The darknet has always been an interesting concept among digital currency enthusiasts, even though Bitcoin and other currencies are associated with underground marketplaces. But there are certain flaws with the darknet, as users will need to use Tor to access the underground websites. Since Tor has been breached by the FBI not too long ago, a more decentralized solution is required, which is where Ethereum smart contracts come into the picture.
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The Decentralized Darknet Market
Some people might be wondering why there would even be a need for an “improved” darknet, since these underground marketplaces are always associated with illegal activities. Privacy-centric digital currency enthusiasts may argue decentralized markets are better in every regard, and there are a lot of things to rectify as far as the darknet is concerned.
To be more precise, the plan is to create a trustless darknet marketplace, using Ethereum smart contracts. Such a vast project will not be an easy task, though, as the creators are looking to hold a crowdsale shortly. One possible downside is how the binaries, whitepaper, and source code of the project will not be released until the crowdsale is completed, which raises a lot of questions among the Ethereum community.
The way this decentralized darknet market would work is by using various aspects of blockchain technology, including Ethereum smart contracts and mutisignature escrow services. Protecting user funds seems to be the primary goal for this project, although it remains to be seen how this will be enforced precisely, as there is no proof of the team’s alleged working prototype.
Daemon, as this platform will be called, will act as a decentralized autonomous organization. Investors become shareholders – albeit anonymously – who will be able to have a say in the day-to-day operations of this darknet marketplace. These privileges include deciding upon new escrow agents – although that should be necessary with smart contracts – as well as managing the capital.
On paper, Daemon sounds like it could become a significant project to make use of Ethereum technology. However, there are a lot of questions waiting to be answered, and not releasing necessary info until after the crowdsale will be an interest killer for a lot of people. This appears to be a precarious form of investment, to say the least, and interested parties need to do their own research before committing to this project.
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