Technology Opens Cryptomarkets: An Opportunity and a Challenge
October 3, 2016
Cryptomarket’s rise is fueled by two things – anonymity and technological advancements. How these markets develop in future however will largely depend on technological breakthrough, particularly in the domain of cryptocurrencies.
In a blog published on Business Insider titled Here’s Everything You Need to Know About Drug Cryptomarkets Like the Silk Road, the author says that –
The hidden web, also known as the dark web, can only be accessed using anonymizing software that masks the internet user’s identity. Cryptocurrencies, the most famous of which is Bitcoin, are digital, non-identity-carrying forms of cash.
As trade and compensation for goods and services takes place with aid of defense grade technologies, the Dark Web was largely successful in masquerading itself from law enforcement agencies. That changed in 2013 when the FBI dismantled the well known cryptomarket Silk Road.
Bitcoin, a popular cryptocurrency also has been unable to gain complete confidence of its users. Frequent problems with exchanges, hacks exposes the digital currency to heavy fluctuations and raises security concerns for its holders.
The author of the article firmly believes that –
While trends indicate increased usage rates of drug cryptomarkets over time, there may be limits to their growth. One challenge could occur through compromises to the technologies on which cryptomarkets rely (such as Tor and Bitcoin).
In future, apart from drugs and illicit services, it is possible that even legal trades could be executed through cryptomarkets simply because they offer anonymity and would be efficient. The source does not address how widespread the use of cryptocurrency is among bad actors. That is understandable to some degree. Hopefully the forthcoming report from Interpol and Europol will provide hard data, not high level observations.
Kenny Toth, October 1, 2016
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