What Are Darknet Markets?
Darknet markets are anonymous online marketplaces operating on Tor. They use cryptocurrency for payments and escrow systems for transactions. While associated with illicit goods, they represent significant experiments in trustless commerce.
Historical Timeline
2011 - Silk RoadFirst major market, founded by Ross Ulbricht
2013 - Silk Road SeizedFBI takedown, Ulbricht arrested
2014-2017 - ProliferationAlphaBay, Hansa, Dream Market emerge
2017 - Operation BayonetAlphaBay/Hansa coordinated takedown
2018-PresentContinuous cycle of markets rising and falling
Technical Components
Tor Hosting
Onion services hide server location
AnonymityCryptocurrency
Bitcoin, Monero for payments
PaymentEscrow
Market holds funds until delivery
TrustPGP
Encrypted communications
SecurityCommon Failure Modes
- Exit scams (admins steal escrow)
- Law enforcement infiltration
- OpSec failures by operators
- Server deanonymization
- Cryptocurrency tracing
Lessons Learned
Research Value: Despite their illicit nature, darknet markets pioneered trustless commerce, reputation systems, and escrow mechanisms now studied in cryptocurrency and decentralized systems research.