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Durov announces disabling personal geolocation from Telegram

Telegram’s “People Nearby” feature has been suspected of being a way for state authorities to locate and track dissidents.

Telegram founder Pavel Durov revealed in a Sept. 6 announcement that Telegram is cutting certain features from the platform, including media uploads to the platform’s “Telegraph” blog and disabling the “People Nearby” feature.

Durov told his followers that media uploads to the blogging platform were “misused” by malicious actors, explaining that the vast majority of the Telegram community was not abusing these features. However, Durov made it clear that the “0.001% involved in illicit activities” pose a disproportionate risk to the vast majority of law-abiding users on Telegram.

The Telegram co-founder also announced that the individual geolocation tracking would be ditched for a “businesses nearby” option. Durov likewise claimed that this personal geolocation feature was only used by a tiny minority of Telegram users.

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Durov announces disabling personal geolocation from Telegram

Telegram’s “people nearby” feature has been suspected of being a way for state authorities to locate and track dissidents.

Telegram founder Pavel Durov revealed that Telegram is cutting certain features from the platform—including media uploads to the platform’s “Telegraph” blog and disabling the “people nearby” feature—in a Sept. 6 announcement.

Durov told his followers that media uploads to the blogging platform were “misused” by malicious actors, explaining that the vast majority of the Telegram community was not abusing these features. However, Durov made it clear that the “0.001% involved in illicit activities” pose a disproportionate risk to the vast majority of law-abiding users on Telegram.

The Telegram co-founder also announced that the individual geolocation tracking would be ditched for a “businesses nearby” option. Durov likewise claimed that this personal geolocation feature was only used by a tiny minority of Telegram users.

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13 Regions Face Crypto Mining Ban Under Russia’s New Energy Policies

Bluesky adds 1 million new users in 3 days amid X ban in Brazil

The decentralized microblogging platform has seen traffic and user numbers surge following the X expulsion from Brazil. 

American decentralized microblogging social platform Bluesky has seen a surge in adoption and user growth in Brazil following the country’s ban on Elon Musk’s social media platform X.

In a post on X on Sept. 1, Bluesky Social, also known as Bsky — which looks and feels very similar to Musk’s rival platformreported that it had accrued a million new users over the past three days. 

On Aug. 30, a Brazilian Supreme Court justice ordered the suspension of X in the country after Elon Musk refused to name a legal representative for the firm.

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X Ceases Operations in Brazil After Refusing to Comply With Censorship Orders

X Ceases Operations in Brazil After Refusing to Comply With Censorship OrdersX’s Global Government Affairs Team reported on August 17 that the social network would be forced to shut down its local operations in Brazil due to judicial orders issued against its legal representative. The order, issued by Alexandre de Moraes, a member of the Supreme Federal Tribunal, would have this legal representative facing jail time […]

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Elon Musk Exposes Secret EU Censorship Deal Proposal

Elon Musk Exposes Secret EU Censorship Deal ProposalTesla CEO Elon Musk has disclosed that the European Commission (EC) offered his social media platform, X, a covert deal to censor speech in exchange for avoiding fines related to its blue check verification system. Musk stated that X declined the deal, unlike other platforms. The EC accused X of noncompliance with the Digital Services […]

13 Regions Face Crypto Mining Ban Under Russia’s New Energy Policies

Bitcoin Proponent Bruce Fenton Calls Out Jack Dorsey Over Censorship Allegations During Twitter Tenure

Bitcoin Proponent Bruce Fenton Calls Out Jack Dorsey Over Censorship Allegations During Twitter TenureOver the weekend, a prominent personality in the bitcoin and blockchain sector, Bruce Fenton, addressed Jack Dorsey, CEO of Block, Inc., through a post on the social media platform X. Fenton asserts that Dorsey owes an explanation, as Twitter’s senior leadership has faced accusations of orchestrating one of the most significant acts of censorship in […]

13 Regions Face Crypto Mining Ban Under Russia’s New Energy Policies

Ocean mining pool refutes claims of censoring certain Bitcoin transactions

Dashjr rejected blame for accusations aimed against Ocean and asked Samourai Wallet to fix the bug "on your end."

Bitcoin (BTC) wallet provider Samourai Wallet has accused Bitcoin mining pool Ocean of censoring Whirlpool CoinJoin transactions and BIP47 notification transactions from Dec. 6. However, Ocean’s top executive has denied the claims while asking the Bitcoin wallet provider to fix a bug in their software.

