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The discovery of illicit content stored on the blockchain could be the future of cryptocurrencies like Bitcoin at risk, according to German researchers.
A new report by RWTH Aachen University researchers found that the blockchain ledger — an unchangeable, open register that lists every transactions ever made on the platform — has been used to store illegal content, including child pornography and privacy and copyright violations.
Because of how the new technology functions, this could mean that anyone that owns Bitcoin, or any cryptocurrency based on the blockchain, is breaking the law, the researchers found. Consequently, it would be illegal to participate in a blockchain-based system as soon as it contains illegal content. The blockchain ledger is typically used to store the financial information of the transaction, but can also list other information. While the ledger size is only 80 bytes, it can be used to include links to illegal content.
The researchers focused their research on the Bitcoin blockchain base, analysing more than files of the cryptocurrency. In these files, they found more than privacy violations and at least eight with illicit sexual content. The new security concerns risk preventing many of the benefits that the blockchain could provide to a number of industries.
Click here to update your profile. Sorry, we doing some system maintenance and we could not subscribe you. Please try again later. Bitcoin dark side revealed Future of blockchain at risk. By Denham Sadler on Mar 27 The research report could have huge ramifications and is likely to impact all cryptocurrencies. It could mean anyone that owns Bitcoin is breaking the law. This would also apply in Australia, which shares similar laws in the space.
The issue is with one of the fundamental structures of the blockchain. Open your browser… save lives. Is blockchain the future of cyber security? New rules for crypto exchanges.