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On-chain tool to seize crypto is a purist’s nightmare, but a must: CEO

A U.S. federal court recently used on-chain tech to lock criminals out of their crypto on the Jurat Network. Its founder, Mike Kanovitz, admits it could see hate from crypto purists.

The founder of layer-1 blockchain Jurat has defended his protocol against potential haters, arguing that on-chain legal enforcement is a necessary trade-off for crypto mass adoption. 

On Aug. 8, a U.S. District Court used Jurat’s on-chain enforcement tool to lock several sanctioned individuals out of their crypto accounts. These individuals were sanctioned for money laundering and using ransomware to extort cryptocurrency payments to benefit North Korea’s weapons program.

Speaking to Cointelegraph, Mike Kanovitz, the founder and CEO of Jurat said the judicial order was the first of its kind.

The Jurat blockchain was launched in late 2022, formed via a fork of the Bitcoin blockchain. The technology connects blockchain nodes with court dockets to enforce court orders.

Kanovitz admits that such technology will likely garner criticism from die-hard supporters of decentralization.

“Some people are going to claim to be philosophical purists and hate on it. I get that.

However, the Illinois-based lawyer said such technology could bring the necessary due process protections for digital assets, which will be key to mainstream adoption.

"Some of the people who currently think that there should not be effective law enforcement on-chain would feel differently if they got hacked, defrauded, or lost their private keys. Then they would be relieved that they can recover their property," he expla

In the first half of 2023, $656 million in cryptocurrencies were lost to scams, hacks and rug pulls, according to a June 30 report by blockchain security firm Beosin.

“It will not only tame the lawlessness that scares away would be adopters and draws the ire of government officials, it can unlock incredible utility for commerce,” he added.

Related: MetaCourt’s IDO launch: A paradigm shift in Web3 legal services

Until now, courts have had limited means to effectively freeze and seize crypto funds. A common tactic has been to order centralized crypto exchanges to freeze funds or turn over identifying information of the suspect. 

However, the on-chain enforcement tool works by connecting JTC’s blockchain and software nodes with the user's chosen court. 

During a lawsuit, each party provides the court with a competing hash for what that side wants the court to do. When a ruling is made, the court simply pastes the hash of the winning side, and the software nodes will execute the order autonomously once it accesses the online court docket.

The court attached the Jurat ID’s which JCT’s blockchain nodes then read to block the private keys of the defendants on the JCT Blockchain. Source: Jurat. io.

Kanovitz said the tool currently only works in the United States, and only for the JCT blockchain. However, he hopes to bring JCT’s technology into other Ethereum Virtual Machine-compatible blockchains in the future.

Magazine: ‘Moral responsibility’ — Can blockchain really improve trust in AI?

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US Presidential Candidate RFK Jr. Says Bitcoin Provides An ‘Escape Route’ From Financial Turmoil

US Presidential Candidate RFK Jr. Says Bitcoin Provides An ‘Escape Route’ From Financial TurmoilOn Monday, Robert F. Kennedy Jr. once again cautioned the public to be wary of central bank digital currencies (CBDCs), and he insisted that the Biden administration has launched a “steady barrage of hostile broadsides against cryptocurrencies.” Kennedy, who recently filed to run for president of the United States in the 2024 election as a […]

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CBDC will be used for ‘control,’ ECB president admits in vid chat with fake Zelensky

The ECB president admitted that “there will be control” in regards to a digital euro, much to the displeasure of the crypto community.

A widely shared video of European Central Bank President Christine Lagarde admitting that a digital euro will be used in a “limited” way to control the payments that people can make was taken from a three-week-old prank video.

The video was highlighted by the breaking news account Watcher Guru on April 6 and generated a significant amount of social media chatter. In it, Lagarde cited a desire to not be reliant on an “unfriendly countries currency,” or a currency provided by a “private corporate entity like Facebook or like Google.”  She said she is “personally convinced that we have to move ahead” with the digital euro.

Cointelegraph traced the original source of the video to a prank video from March 17 in which Lagarde appears to speak more candidly than normal, as she believed she was speaking to Ukraine President Volodymyr Zelensky.

The pranksters have had similar conversations with other public figures, including Harry Potter author J.K. Rowling and former United States President George W. Bush.

