Computer scientists at Trinity College Dublin are conducting new research into Bitcoin aimed at trying to make the virtual currency more transparent. <\/p>\n
The aim of the project is to provide regulators with information about the flow of Bitcoins, similar to the way central banks can track normal currency movements. <\/p>\n
The researchers aim to reduce the risk of fraud posed by the use of Bitcoin, while at the same time maintaining an appropriate level of anonymity. <\/p>\n
Bitcoin is a virtual digital currency which is not backed by real assets and has no central authorities governing it. <\/p>\n
Each Bitcoin is introduced to the system slowly over time, surrounded by a complex mathematical puzzle, and can only be unlocked by experts using high powered computers - a process known as mining. <\/p>\n
This slow release guards against inflation, and a finite number of 21 million Bitcoins will have been released by 2140. <\/p>\n
Each time a Bitcoin changes hands between anonymous accounts, the transaction is recorded in a publicly available ledger, known as the Block Chain. <\/p>\n
The team of researchers at TCD believe that by using the ledger and other publicly available information, they can demystify the Bitcoin ecosystem, and make it more transparent. <\/p>\n
Among the ideas being pursued by the group of TCD staff and students is a Bitcoin \"credit-check\" database. <\/p>\n
One member of the team, Cian Burns, has already built a database of Bitcoin accounts, which he linked together to establish how they are connected. <\/p>\n
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