Having the Blockchain on your computer could potentially be illegal worldwide.

Attention Associates :

The International Financial Cryptography Association  find Child porn embedded in Bitcoins Blockchain

First of I want to than associate member User ID: XXXX2790 from Germany, they have chosen to remain anonymous while bringing the work of The International Financial Cryptography Association to our attention for review and dissemination.

This is something that has been well known it seems to only those who have been the parties that have / do used Bitcoins blockchain for these purposes.  As most of us have never been on the darkweb or are even aware of it, and if they are how to get on it and use it and even fewer have illegal content to lock into and use bitcoin to distribute whatever. Bitcoin at todays value is makes the findings a costly process, back in the day on the darkweb it was cheap and efficient method to do such things.

Furthermore many “investors and crypto traders / hodlers do not know you can unitize the blockchain for more than just a unit of value.  Yes we read the white papers and we are told that this is their utility or that it’s use case is based on securing information immutably accounted for  (an encrypted distributed database = Store of information) with out giving much though as to what other hodlers  / users are putting on the blockchain.

Although many of us know that there are legitimate use cases for the blockchain for currency, records, contracts, distributed cloud storage etc. it is not likely to people think or are aware that the wallet  / node data that is held and share could make people who do so “guilty” of distributing illegal pornography or  any manner of contraband information that can be digitized.

This opens up a can of worms that the regulators could at any given time site and now seemingly prove the above scenarios and legally be embolden to make blockchain technology if not illegal then some how regulated. The threat being of you do not allow for inspection of your wallet data then it can be assumed that you have contraband material stored in it.  Even more troubling than potential disclosure regulations  is the outlawing of unregulated blockchains…

So much for the privacy that the blockchain is  / was  for.

I would like to say everyone who invests, hodls, or uses Bitcoin and / or any crypto currency is not guilty of the horrors the blockchain holds ie. child abuse pictures etc.  It would be like saying anyone who has fiat currency in hand that if tested for drug residue is guilty of being in possession of and trafficking controlled substances in my opinion.

I absolutly recommend if you are a blcokchain inverstor, user professioanl fan what ever that you read this paper. Here is the abstract.

Abstract

Blockchains primarily enable credible accounting of digital events, e.g., money transfers in cryptocurrencies. However, beyond this original purpose, blockchains also irrevocably record arbitrary data, ranging from short messages to pictures. This does not come without risk for users as each participant has to locally replicate the complete blockchain, particularly including potentially harmful content.

We provide the first systematic analysis of the benefits and threats of arbitrary blockchain content. Our analysis shows that certain content, e.g., illegal pornography, can render the mere possession of a blockchain illegal. Based on these insights, we conduct a thorough quantitative and qualitative analysis of unintended content on Bitcoin’s blockchain. Although most data originates from benign extensions to Bitcoin’s protocol, our analysis reveals
more than 1600 files on the blockchain, over 99 % of which are texts or images.

Among these files there is clearly objectionable content such as links to child pornography, which is distributed to all Bitcoin participants. With our analysis, we thus highlight the importance for future blockchain designs to address the possibility of unintended data insertion and protect blockchain users accordingly.

 

What you can find in the paper we reference. You can find that paper here:  https://fc18.ifca.ai/preproceedings/6.pdf

Data Insertion Methods for Bitcoin

Low-level Data Insertion Methods

Content Insertion Services

Benefits and Risks of Arbitrary Blockchain Content

Benefits of Arbitrary Blockchain Content

Risks of Arbitrary Blockchain Content

What is worrisome about the idea of Condemned Content not only being a premise to crack down on cryptocurrency’s for material such as child abuse, is the concept of what is considered “Condemned Content” e.g., Bibles in Islamist countries.  Clearly a label  that can be abused in the effort to curb religious freedoms.

Illegal and Condemned Content. Some categories of content are virtually universally condemned and prosecuted. Most notably, possession of child pornography is illegal at least in the 112 countries [64] that ratified an optional protocol to the Convention on the Rights of the Child [65]. Religious content such as certain symbols, prayers, or sacred texts can be objectionable in extremely religious countries that forbid other religions and under oppressive regimes that forbid religion in general. As an example, possession of items associated with an objected religion, e.g., Bibles in Islamist countries, or blasphemy have proven risky and were sometimes even punished by death [13,38].

Again please have a read of this paper.
HaTTiP to The International Financial Cryptography Association