What is Censorship Resistance?
Censorship resistance is the idea that any party can use a blockchain network if they follow the rules set by the blockchain.
The first censorship-resistant blockchain was Bitcoin. From its inception, the chain created by Satoshi Nakamoto leveraged three important factors to eliminate censorship:
- Decentralization: Bitcoin operates on a peer-to-peer network of nodes eliminating the existence of central control over the blockchain.
- Blockchain Tech: Transactions are recorded immutably on a public ledger, preventing tampering.
- Cryptography: Secure protocols ensure all transactions are verified and cannot be altered by any single entity.
Taking Bitcoin’s example, most blockchains are now using these factors to ensure maximum censorship resistance for their users.
Why Do We Need Blockchain Censorship Resistance?
Censorship resistance has proven particularly useful to decentralized finance applications (dApps). Unlike their traditional finance competitors, dApps offer the same financial products (e.g., deposits, lending, borrowing) to everyone and don’t interfere with any transaction.
Another interesting use case of censorship resistance is journalism. In our age, many independent journalists face censorship from powerful media giants like Fox, Facebook, and Google – that’s why decentralized social networks like Steem and Subsocial are being deployed on the blockchain.
Can a Blockchain Be Censored?
Yes, in theory, a blockchain can be censored, but it is highly unlikely to happen in real life.
This scenario might happen via a 51% attack, but the effects would only be temporary as these attacks are super-costly.
For example, censoring Bitcoin would mean that the entity will need to acquire 51% of all mining power engaged in the network.
