In early July, users of AlphaBay, one of the largest darknet marketplaces, panicked when their go-to supplier of illegal drugs, weapons, and other illicit items unexpectedly vanished from the internet. As is often the case when darknet marketplaces go down, many were wary that the moderators may have purposefully closed the site and made off with shoppers’ money. Though AlphaBay’s moderators quickly took to Reddit to assure users that they were working to restore the site, the internet panic left many wondering more about the mysterious “dark web” and its contents. What is this hidden side of the internet really about? And can any good be found in the dark? Read on to find out.

Deep Web vs. Dark Web

When you go online to browse social media, read the news, or look up directions, you’re using what’s called the “surface web.” While most of us stick to the surface web for our daily use, the truth is that it’s just a sliver of what’s available on the internet.

The deep web, which experts estimate makes up about 90 percent of the internet’s content, is comprised of all the web pages that aren’t accessible through public search engines. Library search engines, government databases, and your personal email account are all examples of pages on the deep web.

Many internet users confuse the deep web with the dark web, but the dark web is actually a tiny subsection of the deep web. It is comprised of all the hidden content existing on darknets, or encrypted networks that require use of specific software or tools to access. Darknets are specially designed to provide anonymity to users, making user presence on the dark web undetectable.

The dark web is best known to the public as a safe haven for salacious and criminal enterprises–the drug and weapons trades, child pornography, and the sale of stolen personal information, like bank accounts. But there are individuals on the dark web with nobler intentions, like whistleblowing. Wikileaks, for example, is a notorious dark web site that allows whistleblowers to anonymously upload classified information to the site. Civilians may also use darknet software to access social media in countries where sites like Facebook and Twitter are banned, or to spread news in times of censorship and political unrest.

How to Use the Dark Web

The most common way to access the dark web is using a free software called Tor, originally short for “The Onion Router,” which allows users to anonymize their web pages and their presence on the internet.

Tor was originally created by U.S. Naval Research Laboratory employees in the mid 1990s, and receives 60 percent of its funding from the U.S. government. It hides users’ IP addresses (the unique code that attaches your internet activity to your computer) by sending traffic from their computer and server to other, random points, “like anonymous bagmen trading briefcases in a parking garage,” according to Wired.

Users of Tor can access the surface web as normal, but can also browse websites that run Tor themselves–that’s where the hidden side of the internet exists. Tor websites don’t have a normal URL like Facebook.com, but instead consist of a jumble of seemingly random letters followed by “.onion,” like wlupld3ptjvsgwqw.onion for Wikileaks. This means that to access a Tor website, you most often need to know the exact web address.

Tor is working on developing its anonymity capabilities even further, Wired reported in January. Tor Project co-founder Nick Mathewson told the tech magazine that software released later this year will allow users to keep their sites completely secret, even from other Tor users.

“Someone can create a hidden service just for you that only you would know about, and the presence of that particular hidden service would be non-discoverable,” Mathewson told Wired. “As a building block, that would provide a much stronger basis for relatively secure and private systems than we’ve had before.”

Who Uses the Dark Web?

Criminals

The anonymous sale and exchange of illegal substances is responsible for most of the dark web’s notoriety. One of the most famous darknet marketplaces is the Silk Road, which was shut down in 2013, only to re-appear in various iterations. Most sites use bitcoin, rather than PayPal or credit cards, for transactions, since the e-currency allows customers to maintain their anonymity.

In June, Interpol launched a digital forensics course for wildlife crime investigators, to crack down on use of the dark web for the illegal trade of ivory and exotic animals.

Hackers have also been known to sell personal information, like login details for bank accounts or email accounts. In March 2015, thousands of active Uber account usernames and passwords were being sold for as little as $1-$5 on darknet marketplaces AlphaBay and ThinkingForward.

Dozens of hitmen are also available for hire on the dark web, but many sites, like BesaMafia, have been proven to be scams, or set up by law enforcement to catch people plotting murder.

“Normal” People

If you are unfamiliar with the dark web, you may be surprised to learn that many of its users are “Average Joes” (i.e. not internet-based arms dealers), who are interested in maintaining their internet privacy for less malicious reasons.

Politicians conducting secret deals, internet stalking victims wishing to keep their location private, and law enforcement officials investigating crimes are a large portion of the dark web’s user population. In a 2016 post on TurboFuture, blogger Dean Walsh noted the absurdity of these various populations interacting with terrorists, cybercriminals, and hackers.

“The fact that so many of the dark web’s users are enemies also leads to a strange dynamic,” Walsh writes. “I was tickled to see website security experts and criminal hackers sharing the same forums to discuss their common interests in computer security whilst hardly recognizing that they are nemeses.”

Activists and Journalists

The anonymity provided by dark web sites can also be a force for justice. Activists have been able to shed light on dire situations while avoiding detection in countries where oppressive regimes prevent civilians from using social media, or otherwise censor content posted on the internet.

