Bitcoin and other cryptocurrencies every year are becoming increasingly popular. Digital assets are used in many fields, including acting as primary method of payment for goods on the darknet.
The so-called dark side of the economy scriptaction is actually the part of the iceberg that is not visible on the surface. Activity digital coin exchanges, the exchange and a few shops – it is a very small part of the usage tokens. The main and most expensive transactions are invisible to most users – on the darknet.
This was made possible thanks to the superior quality offered on the market of cryptocurrencies – their anonymity and the security of transactions. For that digital assets are valuable not only hackers, but also the crooks with the crooks who wish to remain in the shadows with dubious commercial transactions with customers.
Why bitcoin is associated with illegal activities?
All criminals usually faster ordinary citizens adapt to innovative technologies. It is not only the adventure, which they tend to, but due to the fact that they tend to always be ahead of law enforcement officials, who can close them. In this regard, the real and popular way to use BTC steel calculations in darknet – the market with illegal goods.
At the time Silk Road allowed people to learn about Bitcoin far beyond the cryptocurrency community. With the first rise of the course the coins for BTC the reputation asset for drug traffickers and other criminals.
So far the user community faced with constant allegations that the BTC is used only for criminal purposes. In fact, for the financing of terrorist activities and money laundering is more suitable for a system of offshore companies, not anonymous decentralized network, through which payments. Very good response to a proposal to ban bitcoin and altcoins gave to the founder of VK and Telegram Pavel Durov. He, at one time, proposed to ban words because they are used for communication by terrorists.
No doubt, BTC has perfected the darknet economy on Silk Road, but in recent years the marketplace in the dark the Internet began one after another to stop the activity. What caused the causes of extinction lucrative but illegal business and how closely cryptocurrencies associated with darknets? This and many other things that you may be interested, today we will tell you all the details.
Cryptocurrency and the dark side of the global network
Digital coins, especially bitcoin, are very popular in many services DarkNet. They act as the main payment instrument, as users seek to achieve maximum anonymity and try to perform uncontrolled operations. One of the first to use digital coins began to the sellers of illicit substances and drugs, weapons and other illegal goods.
The usual way to access sites on the darknet is impossible, that is, through the classic browser, which used to enjoy, you are unlikely to get here. To dive into the dark part of the global network, you’ll need special software such as the TOR browser or similar software. The emergence of cryptocurrencies has given new breath to the black market in the network. Anonymous transactions and the idea of decentralization has allowed to limit the control of the secret services.
Silk Road – what it is and how it relates to cryptocurrencies?
Bright good example is the emergence of the so-called silk road, an online market Silk Road, launched in the framework of the darknet. The main feature of the project was to work with bitcoin, which for many people in 2011 were something strange and unknown. Users were asked to anonymously pay for their purchases via the TOR network.
Really popular Silk Road was due to the possibility of purchasing illegal substances and other goods, such as pirated software, stolen goods and many other illegal things.
Us intelligence agencies are also able to do something, so after two years of investigation they were able to arrest the owner and administrator of Silk Road William Ross Ulbricht. Also under arrest were some of the dealers and the employees of the network.
The Creator of the Silk Road project comply with some ethical code. For example, the portal could not sell guns or offer services assassin, but that didn’t alleviate his sentence. Ulbricht was given two life sentence and on top of another a few decades.
How does the DarkNet cryptocurrency?
There are plenty of darknet networks, although many people think that the DarkNet is a single entity that has no analogues. Some networks are outdated and almost not used, but there is a real demand for it projects. The first visit of any darknet you can be greatly surprised – it works not as smooth as you can imagine.
In all darknet connections are established between trusted nodes through special protocols and ports. All IP addresses are hidden, so using the common browsers like Chrome or Yandex to enter the darknet is physically impossible.
All networks operate on the principle of decentralization and is not controlled by any user. Due to this users get some leeway and safety. Many sites are “on the dark side of the Internet” work on the encryption protocols for TOR, which hides users ‘ identities, and replace their IP addresses. Also the resource itself is hidden from prying eyes outside your network DarkNet.
What DarkNet is different from other networks?
To understand how cryptocurrencies relate darknet and how strong this relationship is, we need to better understand the principle of operation of the network. All the space on the Internet can be divided into the following groups:
Often people confuse with the Darknet, Deep Web, assuming it is the same space. In fact, DarkNet is a network within the network, which operates on individual algorithms and protocols. It follows that the cryptocurrency for illegal activities can be used primarily within the DarkNet. In other cases, the user will not be able to maintain absolute anonymity.
The impact on the darknet cryptocurrencies
The features and principles of network operation DarkNet, we briefly figured out, but how it affects the development of cryptocurrencies and their price on the market? On the Internet there are many sites that sell prohibited goods, among which are AlphaBay and Oasis. Once these resources have greatly raised the rate of some digital coins.
Almost 4 times increase in the price of Monero and Ethereum because of the projects AlphaBay and Oasis. It happened very simply – the management of the sites just at some point added two tokens in the list of currencies for payment of goods. It literally blew up the value of digital assets and increased interest from potential buyers, using the services of the projects AlphaBay and Oasis.
The reasons for the popularity of cryptocurrency in Darknet
DarkNet is an encrypted network, access to personal data of users which it is impossible to just. Digital coins such as bitcoin and others like him, provide the absolute or partial (but still high enough) anonymity in transactions.
In this regard, the dark side of the Internet, as it is sometimes called darknet, has become highly dependent on cryptocurrency. Anonymous transaction tokens allowed for the network to grow by leaps and bounds, so many people, not versed in the subject of digital coins, Bitcoin and altcoins believe something illegal.
The prospects of DarkNet and cryptocurrency
According to experts from the portal Chainalysis in 2019-2020 distributed crime can flourish. Criminal activity goes to distributed platforms, which poses the strongest challenge to intelligence and law enforcement agencies.
Analysts believe that criminal groups and organizations will leave the network DarkNet, passing in the encrypted apps like Telegram, WhatsApp or Signal. Some platforms now have the channels for people who are engaged in illegal activities.
Increasingly, cryptocurrency appear in the criminal world, and this trend every month only increases. Many criminal groups today actively use bitcoin and Althingi, resorting to the services of experts in cryptocurrency world. Give the criminals the latest recommendations on implementation of digital assets in fraudulent schemes, helping to launder money and to engage in illegal gambling. There are real cases, when the cartels took control of the miners and the whole exchange to launder money through them.
The source bits.media
Another challenge cryptocurrencies can do law enforcement agencies, if they begin to use individuals and entire countries to bypass sanctions on an international scale. All of this in the future could create a real threat to cyber security.
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