How Honest Mining Can Stop Corruption: EMCD Case

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Thu, 05/28/2020 - 14:11
Vladislav Sopov
While the majority of non-CS folks believe that blockchain is designed to facilitate illegal activity, a fair approach to mining could totally change the game
Cover image via stock.adobe.com
Contents

Blockchain technologies are rarely treated as instruments of corruption and fraud prevention. Honest mining with EMCD pool could put them at the service of combating illicit operations.

Reasonable suspicion

Blockchain, with its decentralized anonymous structure, has always seemed highly attractive for numerous sorts of unlawful activities. Drug trafficking, malware attacks, money laundering and targeted killings are the most dangerous of them.

Why do blockchain technologies provide a plethora of opportunities for malefactors around the globe? Experts from the EMCD multi-purpose mining service have revealed three features of distributed ledger systems that attract malefactors the most:

  1. Privacy. By default, nobody asks the owner of crypto coins to disclose their identity when participating in mining or transactions. That said, crypto wallets (accounts, public keys, etc.) can’t be associated with real-life people with any certainty. Even if this data is provided, it can’t be checked properly to disclose links to the criminals or suspects.
  2. Flexibility. Huge transactions that would never pass by the radars of classical due diligence instruments can easily be split into ordinary sized payments with blockchain-based tools. This creates an opportunity for growth for shady cash-out services. Using Bitcoin (BTC) or Ethereum (ETH) mixers, transaction obfuscation tools (Litecoin’s MimbleWimble, etc.) as well as private-by-default coins like Monero (XMR) makes these transactions untraceable.
  3. Instantaneous. In modern blockchains, transactions are verified within a blink of the eye, so law enforcement bodies have no way to control them, let alone to prevent or revert suspicious payments. Additionally, crypto can be transferred between different jurisdictions, which is one more burden for watchdogs to stop any sort of abuse.

However, experts from the EMCD Tech mining company, that has its own mining pool and service for remote management and monitoring ASIC devices, emphasize the effects of another side of blockchain technology.

Crypto against corruption

The EMCD Tech team demonstrates a revolutionary approach to blockchain-based instruments, namely with powerful tools in the battle against corruption. Particularly, four aspects of decentralized technologies are in their spotlight.

  1. Transparency. Information in blockchain is open for everyone via easy-to-use explorers. Even newbies can verify data about the operations.
  2. Data integrity. Data stored in the blockchain isn’t subject to changes. So, no malefactor can corrupt or delete it.
  3. Security. Blockchain data is verified by multiple decentralized nodes, so hackers are unable to access it directly.
  4. No third party involved. When using the blockchain, all interaction is carried out only between two actors: the sender and receiver for a particular cluster of information (transaction, message, etc.). Blockchain acts as a peer-to-peer system, so no gatekeeper is required for its operations.

This combination of unique benefits allows blockchain-based technologies to be of crucial importance in fraud prevention and combating corruption. Also, its insignificant maintenance and operation fees could reduce the expenses of law enforcement bodies. 

The ‘Honest mining’ approach from EMCD could reveal the potential of distributed systems for the transparent, quick, secure and trustless exchange of information.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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