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The Intersection of Cybercrime and the Blockchain
Abstract
The immutability of blockchains and the transparency of their transaction records would appear to limit the benefit of exploiting them for criminal activity. However, blockchains also offer a high degree of anonymity, similar to fiat paper currency; the technology was intended to facilitate trustless transactions. Coupled with a global, borderless reach, blockchains have become an enabler of cybercrime. They are a new class of assets that, like all other assets, possess security risks and become potential targets of attack. In particular, cryptocurrencies, which depend on blockchain technology, provide significant incentives for attack because of their value. The goals of this chapter are to identify and classify blockchain-based cybercrimes and to explore the avenues for protecting against them at individual, organizational, and policy levels.
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