Ensuring the law is not bitten by Bitcoin

One way to succeed in dealing with these challenges is to analyze data from multiple sources to identify the single bad apple in the bunch.

Even with all of these problems the Blockchain, in fact, gives the law enforcement a few advantages.

Bitcoin anonymity

One of the positive aspects is that you are able to track all the transactions of a specific Bitcoin address, with records dating back to their first transaction. This enables law enforcement to trace the cash in a way that they could never do before.

Bitcoin is much less anonymous than people think. A Bitcoin address is essentially an account number that the individual has. If you can connect a person to the address, then you may know all of the transactions that person made.

In case the person utilizes a wallet to connect to the Blockchain then their Bitcoin address is about as confidential as a bank account number. The wallet company will attach the address to an individual just like a bank will keep records about their customers and accounts.

Data retention

One major problem law enforcement agencies have with phone and Internet companies is that each company has their own regulations about retaining customer data. It can take years to go through numerous providers, often passing through different countries, just to locate the provider that has the information you seek to trace a high-level cyber-criminal. Even then there's a chance that the trail has gone dead. The Blockchain stores everything forever. That data isn't going anywhere and you can get it easily.

There are no "Third Party Doctrine" complications with Blockchain

Third party doctrine is a concept that says that people shouldn't expect that data they share with a third party like an ISP should be kept confidential. This third party doctrine makes it possible for law enforcement to get records from ISPs, banks, and cellphone carriers with a subpoena instead of a search warrant.

Although third-party doctrine may change the procedures of law enforcement agencies to get records, there is no this kind of difficulties with the Blockchain. It's easy to use the Blockchain and trace transactions without using even a subpoena. The Blockchain is designed to be open and accessible by all.

There are no borders to the Blockchain