Exploratory simulation models for fraudulent detection in Bitcoin system

Vincent Lee, Haozheng Wei

    Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

    6 Citations (Scopus)


    Bitcoin is gaining more popularity because it is designed initially to reduce the transaction cost and improve the online payment security. It is expected to replace the traditional currencies among online transactions. Building on that, we believe that the security issues during Bitcoin payment must be put in high priority. Therefore, we performed some researches on Double-spending issues. In this paper, the root causes of double spending are discussed, we focus on one possible method of double spending under the circumstance that the network connection status is not stable. We further simulate the attacking in a local area with network impairment. In terms of the reasons and specific conditions of this type of attacking, we propose a new mechanism to help these community merchants to recognize the double spending transactions and defend the related attacking. Finally, an analysis is performed among this defending strategies and it proves that the countermeasures are effective to reduce the double-spending risks.

    Original languageEnglish
    Title of host publicationProceedings of the 2016 IEEE 11th Conference on Industrial Electronics and Applications (ICIEA 2016)
    Subtitle of host publication 5-7 June 2016, Hefei, China
    EditorsWenxiang Xie, Cungang Hu, Weihai Chen
    Place of PublicationPiscataway, NJ
    PublisherIEEE, Institute of Electrical and Electronics Engineers
    Number of pages6
    ISBN (Electronic)9781467386449
    ISBN (Print)9781467386456
    Publication statusPublished - 19 Oct 2016
    EventIEEE Conference on Industrial Electronics and Applications 2016 - Hefei Swan Lake Hotel, Hefei Anhui, China
    Duration: 5 Jun 20167 Jun 2016
    Conference number: 11th
    http://ieeexplore.ieee.org/xpl/conhome.jsp?punumber=1001289 (Proceedings)


    ConferenceIEEE Conference on Industrial Electronics and Applications 2016
    Abbreviated titleICIEA 2016
    CityHefei Anhui
    Internet address


    • Fraud detection
    • E-payment
    • Bitcoin
    • Double-spending
    • Simulation
    • Distributed network

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