What is a Cryptocurrency And Bitcoin?
The web is part of society and is molded by society. And until society is a crime-free zone, the web won't be a crime-free zone.
So what is a cryptocurrency? A cryptocurrency is a decentralised payment system, which basically lets people send currency to each other over the web without necessity for a trusted any such such as a bank or financial institution. The transactions are cheap, and in many cases, they're free. And also, the payments are pseudo nameless as well.
As well as that, the main feature is that it's totally decentralised, which means that there's no single central point of authority or anything like that. Quickswap The benefits of this is done by everyone having a full copy of all the transactions that have ever happened with Bitcoin. This creates an incredibly resilient network, which means that no one can change or reverse or police any of the transactions.
The high level of anonymity within means that it's very hard to search for transactions. It's not totally impossible, but it's impractical in most cases. So crime with cryptocurrency— because you've got fast, borderless transactions, and you've got a high level of anonymity, it in theory creates a system that is ready for exploitation. So in most cases when it's a crime online with online payment systems, they likely tend to go to the authorities and, say, we can give them this payment information or we can stop these transactions and reverse them. And none of the can happen with Bitcoin, so it makes it ready for criminals, in theory.
In light of this, a lot of different agencies are researching into Bitcoin and looking at Bitcoin and trying to appreciate how it works and what they can do to police it. It's also been in the media quite a few times, and the media, being the media, like focus on the bad side than it. So focus very heavily on the crime with it. So if there's a theft or a scam or something such as that, they likely tend to blame it on Bitcoin and Bitcoin users.
So the most notable is probably Cotton Road, which got taken down recently, and through their $1. 2 thousand worth of Bitcoins, went to pay for anything from drugs to guns heading to men to those sorts of things. And the media, again, very quickly guilty this on Bitcoins and say that it was the Bitcoin customer's fault.
But there's actually very little evidence of the scale 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. But not surprisingly, people are very swift to brand it as a criminal thing, and they forget the legitimate uses, such as the fast and quick payment.
So a few research questions I'm looking at of this type is what does crime with Bitcoin look like? So a lot of people will say that scams and thefts have been going on for ages. But the means through which they happen changes with the technology. So a Victorian street swindler would practically be doing something very different to a 419 Nigerian royal prince scammer.
So the next question that I'd like to research as well is looking at the scale of the problem of crime with cryptocurrency. So by generating a log of known scams and thefts and things like that, we can then cross reference that with the public transaction log of all transactions and see just how much of the transactions are actually illegal and criminal. So my final question would be, about what extent does the technology itself actually facilitate crime? By looking back at the crime firewood, we can see which particular sorts of crime happen, and if it is actually the technology's fault, or is this just the same old criminal activity that we've been looking at before. And once we've consider these things, we can start to think about possible approaches to the issue of crime with Bitcoin.