Silk Road 2.0 Now Larger Than Silk Road Ever Was

from the strike-down-one-arm-and... dept

This is hardly surprising, but it appears that in the wake of the feds taking down the "dark marketplace" Silk Road and arresting its alleged creator Russ Ulbricht, replacement marketplaces quickly sprung into place to try to take its place. This was exactly as we predicted. A few of the markets have come and gone (usually associated with scandals), but it appears that the one that has stuck around is "Silk Road 2.0" -- and it's actually now larger than Silk Road ever was, in terms of the amount of products being offered. The article linked above, from Coindesk, notes that, somewhat ironically, the reason why Silk Road 2.0 seems to be standing out above the others is because it's worked hard to establish trust.

This effect was likely boosted by sensible policies at Silk Road. Most significantly, soon after February’s hack, the site’s operators announced that they would pay back bitcoins lost by customers.

Silk Road’s moderator Defcon said at the time: “We are committed to getting everyone repaid even if it takes a year.”

In anonymous drugs marketplaces, as in any market, confidence is key, it seems.

That's not to say Silk Road 2.0 is going to stick around -- there are plenty of reasons to think it won't. But, in some ways, you wonder if this is a kind of Napster moment all over again. After the original got shut down, a series of replacements all came about vying to take its place, leading to some interesting innovations -- even if those who wanted to shut down the original decried how awful and illegal each new version was.

Filed Under: decentralized, marketplaces, silk road, silk road 2.0

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  1. identicon
    Anonymous Coward, 7 May 2014 @ 1:09am

    I read a Wired article about a new decentralized P2P market being developed. It has a ratings and feedback system. Plus escrow holding accounts and supposedly is impossible to take down.

    "Inside the ‘DarkMarket’ Prototype, a Silk Road the FBI Can Never Seize."

    Call me old fashion, but I prefer face-to-face deals with people I don't trust. One of the lessons I've learned is there are a LOT of untrustworthy people in the world. Probably well over 75% of the world's population is untrustworthy.

    From lying politicians, to police officers, friends, family, and all the way down to strangers you meet on the street.

    Once a large enough sum of money is 'trusted' to someone, that person will bolt off with that money. Guaranteed.

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