Use of blockchain for illegal content that causes division of opinion
Blockchain technology has seen an increase in adoption worldwide, given its censorship and immutable features. But the same benefits can also be used to promote illegal or copyrighted content in the store. What are the ways to deal with such cases?
Blockchains are decentralized networks that use cryptography to secure and verify transactions. Data is stored in a permanent, unchanging form, which makes it an attractive platform for storing various information. However, any content can be stored, including illegal or copyrighted material, given the open nature of blockchain.
One of the critical advantages of blockchain technology is that it is decentralized and distributed, meaning that no single entity controls the network. This can also make it difficult for the authorities to monitor and control the content stored on the blockchain. For example, if someone were to keep copyrighted material on a blockchain, it would be essentially impossible for rights holders to remove it, as it would be stored across thousands of nodes.
Illegal content and copyright concerns on the blockchain
The controversial NFT (non-fungible token) concept known as Ordinals is trending on Twitter. It uses the Bitcoin blockchain to have recently been a hot topic. The Ordinals protocol witnessed some illegal content on the platform (on inscription 668) for around half an hour.
Although the team later hid the content, the inscribed image was still visible. BeInCrypto reached out to the Ordinals creator Casey Rodarmor to comment on this development. However, have not yet received a response. Nevertheless, the microblogging platform Twitter saw more reactions.
It is possible to store data in smart contracts, and with the recent explosion of NFTs, this is happening a lot. A few hundred kilobytes (kB) is more than enough to encode copyrighted material; the text of a novel, a picture or a short song. Or, in rare cases, a dismissal from a workplace.
A glimpse into the past
One of the main Ethereum researchers, Justin Drakeshared their stories with BeInCrypto on February 6. When asked about the consequences of storing illegal content on the blockchain, he replied:
“Not much is happening (with blockchain); the blockchain moves forward.”
Furthermore, Drake highlighted a similar case that happened nine years ago in the Bitcoin blockchain. A user by the handle “edc678” reported that a virus signature from the “DOS/STONED” virus was uploaded to the Bitcoin blockchain. This caused serious problems for users of Microsoft Security Essentials (MSE). Nevertheless, the technology continues to exist at the time of writing.
In 2018, researchers from RWTH Aachen University found 1,600 files stored in Bitcoin’s blockchain. Of the files, at least eight were of sexual content, including one believed to be an image of child abuse and two containing 274 links to child abuse content. Another 142 were connected to darknet services.
This therefore calls into question the technology that cryptocurrencies such as Bitcoin use to operate.
Cases of copyright infringement
Moving on to another complaint, the copyright of content. Each full node replicates the entire blockchain, including all stored data, and makes it available to its peers. It will become the owner and distributor of a copyrighted file when a valid transaction is added to the blockchain.
One of the most controversial topics in this cohort is related to Kim Dotcom. He is the controversial Internet entrepreneur and founder of the now defunct file storage platform Megaupload.
Dotcom locked horns with US regulators over allegations of copyright infringement linked to the file-sharing giant. He even blamed the current US president for it. In support, Kim Dotcom, also known as Kim Schmitz, claimed: “Hollywood sells most content online as I suggested they should. Piracy levels continue to rise because fewer people can afford $20 per movie or multiple monthly subscriptions.”
However, this does not mean that illegal or copyrighted content stored on a blockchain is immune to consequences.
There are several ways that law enforcement and rights holders can still take action against those who have illegal or copyrighted content on a blockchain. One approach is to take legal action against individuals or organizations that store the content on the blockchain.
This may involve pursuing civil actions or criminal charges, depending on the content and the jurisdiction in which the parties are located. Copyright holders can also sue pirated movies or music on a blockchain for copyright infringement.
Methods to Counter the Rise of Illegal Blockchain Content
Another approach is to go after the platform or service providers that host the blockchain. The provider is responsible for the content stored on the network if a blockchain is hosted by a cloud service provider, as they monitor the network.
In addition, many countries have laws that require service providers to remove illegal or copyrighted content when notified by the copyright holder or law enforcement. The platform or service provider must remove the content from the blockchain. In conclusion, while the decentralized nature of blockchains makes it difficult for authorities to monitor and control the content stored on the network, it is not immune to legal or technological consequences.
Law enforcement and rights holders have several options available to address the problem of illegal or copyrighted content stored on a blockchain. This includes taking legal action, going after the platform or service providers, or using technology to enforce copyright laws. As such, users of blockchain technology must be aware of the legal and technological risks associated with storing illegal or copyrighted content on a blockchain.
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