Bitcoin and other cryptocurrencies are becoming more popular every year. Digital assets are used in many fields of activity, including acting as the primary method of payment for goods on the Internet.
The so-called dark side of the crypto-asset economy is, in fact, the part of the iceberg that is not visible on the surface. The activity of digital coins on exchanges, exchangers and a few stores is a very small part of the use of tokens. The principal and most expensive transactions go unnoticed by most users – on the darknet.
This was made possible thanks to the main quality of cryptocurrencies on the market – their anonymity and transaction security. For this, digital assets are appreciated not only by hackers but also by fraudsters with swindlers who want to remain in the shadow during dubious trading operations with customers.
Why is bitcoin associated with illegal activity?
All criminals are usually quicker than ordinary citizens to adapt to innovative technologies. The point is not only the adventurism that is peculiar to them but also because they strive always to be ahead of representatives of law enforcement agencies who can close them. In connection with this, the real and sought-after way to use BTC is through online payments – in the market with illegal goods.
At one time, the Silk Road allowed people to learn about Bitcoin far beyond the cryptocurrency community. Along with the first take-off of the coin, BTC gained a reputation for assets for drug dealers and other criminals.
So far, community users are faced with ongoing allegations that BTC is used only for criminal purposes. In fact, an offshore system is more suitable for terrorist financing activities and money laundering, rather than an anonymous, decentralized network through which payments pass. A perfect answer to the proposals to ban bitcoin and altcoins was given by the creator of the VK and Telegram network Pavel Durov. He, in due time, suggested banning words, because terrorists use them to communicate.
Undoubtedly, BTC has brought the darknet economy to Silk Road to a new level, but in recent years, marketplaces on the dark Internet have begun to stop their activities one after another. What are the reasons for the extinction of a profitable, but illegal business, and how closely are cryptocurrencies related to the darknet? This article will try to tell you about this and many other things that may interest you with all the details.
Cryptocurrencies and the dark side of the global network
Digital coins, especially Bitcoin, are very popular in many darknet services. They act as the main payment tool, as site users seek to achieve maximum anonymity and try to perform uncontrolled operations. One of the first to use digital coins was launched by vendors of illegal substances and drugs, weapons and other illicit goods.
The usual way to access the sites on the darknet is impossible, that is, through a classic browser that you are used to using, you are unlikely to get here. To immerse yourself in the dark part of the global network, you will need special software, for example, the TOR browser or similar software. The advent of cryptocurrencies has given new breath to black online markets. Anonymous transactions and the very idea of decentralization made it possible to limit control by the special services.
How does darknet work with cryptocurrencies?
There are many darknet networks in the world, although many people think that DarkNet is something unified, unparalleled. Some networks are long outdated and rarely used, but there are really popular projects. The first visit to any darknet can greatly surprise you – everything does not work as smoothly as you can imagine.
In the darknet, all connections are established between trusted nodes through unique protocols and ports. All IP addresses are hidden, so it’s physically impossible to enter the darknet through such familiar browsers as Chrome or Mozilla.
All networks operate on the principle of decentralization and are not controlled by any leadership. Due to this, users get some freedom of action and security. Many sites on the dark side of the Internet use TOR encryption protocols, which hide the identity of users and replace their IP addresses. Also, the resource itself is hidden from prying eyes outside the darknet network.
The prospects of darknet and cryptocurrencies
More and more cryptocurrencies are featured in the criminal world, and this trend is only growing every month. Many criminal groups are already actively using bitcoins and altcoins, resorting to the services of experts in the cryptocurrency world. The latter give criminals recommendations on the introduction of digital assets in fraudulent schemes, help to launder money, and engage in illegal gambling. There were already real cases when cartels took control of miners and entire exchanges to launder money through them.
Another challenge to cryptocurrencies can be made to law enforcement agencies if they begin to be used by private individuals and entire states to circumvent international sanctions. All this in the future may pose a real threat to cybersecurity.