(Newswire.net — June 5, 2023) — The dark web is the direct opposite of the internet system we have come to accept — a system where we usually don’t think twice about trying to preserve our anonymity or control who gets to see our personal data — we just use the services everyone else uses and who knows what info we are unwittingly giving away.
Dark web markets, the corner of the internet where illegal activity abounds, set a new revenue record in 2021, bringing in a total of $2.1 billion in cryptocurrency. More information about it can be found at https://deeplab.com.
The pairing of dark web services with cryptocurrencies has led to expectations of a boom in crime. A decade ago, an unknown cryptography expert (with particular expertise in cracking passwords) who used the alias Satoshi Nakamoto developed the world’s first currency and payment network not controlled by a national government: Bitcoin. Originally a niche medium of exchange for the technology community, Bitcoin emerged in 2011 as the currency of choice for drug dealers conducting transactions on a dark-web site known as the Silk Road. Over the past five years, the combination of an encrypted network hidden from most of the world and a transactional currency that is nearly untrackable by law enforcement officials resulted in a small, but significant, marketplace of illicit vendors selling illegal wares.
What is the Deep Web Economy?
The deep web economy refers to the online underground marketplaces where illegal goods and services are bought and sold anonymously using cryptocurrencies such as Bitcoin and Monero. These marketplaces are hidden from regular search engines and require special software to access. They are often used for illegal activities such as drug trafficking, money laundering, and cybercrime. The deep web economy is a growing concern for governments and law enforcement agencies around the world, as it presents a significant challenge to their ability to regulate and control criminal activities.
Understanding Cryptocurrencies
Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate independently of central banks. They are decentralized, meaning that they are not subject to government or financial institution control. Cryptocurrencies are based on blockchain technology, which is a decentralized ledger that records all transactions made using the currency. This makes cryptocurrencies highly secure and difficult to hack or manipulate. There are currently thousands of different cryptocurrencies in circulation, with Bitcoin being the most well-known and widely used.
Cryptocurrencies in the Deep Web
Cryptocurrencies are popular on the dark web because they provide a convenient method of obfuscating identities and transaction details. Of the 70 analyzed darknet markets, 91% accept(ed) Bitcoin payments, 79% Monero, 21% Litecoin and a small percentage (<10%) accept ZCash, Bitcoin cash, Ethereum, or Dash. However, several reports have revealed that only a small fraction of the global crypto transaction volume is linked to the dark web.
How Cryptocurrencies are Used in the Deep Web
Cryptocurrencies are used in the deep web to buy and sell illegal goods and services anonymously. Transactions are conducted using encrypted messaging services and payment is made using digital wallets. The anonymity provided by cryptocurrencies makes it difficult for law enforcement agencies to track down the individuals involved in these transactions. Cryptocurrencies are also used to pay for ransomware attacks, where cybercriminals encrypt a victim’s data and demand payment in exchange for the decryption key.
Popular Cryptocurrencies on the Deep Web
Bitcoin and Monero are the most widely accepted cryptocurrencies on the deep web. Bitcoin is popular because it is widely recognized and can be easily converted into fiat currency. Monero, on the other hand, is a privacy-focused cryptocurrency that is designed to be untraceable. This makes it an attractive option for those who want to conduct transactions anonymously. While XMR might be stealing market share from the other, more transparent cryptocurrencies, BTC still maintains support from 93% of all dark web markets, suggesting that Bitcoin still rules in the dark web.
The Benefits and Risks of Using Cryptocurrencies in the Deep Web
The benefits of using cryptocurrencies on the deep web include the anonymity they provide, as well as their convenience and security. Transactions can be conducted quickly and easily, without the need for intermediaries such as banks. However, risks are also associated with using cryptocurrencies in the deep web. These include the potential for loss of funds due to hacking or theft, as well as the possibility of being scammed by fraudulent vendors. Additionally, the use of cryptocurrencies in the deep web has led to increased scrutiny from law enforcement agencies, who are working to develop new tools and techniques to track down criminals operating in these marketplaces.
The Future of Cryptocurrencies in the Deep Web Economy
The future of cryptocurrencies in the deep web economy is uncertain. While cryptocurrencies provide a convenient and secure way to conduct anonymous transactions, their use in illegal activities has led to increased scrutiny from law enforcement agencies. Governments and international institutions are attempting to directly regulate the cryptocurrencies that are fueling dark web marketplaces. The start-up ecosystem of exchanges, wallets, and other crypto payment facilitators is far from having the necessary infrastructure to adopt such financial-sector-like standards, but supervisors need to begin laying the groundwork for enhanced scrutiny. The impending launch of Libra, Facebook’s cryptocurrency, will only make this a more pressing concern as the barriers to adopting virtual assets are lowered for Facebook’s nearly 2 billion-plus users.
Conclusion
Cryptocurrencies have emerged as a popular medium of exchange on the deep web. While they provide a convenient and secure way to conduct anonymous transactions, their use in illegal activities has led to increased scrutiny from law enforcement agencies. The future of cryptocurrencies in the deep web economy is uncertain, but one thing is clear: governments and regulators are taking notice and working to develop new tools and techniques to combat the illicit activities facilitated by these digital assets.
Final Thoughts on the Deep Web Economy and Cryptocurrencies
The deep web economy is a complex and ever-evolving landscape that continues to pose significant challenges for law enforcement agencies and governments around the world. However, as technology advances and new tools are developed, it is likely that we will see increased efforts to crack down on illegal activities in this space. Cryptocurrencies have undoubtedly played a role in the growth of the deep web economy, but they are not solely to blame for their existence. As with any technology, cryptocurrencies can be used for good and bad purposes, and it is up to society as a whole to determine how best to balance the benefits and risks associated with their use.