Computer scientists at Trinity College Dublin are conducting new research into Bitcoin aimed at trying to make the virtual currency more transparent.

The aim of the project is to provide regulators with information about the flow of Bitcoins, similar to the way central banks can track normal currency movements.

The researchers aim to reduce the risk of fraud posed by the use of Bitcoin, while at the same time maintaining an appropriate level of anonymity.

Bitcoin is a virtual digital currency which is not backed by real assets and has no central authorities governing it.

Each Bitcoin is introduced to the system slowly over time, surrounded by a complex mathematical puzzle, and can only be unlocked by experts using high powered computers - a process known as mining.

This slow release guards against inflation, and a finite number of 21 million Bitcoins will have been released by 2140.

Each time a Bitcoin changes hands between anonymous accounts, the transaction is recorded in a publicly available ledger, known as the Block Chain.

The team of researchers at TCD believe that by using the ledger and other publicly available information, they can demystify the Bitcoin ecosystem, and make it more transparent.

Among the ideas being pursued by the group of TCD staff and students is a Bitcoin "credit-check" database.

One member of the team, Cian Burns, has already built a database of Bitcoin accounts, which he linked together to establish how they are connected.

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TCD researchers to study ways of making Bitcoin more transparent