On Dec. 7, Samourai Wallet claimed that a new policy enacted by Ocean mining pool censors certain Bitcoin transactions. In addition, the wallet provider accused X (formerly Twitter) and Block co-founder, Jack Dorsey, who is also an investor at Ocean, of a “hostile action.”

Samourai Wallet continues to accuse Dashjr of lying and deceiving community members by shifting the blame away from itself as it asks the community, “Don’t let them get away with this.”

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Lightning devs must ‘wake up’ and fix security bugs, not please VCs: Bitcoin dev

Antoine Riard, who left the Lightning Network in October, argues the Lightning Network is also at risk of becoming increasingly centralized and susceptible to single points of failure and censorship risks.

Developers working on the Bitcoin layer 2 Lightning Network have become less security-oriented and more focused on producing cash flow for their investors, argues a former Lightning Network developer.

Bitcoin core developer and security researcher Antoine Riard, made headlines last month after leaving the Lightning ecosystem over concerns about a new attack vector called “replacement cycling,” which exploiters could potentially use to steal funds by targeting payment channels.

At the time, Riard said the new class of attacks puts Lighting in a "perilous position" though some observers argued that 

Riard told Cointelegraph that he’s now working at the Bitcoin base layer to address the issue and urged Lightning developers to follow suit:

“[They need to] wake up, stop the sleepwalking and go to the whiteboard to design a robust and sustainable fix in hand with other developers at the base-layer, preserving the long-term decentralization and openness of Lightning.”

Riard also claimed that many Lightning-focused firms are compromising Lightning’s mission and security incentives for the sake of pleasing venture capitalists:

“The sad fact being most of them are working for VC-funded entities, or commercial entities with the same low-time preference, at the long-term detriment of end-users.”

Riard said it’s a classic example of the “tragedy of the commons” — where individuals and entities with access to a public resource act in their own interest and deplete it.

Decentralization appears to be a trade-off that these VC-funded Lightning firms are willing to make, which is a major concern to Riard.

“Centralized systems are great in the scale of efficiency, however they come with the downside of systemic single-point-of-failure and lower cost of user censorship, fundamental risks that one might wish to hedge against as a Bitcoiner.”

“I'm not sure this is an interesting Lightning future,” Riard said. In fact, it is something which he wants no part of, after departing from the Lightning ecosystem on Oct. 20:

“I do not wish to be associated with being in charge or accountable of the Lightning Network security, and the ~5,300 BTC exposed here. There is little [I and others] can do to halt the haemorrhage, without compromising the core values of censorship-resistance and permissionless of the Lightning Network.”

Related: Bitcoin Lightning Network growth jumps 1,200% in 2 years

The Lightning Network is the second-layer solution built over the Bitcoin blockchain. It is designed to improve the scalability and efficiency of Bitcoin

Through the Lightning Network, users can open payment channels, conduct multiple transactions off-chain, and settle the final result on the Bitcoin blockchain. The replacement cycling attack is a new type of attack that allows the attacker to steal funds from a channel participant by exploiting inconsistencies between individual mempools.

Cointelegraph reached out to Lightning Labs and other firms in the Lighting ecosystem but did not receive a response.

However, despite the security concerns and potential move toward centralization, Riard explained that Lightning hasn’t seen as many attacks as many Ethereum layer 2s because Lightning users typically only store a small amount of funds in their wallets at any given time.

A total of $194.1 million in BTC is locked in the Lightning Network, according to DeFiLlama.

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Decentralized file sharing, explained

Decentralized file sharing is a peer-to-peer network system where files are distributed across multiple nodes, eliminating the need for a central server.

The importance of decentralization in file sharing

Decentralized file sharing revolutionizes data access by eliminating dependence on centralized servers and utilizing P2P technology to distribute files across a network of nodes.

Distributing and accessing data without depending on a centralized server is possible with decentralized file sharing. Rather, files are kept on a network of linked nodes, frequently through the use of peer-to-peer (P2P) technology

To enable file sharing, each network user can provide bandwidth and storage space. BitTorrent and InterPlanetary File System (IPFS) are two well-known instances of decentralized file-sharing protocols.

