misc-research/CashFusion-Descendant-Analysis

CashFusion Descendant Analysis

How to reproduce the analysis

Be advised that the analysis takes several weeks of computing time, upwards of 50 GB of available RAM, and about 400 GB of storage space to execute.

Prerequisites

The main analysis is done with the R statistical programming language. R itself can be downloaded here. RStudio is a good IDE for R. Install the necessary R packages with:

install.packages("rbch")
install.packages("data.table")
install.packages("future.apply") 
install.packages("RSQLite")
install.packages("DBI")
install.packages("igraph")
install.packages("stringr")

You must have a Bitcoin Cash (BCH) full node synced with the transaction index enabled with the -txindex flag. As of now, the analysis has been tested with the Bitcoin Unlimited node implementation.

It is best to run the following script files successively in separate R sessions for better RAM management.

extract-tx-graphs.R

The R/extract-tx-graphs.R script file issues JSON-RPC queries to bitcoind, the Bitcoin Cash node daemon. Make sure bitcoind is running before initiating this script.

In the R script file you must set bitcoin.conf.file to the filepath of your bitcoin.conf file and data.dir to the directory where you want files to be stored.

The script spawns multiple R process threads to accelerate queries to bitcoind and will take several hours to execute. In the specified data directory, a set of files named tx_graph_height_BEGIN _to_END.rds will be created.

The R object format of these files is:

List of 2
 $ incoming: Classes 'data.table and 'data.frame': N obs. of 3 variables:
  ..$ txid : chr [txid of the transaction]
  ..$ origin.txid : chr [txid of the output that is being spent by the transaction]
  ..$ origin.position : num [the position (of the output being spent) within the output's transaction, indexed from one]
 $ outgoing: Classes 'data.table and 'data.frame': N obs. of 4 variables:
  ..$ txid : chr [txid of the transaction]
  ..$ address : chr [address that the transaction is being spent to]
  ..$ position : int [position of the output being produced by the transaction, indexed from one]
  ..$ value : num [quantity of BCH being spent to each address] 

Note that, unlike the underlying blockchain data, the position of outputs is indexed from one, not from zero.

construct-edgelist.R

The R/construct-edgelist.R script file produces a SQL database that contains the edge list of the BCH transaction graph. Set data.dir to the same directory same as you used in extract-tx-graphs.R.

The script assigns an integer index to every output. Converting the transaction ID + output position to integer indixes is necessary so that the transaction graph can be stored in RAM. This script is single-threaded so as to avoid conflicts when writing to the database. It should take a few hours to complete.

get-coinbases.R

The R/get-coinbases.R script file produces a .rds file that contains the coinbase outputs. Coinbases are special vertices in the transaction graph since they have no inputs. Set data.dir to the same directory same as you used in extract-tx-graphs.R.

determine-descendants.R

The R/determine-descendants.R script file uses the igraph package to determine which outputs in the unspent transaction output (UTXO) set can be traced back to an earlier CashFusion transaction. The dataset produced by the CashFusionStats repository is used to identify the CashFusion transactions.

Set data.dir as before. These operations are time-consuming and may take weeks. There is an option to interrupt the process and restart it.

descendant-statistics.R

The R/descendant-statistics.R script file merges the CashFusion descendants, which has been identified by integer indices, with their transaction ID identifiers. It then calculates a simple total of proportion of the UTXO set that is a CashFusion descendant as well as the value in BCH terms. A "CashFusion-Descendants.csv csv file is output with the following columns:

destination: An idenifier of an unspect output, in the form of TXID-position
destination_index: An integer index for the unspent output that was used in the transaction graph analysis
value: The value, in BCH, of the output
is_cashfusion_descendant: Takes value of 1 if output is a descendant of a CashFusion transaction and 0 otherwise

Once again note that, unlike the underlying blockchain data, the position of outputs is indexed from one, not from zero.