So what is a cryptocurrency? A cryptocurrency is actually a decentralised payment system, which basically lets people send currency to one another over the web without the need for a trusted third party such as a bank or financial institution. The transactions are cheap, and in many cases, they’re free. As well as, the payments are pseudo anonymous also.
In addition to that, the key feature is that it’s totally decentralised, which means that there’s no single central reason for authority or anything like that. The implications of this is done by everyone using a full copy of all the transactions that have ever happened with Blockchain. This creates an incredibly resilient network, meaning no person can change or reverse or police any of the transactions.
The top amount of anonymity inside implies that it’s tough to trace transactions. It’s not totally impossible, but it’s impractical generally. So crime with cryptocurrency– because you’ve got fast, borderless transactions, and you’ve got a very high level of anonymity, it theoretically results in a system that is ripe for exploitation. So typically when it’s a criminal offense online with internet payment systems, then they tend to go to the authorities and, say, we can give this payment information or we can stop these transactions and reverse them. And none of the can take place with Bitcoin, so it can make it ripe for criminals, in principle.
Considering this, lots of different agencies are researching into Bitcoin and looking at Bitcoin and attempting to understand the way it works and whatever they are capable of doing to police it. It’s already been within the media several times, and the media, being the media, like focus on the bad side of this. So that they focus very heavily on the crime by using it. Therefore if there’s a theft or perhaps a scam or anything like that, then they tend to blame it on Bitcoin and Bitcoin users.
So the most known is most likely Silk Road, which got taken down recently, and through their $1.2 billion worth of Bitcoins, went to cover anything from drugs to guns going to men to people types of things. And also the media, again, very quickly to blame this on Bitcoins and claim that it was the Bitcoin user’s fault.
But there’s actually almost no evidence of the scale in the problem of crime with cryptocurrencies. We don’t determine there’s a whole lot or we don’t determine if there’s a little. But regardless of this, folks are very quick to brand it as a criminal thing, and they forget the legitimate uses, including the fast and quick payment.
So a couple of research questions I’m checking out in this field is the thing that does crime with Bitcoin appear to be? So many people will say that scams and thefts have already been taking place for a long time. However the means whereby they happen changes with the technology. So a Victorian street swindler would practically be doing something completely different to some 419 Nigerian prince scammer.
So the next question that I’d want to research as well is looking at the scale from the problem of crime with cryptocurrency. So by establishing a log of known scams and thefts and things like that, we could then cross reference that lvmqlb the public transaction log of all the transactions and discover simply how much in the transactions are in reality illegal and criminal. So my final question would be, as to what extent does the technology itself actually facilitate crime? By looking back in the crime logs, we can see which particular kinds of crime happen, and when it is actually the technology’s fault, or perhaps is this just the usual crimes that we’ve been checking out before. And when we’ve consider these things, we can start to think about possible methods to the problem of crime with Bitcoin.
So we can consider that the only real suitable solution would be one that preserves the actual values from the technology itself, which would be privacy and decentralisation. Plenty of focus from your media is to look at the criminal elements of it. And they don’t give enough value towards the legitimate uses, because Bitcoin is really a technology that enables fast, quick payments, which can be beneficial to anyone that’s ever bought anything on the web.