From Slow Propagation to Partition: Analyzing Bitcoin Over Anonymous Routing

Cryptocurrency is designed for anonymous financial transactions to avoid centralized control, censorship, and regulations. To protect anonymity in the underlying P2P networking, Bitcoin adopts and supports anonymous routing of Tor, I2P, and CJDNS. We analyze the networking performances of these anonymous routing with the focus on their impacts on the blockchain consensus protocol. Compared to non-anonymous routing, anonymous routing adds inherent-by-design latency performance costs due to the additions of the artificial P2P relays. However, we discover that the lack of ecosystem plays an even bigger factor in the performances of the anonymous routing for cryptocurrency blockchain. I2P and CJDNS, both advancing the anonymous routing beyond Tor, in particular lack the ecosystem of sizable networking-peer participation. I2P and CJDNS thus result in the Bitcoin experiencing networking partitioning, which has traditionally been researched and studied in cryptocurrency/blockchain security. We focus on I2P and Tor and compare them with the non-anonymous routing because CJDNS has no active public peers resulting in no connectivity. Tor results in slow propagation while I2P yields soft partition, which is a partition effect long enough to have a substantial impact in the PoW mining. To better study and identify the latency and the ecosystem factors of the cryptocurrency networking and consensus costs, we study the behaviors both in the connection manager (directly involved in the P2P networking) and the address manager (informing the connection manager of the peer selections on the backend). This paper presents our analyses results to inform the state of cryptocurrency blockchain with anonymous routing and discusses future work directions and recommendations to resolve the performance and partition issues.