Dr. Elias Strehle of the Blockchain Research Lab and Lennar Ante of the University of Hamburg recently warned that blockchain nodes engaging in exclusive mining “have no incentive to forward new transactions to their peers.”
Exclusive mining, which is a type of collusion between a transaction initiator and a single miner or pool, uses private channels to confirm transactions rather than broadcasting them on the public blockchain. It is only after they are recorded in a block that public blockchain that users become aware of such transactions.
Dr. Strehle and Ante identified two other possible motivations for engaging in exclusive mining: reducing transaction cost volatility and hiding unconfirmed transactions from the network to prevent frontrunning.
In June, reported on a number of mysterious transactions that have stumped the wider community. Some suggest they could be examples of money laundering, or revenge from a disgruntled exchange employee.