Anomaly Detection in Blockchain Transactions within the Metaverse Using Anomaly Detection Techniques

Abstract

The rapid expansion of blockchain technology and its integration into the Metaverse has brought about significant opportunities, but also new challenges, particularly in ensuring the security and integrity of transactions. This study explores the application of anomaly detection techniques, specifically the Isolation Forest algorithm, to identify unusual and potentially fraudulent transactions within a blockchain dataset. The analysis focuses on detecting anomalies across various transaction types, such as sales and scams, and regions including Asia and Africa. The dataset, comprising 78,600 transactions, revealed that 3,930 (approximately 5%) were flagged as anomalies. "Sale" and "Scam" transactions were found to be particularly vulnerable, accounting for the majority of anomalies. Geographical analysis highlighted that Asia and Africa had the highest average risk scores, indicating a higher prevalence of high-risk transactions in these regions. Visualizations further emphasized the distribution of anomalous activities, providing valuable insights into regional and transaction-specific risks. The study demonstrates the effectiveness of Isolation Forest in detecting anomalies within blockchain transactions and underscores the importance of targeted security measures. The findings suggest that focusing on high-risk transaction types and regions can enhance blockchain security. Future research is encouraged to explore additional anomaly detection methods and integrate network analysis to further refine the detection of suspicious activities in decentralized networks. This research contributes to the growing body of knowledge on blockchain security, offering practical insights for improving the detection and mitigation of risks in the increasingly complex and interconnected world of the Metaverse.