In the blockchain world, there are no names. Assets are associated with keys that can be traded like cash, directly, no intermediary required. The seeming anonymity of Bitcoin was what attracted drug traffickers to the Silk Road trading site, but time has shown the blockchain isn’t anonymous – it’s pseudo-anonymous. Blockchain anonymity is dependent on perspective. While transactions are anonymous, an actor with sufficient information, understanding and pattern recognition skills can identify patterns in groups of transactions and make inferences about identity. For example, the FBI was able to crack Silk Road drug trafficking through examination of patterns of activity around the transactions themselves, then delving deeper. The same pseudo-anonymity exposed theft of bitcoin by federal Silk Road investigators. In the blockchain, anonymity is relative.
The Evolution of Law in the Digital Age