The decentralization of file sharing has completely transformed the way users access and store digital content. In contrast to conventional centralized file-sharing systems, which store files on a single server, decentralized file-sharing uses a P2P mechanism. Dispersing files among a network of linked nodes promotes a more robust and secure system.

Key components of decentralized file sharing

Decentralized file sharing depends on a number of essential elements to allow for a dispersed and safe data exchange. 

Firstly, P2P networks, which enable direct user contact in the absence of a centralized server, are the backbone of a decentralized file-sharing system. By doing this, a robust system where participants directly share files is fostered.

Blockchain technology is essential to maintaining integrity and trust in decentralized file-sharing networks. It improves the general security of transactions and file transfers by enabling transparent and impenetrable record-keeping. Smart contracts are self-executing contracts with pre-established rules that automate tasks like access control and file verification.

Furthermore, files are distributed throughout a network of nodes using decentralized storage systems, which often use protocols like BitTorrent or IPFS. This approach eliminates the need for a central server and enhances the availability and reliability of data due to its redundant nature.

Cryptographic methods also protect the integrity and privacy of data. User confidence in decentralized file-sharing systems is increased by end-to-end encryption, which guarantees that only authorized parties may view the content. Together, these elements essentially provide a safe and dispersed setting for easy file sharing via the decentralized web.

How does decentralized file sharing work?

Decentralized file sharing operates on P2P networks by leveraging a distributed architecture rather than relying on a central server.

Peer discovery

Participants in the network (peers) need a way to discover one another, which is accomplished by using distributed hash tables (DHTs) or decentralized protocols. Peers build a network without a central authority by keeping track of other peers with whom they are linked.

DHTs are decentralized systems that enable distributed storage and retrieval of key-value pairs across a network, while decentralized protocols enforce communication rules that enable peer-to-peer interactions without relying on a central authority or server.

File distribution

A file is split up into smaller parts where every component is dispersed among several network peers. This approach enhances file availability, as it is not stored in a single location, ensuring better accessibility and reliability.

Dispersed storage

By distributing file portions over several nodes, decentralized storage systems lessen reliance on a single server. For instance, IPFS employs a content-addressed approach, in which files are recognized by their content as opposed to their physical location.

Peer interaction

Peers request and share file portions directly with one another. The coordination of file transfers no longer requires a central server, thanks to this direct connection. Every peer participates in the file distribution process by serving as both a client and a server.

Blockchain and smart contracts

Blockchain technology is incorporated into several decentralized file-sharing systems to increase security and transparency. Smart contracts are self-executing contracts with pre-established rules that can automate tasks such as access restriction and file verification and reward participants with tokens.

Often, decentralized file-sharing systems use cryptographic techniques like end-to-end encryption to provide privacy and security for the shared files. This ensures that the content can only be accessed and deciphered by authorized users.

Working of a decentralized storage system

Advantages of decentralized file sharing

The benefits of decentralized file sharing include enhanced resilience, improved privacy, scalability and censorship resistance.

By removing a single point of failure, it improves reliability and resilience. In a peer-to-peer network, where files are dispersed among several nodes and peers, the system continues to function even in the event that some nodes go down.

Also, decentralized file sharing, by its very nature, offers enhanced security and privacy. By ensuring that only authorized users can access and decode shared content, cryptographic solutions like end-to-end encryption help lower the danger of unauthorized spying or data breaches.

Better scalability can also be attained as the network expands. In decentralized networks, more users add to the network’s capacity, allowing it to accommodate more demand and traffic without requiring modifications to the centralized infrastructure.

Additionally, decentralized file sharing encourages resistance against censorship. It is harder for any organization to censor or limit access to particular files or information because there isn’t a single entity in charge of the network.

Furthermore, decentralized file sharing frequently incorporates incentive mechanisms through token economies or other reward systems to encourage users to contribute resources like bandwidth and storage, thereby creating a cooperative and self-sufficient environment. 

Challenges and limitations of decentralized file sharing

Challenges associated with decentralized file sharing involve scalability issues, consistency concerns, user adoption complexities, security risks and regulatory uncertainties.

Firstly, as the network grows, scalability issues become more pressing. A poor user experience may result from increased involvement if it causes slower file retrieval times and greater bandwidth requirements.

Moreover, in decentralized systems, problems with consistency and coordination could surface. It may be difficult to maintain consistency in file versions throughout the network in the absence of a central authority, which could result in conflicts and inconsistent data.

