Illicit Blockchain Content: Its Different Shapes, Consequences, and Remedies

Augmenting public blockchains with arbitrary, nonfinancial content fuels novel applications that facilitate the interactions between mutually distrusting parties. However, new risks emerge at the same time when illegal content is added. This chapter thus provides a holistic overview of the risks of content insertion as well as proposed countermeasures. We first establish a simple framework for how content is added to the blockchain and subsequently distributed across the blockchain’s underlying peer-to-peer network. We then discuss technical as well as legal implications of this form of content distribution and give a systematic overview of basic methods and high-level services for inserting arbitrary blockchain content. Afterward, we assess to which extent these methods and services have been used in the past on the blockchains of Bitcoin Core, Bitcoin Cash, and Bitcoin SV, respectively. Based on this assessment of the current state of (unwanted) blockchain content, we discuss (a) countermeasures to mitigate its insertion, (b) how pruning blockchains relates to this issue, and (c) how strategically weakening the otherwise desired immutability of a blockchain allows for redacting objectionable content. We conclude this chapter by identifying future research directions in the domain of blockchain content insertion.