Nima Fatemi, an Iranian activist and contributor to the Tor Project, taught friends and family how to use the service during a series of riots and protests in Tehran in 2009. Fatemi told Rolling Stone that Tor allowed him and others to post information about what was actually happening, while state television was “just showing photos of flowers and stuff.” “I found Tor and thought, ‘This is the tool.’ It was peace of mind,” Fatemi told Rolling Stone. “I felt it a duty because so many people outside of Iran had no idea that we were protesting.”

Organizations like the Electronic Frontier Foundation encourage protesters and journalists to use Tor networks to protect their identity. The non-profit news organization ProPublica recently launched a Tor version of its website, which means readers can safely read the publication’s articles undetected. A ProPublica spokesman told Wired that the development will make the website safe for users in locations like China, where heavy government censorship can affect internet content. Facebook also has a Tor version, which it says many of its users access on the regular.

“Wikileaks” Courtesy of Sean MacEntee : License (CC BY 2.0)

Terrorists?

While there is some evidence of ISIS militants and supporters using the dark web and other Tor-protected services to recruit and fund their efforts, researchers at King’s College London found relatively “little militant, extremist presence” on the dark web. Thomas Rid, one of the researchers who co-authored the paper Cryptopolitik and the Darknet, told Quartz that dark web sites are not very useful for quickly and effectively spreading propaganda.

“Hidden services are sometimes slow, and not as stable as you might hope,” Rid said. “So ease of use is not as great as it could be. There are better alternatives.”

Conclusion

When dark web activities make headlines, it’s usually for something nefarious. This criminal side will continue to be newsworthy as the NSA and FBI crack down on illegal darknet marketplaces like the Silk Road, and stolen consumer data on dark web sites. But beyond the child pornography, drug sales, and hitmen for hire, there are activists, journalists, and everyday internet users making use of the dark web. As sites like ProPublica and Facebook turn to Tor for security purposes, the lighter side of the dark web could have its moment in the sun.

Avery Anapol

Avery Anapol is a blogger and freelancer for Law Street Media. She holds a BA in journalism and mass communication from the George Washington University. When she’s not writing, Avery enjoys traveling, reading fiction, cooking, and waking up early. Contact Avery at Staff@LawStreetMedia.com.

The post Unraveling the Dark Web appeared first on Law Street.

As someone who grew up firmly entrenched in the era of technology, interpreting what people say via plain text on a screen is almost second nature to me. Emojis, elongated words, abbreviations, as silly as it sounds, all convey their own unique meaning. So, it follows that how to deal with those unique meanings is an important question that jurors and the legal system were going to have to deal with someday. Well that day is today, as an argument over the significance of emojis and other kinds of virtual language have made their way into the much-anticipated trial of alleged Silk Road Founder Ross Ulbricht.

Silk Road was an online site where many illicit transactions took place–particularly the sale of illegal drugs. It was a virtual black market, hidden under layers of secrecy and encryption. In November 2013, the website was shut down and Ulbricht, 29, was arrested and accused of being “Dread Pirate Roberts,” the founder of the site.

Ulbricht is now on trial, facing charges of money laundering, computer hacking, conspiracy to traffic narcotics, and procuring murder. That last one refers to the fact that “assassins” allegedly advertised their services on Silk Road.

His trial has taken a weird turn though. It was more common when I was younger, but every couple of years someone writes a reactionary article claiming that today’s teenagers are using emoticons and abbreviations to set up giant orgies (or whatever it is that kids do these days). These articles are usually much-ridiculed by anyone who’s ever seen a computer before, like this CNN piece from December entitled “28 Internet Acronyms Every Parent Should Know.” Choice abbreviations from this article included: “IWSN – I want sex now” “GNOC – Get naked on camera,” and “KPC– Keeping parents clueless.”

Well, parts of Ulbricht’s trial kind of sounds like a real life reenactment of an article warning parents about the acronyms that those darn kids nowadays are using.

pic.twitter.com/5YGWmqi0jA

— Sarah Jeong (@sarahjeong) January 23, 2015

That brings us back to the whole emoji issue too, because apparently this happened “IRL”:

He said “emoticon” literally every time there was an emoticon pic.twitter.com/deisI0nSEH

— Sarah Jeong (@sarahjeong) January 23, 2015

There was also a  particular message at issue in which a “smilie face” was used, and the prosecutor didn’t mention the smilie face after reading the message to the jury.

Essentially, the issue here is that the attorneys in this case are realizing that they can’t treat Ulbricht’s emails, chats, texts, or whatever other form of online communication like they’d treat a letter or an audio recording. The ways in which we communicate online have developed their own nuances, such as elongating certain words like “soooo” or using multiple question marks. Both of these were discussed in Ulbricht’s trial so far.

