The title of this post could have easily been “Cash and its link to terrorism”, “Mobile phones and their link to terrorism” or even “Diamonds and their link to terrorism” because undeniably, all three of these are today being used in the terrorist ‘value chain’. The blockchain, like any other technology, is currently undergoing a debate phase where, on one side of the spectrum, people are calling it the most disruptive technology yet and on the other side, the root of cryptocurrency terrorism. In the midst of all this, should organizations be getting associated with blockchain?

Let’s understand cryptocurrency terrorism, shall we?

Many federal security analysts have stated that terrorist organizations have been using Bitcoin to fund their activities. Right from raising funds to spending them in the arms market, Bitcoin has been associated with several monetary transactions by terrorist organizations. Usage of this (and other) cryptocurrencies for the use of terrorist activities is being called cryptocurrency terrorism.

The bane and the boon

So, it is understandable that organizations that haven’t invested in the blockchain yet are hesitating in taking the first step. But like the introduction to this post says, absolutely everything can be used for malicious purposes, and especially so when it comes to technology. However, what many fail to see is that the very same technology consists of elements that can help catch those involved in criminal activity. So, while the currency of bitcoin allows for anonymity, the blockchain’s inherent feature allows law enforcement agencies to track users across the chain of transactions.

Blockchain is not equal to Bitcoin

But what does this mean for organizations? Should you or should you not invest in the blockchain? To answer this, you must first understand that blockchain and Bitcoin are not the same thing. Bitcoin is simply a cryptocurrency that uses blockchain as the underlying technology, and using this technology by itself has no association with terrorist or criminal activity. It’s just like using the internet in a way. While the internet is used as a medium for several terrorist activities, it is mostly used by regular individuals and organizations alike. You could use the blockchain for several purposes, not just for cryptocurrencies. And I’d recommend that you do, because blockchain is revolutionizing the way transactions are recorded in any system, making processes decentralized and more accountable at the same time.

Cryptocurrency terrorism is real and it is ugly, but it has nothing to do with implementing blockchain for your business. If you want to learn more about blockchain and how it can benefit your organization, contact us and we’ll be happy to have a detailed tête-à-tête.