Chain-Hopping
It’s tempting to think of cryptocurrencies in terms of Bitcoin—in part because many cryptocurrencies are Bitcoin derivations. First outlined in an October 2013 whitepaper by the pseudonymous figure Nicolas van Saberhagen and called Cryptonote, another pseudonymous individual known only as “thankful_for_today” later coded those ideas into a currency called Bitmonero. When open-source coders on the Bitcointalk forum disagreed with thankful_for_today’s directions for the currency, they forked it in 2014 to create Monero, whose name means simply “coin” in Esperanto. Although many illicit actors use Monero to obscure transactions, they haven’t adopted Monero to the extent one might expect. The primary reason is due to Monero’s lower liquidity compared to that of other cryptocurrencies, making large transactions more difficult to execute. Regulatory uncertainty and XMR bans have also reduced its accessibility in certain countries.
Even Ethereum’s Vitalik Buterin has encouraged the development of zk-SNARKs technology, though it was in a different context – as a way to address scaling issues for Ethereum. Through this method of cryptography, shielded transactions may not be traced to either interacting parties. Zero-knowledge proofs make it possible to prove specific facts about otherwise encrypted data and verify that certain facts are true about that data without revealing additional information. And yet, what Monero might be best known for in the general public is its now-common usage in illicit transactions. The currency is accepted on many large darknet markets alongside Bitcoin, and one of the largest dark web drug markets, the now-defunct White House Market, exclusively facilitated XMR transactions starting in late 2020.
“But that’s not always an option in many places because it’s a backbone for so many web pages or internal applications,” he says. It’s not as easy to infect a server with cryptojacking malware as it is to hijack a browser, Tomek says. The price of Monero has been rising at a corresponding rate, says Norton.
According to the US Bank Secrecy ACTThe Bank Secrecy Act (BSA) is U.S. legislation aimed toward … More (BSA) rule [31 CFR 103.33(g)], for funds transfers above a USD 3,000 threshold financial institutions are required to share sender and receiver information. Enforcement of this rule lies with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). Anyone who has initiated a bank wire transfer in the US is surely familiar with these requirements.
That’s a big difference from the closing price of $89.12 on Aug. 26, 2020. Panther also supports a feature called Panther Reveals, which allows you to disclose parts or the totality of your DeFi history if required by KYC verification, regulators, and financial institutions. Other examples of private cryptocurrencies include Beam, Grin, and Firo. In essence, crypto and Bitcoin tumblers aren’t ideal for financial privacy because their flaws pose some unique challenges, particularly on the compliance side. Even though mixers aren’t inherently bad, they might be better positioned to succeed if they tackled regulatory concerns first and foremost.
Since Putin’s invasion on February 24, Zcash has surged by more than 67% to $147, whereas Bitcoin has only climbed by 9% in the same duration. The interesting bit is that they don’t have to charge you based on that alone. If they’re 80% sure you bought illegal drugs, they’ll either get a warrant to search your house or perform surveillance on you and wait for you to slip up. Helping in the operation were law enforcement authorities from the U.S., Switzerland, Moldova and Ukraine.
Understanding Darknet Markets and Zcash
It opens many avenues for those who want to transact beyond what the traceable and censorable fiat money allows. Cross-border payments at a fraction of the cost, availing credit with no background checks, and more can be accomplished with cryptocurrency. The heightened privacy and pseudonymity offered by crypto benefits more than those indulging in its mainstream use cases. Unfortunately, crypto assets are also used for criminal activity as they are more convenient than fiat money.
The darknet has become an intriguing yet controversial part of the internet, providing a platform for various illicit activities. Among the digital currencies used in these marketplaces, Zcash has emerged as a preferred choice due to its advanced privacy features.
In this article, we will explore which darknet markets accept Zcash, highlighting key characteristics, benefits, and potential risks associated with using this cryptocurrency in the darknet ecosystem.
With tumbler services, the idea of untraceable cryptocurrency transactions is possible. Tumblers can help a user stay private as they transact on the blockchain, keeping their dealings away from the public eye, preserving their identity, and obscuring sensitive information on the transactions made. When it comes to cryptocurrency mining, Zcash is one of the most popular options available today. Zcash mining is the process of verifying transactions on the zcash blockchain, and in return, miners receive a reward of Zcash cryptocurrency. However, many people wonder if the investment required for Zcash mining is worth it.
Overview of Zcash
Zcash is a cryptocurrency that emphasizes privacy, allowing users to make transactions that can be completely anonymous. It utilizes zero-knowledge proofs, enabling the verification of transactions without disclosing the involved parties’ identities or the amount being transferred.
As privacy becomes a major concern in online transactions, Zcash has gained traction among users who value anonymity, particularly in less conventional markets such as those found on the darknet.
Darknet Markets Accepting Zcash
Several darknet markets have begun to accept Zcash as a payment option due to its privacy-preserving technology. Here’s a list of notable markets that have adopted Zcash:
- AlphaBay – A well-known marketplace that has resumed operations after a shutdown, now includes Zcash as a payment method.
- Dream Market – Offers a variety of goods and services and accepts Zcash to ensure user anonymity.
- Berkeley Market – Provides a platform for buying and selling illegal items, accepting Zcash for its privacy features.
- DarkBay – A relatively new addition to the darknet that has embraced Zcash for transactions.
- Silk Road 3.0 – An attempt to revive the infamous Silk Road, accepting Zcash among other cryptocurrencies.
Benefits of Using Zcash on Darknet Markets
Opting for Zcash on darknet markets presents several advantages:
- Enhanced Privacy – Transactions are shielded from public visibility, making it difficult for third parties to trace activity back to users.
- Reduced Identification Risks – Using Zcash minimizes the likelihood of being identified through financial trails.
- Flexible Payment Options – As an increasingly accepted currency, using Zcash provides users with more choices when selecting darknet markets.
- Secure Transactions – Zcash employs cutting-edge cryptographic techniques to safeguard users’ funds during transactions.
Potential Risks of Using Zcash on Darknet Markets
- In addition to their primary role in crypto crime – the sale of illicit drugs – darknet markets (DNMs) are also involved in the laundering of proceeds from crime.
- Others in the industry questioned whether compliance with the information sharing requirements is even possible given current blockchain technology.
- They offer higher efficiency and can be customized for Zcash mining much better than the previous generation CPUs and GPUs.
While Zcash offers numerous benefits, users should also be aware of potential risks:
- Legal Repercussions – Engaging in illegal activities on darknet markets can incur severe legal consequences.
- Market Reliability – Not all darknet markets are stable or trustworthy, and some may disappear or lead to scams.
- Regulatory Scrutiny – Cryptocurrencies, especially those used in illicit activities, may face increasing scrutiny from regulators worldwide.
FAQs
1. Why choose Zcash over other cryptocurrencies?
Zcash specializes in privacy features, making it an ideal choice for users aiming to protect their identities while conducting transactions on darknet markets.
2. Are transactions with Zcash completely anonymous?
While Zcash offers significant privacy features, no cryptocurrency can guarantee complete anonymity. Users should still take precautions.
3. How do I acquire Zcash for darknet purchases?
Users can acquire Zcash through exchanges, trading platforms, or by accepting it as payment for goods and services.
4. What should I consider while using darknet markets?
When engaging with darknet markets, consider the reliability of the market, the reputation of sellers, and the legal implications of your transactions.
Conclusion
As the demand for privacy-focused transactions continues to rise, the future of Zcash on darknet markets looks promising. Users who prioritize anonymity can benefit from examining which darknet markets accept Zcash, while remaining vigilant about the associated risks.