That’s why Joshua Dratel, Ulbricht’s attorney, wrote a letter to the judge asking that any forms of written communication–including emails, chats, and texts–be shown to the jury, not read aloud. He argued that the danger of different inflections, or ignoring parts of the message altogether (like just saying “emoticon”) was too high. The prosecution, obviously, disagreed.

Eventually Judge Katherine B. Forrest allowed a compromise. She allowed the chats and other text-based communications to be read into the record, but also instructed the jury to read them on their own and take note of any symbols.

This is just one part of a trial that in many ways deals with a world that has the potential to be utterly foreign to some of the jurors. Judge Forrest even recommended to both sides of the case that they develop a glossary for the terms that jurors may never have heard of, like Bitcoin, IP address, and Tor.

It’s a division in our society that is as inevitable as it is ubiquitous–knowledge of technology divides people of different ages, different social classes, and even different interests. That being said, it’s clear that the ways in which we communicate are ever-changing, and not as easy to interpret as they used to be. It’s easy to tell if someone is sarcastic from their tone when you listen to a recorded voicemail; it is not as easy when reading an email. The jurors will have to weigh these changes in technology along with the charges against Ulbricht, and moving forward, I bet we’ll see a lot more cases where the meanings of different facets of technological communication are up for debate.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Emojis in Court: Does a :) Really Matter? appeared first on Law Street.

Bitcoin first started making headlines in 2009 and has continued to grow into one of the world’s most well-recognized, thorough, and usable cryptocurrencies. But with multiple legal controversies and the general public’s skepticism when it comes to something as new as “cryptocurrency,” it’s difficult to tell whether Bitcoin has much of a future. Read on to learn more about the currency and its future.

What is Bitcoin?

Bitcoins are widely known as a digital or cryptocurrency. Unlike conventional currencies that are regulated by central authorities in their respective regions (such as the Federal Reserve Bank for the United States Dollar), Bitcoin is border-less and managed by a cryptographically-secured peer-to-peer network. The demand for Bitcoins determines their value in the market, and their supply is determined by complex mathematical algorithms developed by the founder–a person who goes by the pseudonym Satoshi Nakamoto. This supply generation process is called Bitcoin mining. So, Bitcoins are usually created by being “mined” by computers solving a complex string of processing problems, although one can now purchase existing Bitcoins.

Only fifty were created at the time of the cryptocurrency’s genesis and the maximum number of coins that can be issued is locked at 21 million. Just like the lowest value that the United States dollar can be divided into is one-cent pennies, a Bitcoin can at most be divided into eight decimal places. It gained prominence in April 2013 when its value spiked to $266 US Dollars compared to only $22 earlier that  same year. More than 10 million coins had been issued at that point at a total market value of $2 billion.

Courtesy of Idology.com.

Who likes Bitcoins?

Proponents of the cryptocurrency appreciate its purity in terms of supply and demand without any governmental interference. Bitcoins mitigate privacy concerns because they eliminate the need to enter information such as name and address for online transactions. For many tech aficionados, the cryptocurrency provides the thrill of following a new trend in the virtual world. Bitcoins are now being accepted by many platforms like WikiLeaks, restaurants, mobile payment applications, and retail apps that have partnered with major consumer brands like GAP and Sephora.

A federal district court recently ruled that Bitcoin is indeed a currency, given that it can be either used to purchase goods and services directly, or to purchase currency that can in turn be used to purchase goods and services. According to a study conducted by the European Central Bank, Bitcoins do not pose a risk to price instability given that their supply is capped at 21 million coins, and will not negatively affect  the economy as long as the government monitors it to ensure that its not being used for fraudulent purposes.

Who doesn’t like Bitcoins?

Opponents worry that the unregulated and anonymous nature of cryptocurrency lends itself to be used for illegal trade, tax evasion, money laundering, and investment frauds like Ponzi schemes. Dread Pirate Roberts, the owner of Silk Road, an online drug market in the deep web that is now shutdown, blatantly admitted that Bitcoin helped him win the war of drugs against the state.

Opponents also criticize Bitcoin’s algorithmic design for specifically inducing rise and fall in its value. But unlike traditional currencies, Bitcoin is not insured by the government in case it gets devalued enough to cause a major financial crisis in its market. Some claim that Bitcoin is being used more like a stock than a currency and that once the initial hype dies down its value will eventually decrease to nothing because it doesn’t have anything to offer except for its cool factor. Since Bitcoin is primarily digital (though coins are now available), it can be lost forever if a user loses his/her computer or account in which it’s stored.

What’s next for Bitcoin?

Bitcoin’s future is somewhat uncertain. While the cryptocurrency is still growing, there are many concerns that it’s not worth it. Detractors point out things like a possible Ponzi-style scheme involving Bitcoin in North Texas as indicative of the worthlessness of the currency. On the other hand, Bitcoin-based ventures have been growing, such as the development of startups like Coinffeine, which aims to create a new way to exchange Bitcoins. These are just a few examples of the ways in which Bitcoin is slowly breaking its way in into the mainstream, albeit with many setbacks.

