Blockchain analytics platform BlockSeer has launched a special beta version of a new Bitcoin mining pool (BTC) – Blockseer Mining Pool, which monitors transactions from blacklisted wallets.

The aggregator will use BlockSeer and Walletscore brand data, among other reliable sources such as the US Office of Foreign Assets Control or the Office of Foreign Asset Control, a cryptocurrency blacklist to identify BTC transactions that it does not want processed. The complex also requires all miners to agree to KYC protocols. Sheldon Bennett, DMG Chief Operating Officer said:

“The rally focuses on the lack of transactions from known intimidating wallets that use this environment in a way that continues to damage the reputation of cryptocurrencies, especially Bitcoin, in the mass flow, as well as hamper their widespread adoption.”
Ricardo Spani, the former Monero leader developer, suggested on Twitter that this could be the start of a slippery slope. He noted that the oversight of transactions from Bitcoin mining could spread widely as a result of regulatory pressure, saying that the concern was that “regulators are looking at this and thinking that it is a good idea for border cases such as the OFAC’s cryptocurrency list”, so mandatory, binding. … ”

Spagni suggested that “adding more privacy to Bitcoin will prevent this from happening,” adding:

“Things like p2pool and Stratum v2 make it nearly impossible to do this, and I would rather trust that than hope and pray.”
P2pool is a decentralized Bitcoin mining pool created in 2011. The draft Braiins Stratum V2 is a complete redesign that implements BetterHash, which is a secondary protocol that allows mining pool members to decide which block configuration they want to extract rather than which group controls which transactions should be included in each Mass. This would make it impossible to censor the pool. The project still needs formal review, but will receive grants from Square Crypto for further development, according to Braiin co-founder Jan Čapek.

The founder of Wallet Scrutiny, Leo Wandersleb, suggested that the slippery slope of control “will result in a soft fork” when the communities that take this approach refuse to build “blocks that don’t use filters.”

In August 2019, coin-formation Eric Fusquell predicted that state pools would recover at a loss to be censored, while black-based pools would impose black market fees.

Not everyone is convinced that transaction oversight is possible without the support of most miners. BlockTower’s principal information office, Ari Paul, said that even if at least one miner does not comply, there is potential for blacklisted transactions, but added:

“However, there is a problem – 99% (or 51%) might decide to isolate any block with an address that is blacklisted, but that requires cooperation.”
Eric Voorhees believes there will come a time when transaction censorship will pose a serious threat to Bitcoin:

“This is not an inevitable problem, but it will come. It is time to prepare for it.”

Source: CoinTelegraph