When “Zelensky" noted that “the problem is they [European protestors] don’t want to be controlled” by a central bank digital currency, Lagarde admitted that “there will be control, you’re right. You’re completely right,” but suggested it would be a “limited amount of control,” adding:

“We are considering whether for very small amounts, anything that is around 300, 400 euros, we could have a mechanism where there is zero control. But that could be dangerous.”

But Lagarde noted that terrorist attacks can, and have been, entirely financed by small, anonymous transactions.

Related: CBDCs ‘threaten Americans’ core freedoms’ — Cato Institute

Lagarde’s comments have been heavily criticized by the crypto community, particularly relating to her mention that a digital euro would allow for control over people and payments.

Some users saw the bright side, suggesting that by making it clear “where all this is going,” people will be pushed towards using decentralized currencies such as Bitcoin (BTC).

The ECB began a two-year investigation into a digital euro back in July 2021 and has been reporting on its progress.

The investigation is set to conclude on Sept. 29, and according to Lagarde, a decision about whether one will be launched will be made in October.

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Tech Industry Leaders Call for AI Labs to Pause Development for Safety, Coinbase CEO Disagrees

Tech Industry Leaders Call for AI Labs to Pause Development for Safety, Coinbase CEO DisagreesThis week, 2,600 tech industry moguls and entrepreneurs, including Elon Musk, Gary Marcus, and Steve Wozniak, signed an open letter requesting artificial intelligence (AI) labs to pause research and development for six months. The signatories believe that safety programs and regulations need to be strengthened, as they assert that AI labs are currently in an […]

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Cleanspark Boosts Bitcoin Mining Capacity With Acquisition of 20,000 Bitmain Rigs

Cleanspark Boosts Bitcoin Mining Capacity With Acquisition of 20,000 Bitmain RigsBitcoin mining operation Cleanspark has acquired 20,000 brand-new Bitmain mining rigs for $43.6 million, the company reported. Once installed, Cleanspark expects to increase its capacity by 37% by adding roughly 2.44 exahash per second (EH/s) to the firm’s fleet. Cleanspark CEO Says Proprietary Mining Model Gives Company Greater Control and Efficiency Cleanspark, the publicly listed […]

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The ethics of the metaverse: Privacy, ownership and control

As the metaverse continues to grow and evolve, it is essential that we consider and address the ethical questions and challenges it raises.

The metaverse, a virtual environment that simulates reality, offers complex moral dilemmas regarding privacy, ownership and control. These consist of:

  • Privacy: Who has access to and how is personal information used within the metaverse?
  • Ownership: Who owns the digital assets and real estate in the metaverse, and what rights do they have over it?
  • Control: Who oversee activities in the metaverse, and what rules and regulations will be implemented to guarantee fair use and equal treatment for all participants?

These are crucial issues to think about as the metaverse expands and is utilized more frequently, and they will probably have a big impact on how this new digital frontier develops in the future. For the metaverse to be a secure and equitable space for everyone, these ethical issues must be addressed.

Privacy problems in the metaverse

The growth of the metaverse has brought about numerous privacy concerns that need to be addressed. Some of the most pressing issues include:

  • Data gathering and use: Businesses operating within the metaverse may gather a lot of user-provided personal data, which raises concerns about how that information will be used and who will have access to it.
  • Lack of control over personal information: Users’ ability to manage their personal data within the metaverse may be limited, raising worries about possible abuse of that data.
  • Tracking and monitoring: There might not be enough information available regarding how user activity in the metaverse is kept track of and who has access to that data.
  • Data security: The metaverse could be subject to cyberattacks that lead to the loss or theft of sensitive personal data.
  • Privacy vs. pseudonymity: While many users may prefer to use pseudonyms within the metaverse, this can also create privacy concerns if their real-world identities can be linked to their virtual ones.

Related: What is decentralized identity in blockchain?

