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About needing permission from the blockchain.. the challenge is exactly how to make a permissionless, non-censorable blockchain! Indeed in many (but not all) c
by nextaccountic 5y ago
About needing permission from the blockchain.. the challenge is exactly how to make a permissionless, non-censorable blockchain!
Indeed in many (but not all) cryptocurrencies, if the miners collude they can censor a given transaction they don't like[0]. This is pretty bad, but at least it can't happen in secret: if and when a transaction is censored, we can always point to a specific transaction in mempool that is getting ignored. Privacy coins like Zcash and Monero makes it infeasible to track who is transacting with who, and thus can only be completely shut down or not at all. At the moment, they are the best bet for people that want a permissionless digital currency.
A lot of work in the crypto space is being done to tackle this problem[1], and most people in this space reckons this as a real problem. It's not fully solved, but this wasn't claimed: as said before, cryptocurrencies are indeed incomplete solutions.
[0] In Bitcoin there's a group of miners that is attempting to censor transactions based on US law https://www.coindesk.com/tech/2021/05/07/marathon-miners-have-started-censoring-bitcoin-transactions-heres-what-that-means/ https://www.coindesk.com/tech/2021/05/07/marathon-miners-hav... - and they are willing to give up a lot of money in the process. So far they control less than 50% of the network so they can't really enforce their views. And all of this just means that Bitcoin is indeed censorable.
[1] Here's 6 yers old blog post about this on Ethereum https://blog.ethereum.org/2015/06/06/the-problem-of-censorship/ https://blog.ethereum.org/2015/06/06/the-problem-of-censorsh... - with censorship, Bitcoin might ban some drug dealers from transacting; but Ethereum, being a smart contract platform, would be totally worthless to enforce contracts. So they have an incentive to solve this.