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DarkMarket, the Decentralized Answer To Silk Road, Is About More Than Just Drugs

Daniel_Stuckey (2647775) writes "If you were anywhere near the internet last week, you would have come across reports of 'DarkMarket', a new system being touted as a Silk Road the FBI could never seize. Although running in a similar fashion on the face of things — some users buy drugs, other sell them — DarkMarket works in a fundamentally different way to Silk Road or any other online marketplace. Instead of being hosted off a server like a normal website, it runs in a decentralized manner: Users download a piece of software onto their device, which allows them to access the DarkMarket site. The really clever part is how the system incorporates data with the blockchain, the part of Bitcoin that everybody can see. Rather than just carrying the currency from buyer to seller, data such as user names are added to the blockchain by including it in very small transactions, meaning that its impossible to impersonate someone else because their pseudonymous identity is preserved in the ledger. Andy Greenberg has a good explanation of how it works over at Wired. The prototype includes nearly everything needed for a working marketplace: private communications between buyers and sellers, Bitcoin transfers to make purchases, and an escrow system that protects the cash until it is confirmed that the buyer has received their product. Theoretically, being a decentralized and thus autonomous network, it would still run without any assistance from site administrators, and would certainly make seizing a central server, as was the case with the original Silk Road, impossible."

42 of 251 comments (clear)

  1. Eeeehhhhhh by Ralph+Wiggam · · Score: 5, Insightful

    "Is About More Than Just Drugs"

    But really...it's about drugs. You don't need to sell Beanie Babies anonymously.

    1. Re:Eeeehhhhhh by pla · · Score: 3, Insightful

      But really...it's about drugs. You don't need to sell Beanie Babies anonymously.

      And showering in a public bathhouse takes fewer resources than doing it in your own bathroom. You don't need to shower privately.

      I would also point out that cash has more anonymity than any digital currency ever created. Why do you need cash, you goddamned drug-dealing terrorist?

      / tldr: "Need" has nothing to do with it. Uncle Sam has no business in my business.

    2. Re:Eeeehhhhhh by Bob_Who · · Score: 2, Funny

      "Is About More Than Just Drugs"

      But really...it's about drugs. You don't need to sell Beanie Babies anonymously.

      I dunno..... It's probably good policy to sell most babies anonymously....

    3. Re:Eeeehhhhhh by Ralph+Wiggam · · Score: 3, Insightful

      Your public bathhouse example is terrible.

      Most people use cash because it's fast and convenient, not because it's anonymous. When people use cash specifically for it's anonymity, it's usually to buy drugs.

      But you can't use cash online. So for non-drug purchases, most people use regular web sites and credit cards.

    4. Re:Eeeehhhhhh by pla · · Score: 2, Insightful

      Your public bathhouse example is terrible.

      So, you didn't make it all the way down to my "tldr" summary, eh?

      "Need" has nothing to do with it. But you've already stopped reading.

    5. Re:Eeeehhhhhh by Ralph+Wiggam · · Score: 2

      Did you not read past the first sentence of my reply?

      If you want to go to a huge amount of extra effort to buy legal things anonymously in order to make a point to The Man, feel free. Very few people will be joining you.

    6. Re:Eeeehhhhhh by Charliemopps · · Score: 2

      "Is About More Than Just Drugs"

      But really...it's about drugs. You don't need to sell Beanie Babies anonymously.

      Oh yea?
      http://www.deseretnews.com/art...

      Have faith, eventually everything ends up illegal.

    7. Re:Eeeehhhhhh by jschrod · · Score: 2
      > Protip - "Uncle Sam has no business in my business" is pretty damn asinine. Because it's pretty clear that he DOES,

      In my world, Uncle Sam has no business, but resumes to collect all meta-data of any communication that I do, and for some states even all communication, just because he can. He's called upon it, but the answer is clear: I'll continue to do it because I can. I'm the dominant military power on Earth, I don't have to care for international rights, for human dignity, for justice. Uncle Sam tells me that he's the imperial power left on Earth that can decide who's allowed to live and to die without any court that may intervene.

      > especially if your business is selling illegal weapons, murder, kidnapping, etc.

      Sorry, but that's not my business. I'm just a normal non-US person supervised by the NSA, as all of us non-US folks are.

      Wait, you mean that your civil rights are only for US citizens? They don't belong to us?

