Illinois Senate’s Digital Property Protection and Enforcement Act: A Flawed Attempt to Control Blockchain.

02/20/2023 06:20 • Blockchain Buzz • 121 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

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The proposal of the Digital Property Protection and Enforcement Act by the United States Senate of Illinois has stirred controversy in the encryption community. As the name implies, the bill aims to protect digital property by giving state courts the authority to order blockchain miners and verifiers to cancel transactions. To achieve this, the bill demands the cooperation of the entire network, which rightly earned the criticism of the encryption community as an “infeasible” plan.

One apparent issue with the proposed bill is that it confuses the concepts of centralized and decentralized systems. Blockchains, by design, are decentralized, where no central authority controls the network. Hence, the state court’s order to cancel a transaction undermines the very fundamentals of blockchain. Additionally, the bill demands blockchain miners and verifiers to facilitate the enforcement of a court order, which is beyond their control. This request overlooks the fact that these parties have no ability to reverse transactions or delete data that are already written in the blockchain ledger.

The Illinois Senate’s proposal has added a layer of complexity to the blockchain verification process. Blockchains depend on the consensus of the entire network – everyone with a stake in the network follows the rules agreed upon. If the state court’s order conflicts with blockchain rules and protocols, the miners and verifiers have to either ignore the court order or violate the network’s rules. This clash between legal authority and blockchain rules creates confusion, making the entire system vulnerable to attack.

Moreover, the bill proposes hefty fines for those who fail to comply with court orders to cancel transactions. These fines are onerous and unrealistic as blockchain miners and verifiers have no control over the transactions on the network. The fines may discourage individuals and businesses from utilizing blockchain technology in Illinois, making it lose its competitiveness and limit innovation.

In conclusion, the Illinois Senate’s Digital Property Protection and Enforcement Act is flawed legislation that overlooks the fundamental principles of blockchain. It is an infeasible and impractical proposal that raises more questions than it provides answers. The encryption community’s criticisms are legitimate, and the Illinois Senate must reconsider its proposal before enacting it into law.

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