Cypherpunk Zooko Wilcox Aims To Bring Anonymous Zcash To Law-Abiding Masses
Understanding Darknet Markets
In recent years, the rise of cryptocurrencies has led to an evolution in how online transactions are conducted, particularly in less transparent environments like darknet markets.
When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term – exchange. Whilst it’s still true that Bitcoin transactions can be almost entirely anonymous, making them so requires many extra security steps. Such steps are often too complicated for the average user and for the developers of both Zcash and Monero, a different and more private cryptocurrency was needed. Perhaps because of this, some major cryptocurrency exchanges like Coinbase do not offer Monero transactions. Meanwhile, U.S. regulators have taken notice of difficult-to-track cryptocurrency like Monero, putting the privacy coin in a precarious position.
Darknet markets are hidden websites that facilitate the buying and selling of illegal goods and services, often using cryptocurrencies to maintain anonymity. Among the various cryptocurrencies available, Zcash has garnered attention due to its privacy features, which appeal to users seeking enhanced confidentiality.
What is Zcash?
As a reward for their efforts, miners are given newly minted ZCash coins. U.S. authorities have made some headway in their ability to track illicit cryptocurrency funds, with the Internal Revenue Service’s criminal investigation unit seizing $3.5 billion in cryptocurrency during fiscal 2021. In February, the DoJ seized $3.6 billion in Bitcoin connected to the 2016 Bitfinex hack – the largest recovery of stolen assets in cryptocurrency ever. Beyond these exchanges, cybercriminals are also using an array of obfuscation tactics to conceal their illicit transactions. These measures are continuing to become more sophisticated, particularly as law enforcement officials simultaneously step up their efforts.
Moreover, nearly half of all dark market zcash mentions were from a single vendor called The Shop, which mentioned the cryptocurrency 161 times. A bubble in the global cryptocurrency market started to pop and Japanese cryptocurrency exchange CoinCheck was hacked, losing $500 million of a cryptocurrency called XEM. By June, citing regulatory pressure, CoinCheck delisted zcash (ZEC) monero (XMR), augur (REP), and dash (DASH), prompting other big Japanese and South Korean cryptocurrency exchanges to delist the currencies. It opens many avenues for those who want to transact beyond what the traceable and censorable fiat money allows.
For example, a pig butchering scheme can involve a romance scam, an investment scam, an advance fee scam and an asset recovery scam. Equally, an investment scheme operating around a new token can involve market manipulation, a pyramid scheme and an exit scam. On-chain analysis has yet to show this happening to a significant degree today. Experts believe this is likely to be due to crypto’s current lack of liquidity relative to a country’s economy. Cryptocurrencies can also be used to influence voters during election campaigns. In 2019, a gubernatorial candidate in St Petersburg, Russia, handed out crypto tokens to voters on the campaign trail.
Recently researchers from Carnegie Mellon University conducted test trials of ZCash and Monero traceability. They found that 99.9% of Zcash transactions and 30% of Monero transactions may be tracked. Pirate Chain, which does not allow non-private transactions, maybe the most impenetrable in light of these weaknesses.
Zcash is a cryptocurrency that offers users the option of “shielded” transactions, which obscure the sender, recipient, and transaction amount. This level of privacy makes it particularly appealing for transactions in a darknet market.
The availability of trading pairs and the exchange rate will depend on the specific platform being used. The implementation of new programs signals that the U.S. government will continue to crack down on illicit cryptocurrency transactions. However, these types of coins are still nowhere near the level of popularity of Bitcoin. FinCEN said in October, it observed attackers providing both a Monero and Bitcoin wallet address for ransomware payments, and imposing an extra fee – a 10 to 20 percent surcharge – for victims paying in Bitcoin.
Which Darknet Markets Accept Zcash?
As the number of darknet markets grows, so does the variety of cryptocurrencies they accept. Here, we explore some of the notable markets that accept Zcash.
Invoicing apps automate and streamline the invoicing process, reducing manual effort and saving time and resources. With online payment options, customers can easily pay their invoices with just a few clicks, improving their overall experience with the business. Electronic invoicing offers a more convenient and hassle-free experience for customers. When choosing the right small business management software, it’s essential to consider the invoicing features and how well they integrate with your accounting software.
- Users have the option to choose between private or public transactions depending on their needs and preferences.
- About TRM LabsThis report was written by TRM Labs, the blockchain intelligence company.
- Zcash also has a fixed supply of 21 million coins, which means that it is not subject to inflation like fiat currencies.
- I’ll be explaining the following about each of these interesting, yet similar currencies.
- While transactions on the darknet are designed to be anonymous and untraceable, law enforcement and cybersecurity experts have certain methods to link transactions with individuals.
- AlphaBay Market: Once a dominant player in the darknet ecosystem, AlphaBay has made a comeback and has started accepting Zcash as a viable payment option. Users appreciate its robust vendor reputation system.
- Dream Market: Known for its extensive array of products, Dream Market also supports Zcash transactions, enabling users to maintain their anonymity.
- Imperial Market: This market has gained traction among users and accepts Zcash, offering various illicit goods from drugs to fraud services.
- Silk Road 3.0: A continuation of the infamous Silk Road, this market accepts multiple cryptocurrencies, including Zcash, catering to the privacy-conscious user.
Benefits of Using Zcash on Darknet Markets
Using Zcash in darknet markets comes with a variety of benefits:
- Anonymity: The shielded transactions provide a level of privacy that is essential in the darknet.
- Security: Zcash employs strong cryptographic protocols, enhancing the overall security of transactions.
- Decentralization: Like other cryptocurrencies, Zcash operates on a decentralized platform, reducing the risk of third-party interference.
FAQs
1. Is Zcash safe to use on darknet markets?
While Zcash offers enhanced privacy and security features, the inherent risks associated with darknet markets persist. Users should exercise caution and follow best security practices.
2. How can I acquire Zcash for darknet transactions?
Zcash can be purchased from various cryptocurrency exchanges. Users can exchange traditional currencies for Zcash and then transfer it to their wallets for use on darknet markets.
3. Are there any risks associated with using darknet markets?
Yes, darknet markets carry inherent risks, including legal implications, exposure to scams, and the potential for encountering malicious entities. It’s crucial to remain informed and cautious.
4. Can I use Zcash to make purchases on surface web platforms?
While Zcash is gaining acceptance among various e-commerce platforms, it is primarily used on platforms that prioritize privacy and security.
Conclusion
The acceptance of Zcash on various darknet markets signifies a growing trend toward privacy-focused transactions in the digital age. Users interested in purchasing goods in these markets should weigh both the benefits and risks associated with using cryptocurrencies, particularly Zcash, to ensure a secure and private experience.
