With the key attributes of censorship resistance and decentralization, blockchain technology can help to improve transparency and efficiency in many walks of life, but this somewhat unregulated nature of this technology means that it can be used by criminals for illegal activities too.
For example, compare a scenario where if some illegal content is published over the internet it can be immediately shut down by approaching the concerned authorities and website service providers, but this is not possible in blockchains.
A Complete Guide to Understanding This Blockchain Concept
Once something is there on the blockchain, it is almost impossible to revert it.
This means that any unacceptable content, once published on the blockchain, cannot be removed.
If the blockchain is used for distributing immoral content, then there is no way for anyone to shut it down.
This poses a serious challenge and it seems that some regulation and control is beneficial in this scenario, but how can a blockchain be regulated?
It may not be prudent to create the regulatory laws first and then see if blockchain technology adapts to that because it might disrupt innovation and progress in this technology.
It would be more sensible to let the blockchain technology grow first, just like the internet and when it reaches a critical mass then governing bodies can call for applying some regulation around the implementation and usage of blockchain technology.
Why This Matters for Blockchain Technology
There are various examples where the Dark Web is used in conjunction with bitcoin to perform illegal activities.
For example, Silk Road, which was used to sell illegal drugs over the internet, used bitcoins for payments and the Dark Web using onion URLs which are only visible with Tor.
Although Silk Road was shut down after months of effort by law enforcement agencies, new similar sites started to emerge.
Now, other alternatives are available that similar offer services; as such, generally, this type of problem remains a big concern.
Key Points to Remember
- Dark side With the key attributes of censorship resistance and decentralization, blockchain technology can help to improve transparency and efficiency in many walks of life, but this somewhat unregulated nature of this technology means that it can be used by criminals for illegal activities too.
- For example, compare a scenario where if some illegal content is published over the internet it can be immediately shut down by approaching the concerned authorities and website service providers, but this is not possible in blockchains.
- Once something is there on the blockchain, it is almost impossible to revert it.
- This means that any unacceptable content, once published on the blockchain, cannot be removed.
Going Deeper: Advanced Concepts
Imagine that an illegal website is on IPFS and a blockchain; there is no easy way of shutting it down.
It is clear that absence of control and regulation can encourage criminal activity and similar issue like Silk Road will keep arising.
Further development of totally anonymous transaction capabilities such as Zcash could provide another layer of protection for criminals but at the same time may be quite useful in various legitimate scenarios.
It depends on that who is using the technology; anonymity can be good in many scenarios, for example in the health industry where patient records should be kept private and anonymous but may not be appropriate if it can also be used by criminals to hide their activities.
Conclusion
Dark side represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.