Conclusion

Bitcoin. and other similar digital currencies, is just one of many interesting developments that has come about because of the internet. In essence, it’s a pretty revolutionary and fascinating idea, but whether or not it is actually good for the global economy remains to be seen. The potential for the use of Bitcoin as part of illegal activity though, should not stop people from using it for legitimate means. It’s only through incorporating online tools into the mainstream that it will become a genuinely useful and productive innovation.

Resources

Primary 

Bitcoin: Official Site

US District Court: Securities & Exchange Commission v. Trendon T. Shavers  and Bitcoin Savings & Trust

Additional

European Central Bank: Virtual Currency Schemes

Techland: Online Cash Bitcoin Could Challenge Government, Banks

Coindesk: Confirmed: Bloomberg Staff Are Testing a Bitcoin Price Ticker

CIO: In Kenya, Bitcoin :Linked to Popular Mobile Payment System

ParityNews: The Internet Archive Starts Accepting Bitcoin Donations

Webcite: In Bitcoin We Trust: The Berlin District Where Virtual Currency is as Easy as Cash

Readwrite: What’s Bitcoin Worth in the Real World?

Wire: Today’s Bitcoin Shows Why It’s Not Really a Currency

Fox Business: The Consumer Risks of Bitcoins

Slate: My Money is Cooler Than Yours

Washington Post: Imagining a World Without the Dollar

Social Science Research Network: Are Cryptocurrencies ‘Super’ Tax Havens?

The New York Times: Winklevoss Twins Plan First Funds for Bitcoins

Forbes: Goodbye Switzerland, Hello Bitcoins

Treasury Department: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies

GAO: Virtual Economies and Currencies: Additional IRS Guidance Could Reduce Tax Compliance Risks

Forbes: IRS Takes a Bite Out of Bitcoin

The New York Times: New York and U.S. Open Investigations Into Bitcoins

TechCrunch: New York’s Financial Services Subpoenas Bitcoin Firms To “Root Out Illegal Activity”

Salome Vakharia

Salome Vakharia is a Mumbai native who now calls New York and New Jersey her home. She attended New York School of Law, and she is a founding member of Law Street Media. Contact Salome at staff@LawStreetMedia.com.

The post Bitcoin: What’s Next? appeared first on Law Street.

Bitcoin  — the cryptocurrency in the form of digital coins — allows financial transactions to be completed over the internet without the use of banks or a clearing house.  (Click here to read Bitcoin for Beginners.) There are plenty of positives that come along with this currency: it reduces the cost of transactions, as the fees are significantly lower than those with traditional electronic transactions; there are no  prerequisites or qualifications to gain access to Bitcoin; and  unique to its creation, the coins, which are stored in free, user-created digital wallets, can be used in any country. With that said, there are real concerns surrounding the coins.

Unlike paper currency, Bitcoin is not backed by any government or any other currency standard such as gold. One huge difference between traditional currency and Bitcoin is that there will only ever be 21 million coins available. Unlike traditional currencies, producing more Bitcoins, or taking some out of circulation, is not an option, and many of the people currently holding them are hoarding them. This has increased speculation and contributed to the huge increase in cryptocurrency value over a short time. Once people realize that there are only a small amount of coins available to purchase out of the 21 million total, consumers may be unwilling to purchase them at such high prices. This could have adverse affects on the coins’ value, but on the other hand, the exclusivity of the commodity may cause people to be even more interested in acquiring the currency and cause its value to increase considerably.

What happens if Bitcoins become so valuable that they’re able to back legitimate government currencies?  How could this shift power and wealth to the people who are hoarding Bitcoins?  I’m not saying it will happen, but we must think about the possibilities in this technology-driven society. The major takeaway from the speculation is that this currency is risky and can be exploited easily. Bitcoins are a risky investment and there are no equivalent insurance protections to those at traditional banks. Possibly worse, there are no standard cybersecurity protections from hackers when dealing with Bitcoin. Due to the currency’s anonymity, it is very hard to track where a particular coin has gone once it’s taken from a digital wallet. This anonymity leads us into the darker, seedier side of Bitcoin.

Because of the anonymity and absence of government regulation, Bitcoin is being used as a de facto payment to fund illegal weapons and drug trades on the black market. The most well known underground internet-based drug ring, Silk Road, had more than one million users and was in operation for two and a half years. Silk Road allowed users to buy any kind of illegal drug they desired and have it shipped directly to their home. Think eBay for drug addicts and their suppliers. Silk Road was also good for child pornography and illegal weapons sales.

