Associated Data
Similarly, there is no unique choice for the classification parameters or ground truth for fitting them. In light of this, we have chosen the parameters conservatively, obtaining estimates for the number of sellers that are in general smaller than the ones produced by other methods. Second, our approach does not explicitly classify buyers, which are entities that were not classified as sellers.
Understanding What Bitcoins Are Accepted by Darknet Markets
The realm of darknet markets is often shrouded in mystery, particularly when it comes to the question of payment methods.
In August 2017, in a hard fork coin split, Bitcoin split into two cryptocurrencies, traditional Bitcoin and Bitcoin Cash (“BCH”). When this split occurred, any Bitcoin address that had a Bitcoin balance (as ZHONG’s addresses did) now had the exact same balance on both the Bitcoin blockchain and on the Bitcoin Cash blockchain. As of August 2017, ZHONG thus possessed 50,000 BCH in addition to the 50,000 Bitcoin that ZHONG unlawfully obtained from Silk Road.
The Darkweb and SDG 16 have an inverse relationship, as the former undermines the latter. The Darkweb is often used for illegal activities such as human trafficking, drug trafficking, and arms trafficking, which directly contradicts the goal of SDG 16 to promote peaceful and inclusive societies. The illegal activities facilitated by the Darkweb can lead to increased organized crime, money laundering, and corruption, eroding the rule of law and good governance.
Bitcoin has emerged as the primary currency for transactions on these platforms due to its pseudonymous nature and ability to facilitate global transactions.
Types of Bitcoins Accepted on Darknet Markets
Today, there are more varieties of darknet markets — these new dark web markets are more likely to specialize in specific goods or a unique transaction system. The report mentions that The Inferno Drainer would lure in potential victims with phishing sites that impersonated crypto brands. The cybercriminals also spoofed popular Web3 protocols such as Seaport, WalletConnect, and Coinbase to initiate fraudulent transactions. Additionally, we analyse the U2U network of transactions, i.e., the transactions between pairs of market first-neighbors where the source and destination nodes are market users without the market as an intermediate.
Exchanges are by far the most common service customers use to send cryptocurrency to vendors, and for vendors to send funds to cash out. After a small decline in 2018, total darknet market sales grew 70% in 2019 to over $790 million worth of cryptocurrency, making it the first time sales have surpassed $600 million. Not only that, but for the first time since 2015, darknet markets increased their share of overall incoming cryptocurrency transactions, doubling from 0.04% in 2018 to 0.08% in 2019. 2Easy is a quickly-growing dark web marketplace that’s based around a similar concept as the Genesis Market.
While most darknet markets predominantly accept Bitcoin, there are variations and considerations regarding the types and methods of using Bitcoins.
According to him, Litecoin is popular because it has faster processing times as compared to bitcoin and can be stored in offline wallets. Listings under the service business category include social engineering, penetration testing, fraud technologies, private detectives, internet tracking avoidance and privacy, and methods for money laundering. Like most decentralized markets, account registration and user authentication are required before accessing Exchange market’s listings. The market also requires the user solve an English-character-based CAPTCHA before access is granted. In the dark web, Russian-speaking criminals tended not to take actions that would harm or target former Soviet Union countries. However, this situation changed with the start of the war, especially Conti’s declaration of total loyalty to Russia set an excellent example for this situation.
- Standard Bitcoin: The most common form used across most darknet platforms.
- Clean Bitcoin: Bitcoins that have not been associated with any illegal activities, ensuring added security for buyers and sellers.
- Mix Bitcoin: These are Bitcoins that have been mixed or laundered through services to obfuscate their original source.
- Lightning Network Bitcoin: Some markets have begun to accept Bitcoins transacted through the Lightning Network, allowing for quicker and cheaper transactions.
Why Are Bitcoins Preferred on Darknet Markets?
Several reasons contribute to the prevalence of Bitcoin within darknet markets:
- Pseudonymity: Transactions do not directly link to individuals, providing a layer of anonymity.
- Decentralization: As a decentralized currency, Bitcoin is not controlled by any government or financial institution.
- Global Accessibility: Users from around the world can access and use Bitcoins without geographic restrictions.
- Hydra is unique in that it only serves Russian-speaking countries, and is by far the largest darknet market in the world, accounting for over 75% of darknet market revenue worldwide in 2020.
- Like most decentralized markets, account registration and user authentication are required before accessing Exchange market’s listings.
- The average number of daily bitcoin transactions has climbed to 224,000 so far this month from around 206,000 last August, according to data from the Blockchain website.
- Bitcoin’s rising transaction fees are the primary reasons for the switch.
- The documents were taken from Netsential, a Texas-based web-design company that hosts law-enforcement websites.
FAQs About Bitcoins on Darknet Markets
1. Are all darknet markets the same in terms of Bitcoin acceptance?
No, while most accept Bitcoin, some markets may also accept alternative cryptocurrencies or have specific requirements for usage.
2. How can I ensure my Bitcoins are ‘clean’ before using them?
Utilizing services that track Bitcoin transactions or mixing services can help in ensuring that your Bitcoins are not associated with illicit activities.
3. What measures can I take to enhance my anonymity when using Bitcoins?
Consider using a Virtual Private Network (VPN), mixing services, and creating new wallets for each transaction to enhance your anonymity.
Understanding the nuances of Bitcoins accepted by darknet markets is essential for anyone looking to navigate this shadowy side of the internet.
By fully grasping the different types of Bitcoins and implementing safe practices, users can better protect their identity and assets in these challenging environments.
