One of the first things a nation or government does when it seeks to overthrow a powerful individual or group is to seize their property and freeze their bank accounts. In a sense, it paralyzes the individual or group, allowing the government to attempt to influence them into acting following its wishes.

Recent western sanctions against Russia following the Kremlin’s invasion of Ukraine are examples of how such influence is being used. Even if it could seem like a good idea to undermine a person or organization, there is always a danger that it will be misused.

This article highlights blockchain technology’s censorship resilience, a feature that can help prevent such treatment from authorities.

What does blockchain censorship resistance mean?

Blockchains have a feature called censorship resistance that guarantees a transaction will be approved as long as all the prerequisites are satisfied. This ensures that no government or organization may affect or change transactions on a blockchain regardless of their level of influence.

Blockchain censorship resistance is quite different from how conventional banks operate, where everything is tracked, and governments can force banks to freeze specific assets and accounts or even halt transactions. In a society where everything is based on money, every organization or government that controls it produces an imbalance of power.

The unchangeable record of transactions on the blockchain is another example of censorship resistance. Distributed ledgers are essentially what blockchains are. Each node in the system maintains and updates its copy of the ledger, which contains information on all transactions made. Therefore, neither a government nor a power can censor or change transaction information.

The importance of censorship resistance

Because they return control to the people, blockchains, at least the large ones like Bitcoin and Ethereum, are revolutionary. It is comparable to Bella Ciao, the 19th-century Italian protest song, but with practical applications.

The first benefit of censorship resistance is that it allows people to possess property without official approval. Good administrations can quickly turn sour against a minority or transform into dictatorships. But there is a restriction to the power of the government if transactions are made through blockchains.

Protecting the concept of privacy is the second critical function of censorship resistance. Even though blockchain ledgers are accessible to everyone, Satoshi Nakamoto, the founder of Bitcoin who goes by their pseudonym, powerfully illustrates the prospect of perfect privacy. We know how much bitcoin he probably owns.

The third benefit of censorship resistance is the invincibility of blockchains. A blockchain as large as the bitcoin blockchain cannot be brought down by a government or other organization, much alone hackers, unless they can seize control of 51% of the network’s total hash rate. However, that would be extremely expensive and might impact the blockchain (no guarantees).

What dangers exist for those who oppose censorship?

Blockchains’ ability to withstand censorship is primarily at risk from two challenges. The first is internet accessibility, managed by internet service providers and governments. Governments can block the internet and specific websites necessary for blockchain transactions.

This is a genuine concern, as some regions of Ukraine saw when Russian forces cut down internet access there. Elon Musk’s Starlink offered internet from above the clouds and presented a straightforward answer to that problem. Soon, we’ll likely see more of this technology, which could increase blockchains’ resistance to censorship.

The second concern is the direct manipulation of blockchains by an entity that gains control of the bulk of the hash rate, wrongly using the blockchain in the process. Although it is now very hypothetical and pricey, this is a possibility. To seize control of the bitcoin blockchain would likely cost more than $100 billion, but Nobody is willing to spend so much cash on a slim chance.

Also, read – Crypto donations are about more than just resisting censorship.

Conclusion

The more sinister aspect of censorship resistance is that because authorities cannot track or shut down blockchains, even bad guys doing awful things can get away with it. This is the justification that legislative bodies offer for why they should outlaw cryptocurrency in their country.

The truth is that a very small percentage of users abuse blockchains’ built-in censorship resistance, and new technology may soon be able to stop them. However, that does not justify taking away people’s ability to control their fate and refusing to submit to every whim of authorities.

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About the Author: Diana Ambolis

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