Okay, so I'm in the US and am hosting the full node on my computer. The full node is encrypted with all kinds of nasty stuff like child porn and terrorist plots, to name a couple, but only accessible to those with passwords who know it's there. Can a person be in serious trouble for having said on his computer even though they don't access it?
As I suspect you know,
this has come up before.
The bitcoin protocol makes it awkard/expensive to store more than just simple links.
One of
my favorite articles (What colour are your bits?) touches on this:
I think Colour is what the designers of
Monolith are trying to challenge, although I'm afraid I think their understanding of the issues is superficial on both the legal and computer-science sides. The idea of Monolith is that it will mathematically combine two files with the exclusive-or operation. You take a file to which someone claims copyright, mix it up with a public file, and then the result, which is mixed-up garbage supposedly containing no information, is supposedly free of copyright claims even though someone else can later undo the mixing operation and produce a copy of the copyright-encumbered file you started with. Oh, happy day! The lawyers will just have to all go away now, because we've demonstrated the absurdity of intellectual property!
The take-away is that somebody can encrypt illegal data with a one-time pad. There would be no way to verify the data is illegal without said one-time pad. The implication of Monolith is that you don't even need a one-time pad to store data: you can XOR a well known version of the Bible with your illegal content and store the result in the block-chain. Edit: you could even use bootstrap.dat as the not-quite-one-time pad (non-random or re-used one-time pads are insecure).
I am not a lawyer, but after some amount of scrambling, I don't think anybody will care (other than the unprunable outputs wasting space).
Note for those that may not be aware: ko/s stands for "kilo-octets per second", more commonly referred to as kilobytes per second, but the former is more precise. Bytes can be 7, 8, or 16 bits.