Abstract
The cryptocurrency is the first implementation of blockchain technology. This technology provides a set of tracks and innovation in scientific research, such as use of data either to detect anomalies either to predict price in the Bitcoin and the Ethereum. Furthermore, the blockchain technology provide a set of technique to automate the business process. This chapter presents a review of some research works related to cryptocurrency. A model with a KNN algorithm is proposed to detect illicit transaction. The proposed model uses both the elliptic dataset and KNN algorithm to detect illicit transaction. Furthermore, the elliptic dataset contains 203,769 nodes and 234,355 edges; it allows to classify the data into three classes: illicit, licit, or unknown. Each node has associated 166 features. The first 94 features represent local information about the transaction. The remaining 72 features are called aggregated features. The accuracy exceeded 90% with k=2 and k=4, the recall reaches 56% with k=3, and the precision reaches 78% with k=4.
TopThe blockchain technology creates potential innovations in the processing of the business activities in various sectors, which makes this technology face to a set of attacks and illicit activity. This section reviews some related work which target cryptocurrency, such as anomaly detection, data analysis and business intelligence
Key Terms in this Chapter
Money Laundering: Money laundering is the action of concealing the origin of money acquired in illegal ways (illegal speculation, mafia activities, drug and arms trafficking, extortion, corruption, tax evasion, etc.) by reinvesting it in legal activities (trade, real estate construction, casinos, etc.).
Cryptoccurency: Is a currency issued on a peer-to-peer basis, without the need for a central bank, that can be used by means of a decentralized computer network.
FATF: Financial Action Task Force is an intergovernmental organism for the fight against money laundering and the financing terrorist.
Blockchain: Is a technology for the storage and transmission of information, transparent, secure, and operating without a central control body.
Data Analysis: Is a family of statistical methods whose main characteristics are that they are multidimensional and descriptive.
Business Intelligence: Business intelligence, or BI, is a tool that allows the generation of reports in an automated way and in real time. This methodology is based on professional software solutions. The collection of data and their aggregation in readable documents give the management and operational functions the keys to guide the company's strategy.
AML/CFT: Anti-money laundering and countering the financing of terrorism.