Open Bazaar (previously known as DarkMarket) has a major advantage over the now closed Silk Road – it is peer to peer. That means no central website that the authorities can take down.
DarkMarket works in a fundamentally different way to Silk Road or any other online marketplace. Instead of being hosted off a server like a normal website, it runs in a decentralized manner: Users download a piece of software onto their device, which allows them to access the DarkMarket site. The really clever part is how the system incorporates data with the blockchain, the part of Bitcoin that everybody can see. Rather than just carrying the currency from buyer to seller, data such as usernames are added to the blockchain by including them in very small transactions, meaning it’s impossible to impersonate someone else because their pseudonymous identity is preserved in the ledger.
Vice.com
