- Cryptocurrency, like every other existing currency, attracts theft and fraud.
- Buying Silk Road involves connecting crypto wallet to a single decentralized exchange.
- A crypto blockchain platform for unethical users-Silk Road
- The founder of Silk Road was sentenced to life in prison when the FBI found out about this online black market back in 2013.
Crypto, when it took over the market for a secured and fast peer-to-peer transaction, involved creators, buyers and sellers of all kinds of assets, including collectors of art pieces and creators of digital art. With this wave of transformation, 115 Million people invested in cryptocurrencies, creating their own wallets and storing data on this decentralized web.
A prior analysis by global crypto exchange KuCoin pegged India’s overall crypto population at 115 Million, with 52 percent of them investing in the asset class to generate passive income.
The Risks Of Cryptocurrency
Cryptocurrency payments do not come with legal protections. Legal protection covers a wide range of systems or ways of transacting, like credit cards and debit cards. Cryptocurrencies typically do not come with any such protections. Cryptocurrency payments are typically not reversible. Because the base of the system is a decentralized platform, any transaction made once is irreversible and cannot be gained back unless sent back by the vendor themselves.
This new platform for transactions introduced a way of exploring anonymous data, popularly known as ‘Data Anonymization’.
Dating back to 2011, the anonymization system created a safe place for dealers of all kinds of items, including drug dealers. This free space was a blockchain specifically created for unethical dealerships, given the name ‘Silk Road’. Being in control of this newfound freedom, buyers and sellers came together for their transactions, having full trust in the decentralized platform given to them on their particular devices. As the safety instructions came to them stating that using or contacting a buyer with high positive feedback increased buyer confidence, drug dealers slept on their beds made of bitcoins. Every receipt that came their way promised at least 10 new buyers, increasing their demand in the market for the platform.
The Demise
2013 is dated as the year when the FBI confiscated 144,000 bitcoins when the hidden market place came to the forefront with its newfound fame. The FBI has reported having confronted the DEA, IRS and Customs agents. The use of Tor and Bitcoin to obscure addresses became major hurdles for the federal agents; however, they were successful in reaching the underground market of drug dealers.
The users of this advanced platform are advised to follow the following precautions to protect themselves from fraud:
- The complexity of passwords makes it highly recommended to keep the crypto wallet safe and untouched.
- Avoiding the storage of cryptocurrency on Exchang
- Safety of the devices
