Blockchain: Can Technology Reduce Drug Problems?
Everything is possible on the dark side. He usually presents himself as the evil twin of the world wide web, the “dark web” rarely comes out of the news, and stories about weapons on the black market, hacking, human trafficking, violence and drugs appear every day. The name “dark network”, which sounds ominously safe, captures the imagination with its mysterious, illicit digital worlds. But is there light somewhere in the darkness?
Well, the short answer is yes. The same technologies and anonymity that help illegal criminal activities thrive have kept movements of subcultures, whistleblowers, human rights activists and investigators alive and able to continue their important work. Ever since we learned about the infamous “Silk Road” market, with its strong community of buyers and sellers, it is clear that the issue of the online drug market is not just black and white.
After the seizure of the market by the FBI, the online drug market became more vital than ever, with hundreds of rival markets remaining intact. The ever-growing beheading of hydra may seem like an answer to law enforcement, but what if there is a different approach? Could blockchain technology and digitalization help reduce the drug-related problems that have plagued decision-makers for decades?
Harm reduction as a drug policy
Drugs are an evergreen issue that policymakers are constantly struggling to solve. While some authorities are taking strong, drastic measures to combat drug trafficking, the harm reduction approach has led to better results in other countries. The approach states that the ban will not prevent people from using drugs, so it is better to adapt to a safe framework in which the damage caused to users can be reduced as much as possible.
An iconic example of this approach is the Netherlands, known for its liberal and controversial approach to drug control. According to several indicators, the Dutch principles of tolerance and informed dialogue have been more successful than the repressive policies that are widely applied in other parts of the world. A study found that people who use cannabis in Amsterdam are less likely to use cocaine than marijuana users in the United States
Although cannabis is legal, the use of that substance has not increased in the Netherlands. On the contrary, consumption remains in line with European averages and has actually been noted to be far lower than in more stringent environments such as the US
With cafes generating about $ 512 million in annual revenue, helping to fill the state budget, the Netherlands has decided to invest heavily in policies and services for drug treatment, prevention and harm reduction. Among them was the possibility of testing street drugs before consuming them. It is no secret that street drug compounds are often unpredictable, which has endangered the health and lives of countless consumers. The Netherlands was the first country to fund drug testing and monitoring.
Removing legal barriers to drug testing has opened up a number of possibilities. For the consumer - to be safer, for scientists - to research the drug market. All while social workers provide advice and information on drug-related risks. The outcome of these policies is well known so far and is reflected in the small number of drug-related deaths in the Netherlands.
If the state can regulate the drug market to reduce harm, can decentralized online communities do the same? The example of the dark net drug market and the community suggests that they can.
Knowledge of the quality of recreational drugs
Data on the behavior of drug users show that since 2014, the purchase of drugs over the Internet has more than tripled, and these numbers continue to grow, and new users are discovering drug markets on a daily basis. The online distribution of drugs significantly deteriorated during the COVID-19 pandemic, as movement became limited and a new source of drug supplies was needed.
Cannabis accounted for the largest share of drug transactions in the 19 major darknet markets analyzed from 2011 to 2020. After cannabis, the most sought after substances are the synthetic stimulants “ecstasy” and cocaine.
According to the United Nations report on drugs for 2021, the number of markets on the Tor network increased from 1 in 2011 to 118 in 2019, with annual revenue of 298 million dollars generated in the main markets in 2020.
The key to online drug markets is trust, even though it looks like an oxymoron in such an inherently suspicious environment as the wild dark web with its complete anonymity. Although there are no laws governing the market, it seems to be regulated through a reputation-based system that makes users feel safer than buying drugs from a random person in a nightclub or from a friend of a friend who knows someone.
A decentralized community empowers the customer. Instead of selling products in the dark corners of the street and disappearing after that, sellers must build their reputation online. This is essential because it is immediately visible to customers.
Like Amazon (NASDAQ :), or any other online store, the drug market has a product review system and the ability to request a refund in case of any problems. All transactions are stored on the blockchain and cannot be deleted. Successful transactions naturally build reputation and trust.
A typical reseller page will provide information on the number of transactions made, when the reseller registered, when they last logged in, product information, their refund policy, and postage methods. Upon receipt of their products, customers are asked to review them. The sellers with the best reviews climb to the top, and if the seller has records that he did not send the product or that he provided worse quality than promised, this information will be immediately available to the next potential buyer. All this in combination creates a level of transparency that would be impossible in the street market.
Online culture is vital for such transparency, because if product reviews on the market do not help, then discussions on forums will help identify cunning sellers. The community collective court regulates what would otherwise appear to be an unregulated market.
The need to build a reputation leads to better quality medicines. Indeed, when the FBI closed the Silk Road in 2013, they claimed that more than 100 drug purchases they originally made online as part of the investigation showed “high levels of purity.” In addition to the reputation system in the market, there are also initiatives such as the Darknet Market Avengers forum, which is dedicated to reducing harm and conducting testing of drugs sold on the market. Users can send samples of their medications to a community-funded drug testing lab. Chemists will then test the products, providing feedback and results. The results are published on the DNM Avengers website, including details about the specific retailer that sold the product.
Putting customers in control of the quality of the service received can be the answer to the huge questions of drug overdose and death.
Shortening supply chains to reduce violence
The quality of medicines is only one part of the problem. Another aspect is drug-related violence. The drug market is marked by monopolies, violence and cartels - it has always been so. But what if it could be different? Internet markets are creating different dynamics and liberalizing the market. Most sellers on the dark network are not large international dealers, but mid-range retailers. With the possibility of selling online, which brings many new people to the market, and at the same time gives a voice to the buyer, the dynamics of power are changing.
Internet markets also serve to shorten the supply chain of medicines. The longer the supply chain, the more money involved and the more violence it provokes. The risk of mixing more substances in doses to increase profits also increases.
Buying online also leads to greater security, more than simply knowing the quality of the purchased substance. Buying drugs on the street can include going to unsafe areas, interacting with drug dealers, and exposing yourself to unnecessary risks of robbery and murder. With online shopping, drugs are delivered to a mailbox or other location as a “dead drop”, reducing potential risks. Removing drug trafficking from the streets can also benefit urban neighborhoods, which are intimidated by the challenges of pushers and gangs fighting around the territory.
Online drug markets have the potential to turn dirty business into simple transactions between authorized buyers and responding sellers. James Martin, in his book “Drugs on the Dark Web”, writes that some retailers, in order to build a brand, label their production as “fair trade”, “conflict-free” or “organic”. One dealer remarks: “We never buy cocaine from a cartel. We never buy cocaine from the police. We are helping farmers in Peru, Bolivia and some chemistry students in Brazil, Paraguay and Argentina. ”
Of course, no one knows how true these statements are, but crypto enthusiasts who disarm cartels sound like drugs, right?
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