Cryptomarkets: History, Structure and Operations

This chapter serves as a state-of-the-art literature review, covering key topics within the realm of cryptomarket research. Moreover, this chapter provides a historical overview of illicit e-commerce transactions and notable developments while also detailing major findings from key peer-reviewed research on cryptomarkets. This chapter is comprised of five sections, each of which covers a pivotal area of cryptomarket research: (1) the origin and structure of cybercrime, (2) the development of cryptomarkets, (3) the organisational structure and operation of cryptomarkets, (4) the three primary strands of early cryptomarket research and (5) the role of trust and reputation as functional mechanisms within cryptomarkets. The chapter strives to offer readers a robust and well-rounded introduction and intermediate foray into cryptomarkets, setting the stage for subsequent chapters that detail more technical elements of cryptomarket research, such as the efficacy of law enforcement interventions, the network structure of cryptomarkets and simulated disruptions of cryptomarket transactional networks.