The Net is a part of society and is shaped by society. And until society is a crime-free zone, the Web won’t be a criminal offense-free zone.
So what is a cryptocurrency? A cryptocurrency is a decentralised fee system, which basically lets people ship forex to one another over the web with out the necessity for a trusted third party akin to a bank or monetary institution. The transactions are cheap, and in many cases, they’re free. And also, the funds are pseudo anonymous as well.
As well as that, the main characteristic is that it’s totally decentralised, which implies that there’s no single central point of authority or anything like that. The implications of this is finished by everyone having a full copy of all the transactions which have ever occurred with Bitcoin. This creates an incredibly resilient network, which signifies that nobody can change or reverse or police any of the transactions.
The high level of anonymity in there means Initial coin offering (ico) that it’s very hard to trace transactions. It’s not totally not possible, but it surely’s impractical in most cases. So crime with cryptocurrency– because you’ve got fast, borderless transactions, and you have a high stage of anonymity, it in principle creates a system that’s ripe for exploitation. So in most cases when it is a crime online with on-line payment techniques, then they have a tendency to go to the authorities and, say, we are able to hand over this payment information or we can cease these transactions and reverse them. And none of that can occur with Bitcoin, so it makes it ripe for criminals, in theory.
In light of this, a whole lot of completely different businesses are researching into Bitcoin and looking at Bitcoin and trying to know how it works and what they’ll do to police it. It is also been in the media fairly a few instances, and the media, being the media, like focus on the bad side of it. In order that they focus very heavily on the crime with it. So if there’s a theft or a scam or something like that, then they tend accountable it on Bitcoin and Bitcoin users.
So probably the most notable might be Silk Road, which got taken down recently, and through their $1.2 billion price of Bitcoins, went to pay for anything from medicine to guns to hit men to those types of things. And the media, once more, in a short time guilty this on Bitcoins and say that it was the Bitcoin consumer’s fault.
However there’s actually little or no evidence of the size of the problem of crime with cryptocurrencies. We don’t know if there’s a lot or we don’t know if there’s a little. However regardless of this, people are very quick to model it as a felony thing, and so they overlook the reputable makes use of, such because the fast and fast payment.
So just a few analysis questions I’m looking at in this area is what does crime with Bitcoin look like? So a lot of people will say that scams and thefts have been happening for ages. However the means through which they occur modifications with the technology. So a Victorian road swindler would practically be doing something very different to a 419 Nigerian prince scammer.
So the following question that I would wish to research as nicely is trying on the scale of the issue of crime with cryptocurrency. So by generating a log of known scams and thefts and things like that, we will then cross reference that with the general public transaction log of all transactions and see just how much of the transactions are literally unlawful and criminal. So my closing question would be, to what extent does the know-how itself actually facilitate crime? By trying back at the crime logs, we will see which explicit kinds of crime happen, and if it is actually the technology’s fault, or is this just the same old crimes that we’ve been taking a look at before. And once we’ve consider these things, we will start to think about attainable solutions to the problem of crime with Bitcoin.