Cryptocurrencies have generated a great deal of interest—and a great deal of confusion. Are they the stable, egalitarian currencies of the future? A promising investment vehicle for eye-popping returns? Or just a bunch of energy-guzzling, retirement-account-draining smoke and mirrors?
Understanding the crypto ecosystem requires a cross-disciplinary perspective spanning computer science, economics, and finance. It also requires objectivity, which can be difficult to come by when those with the most expertise are often personally invested in cryptocurrencies. ICSI researcher Nicholas Weaver fills that gap with unbiased, clear-eyed analyses of how cryptocurrencies work, their inherent risks, and where it all might lead.
The research grew out of a longstanding National Science Foundation-funded collaboration between ICSI and the University of California, San Diego focused on understanding various forms of online criminal activity. In one study, Weaver and colleagues uncovered how hackers used botnets to mine Bitcoins using compromised computers over the course of several years. In another study, researchers identified key weaknesses in the Ethereum blockchain that could undermine the cryptocurrency’s stability and security. In these investigations and broader analyses of the crypto ecosystem, Weaver and his collaborators have laid bare the many downsides of cryptocurrencies and how they facilitate criminal activity. By capturing and communicating these pitfalls—while continuing to track new developments in this fast-moving field—the researchers help regulators, researchers, and consumers keep a wary eye on a problematic industry.
What made ICSI a good place to pursue these projects?
“I’ve had a lot of freedom over the years to be able to follow where I want to go with my research, as long as I can get enough funding to pay my salary. Recently, the flexible employment model has also allowed me to pursue a startup—including being eligible for Small Business Innovation Research (SBIR) funding—while maintaining health benefits and a salary through ICSI. It would actually be much harder to do this as a university faculty member.”
Nicholas Weaver
Senior Research Scientist, ICSI
This story was published in January 2026 as part of a retrospective series highlighting ICSI’s accomplishments and impacts over the years. To learn about our ongoing work, explore our Core Research Themes.