Thursday, 10 May 2012

Bitcoin: How it works | Report from the FBI

Bitcoin has now grown so popular that it warranted its own FBI reoprt. The report titled “Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity,” (.pdf) was published on April 24 2012  and is marked 'For Official Use Only' (not actually classified), but was leaked to the internet this week. The report is also an excellent primer on, and explanation of, Bitcoin - How it Works!
The FBI sees the anonymous Bitcoin payment network/protocol as an alarming haven for money laundering and other criminal activity — including as a tool for hackers to rip off fellow Bitcoin users. But is it? Bitcoin is the first digital crypto-currency issued and managed by a peer-to-peer transaction network, ie, us.
Read the full article from Wired.com here.