rates to other currencies (USD, EUR, …)
5
![Page 6: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/6.jpg)
Virtual Currency
6
Centralized Decentralized
RegulatedE-money
Bank money (deposit)
Unregulated
Internet coupon
Mobile coupon
Centralized virtual currency
Cryptocurrencies (e.g., Bitcoin)
Non-Cryptocurrency (e.g., Ripple, Stellar)
based on https://en.wikipedia.org/wiki/Virtual_currency
![Page 7: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/7.jpg)
• Difference to other currency systems:
• No pre-assumed identities
• No central authority, no trusted third parties
• collective transaction management (blockchain)
• collective money issuance (mining)
Cryptocurrency
7
![Page 9: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/9.jpg)
How do I make a Bitcoin transaction?
9
![Page 10: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/10.jpg)
10
![Page 11: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/11.jpg)
P2P Network
Broadcast Transaction
Blockchain
11
![Page 12: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/12.jpg)
P2P Network
Blockchain
Miners
Collect pending Transactions
12
![Page 13: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/13.jpg)
P2P Network
Blockchain
Miners
Find a block
13
![Page 14: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/14.jpg)
P2P Network
Blockchain
Miners
Broadcast new block
14
Miners
![Page 15: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/15.jpg)
P2P Network
Synchronize Blocks
Blockchain
Receive Confirmations
15
![Page 16: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/16.jpg)
P2P Network
Synchronize Blocks
Blockchain
Receive Confirmations
16
![Page 17: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/17.jpg)
How do I get Bitcoins?
17
![Page 18: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/18.jpg)
18
Exchange
![Page 19: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/19.jpg)
19
2653 Markets
![Page 20: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/20.jpg)
20Source: https://coinfinity.co/bitcoin-kaufen/
Bitcoin ATMs
Bitcoin Voucher Service
![Page 21: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/21.jpg)
Who accepts Bitcoins?
21
![Page 22: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/22.jpg)
22
Merchants
![Page 23: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/23.jpg)
Merchants
![Page 24: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/24.jpg)
24
Payment Providers
![Page 25: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/25.jpg)
25
Gambling Sites
![Page 26: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/26.jpg)
26
Darknet Marketplaces
![Page 27: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/27.jpg)
27
Mixing Services
![Page 28: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/28.jpg)
Virtual Currency Ecosystem
28
Gambling Sites
MinersMixing Services
Darknet MarketplacesMerchants
Payment ProvidersBitcoin
ATMs
Bitcoin Voucher Service
Exchange
![Page 29: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/29.jpg)
29
GraphSense | Goal, Features, and Demo
![Page 30: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/30.jpg)
Goals and Features
• Provide insight into Virtual Currency Ecosystems
• Microscopic view: inspect atomic entities (block, transaction, address, currency flows)
• Macroscopic view: investigate real-world actors (exchanges, payment services, etc.) and the currency flows between them
30
![Page 31: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/31.jpg)
Approach
31
A
A A
AA
C
T
Bloc
kcha
inAd
dres
sG
raph
Addr
ess
Clu
ster
Tags
Enric
hmen
t pro
cess
![Page 32: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/32.jpg)
32
![Page 33: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/33.jpg)
33
GraphSense | Technical Aspects
![Page 34: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/34.jpg)
Overall Architecture
34
![Page 35: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/35.jpg)
Data Processing (v.0.2.1)
35
![Page 36: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/36.jpg)
Data Processing (v.0.3)
36
![Page 37: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/37.jpg)
37
![Page 38: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/38.jpg)
Cross-ledger Analytics
38
L$
OM¢
![Page 39: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/39.jpg)
Challenge #1: Volume• At the moment we only
process Bitcoin transactions
• raw data: 91 GB
• transformed: 217 GB
• DB (with indices): 757 GB
• There are at least 646 other virtual currencies
39
![Page 40: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/40.jpg)
Challenge #2: Variety
• Virtual currencies differ in their conceptual design
• Protocols change over time
• Need: flexible, horizontally scalable data storage
40
![Page 41: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/41.jpg)
Challenge #3: Velocity• Bitcoin blocks
• limited to 1MB (1000 - 2000 transactions)
• interval between blocks: ~10min
• block size will most likely grow in future
• Other currencies implement higher frequencies
41
![Page 42: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/42.jpg)
• GraphSense address graph
• ~ 212 million addresses (nodes)
• ~ 1.36 billion flows between addresses (edges)
• We need graph algorithms that
• compute connected components efficiently on large graphs
• leverage distributed computing paradigms (map-reduce)
• also work for large graphs with a skewed node degree distribution
42
Challenge #4: Large Graphs
![Page 43: BDE-SC6 Hangout - “Insight into Virtual Currency Ecosystems”](https://reader031.fdocuments.net/reader031/viewer/2022022411/58e8cbbd1a28abb3398b4cd1/html5/thumbnails/43.jpg)
43
Information & Contacts:� CESSDA, Ivana Ilijasic Versic, [email protected]
� Semantic Web Company, Martin Kaltenböck, [email protected]
� Austrian Institute for Technology, Bernhard Haslhofer, [email protected]
Big Data Europe – Information & Outlook� BDE website: http://www.big-data-europe.eu
� Mailing List: http://eepurl.com/bg3vCr
� Big Data Integrator Platform (BDI): https://www.big-data-europe.eu/platform/
� WATCH OUT: 3.5.2017 – Final BDI Release 16-févr.-17www.big-data-europe.eu