Stressing Out: Bitcoin "Stress Testing"

In this paper, we present an empirical study of a recent spam campaign (a "stress test") that resulted in a DoS attack on Bitcoin. The goal of our investigation being to understand the methods spammers used and impact on Bitcoin users. To this end, we used a clustering based method to detect spam transactions. We then validate the clustering results and generate a conservative estimate that 385,256 (23.41 %) out of 1,645,667 total transactions were spam during the 10 day period at the peak of the campaign. We show the impact of increasing non-spam transaction fees from 45 to 68 Satoshis/byte ( from $ 0.11 to $ 0.17 USD per kilobyte of transaction) on average, and increasing delays in processing non-spam transactions from 0.33 to 2.67 h on average, as well as estimate the cost of this spam attack at 201 BTC ( or $ 49,000 USD). We conclude by pointing out changes that could be made to Bitcoin transaction fees that would mitigate some of the spam techniques used to effectively DoS Bitcoin.