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My ETH Wallet is wrongly sanctioned

depression2022.substack.com

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Re: My ETH Wallet is wrongly sanctioned

#61

Post by verdverm »

immibis wrote: post #59
verdverm wrote: post #53

Earlier quoted context omitted.

Just wait until staking is merged, 67% of the pools are run by centralized companies wanting to do business in the US, and they start filtering at the transaction level, including or not in blocks based on these same dirty metrics. Lots of people who became paper rich are going to go the other direction just as fast.

If they filter transactions, ETH will become worthless, causing the relevant stakers to lose all their money since by definition they are the ones with the most money. Seems like the system will punish censorship as designed.

They will be the majority though, enough to choose the history of the ledger, it's more that they won't allow other validators to join the network, who could invalidate their choices. Thus, the penalties will not be applied.

This guy explains it in detail: https://www.youtube.com/watch?v=gyP0uxxB6V8

How does ETH do to stop miners from rejecting or preferring transactions for blocks today? Pretty sure there have been some interesting stories about transaction front running and other tactics to abuse the system for personal gain (which is a fundamental issue in the unregulated blockchain ecosystem)

Re: My ETH Wallet is wrongly sanctioned

#62

Post by salawat »

CobrastanJorji wrote: post #9

Ignoring all the obvious jokes here about banking without regulations and throwing good money after bad, I'm interested in the technical aspect of such bans and had some trouble finding resources. The author says "blocked by DeFi protocols such as AAVE and Uniswap." What does this actually mean? I found Uniswap's FAQ on this ( https://help.uniswap.org/en/articles/6149816-address-screeni... ), but I'm not sure what it…

Typical implementation is money can go in, but can't come out til the sanction is lifted. Sorry bout it.

You won't find much on the technical implementation, because the sector as a rule keeps the implementation details generally under wraps. The intent is clear however. Lock as much of their financial resources in a sanctioned account as possible.

Re: My ETH Wallet is wrongly sanctioned

#63

Post by immibis »

verdverm wrote: post #61
immibis wrote: post #59

Earlier quoted context omitted.

If they filter transactions, ETH will become worthless, causing the relevant stakers to lose all their money since by definition they are the ones with the most money. Seems like the system will punish censorship as designed.

They will be the majority though, enough to choose the history of the ledger, it's more that they won't allow other validators to join the network, who could invalidate their choices. Thus, the penalties will not be applied. This guy explains it in detail: https://www.youtube.com/watch?v=gyP0uxxB6V8 How does ETH do to stop miners from rejecting or preferring transactions for blocks today? Pretty sure there have been…

The penalties are outside of the network. The penalties are that nobody wants to use a cryptocurrency with transaction filtering, when there are so many without it. Thus, the real-world value of the network token decreases drastically.

Re: My ETH Wallet is wrongly sanctioned

#65

Post by landemva »

verdverm wrote: post #61
immibis wrote: post #59

Earlier quoted context omitted.

If they filter transactions, ETH will become worthless, causing the relevant stakers to lose all their money since by definition they are the ones with the most money. Seems like the system will punish censorship as designed.

They will be the majority though, enough to choose the history of the ledger, it's more that they won't allow other validators to join the network, who could invalidate their choices. Thus, the penalties will not be applied. This guy explains it in detail: https://www.youtube.com/watch?v=gyP0uxxB6V8 How does ETH do to stop miners from rejecting or preferring transactions for blocks today? Pretty sure there have been…

> transaction front running

This also happens in regulated markets, but you have to be very well connected to do it. https://wwnorton.com/books/flash-boys/

Re: My ETH Wallet is wrongly sanctioned

#66

Post by _aavaa_ »

verdverm wrote: post #61
immibis wrote: post #59

Earlier quoted context omitted.

If they filter transactions, ETH will become worthless, causing the relevant stakers to lose all their money since by definition they are the ones with the most money. Seems like the system will punish censorship as designed.

They will be the majority though, enough to choose the history of the ledger, it's more that they won't allow other validators to join the network, who could invalidate their choices. Thus, the penalties will not be applied. This guy explains it in detail: https://www.youtube.com/watch?v=gyP0uxxB6V8 How does ETH do to stop miners from rejecting or preferring transactions for blocks today? Pretty sure there have been…

> transaction front running

For anyone interested, see: https://www.paradigm.xyz/2020/08/ethereum-is-a-dark-forest

Re: My ETH Wallet is wrongly sanctioned

#67

Post by verdverm »

immibis wrote: post #63
verdverm wrote: post #61

Earlier quoted context omitted.

They will be the majority though, enough to choose the history of the ledger, it's more that they won't allow other validators to join the network, who could invalidate their choices. Thus, the penalties will not be applied. This guy explains it in detail: https://www.youtube.com/watch?v=gyP0uxxB6V8 How does ETH do to stop miners from rejecting or preferring transactions for blocks today? Pretty sure there have been…

The penalties are outside of the network. The penalties are that nobody wants to use a cryptocurrency with transaction filtering, when there are so many without it. Thus, the real-world value of the network token decreases drastically.

There are also a bunch of people sitting on the sidelines, waiting for a regulated network.

Since all of these things are basically just printed money based on the faith of the people, and since ETH is number 2, I think it will survive centralization and regulatory capture, since most of the populace could care less about these things. It just happens to be that the ethos of crypto libertarianism isn't that important to valuing the network.

Re: My ETH Wallet is wrongly sanctioned

#69

Post by sneed-oil »

hnthrow1010 wrote: post #51
sneed-oil wrote: post #48

Earlier quoted context omitted.

> Transactions and storage of money are already decentralized, through the traditional finance system That's not the case for every country on the planet > Yes, that's why transactions for those huge sums are subject to AML laws. And how do those prevent rich person A from paying rich person B (by buying a painting owned by B for an inflated price) for some illegal service?

>That's not the case for every country on the planet It's not helping there either. Countries where the economy is strictly controlled by the government, like North Korea, are mainly using crypto and defi to centralize even more. Their government can use defi to steal from other countries with impunity, evading international laws while continuing to oppress their own citizens and disallowing them from using the inter…

People in Lebanon are not being allowed to withdraw their money from banks, something similar happened in Greece a few years ago. With crypto if you have your own keys that's not an issue.

I don't see how the North Korea thing is an issue. I'm not sure what hacks you're referring to but when it comes to smart contracts code is law and the people who use them know that, if you can't get back the tokens you sent to a smart contract it's only your fault for not understanding how the software works. I don't think North Korea should exist in the first place but I don't think the act of getting money from a smart contract is immoral.

As for using works of art to launder money, I meant something like rich person A offers child prostitutes (or any other illegal service or item) to rich person B, who pays A by buying one of their paintings for a higher price than what A paid for it.

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