In September 2013, after years of investigation by the FBI, Silk Road was shut down and its engineer, Ross Ulbrict, was arrested after facilitating 1.2 million transactions. These transactions accounted for 9.5 million Bitcoins — valued at a whopping $1.2 billion — and earned Ulbrict about $80 million. Unfortunately for him, all of his Bitcoins, and a majority of those held by Silk Road users, were seized by the FBI, making the government agency’s digital wallet the largest in the world.

Although the FBI should be excited about a job well done, we must remember that it took them two and half years to shut down Silk Road, and only a month for Silk Road 2.0 to get up and running.  If you go to the site, the operators boast how they’re morally superior to the original Silk Road since they no longer provide child pornography or facilitate the sale of illegal weapons. No… I’m not joking. The site also talks about newly emerging competition with other underground websites that were created to fill the void Silk Road left. The problem is getting worse and the operators have learned from the mistakes of previous site operators. They’re even giving users instructions on how to better protect themselves and keep their identities from being detected.

The only positive in this situation is that these people are so clearly lacking significant moral fiber, that every few weeks the site creators steal  all of their users’ Bitcoins, or they are hacked and the site’s Bitcoins are stolen. Unbelievable. I think it’s kind of funny that these drug dealers are being robbed, but at the same time, we have no idea what kind of criminal mind has the ability to steal from other criminals. That’s when it gets scary. We can only hope that these kinds of underground sites will cause so much uncertainty that they self destruct. Until then, we have an unregulated digital currency that can be exchanged for real money, and is contributing to an increased amount of cyber thievery and crime in America and abroad.

—

Teerah Goodrum (@AisleNotes), is a graduate student at Howard University with a concentration in Public Administration and Public Policy. Her time on Capitol Hill as a Science and Technology Legislative Assistant has given her insight into the tech community. In her spare time she enjoys visiting her favorite city, Seattle, and playing fantasy football.

 Featured image courtesy of [Zach Copley via Flickr]

Teerah Goodrum

Teerah Goodrum is a Graduate of Howard University with a Masters degree in Public Administration and Public Policy. Her time on Capitol Hill as a Science and Technology Legislative Assistant has given her insight into the tech community. In her spare time she enjoys visiting her favorite city, Seattle, and playing fantasy football. Contact Teerah at staff@LawStreetMedia.com.

The post The Seedy Side of Bitcoin appeared first on Law Street.

Bitcoins are all over the news. Over the past few years, retail stores have begun to accept Bitcoin as payment. Some nonprofits also now accept them. But there’s also been controversy. After all, Bitcoin was a major player in the Silk Road scandal that broke early this fall. In December, China prohibited Chinese financial institutions from dealing in bitcoins. And just yesterday, the CEO of a bitcoin exchange called BitInstant was arrested on money laundering charges.

Now, I’m reasonably tech-savvy. I’m probably average for my generation. I know a good chunk of the vocab, I’m a quick learner, and like most millennials, I grew up using a computer. But to be honest, Bitcoin didn’t make sense to me. The idea of a crypto-currency is hard for me to wrap my mind about. And I figured that if I was having a problem understanding bitcoin, a lot of average people just like me were too. It took me about 2 hours to become reasonably well acquainted with the system, but I’m figuring most of you don’t have that free time, or a job where spending 2 hours on the computer learning how to use bitcoin is not only acceptable, but encouraged. So I was inspired to write this article–Bitcoin for beginners–to save you all that time and effort.

Let’s start at the beginning.

What is Bitcoin? 

Essentially, Bitcoin is a currency. I’m sure your next question is how something intangible and online can be a currency, and I’m going to answer that with an example. United States cash money, at its core, has no inherent value. I just paid for my lunch with a 20 dollar bill, and it was accepted because both myself and the cashier agreed that it was worth that much money. But the piece of paper itself? That’s worth absolutely nothing. It’s not backed by gold or silver or jewels. If an alien suddenly landed on earth and we showed him that piece of paper, he wouldn’t agree that it’s worth 20 dollars, because it would have no value to him. At the end of the day, rendered its most basic form, the only thing that keeps a currency from being arbitrary is the value given by a society.

So Bitcoin is its own online currency, started by a developer with the pseudonym Satoshi Nakamoto. It is given value by the way it is traded, created, and used. It exists based on a set of rules that are agreed upon by all the people who are involved in the Bitcoin market.

But…what’s a Bitcoin?

A bitcoin is a unit of the currency. At this moment, a single bitcoin is worth roughly $800, though that fluctuates.

Why would you want Bitcoin?

There are a lot of advantages to a currency like Bitcoin. One of the most important is that it’s anonymous. It’s completely controlled by the users, so there’s no middleman, like an institutionalized bank. As a result, funds can never be stolen.

How are bitcoins made? 

This is where it starts to get a little bit complicated because we’re going to have to go into the history of the online currency, but please, bear with me. This is also going to be very much simplified, so if you’re interested in the process, I’ll recommend some more technical sources at the end of this article.