Ownership issues in the metaverse

Ownership issues in the metaverse refer to questions and challenges related to the control and usage rights of digital assets and property within these digital environments. Some of the key ownership issues in the metaverse include:

  • Intellectual property rights: The metaverse involves the creation and distribution of a vast amount of digital content, such as virtual clothing, accessories and digital art. This has raised questions about who owns the rights to this content and how it can be protected.
  • Virtual property rights: Individuals in virtual worlds have the right to own virtual property, including buildings, land and enterprises. The extent to which virtual property can be purchased, sold and controlled is a topic of continuous discussion.
  • Jurisdiction: In cases involving virtual property and intellectual property rights, it can be difficult to decide what laws should be applied because the metaverse is spread out across many different nations and territories.
  • Contractual issues: The metaverse also raises concerns about the enforceability of agreements signed between people for the sale and transfer of goods.

Related: How are metaverse assets taxed?

Control-related problems in the metaverse

In the metaverse, control issues refer to questions and challenges related to the regulation, governance and administration of virtual environments and their interactions with the physical world. Some of the key control-related issues in the metaverse include:

  • Content control: People can create, distribute and consume a variety of digital content in virtual worlds, including user-generated content. There are continuing discussions about how much regulation should be placed on virtual worlds and what kinds of information should be permitted or outlawed.
  • Economic control: Digital currencies and online marketplaces are only a couple of the complex and quickly changing economic systems found in the metaverse. Concerns exist over the reliability and fairness of these systems, as well as the roles played by the public and private sectors in their regulation and administration.
  • Political control: Virtual environments are increasingly being used as platforms for political expression, activism and organizing. This has raised questions about the extent to which virtual environments should be subject to political regulation and control, as well as the implications of such regulation for freedom of speech and democracy.

How to protect yourself in the metaverse

To protect yourself in the metaverse, it’s important to be aware of the risks and challenges that come with virtual environments. Some steps you can take include being cautious about the information you share online, using strong passwords and two-factor authentication, being mindful of phishing scams and malicious software, and regularly reviewing the privacy settings on your virtual accounts. Additionally, it’s important to be aware of the terms of service and community guidelines for each virtual environment you use and to follow them closely.

Finally, it is vital to be mindful of your interactions with others in virtual environments and to be aware of the potential for online harassment and cyberbullying. By being proactive and taking steps to protect one’s privacy and security, one can enjoy the many benefits of the metaverse while minimizing exposure to potential risks.

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Bitcoin Network Experiences Slight Dip in Difficulty After Record High

Bitcoin Network Experiences Slight Dip in Difficulty After Record HighBitcoin’s difficulty decreased 0.49% on Feb. 12, 2023, following a sustained all-time high of 39.35 trillion over the previous two weeks (2,016 blocks). The decrease in difficulty offers a brief respite for bitcoin miners, after the network recorded a 14.94% increase in the last month. Bitcoin Difficulty Drops 0.49% Lower; Top Five Mining Pools Continue […]

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Aave Launches Stablecoin GHO on Ethereum Goerli Testnet with Open Source Codebase and Audits

Aave Launches Stablecoin GHO on Ethereum Goerli Testnet with Open Source Codebase and AuditsAave Companies, the firm behind the decentralized finance (defi) project Aave, has announced the launch of a stablecoin called GHO on the Ethereum testnet network Goerli. The codebase is available on Github and has undergone audits by Open Zeppelin, Sigmaprime and ABDK. Aave Invites Programmers to Test GHO Before Mainnet Deployment On Thursday, Aave Companies […]

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Crypto Regulation Is Like a Flimsy Umbrella in a Monsoon

Crypto Regulation Is Like a Flimsy Umbrella in a MonsoonYou know what they say, “when life gives you lemons, make lemonade.” But when it comes to protecting your crypto funds on centralized exchanges (CEXes), the old adage should be “when life gives you regulations, make a self-custody wallet.” Self-custody is undoubtedly a better solution for protecting the interests of customers in crypto. Regulation alone […]

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Bitcoin’s Crypto Market Action Holds the Upper Hand as Dominance Level Surpasses 40%

Bitcoin’s Crypto Market Action Holds the Upper Hand as Dominance Level Surpasses 40%On Jan. 21, 2023, the price of bitcoin reached a 24-hour high of $23,333 per unit at 5 a.m. Eastern Time on Saturday. The entire crypto-economy is now valued at $1.05 trillion after rising 7.2% against the U.S. dollar. Bitcoin’s price rise has led to the crypto asset’s dominance level surpassing the 40% region among […]

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