Science and Technology Studies Commons^™

Enhancing Trust In The Cryptocurrency Marketplace: A Reputation Scoring Approach, Dan Freeman, Tim Mcwilliams, Sudip Bhattacharyya, Craig Hall, Pablo Peillard

SMU Data Science Review

Trust is paramount for the effective operation of any monetary system. While the distributed architecture of blockchain technology on which cryptocurrencies operate has many benefits, the anonymity of users on the blockchain has provided criminal users an opportunity to hide both their identities and illicit activities. In this paper, we present a scoring mechanism for cryptocurrency users where the scores represent users’ trustworthiness as safe or risky transactors in the cryptocurrency community. In order to distinguish law-abiding users from potential threats in the Bitcoin marketplace, we analyze historical thefts to profile transactions, classify them into risky and non-risky categories using …