Complicated interfaces and user acceptance present another difficulty. When compared to centralized options, decentralized file-sharing platforms frequently have a higher learning curve, which may put off consumers who are not familiar with P2P networks or blockchain technology.

Furthermore, security vulnerabilities still exist, especially in the early phases of decentralized file-sharing deployments. As these systems grow more widely used, they are targeted by different types of attacks, which makes the continuous development of strong security measures necessary.

Regulatory uncertainty is another difficulty. The adoption and long-term viability of decentralized file-sharing platforms may be impacted by the changing legal environment surrounding cryptocurrency and decentralized technology.

The future landscape of decentralized file sharing

The future of decentralized file sharing involves blockchain technology, P2P networks and tokenization for secure, efficient and collaborative data exchange, which challenge traditional models.

Decentralized file sharing is expected to bring about a more inclusive, secure and productive environment. Distributed ledger and blockchain technology will be essential in guaranteeing tamper-proof and transparent transactions and facilitating file sharing among users without depending on centralized intermediaries. 

Decentralized protocols powering peer-to-peer networks will enable direct data transmission between users, cutting down on latency and reliance on centralized servers. Strong encryption techniques will allay privacy concerns and provide consumers with more control over their data. 

Furthermore, tokenization could encourage resource sharing among users, resulting in the development of a collaborative ecosystem. Innovative file-sharing services will probably proliferate as decentralization gains pace, upending established paradigms and promoting a more robust and democratic digital environment.

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Ethereum OFAC compliance dips to 45% post-Merge upgrade

The list of top censorship offenders is populated by popular platforms such as Binance, Celsius Network, Bitfinex, Ledger Live, Huobi (HTX) and Coinbase.

The historic Merge upgrade from Sept. 2022 — which marked Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) — resulted in the overall decline in compliance with standards laid down by the Office of Foreign Assets Control (OFAC). 

Ethereum blocks adhering to OFAC compliance censor certain transactions, which has a negative impact on the neutrality of the Ethereum ecosystem. In early August 2022, OFAC sanctioned Tornado Cash and several Ether (ETH) addresses associated with it due to its ability to mask and anonymize transactions.

Before the Merge upgrade, Ethereum’s OFAC compliance increased exponentially as entities such as crypto exchanges opted to run censoring MEV-Boost relays on their validators. The list of top censorship offenders is populated by popular platforms such as Binance, Celsius Network, Bitfinex, Ledger Live, Huobi (HTX) and Coinbase, according to MEV Watch data.

List of entities running censoring MEV relays on their validators are actively harming Ethereum’s credible neutrality. Source: MEV Watch

However, the overall OFAC compliance of Ethereum blocks has declined significantly. In November 2022, 78% of the total Ethereum blocks complied with OFAC regulations. As of today, Sept. 27, Ethereum’s OFAC compliance dropped to 30%, recording an overall reduction of 57%.

Post-Merge daily OFAC-compliant Ethereum blocks. Source: MEV Watch

Countering OFAC compliance requires operators to use relays that do not censor according to OFAC compliance requirements. There are seven major MEV-boost relays that are most commonly used: Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, BlockNative, Manifold and Eden. However, not all systems adhere to OFAC compliance, according to MEV Watch:

“Of the 7 available major relays only 3 do not censor according to OFAC compliance requirements.”

It is also important to note that not all blocks built by OFAC-compliant relays are censoring; however, all blocks built by OFAC-compliant relays will censor when non-compliant transactions are broadcast to the network.

While OFAC regulations primarily target United States-based organizations, validators outside the U.S. must consider running non-censoring relays for the benefit of the network.

Related: US Treasury sanctions Ethereum wallet tied to cartel over ‘illicit fentanyl trafficking’

Amid Ethereum’s reduced OFAC compliance, Grayscale made the decision to abandon all the rights to PoW Ethereum tokens (ETHPoW). However, the decision was attributed to lack of liquidity in the market. According to an official announcement:

“As such, it is not possible to exercise the rights to acquire and sell the ETHPoW tokens, and on behalf of the record date shareholders, Grayscale is abandoning the rights to these assets.”

On the other hand, some cryptocurrency investment firms like ETC Group have attempted to launch dedicated EthereumPoW exchange-traded products (ETPs).

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