Satoshi Nakamoto, the person (or possibly, group of people) who created Bitcoin wanted to create a currency that anyone with access to a computer can use and access. So in order to distribute the first bitcoins and create a self-perpetuating market, they made a very complicated software that is essentially a series of giant, very difficult math problems. It takes a ton of processing power to break one of these problems. People who are attempting to mine bitcoins are running a program that tries to answer a problem, and when they do, that information becomes something called a “block.” A “block” is currently worth 25 bitcoins, although that has also fluctuated over time. Since everything is better with a visual,  click below.

Who mines bitcoins?

At this point, it’s incredibly difficult for an individual to mine a bitcoin. Individuals who mine them are usually not even able to use their personal computers but rather need to invest is special machines called ASICs. They’re pretty much supercomputers dedicated to bitcoin mining. These machines can cost anywhere from $1000-$5000, which sounds like a lot, but given the huge potential reward, makes sense.

The other way that bitcoins can be mined is in a group of people, or a mining pool. You donate some of your computer’s processing power to creating bitcoins, and then you get a proportional share. It still is hard to do, and takes up a lot of energy, but it is possible. If you’re interested in joining a mining pool, here’s a couple of really great videos that explain how it works.

Is there any other way to get a bitcoin?

Sure. You can buy them. Or, if you have your own company, you can receive them as payment.

If there’s no central authority, like a mint, creating bitcoins, what prevents too many from existing and currency from becoming worthless?

Bitcoins are self-managing. They’re mainly kept rare by the fact that at some point there will not be anymore code in the program to break, or unique blocks to create. By 2140, we will run out of the ability to make new bitcoins and the supply will top out at around 21 million bitcoins. In this sense, bitcoins are more of a finite resource–like gold or gas, than printed money.

Where do I…put these bitcoins?

You need to create a bitcoin wallet, which looks reasonably like a simplified online banking account. The wallet is linked to a bank that keeps track of all the bitcoin transactions in existence. When you receive a bitcoin, whether as payment, or through mining, the bank recognizes it and reroutes it to your personal wallet.

What is this about bitcoins being anonymous?

Bitcoins are tied to a private key, which is sort of a signature, but even more secure. Someone has the private key to the their wallet, and they use that to sign and authorize any transactions. There are also public keys that are used for the transfer of money, but those change with each transaction to protect privacy. Essentially, bitcoins are anonymous in the same way that a cash-paying customer is most likely anonymous. For this reason, they were commonly used on the popular illegal drug (and other things) dealing site SilkRoad before it was shut down by the FBI.

If you have a bitcoin, what can you use it for?

A lot of things! Here’s a directory of places where you can spend bitcoins, and there’s some genuinely recognizable and popular companies included. For example, Overstock.com now accepts bitcoins.

Aren’t bitcoins associated with criminality?

Bitcoins have gotten a pretty bad rap through association, but by themselves no, they are not associated with criminals. Because of the anonymity factor, they were used for some sketchy illegal purchases through Silk Road, but that says more about Silk Road than Bitcoins. And yes, a Bitcoin exchange CEO just got arrested for money laundering, but that is possible with any financial manager. Really, bitcoin is about as sketchy as cash, but is by no means associated only with criminals.

Why should I care about bitcoins?

At the end of the day, Bitcoin can best be described as an experiment. When it was first started in 2009, no one who got involved had any idea if it would work. So far it has. People who got in at the ground floor of Bitcoin are now potentially very wealthy.

I think it also says something about the way that our money is used in the future. I rarely carry much cash on me, because I always have my debit and credit cards on me. So not only do I not need cash, but if I ever were to lose my wallet, I could just cancel my debit card without losing any money. If I lost cash and my wallet wasn’t recovered, that cash would be gone for good. We are becoming more and more technology based in the way we pay for things, and I think that Bitcoin, or currencies similar to Bitcoin are just going to get more popular.

So should we all get in on this Bitcoin thing?

Honestly, probably not. If you have $800 to drop on a bitcoin and you want to, it’s probably not the worst idea in the world. It’s like any other investment–it’s a gamble. But it could be a very smart gamble. Analysts are claiming that the worth of bitcoins could skyrocket. For example, Venture Capital Post is predicting that they’ll each be worth between $4000-$5000 by the end of this year. Or they could plummet. The rise in recent months have been nothing if not meteoric, but that doesn’t actually mean much. Given that this is the first company of its kind, it is totally possible for this to crash and burn.

Here’s the thing. I think we may have all missed the boat to get rich off of bitcoins. At one point in 2011, bitcoins were valued at about $1-$2 each. It would have been awesome to have bought one back then and now have it worth $800 but of course, hindsight is 20/20. Now, mining bitcoins as an amateur is very hard. It’s possible to do, if you’re part of a pool, but with all the attention that bitcoins have been getting recently, as well as the crazy prices, the mines are getting pretty crowded. I would recommend that we all see where this quick price rise is going to go before getting into the mix. But, I would also recommend that we start to get used to online currency of this sort.

