Privacy in the Blockchain network allows for illegal trade and activity within it while protecting users from attacks and the privacy of users. The most cited example of the blockchain used for illegal transactions is Silk Road, an online "darknet" drug market that operated from February 11 to October 13, when it was closed by the FBI.
This website allowed users to browse the website without using the Tor browser and make illegal purchases using Bitcoin or other cryptocurrencies. Current US regulations require financial service providers to obtain information about their customers when they open an account, verify the identity of each customer, and confirm that customers do not appear on any list of known or suspected terrorist organizations. This system can be viewed as both professional and adverse. It gives everyone access to financial accounts, but also allows criminals to take action more easily. Blockchains have been the subject of controversy, especially since most illegal activities are still carried out with untraceable cash, but many claim that the good uses of cryptocurrency (such as banking in the unbanked world) outweigh the cryptocurrency's abuse.
- CandleFocus Editor
Disadvantages: Illegal Activity