      There was a time when the U.S.A was looked upon as the guiding light. I'm old enough to remember it. Guys, you destroyed that. You turtore, you kill hundreds of thousands of innocents -- much more than al-quaida ever did, you're the 800 pounds bully on the international political circuit, you won't coorperate, you are the scam on Earth.

      > [Uncle Sam] is pretty clear that he DOES have business

      You might think so. But I sincerly hope that your Tea Party will take over policital power in the US. It will be a few harsh years for us, world-wide, but they will destroy you better than any foe could do. Then we will be able to continue to build the world society that you don't want to be part of. Sigh, your ancestors lend us the ideas, but you abandoned them.

      --

      Joachim

      People don't write Manifestos any more -- what's going on in this world? [Frank Zappa]

    8. Re:Eeeehhhhhh by Tom · · Score: 3, Interesting

      Most people use cash because it's fast and convenient, not because it's anonymous. When people use cash specifically for it's anonymity, it's usually to buy drugs.

      [citation needed]

      You assume everyone thinks like you do. Many people don't. I'm not the only person who uses cash for almost all my regular shopping because anonymity. Not because I'm afraid of the police (unless they've outlawed strawberries and tooth paste), but because I don't want corporations to profile me for more targeted advertisement.

      --
      Assorted stuff I do sometimes: Lemuria.org
  2. Re:So if I'm the arbiter of a transaction, by deadweight · · Score: 2

    But .but........they never arrived! Damn that UPS tracking system......

  3. People are willing to trust some random software? by gweihir · · Score: 5, Insightful

    Well, if the FBI were smart, then it would have been them writing that software. Or asked the NSA to do it for them. As a bonus, they get all other information on the participant's computers.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  4. Site for illegal activities, just load this... by addikt10 · · Score: 5, Funny

    So let me get this straight:
    There is this site. A site designed for illegal activities...
    And all I need to do is load their software onto my computer? Gosh, where do I sign up.

    I mean, I always trust software from shady characters. That sounds totally safe.

    1. Re:Site for illegal activities, just load this... by HockeyPuck · · Score: 2

      I've heard this argument since the beginning of time with regards to open source, but is there anybody on earth that could "review the source code" for an entire platform?

      At some point you have to trust someone, like the folks that wrote the driver for your USB mouse...

      Unless you happen to also understand the USB mouse source code at which point I stand corrected, until you can do USB mouse support and video driver and filesystem and etc etc...

    2. Re:Site for illegal activities, just load this... by swillden · · Score: 2

      I've heard this argument since the beginning of time with regards to open source, but is there anybody on earth that could "review the source code" for an entire platform?

      Of course not.

      How is that relevant to reviewing the source for this markeplace client, and deciding if it's safe or malicious? Or do you think there might be hidden malicious code in your OS that is activated by running this apparently-innocuous application?

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    3. Re:Site for illegal activities, just load this... by Anonymous Coward · · Score: 2, Informative

      Heartbleed proves all of your posts moot and irrelevant. Regardless, I'll still use OSS. Just don't hold it up on such a high pedestal next time.

    4. Re:Site for illegal activities, just load this... by Tom · · Score: 2

      Really?

      Look, if I were a shady character out to compromise a couple million (the best-case target audience size for a Silk Road replacement) home computers, there are easier ways to do it.

      Write an Angry Birds clone. Send an email saying "free money in the attached file" to a spammers address list. Or just put it on a drive-by website.

      You are attacking a particularily paranoid target audience. If I were a drug pusher, I wouldn't be afraid of other criminals, I'd be afraid that the whole thing is a government sting.

      But then again, it looks like a normal app, so it won't be getting administrator access, you can sandbox it (OS X, no idea if windows has copied it yet) and if you are using it for serious amounts of money, you can review the source code or pay someone to do it for you.

      Of all the things that you can be legitimately afraid of in this field of commercial activity, running the app is probably the least dangerous.

      --
      Assorted stuff I do sometimes: Lemuria.org
    5. Re:Site for illegal activities, just load this... by HockeyPuck · · Score: 3, Interesting

      Well, if this client is as crufty and badly-written as OpenSSL (which I've been complaining about for years), then you may have a point.

      Irony: Where you have the skill to completely understand that a major software program is "crufty and badly-written" but don't do anything other than complain about it "for years".

