Kim Aarenstrup, the head of Denmark's National Cybercrime Center (NC3), said that Denmark is leading the way in cyberpolicing people using bitcoin.
Bitcoin, the untraceable internet currency, enables criminals to get the anonymity of cash without having the risk of being caught in the real world.
The Danish authorities use a new technology within its specialized IT division. Developed by the law enforcement in the country, the technology works by comparing information of two different types of bitcoins transaction.
The first is to get information about a transaction where bitcoins are used to purchase things. They are analyzed by exploiting the possibilities of blockchain technology, which bitcoin is based on. The result is then compared with listings of bitcoin-buyers and bitcoin-sellers.
The comparison between the two can then be used to identify the people that were involved in a particular transaction.
When purchasing something, usually, the two parties need to have a contract before the transaction happens. Like purchasing narcotics, for example. But when the dark web emerged and bitcoin became popular, almost anyone can go online without having themselves present or exposed.
This is where the Danish authorities are trying to police. With the technology, they are optimistic that it will provide interesting possibilities in tracking down criminals on the web using bitcoins.