—

Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Antana via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Bitcoins for Beginners appeared first on Law Street.

This year promises to be an interesting one in law. Here are some of the most interesting cases, trials, and legal topics y’all might want to keep your eyes on in 2014.

(Note: I have tried not to include Supreme Court cases that were heard in 2013 but will be ruled upon in 2014, as most of those have already been heavily covered by the media during oral arguments.)

8. Lavabit and Ladar Levison 

The case: After Edward Snowden’s revelations about NSA spying, it was discovered that he was using an encrypted email service called Lavabit. The owner, Ladar Levison, was court-ordered to hand over access to the entire site to the government, because Lavabit’s programming made it impossible to hand over access to just Snowden’s account. In protest, Levison shut down the site, defied a gag order, and has now filed an appeal.

Why it matters: This year, mainly from the NSA spying scandal, we learned about the technological abilities our government uses to monitor US citizens. This court ruling will either stifle or extend those abilities. For those who oppose the government having access to personal information, this Lavabit case may set important precedent — and it really will be a case to watch.

7. Jodi Arias Sentencing

The case: In 2013, we saw the extremely weird case involving Jodi Arias in Arizona. She was eventually convicted of murdering her boyfriend, Travis Alexander. It was a gruesome and disturbing case in which the jury found her guilty; however, they could not agree on whether to sentence her to life in prison, or death. A mistrial was declared on the sentencing portion of her trial and the new sentencing trial will also have new jurors.

Why it matters: The Defense has gone so far as to request a change of venue for the resentencing portion. They have argued that the huge media attention directed at the case has the potential for bias. That may be true, and it certainly wasn’t the first case with a big media blitz –Casey Anthony ring a bell? But if that’s actually the case, a change in venue won’t help — this case was huge all over the country. I’m reminded of an SNL skit from a few years ago about choosing jurors for OJ Simpson’s 2007 robbery and assault case. Watch it here, it’s really funny. But all joking aside, it’s the truth. It will be incredibly hard to find jurors who haven’t heard of Jodi Arias. Is it possible that our obsession with watching justice unfold is getting in the way of justice itself? Maybe we’ll get some answers with this retrial. 

6. McCullen v. Coakley 

The case: Oral arguments for McCullen v. Coakley are scheduled before the Supreme Court later this month. This case has been waiting for its day in court since 2001; there was appeal after appeal before the Justices agreed to hear it. It involves a law that Massachusetts instituted to create a 35-foot buffer zone around reproductive health facilities.

Why it matters: First of all, as I mentioned, this case has been going on for a very long time. The Supreme Court’s decision will add some sort of finality to it, no matter what the decision may end up being. Second, it could reverse a much-relied upon precedent, Hill v. Colorado, which allowed an eight-foot buffer zone. Finally, it raises an important constitutional issue about which right is more important: the right to free speech, assembly, and protest, or the right to seek an abortion without harassment?

Hopeful finality for this case.

5. Silkroad Case

The case: The infamous illegal-good site Silk Road was removed from the web this Fall, and its alleged creator, Ross Ulbricht, was arrested. The site sold drugs and fraudulent IDs, among other things. In addition to being indicted for his work on the site, he has now been accused of hiring assassins. The $80 million he allegedly made through the site is now in government custody. In 2014, he’ll either work out some sort of deal with the government, or face trial.

Why it matters: Silkroad had a huge market. It was relied upon by many people to get illegal goods relatively safely. Most of the Bitcoins (an electronic currency) in existence went through this site. And it was really only a matter of time until it shut down.

But, and this point is becoming a common trend on my list, it’s also another mark of how the government’s ability to use technology for prosecutorial purposes is evolving. I can assure you that this will have ramifications in the future, because people aren’t going to stop buying illegal stuff over the Internet. They’ll just get better at it.

4. Marriage Rights

The case(s): The Supreme Court already put a stop to Utah’s same-sex marriage licenses in 2014. The case will now go to the nearest appeals court. This is just one example; there are other cases regarding the rights of homosexuals to marry all over the United States.

A spontaneous reaction after the DOMA ruling last year.

Why it matters: 2013 was a banner year for gay rights in a lot of ways, but it’s important to note that the court cases will probably continue for years to come. There’s a lot of work to be done, and it doesn’t seem like the Supreme Court would unilaterally rule to legalize gay marriage. In 2014 we will continue to see more cases, trials, and hopefully, victories.

3. Voting Rights Cases

The case(s): There have been a lot of efforts at the state level to change voting rights laws, and the DOJ and various special interest groups have stood up to these changes when needed. But in 2013, part of the Voting Rights Act was struck down by the Supreme Court. So, each challenge to voting rights has to be filed against separately. As a result, many suits will be heard in 2014 to states’ attempted voting rights changes.