    6. Re:Site for illegal activities, just load this... by swillden · · Score: 2

      Nah, you didn't have anything better to do. You're just a fucking idiot who has no idea what they are talking about.

      The irony of your statement made me chuckle. You obviously don't know anything about who I am, what I do, or what comments I've made about OpenSSL over the years.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  5. Re:So if I'm the arbiter of a transaction, by ThatsMyNick · · Score: 2

    If a UPS delivery guy delivers a gun (without knowing it is a gun, and it looks like ordinary package), and the gun is used to kill someone. Is the UPS delivery guy an accessory to murder?

  6. All the cool kids are doing it! by artor3 · · Score: 5, Insightful

    If you were anywhere near the internet last week, you would have come across reports of 'DarkMarket'

    Can we get some editors to remove this crap? It's just a stupid marketing gimmick -- "What, you haven't heard of [PRODUCT_NAME]? You must be living under a rock! Everyone who's anyone knows about [PRODUCT_NAME]!"

  7. Re:So if I'm the arbiter of a transaction, by amosh · · Score: 2, Interesting

    It depends - does the guy work for UPS? Probably not.

    Does the guy work for "DARK SHIPMENTS ANONYMOUS - ANYTHING DELIVERED ANY TIME OF DAY TO ANYWHERE, BUT NOTHING ILLEGAL, HEH HEH HEH Incorporated"? If he does, there's a pretty easy case that he's an accessory.

  8. Re:So go ahead - what are the legitimate uses of t by mcphail · · Score: 5, Interesting

    I doubt there will be any "legitimate" uses of this particular technology.

    However, it may be a model on which we can base future online retail. The existing model is utterly broken: I really don't want databases all over the world holding my username, password, credit card details and billing address waiting for the next SQL or SSL vulnerability to vomit the information into the hands of criminals. Nor do I want to trust, use or respect services like paypal.

    View this as an iteration towards a more secure and decentralised system for legitimate commerce which keeps credit card and escrow companies out of the equation. Surely that is a good thing?

    --
    Testiculos habet et bene pendentes.
  9. Re:So go ahead - what are the legitimate uses of t by Bodhammer · · Score: 3

    Devil's advocate - what about "Dallas Buyer's Club"?

    --
    "I say we take off, nuke the site from orbit. It's the only way to be sure."
  10. Re:So go ahead - what are the legitimate uses of t by Old+Fatty+Baldman · · Score: 2

    I like Cuban rum and cigars, and I disagree with the outdated embargo law that prevents me from getting them at the local rum and cigar store.

  11. Re:So go ahead - what are the legitimate uses of t by amosh · · Score: 2, Insightful

    You disagree with a law doesn't give you a moral right to break it.

    I like that you're not even bothering to argue that the law is unjust or unfair - just that you don't like it. While I appreciate the honestly, I don't think this counts as a legitimate use.

    Plus, it's not like either of those things are even vaguely difficult to get.

    Also, I seriously doubt you actually like either Cuban rum or cigars.

  12. Re:So go ahead - what are the legitimate uses of t by Anonymous Coward · · Score: 2, Insightful

    If the law is wrong - and the Embargo is - you sure as fuck bet you have a moral right to break it!

  13. Re:So go ahead - what are the legitimate uses of t by rgbatduke · · Score: 3, Interesting

    Granting the illegal bit, illegal does not equate to "causing harm to someone". Would that it did -- that would be so very rational. However, there are plenty of things one might want to spend money on that are illegal but harm no one but arguably yourself. Drugs is one obvious example, but in many parts of the world buying pornography or sexual toys/aids is illegal, all the way up to being a capital crime. In China or much of the Moslem world, an enormous number of things are illegal that don't harm anyone or anything but the nominal reputation of Islam or Mohammed or Allah, or that represent freedom for repressed majorities like women. We're not really talking only about the relatively permissive US or Western Europe, in other words.

    Of course people will use this to do some things that are directly intended to harm others in non-victimless-crime ways: Steal/pirate and resell IP of various sorts, fence stolen goods, arrange for a hit on your alimony-hungry ex-wife (maybe, dunno if that is a "commodity" it can handle), engage in human trafficking, sell arms. But some people will use it to buy freedom from oppressive governments that have made a whole lot of things that harm no one illegal because they violate some statement made in a piece of pure scriptural crack if you squint your eyes just right when you read it. Because there is rarely any percentage in prosecuting crimes of this sort once one cannot detect them or stop them for long enough for violations to become commonplace, it might even motivate social change.

