The Flaws of the Digital Property Protection and Enforcement Act

02/20/2023 06:20 • Tech Trends • 78 views

On February 20, the United States Senate of Illinois recently proposed a Digital Property Protection and Enforcement Act, which was ridiculed by the encryption community because of its “infeasible” plan. The bill forced blockchain miners and verifiers to do “impossible things” – such as canceling transactions under the order of the state court. The bill stipulates that any blockchain miner and verifier who fails to comply with the court order may be fined $5000 to $10000 per day.

The US state of Illinois proposed a bill to allow the mandatory change of blockchain records, which was ridiculed by the encryption community

Analysis based on this information:

The United States Senate of Illinois introduced the Digital Property Protection and Enforcement Act on February 20, 2021. The bill proposed strict regulations on blockchain miners and verifiers- enforcing compliance with state court orders. It became a topic of controversy due to its infeasible plan that could potentially disrupt the entire blockchain industry.

The encryption community ridiculed the bill and pointed out some of its flaws. One of these flaws was the imposition of impossible duties on blockchain miners and verifiers. The bill required them to cancel transactions under the order of the state court, something that goes against the decentralized nature of blockchain technology. Since blockchain was created to be immutable, and transactions recorded on its network are irreversible, honoring such orders would be impossible.

The Digital Property Protection and Enforcement Act stipulated fines ranging from $5000 to $10000 per day for any blockchain miner and verifier that fails to comply with the court order. The enforcement of such fines could contribute to the collapse of blockchain businesses as the cost of operation would rise exponentially.

Furthermore, the bill could affect the privacy and security of users’ data on the blockchain. The regulation of blockchain miners and verifiers by state courts means that the government could access data recorded on the blockchain with minimal resistance. It could lead to unconstitutional government surveillance and invasion of civilians’ privacy.

The advancement of blockchain technology has led to new innovations, and many industries have started adopting it. However, the introduction of the Digital Property Protection and Enforcement Act could hinder the growth of this industry. Blockchain businesses, startups, and entrepreneurs need regulatory frameworks that support innovation and creativity rather than hinder it.

In conclusion, the Digital Property Protection and Enforcement Act introduced by the United States Senate of Illinois is flawed and unfeasible. It poses a significant threat to the blockchain industry, privacy, and security of users’ data. The introduction of such bills could hinder the growth and adoption of blockchain technology. Therefore, lawmakers’ focus should be on supporting and creating policies that promote innovation, creativity and regulate these technologies over stringent regulations that can create more significant problems.

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