Silk Road, an illegal online marketplace that operated on the dark web recently but has been shut down by the FBI. Silk Road actually wants to facilitate transactions using Bitcoin. Read the full explanation.
Early Start
Bitcoin was originally intended to ensure anonymity and is a principle adhered to by most crypto assets.
However, true anonymity relies on transactions leaving no trace. For example, purchasing crypto assets via credit card can create a traceable trail.
Likewise, acquiring cryptocurrency through an exchange may leave behind proof of delivery address.
Definition of Silk Road
Created by Ross Ulbricht in 2011, Silk Road emerged as a platform where individuals could purchase a variety of illicit goods, including fake ID cards and narcotics. Transactions on the platform often involve the use of crypto assets.
The Silk Road is a historic trade route that spanned continents and cultures, having a timeless appeal.
Silk Road Implications
Developing Digital world technologies such as crypto markets and online markets have resulted in increasing demand for data privacy.
This increased demand has led to stricter regulations and laws governing data use, alongside the development of technological solutions that cater to individuals seeking greater anonymity. Although data anonymization tools were introduced to protect users' personally identifiable information (PII), they have also been exploited by entities involved in illegal activities.
In 2011, Silk Road emerged in response to the need for a platform where illegal drug sellers could connect with potential buyers online while ensuring anonymity through anonymization.
Conclusion
Silk Road functions as a hidden service on the Tor network. Thus allowing users to engage anonymously in the purchase and sale of goods and services.
Transactions exclusively use bitcoin, a crypto asset that plays an important role in maintaining user anonymity. Known for its illegal drug market and various other illegal and legal offerings, the website facilitated the sale of 9,519,664 Bitcoins from February 2011 to July 2013.
Also read:
What is Blockchain 1.0? A Blockchain Starting Point
Crypto Faucet, How to Get Free Cryptocurrency
Fiat On-Ramps and Off-Ramps in Cryptocurrencies
DISCLAIMER: This article is informative and does not constitute an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in crypto asset exchange rate fluctuations.
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