Why it matters: The change to the Voting Rights Act makes it more difficult for suits to be filed against voting rules, but special interest groups will also be under pressure to make changes before the 2014 midterms and 2016 national elections.

2. Contraception

The case(s): There were contraception cases regarding coverage through the Affordable Care Act that made it to the court in 2013, but many more will be on deck in 2014. One involves a nonprofit called Little Sisters of the Poor, and others involve for-profit companies like Hobby Lobby.

Why it matters: Not only is contraception a hot political issue, these cases involve parts of the Affordable Care Act. Parts of the ACA have already made it to the Supreme Court, but this will be a new decision will have ramifications as to whether or not companies are required to cover contraception for their employees, regardless of religious beliefs.

1. NSA Cases

The case(s): A lot of cases have been filed regarding the NSA’s monitoring of US citizens. A few may make it to the high court. US District Court Judge Richard Leon in Washington recently ruled that the NSA monitoring was unconstitutional. Meanwhile, District Court Judge William Pauley in New York dismissed a similar case. That kind of contradiction could lead to a big legal showdown in 2014.

Why it matters: The NSA surveillance debate was one of the biggest controversies of the year, and raised many legal questions about the ability of the government to monitor its people. What happens in these cases could set a serious precedent.

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Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Dan Moyle via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Cases to Watch in 2014 appeared first on Law Street.

The Internet black market is a fascinating place. It relies on security, word of mouth, and above all, anonymity. It has a unique language and its own currency. Bitcoin, allows users to directly transfer a high encrypted “currency” without an intermediary financial institution. It has evolved into an ideal tool for illegal transactions. For more on Bitcoin see: Bitcoin Pro-Con.

Many illegal transactions made through Bitcoin technology were through a site called “Silk Road.”  Silk Road presented itself as an anonymous marketplace and sold mainly illegal drugs, particularly MDMA, ecstasy, LSD, marijuana, prescription drugs, and heroin. On October 2, 2013 Silk Road’s founder and operator Ross Ulbricht, known on the site as “Dread Pirate Roberts,” was arrested. The site was seized and rendered unusable by the FBI.

The importance of Silk Road to the online black marketplace truly cannot be understated. According to Quartz, at some point, 82% of Bitcoin in existence traveled through Silk Road. NPR called it “the Amazon.com of illegal drugs.” Carnegie Mellon student Nicolas Christin wrote a paper in November of 2012 that estimated Silk Road’s revenue at $92,000 per month.

The general public’s reaction to the news that Silk Road had been shutdown last week centered on a question: How in the world did such a site even exist?

It does seem fairly unbelievable. We are reminded every day that what we do online is almost never anonymous. From bad Facebook photos taken at a club on Friday night, to politicians accidentally tweeting inappropriate pictures, our online selves are constantly on display.

Silk Road and other sites on the so-called Deep Web, the websites that not everyone can access, make their livings off the ability to provide anonymity. Silk Road was not accessible through a regular browser, like Chrome, Internet Explorer, or Firefox. Special software called Tor exists, which does its best to hide web browsing and traffic. Every facet of the software minimizes the traces of its users and Silk Road was only available through it. Furthermore, Silk Road itself contained heavy security features, such as password protection and the exclusive use of Bitcoin.

Another question on many average American’s minds must have been: Why should we care if some online drug marketplace gets shut down?

There are a few reasons to care. First, certain drugs have recently become increasingly mainstream. For example, MDMA, sometimes called Molly, has dominated headlines lately. According to the Global Drug Survey, conducted by an independent institute of the same name, in 2012 26.5% of US respondents had tried MDMA in the last 12 months, but in 2013, 60.9% reported having tried the popular club drug. While these surveys are obviously not representative of the United States as a whole, this demonstrates the growing share that MDMA represents in US drug use.

A site like Silk Road has played an important role in this spike. Before the ability to buy online, really the only way to get drugs was to go through an in-person dealer. It’s easy to imagine purchasing drugs online is simpler and safer. It’s also important to note that the drugs purchased through Silk Road are in some ways more verifiable than street drugs. Silk Road allows reviews of sellers, creating a way to warn other users if drugs are anything but pure. In order to be a seller, you must go through an extensive vetting process. Immediately after Silk Road’s closure, a Reddit user tested Silk Road MDMA versus two samples bought on the street. The Silk Road sample was significantly purer than the unverified street-bought samples. I am not, of course, advocating that anyone try MDMA. However, the argument that testable, verifiable MDMA bought online is safer than street MDMA from a dealer is absolutely valid.

Silk Road’s fall will slow the online drug market, but it won’t topple the industry. A similar website called Sheep Marketplace is already taking over some of Silk Road’s market share. Providers will get trickier, sites will get more encrypted, and Deep Web will simply get deeper.

[Quartz]

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Featured image courtesy of [Drug Enforcement Agency via Wikipedia]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

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