    To me personally, the tool is not going to be terribly useful. I'm heterosexual and married, my primary vices are at least quasi-legal and tolerated where I live, and I consider buying stolen goods of most varieties to be unethical. It isn't clear that I'd resort to it if I lived in e.g. a Moslem country and had a thing for porn -- no matter how nominally secure, the penalties are pretty horrendous. But I'm guessing that there are those who will value it who aren't planning to use it to hurt others.

    rgb

    --
    Even when the experts all agree, they may well be mistaken. --- Bertrand Russell.
  14. Re:People are willing to trust some random softwar by Opportunist · · Score: 2

    A little hint: A fair load of people who know how to use disassemblers didn't start out in the IT security business.

    Do you think this piece of software existed for more than a few seconds before it was fed to a DA and analyzed 'til it croaked?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  15. Like a note in the blockchain: 'dodgy stuff here' by gnoshi · · Score: 5, Insightful

    Maybe I'm confused, but it sounds to me like what 'DarkMarket' is doing is irrevocably marking some transactions as being associated with DarkMarket. That strikes me as much like writing 'I was used to buy drugs' on a $50 note except that someone can check the entire transaction history of the $50 note back to the beginning of time.

    I guess it will be interesting for researchers assess the proportion of BC that is being used for dubious purposes (unless you actually believe things like 'banned books' are going to be traded on DarkMarket except at the very margins), and feds who want to find people selling drugs (because BC itself is not anonymous).

  16. Re:So go ahead - what are the legitimate uses of t by Old+Fatty+Baldman · · Score: 2

    You're that guy who gets in the carpool lane and drives at exactly the speed limit, aren't you?

  17. Re:People are willing to trust some random softwar by gweihir · · Score: 2

    Considering how long it too to find Heartbleed and that it was found not by source-code analysis but because some people noticed extra bytes in the keep-alive messages, people feeling secure using this thing are likely just kidding themselves. And if there is any real crypto in it, the typical ordinary "hacker" with a big ego and rather pathetic skills does not stand a chance to find or understand anything.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  18. Re:People are willing to trust some random softwar by Nonesuch · · Score: 2

    You are naive. This piece of software has probably not seen one single competent analysis even now.

    You'd be surprised. The union of people who are competent with IDA Pro (and similar tools) and people interested in Bitcoin is a surprisingly large set. Find a provable backdoor in an application like this and you've got yourself a very good candidate for at least a DEFCON talk, maybe a job at Matasano.

  19. Re:So go ahead - what are the legitimate uses of t by mycroft822 · · Score: 2

    I wouldn't know because I've been fortunate to live in a country that doesn't suffer from fundamentalist, totalitarian rule. Maybe there are some christians in North Korea that would want to buy a bible?

    You're obviously struggling to disconnect the tech from what it could be used for though. You're question was why this tech should exist. I gave you a very benign purpose that one could use it for as an example, thinking you could extrapolate on what other uses you might take for granted that not every person in the world is allowed. The medication example I used was meant to be the more compelling argument.

  20. Re:This is the endgame.. by duke_cheetah2003 · · Score: 2

    This is why you encrypt EVERYTHING. Nothing should be sent in the clear, it makes it really friggin hard to identify what might be illegal and what might just a SSL session with your bank.

    Will people EVER learn this? Encrypt, always, everywhere, excessively.

  21. Re:So go ahead - what are the legitimate uses of t by Concerned+Onlooker · · Score: 2, Insightful

    A law has to be very, very wrong to have a moral mandate to break it. Most people breaking laws out of "principle" are just doing it because they find the law inconvenient. Laws and rules are the oil of social machinery. Don't be the sand in the crankcase.

    --
    http://www.rootstrikers.org/
  22. Re:I just bet ... by Camael · · Score: 2

    Lets tackle your premises one by one.

    First point- services granting anonymity are not automatically 'bad' or 'evil' or used to commit crimes. Don't take my word for it, look at what the Turkey government did .

