Author: Gregory Maxwell 2012-01-17 06:15:11
Published on: 2012-01-17T06:15:11+00:00
On January 16, 2012, Kyle Henderson asked if anyone could point out how SOPA or PIPA affects Bitcoin. In addition to concerns about internet freedom and domain name system filtering that are against the interests of Bitcoin users, SOPA contains new requirements for payment networks that may adversely affect Bitcoin service businesses and limit their ability to do business in the US and other places where similar legislation is adopted. The US law matters for the Bitcoin ecosystem because there are many potential Bitcoin users in the US, even though far from all Bitcoin users are in the US themselves.Under the act, a "payment network provider" means an entity that provides services to effect or facilitate a debit, credit, or other payment transaction. A payment network provider must take measures designed to prevent completing payment transactions involving customers located within the United States or subject to its jurisdiction and the payment account used by the foreign infringing site subject to the order. In theory, the AG's office could order miners and mining pools located in the US not to process transactions containing the well-known addresses of targeted infringing sites without due process.Although some people think that the Bitcoin system itself is a "payment network" under the act, it is unlikely. But anything that risks imposing new barriers is a threat to us all. Bitcoin is good because it deconstructs some of the old barriers, and the value of a network or an economy comes from the number of potential connections it can make. While bitcoin.org's help would be small as to be pointless, not participating in opposing SOPA and PIPA because it doesn't matter is nonsense, according to the author.
Updated on: 2023-05-18T22:56:13.535160+00:00