    Turkish Prime Minister, Recep Tayyip Erdoan, has continued going forward with the censor spree and is now blocking access to the Tor Project website. Just two days ago, Turkish Prime Minister, Erdoan, blocked access to YouTube, and the week before Twitter. Now Erdoan is continuing his censor reign targeting the Tor Project.

    As Turkish ISP’s are begin forced into censoring users, Turkish netizens are finding ways around the internet blackout. Turkish users were using Google DNS to evade the censorship and access some of their favorite websites. Turkey has also enforced a ban on Google DNS. As Turkey continues to block popular networks, Turkish citizens are forced into using a VPN or Tor to access some of the largest networks in the world.

    But wait- DarkMarket is different because it sells "opium and kitty porn and services to kill people", right? Wrong. Why don't we let its creators tell you what its for :-

    In its place, the pair both believe that DarkMarket has the potential to act as a platform for a marketplace truly free from government control. In the demonstration in Toronto, MDMA wasn't the only product listed on DarkMarket. A species of tomatoes that is banned in the EU for safety reasons, marmalade made from soon-to-be-discarded produce from grocery stores, and an asthma inhaler were also listed, which, although seemingly innocuous, are all illegal to sell without regulation.

    The last item in particular highlights the less obvious uses of this kind of market. When traveling to the US, it is nearly impossible to purchase an inhaler without a prescription, even if you know you have a condition that requires it. You would need to visit a doctor, be diagnosed, and then allowed to purchase one. “Why can't [someone who has asthma] just buy one, like he needs it?” Swanson asked.

    Don't be so quick to assume illegal = evil. Remember that selling alcohol was once illegal in the US, during the Prohibition.

  23. reasons for anonimity are more than drugs by dutchwhizzman · · Score: 4, Interesting

    I don't want colleagues or (future) employers to know what music I listen to, what my political preference is, where I go for entertainment, what kind of kinky fetishes I might have and such. I don't like targeted ads, since they tend to target me in any situation, private or not, with ads that are also based on my *personal* preferences.

    Even if all I do is legal *now*, it may be illegal in the future and frowned upon when people watch logs.

    Keep in mind that every person commits two felonies and dozens of misdemeanour's every day. If everything you do is tracked, you will get penalized for all af them, putting *everyone* in prison. Laws are there so that if somebody really crosses a boundary that society won't accept, there is a fair reason to put them trough court. If we start to automatically punish everyone for every crime they commit, because we give up privacy, our world stops functioning. We need privacy to remain the default in order to function as individuals *and* as a society.

    Yes, privacy isn't the same as anonymity but in order to remain private in the current society you almost always need anonymity if you're doing it online, so in practice they are synonymous.

    --
    I was promised a flying car. Where is my flying car?
    1. Re:reasons for anonimity are more than drugs by Warbothong · · Score: 3, Funny

      I don't want colleagues or (future) employers to know ... what kind of kinky fetishes I might have and such.

      Then why put it right there in your username? ;)

    2. Re:reasons for anonimity are more than drugs by coinreturn · · Score: 2

      Keep in mind that every person commits two felonies and dozens of misdemeanour's every day.

      [Citation needed]

  24. Re:Well that was easy... by Tom · · Score: 2

    It's a python app, so there is no binary.

    --
    Assorted stuff I do sometimes: Lemuria.org
  25. Re:Decentralized, NOT Anonymous by fractoid · · Score: 2
    Also, right now, there's a way more serious anonymity issue. FTFA:

    The DarkMarket daemon incorporates a library of commands for peer-to-peer networking known as ZeroMQ, which allows the user’s PC to become a node in a distributed network where every user can communicate directly with every other user.

    At the moment, DarkMarket displays only a bare IP address for every user, but the system’s creators say it will eventually show a pseudonym for each one and also allow product searches.

    They do mention in the article that this isn't done yet, but this feature - an anonymous buyer being able to reliably, securely reach an anonymous source and transfer real money in exchange for products - seems somewhat central to the whole idea.

    --
    Rampant carbon sequestration destroyed the Dinosaurs' tropical paradise. I'm here to help repair the damage.
  26. Re:Should I post? by RyuuzakiTetsuya · · Score: 3, Informative

    Why do we need prescriptions to buy drugs?

    Drug resistance, drug abuse, personal danger taking some drugs with out any sort of warning or medical intervention?

    --
    Non impediti ratione cogitationus.