Things you misunderstood about Filecoin compliance.

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This is a frequently asked question, how to solve the data compliance of IPFS or Filecoin networks? The long-promoted free flow of data seems to run counter to data compliance and regulation? So will there be greater policy risks in Filecoin? This contains a lot of misunderstandings and brings a lot of confusion to Filecoin investors. In fact, things are not what many people think.

Content summary.
First, the free flow of data is not without supervision.

Second, Filecoin establishes a storage trading market and does not automatically match transactions.

III. Miners have the right to decide on data storage / retrieval.

What should miners do to meet the compliance requirements.

V. Privacy protection requires users to take responsibility.

Filecoin aims to build a distributed storage network.
Filecoin has a grand vision, and at the beginning of Filecoin’s white paper, he said something like this:

The Internet is in the midst of a revolution. This revolution is reflected in several aspects:

Centralized proprietary services are being replaced by decentralized open services.

Trust based on entity assurance is being replaced by verifiable computing.

Temporary location-based addresses are being replaced by persistent content-based addresses.

Inefficient oligarchic entities are also being replaced by decentralized bazaars based on point-to-point algorithms.

Based on this, the goal of Filecoin is to establish a distributed storage trading market with interconnection and unified standards. In this network, users are free to choose service providers, the transaction is transparent, and the network ensures the execution of the transaction through algorithms (intelligent contracts). The service providers communicate with each other through a unified agreement, the data exchange is barrier-free, the free flow is realized, and the isolated island of information is broken.

In view of this, many people have the impression that the data in the Filecoin network is obtained at random, and some people even think that the data can not be deleted. Others argue that data cannot be regulated. There is a deep misunderstanding.

The free flow of data is not unnecessary or unregulated.
What Filecoin does with data storage and retrieval is to establish markets and transactions. The implementation of this part is realized by Filecoin’s Market (Market) module and Actors module. The main contents of the implementation include:

Establish unified transaction methods and processes, including storing and retrieving transactions.

Establish the way and process of data transmission to achieve barrier-free data transmission.

Unify the message format to achieve barrier-free interconnection.

Establish a complete set of certificate deposit and tracking mechanism on the chain to ensure that transactions are traceable and traceable.

Establish a set of transaction guarantee mechanism to ensure the execution of transactions and punish those who violate the transaction.

In other words, the market and a set of market rules have been established. These rules do not filter, inspect or regulate the content itself. Because for the code market, it should not be done, and it is impossible to handle and control the content at this stage.

So, is there no monitoring of the content? No.

In fact, the content supervision of Filecoin network is not much different from that of centralized network. It can be applied. One very important reason is that Filecoin does not automatically make deals.

There has been a deep misunderstanding about the part of automatic dealmaking on the Internet. Some people are even very disappointed with the lack of dealmaking on the Filecoin network. In fact, I don’t understand what Filecoin is going to do and what not to do. What should be done in Layer 1 and what should be done in Layer 2. In the basic layer of Filecoin, the transaction is completely negotiated between the user and the miner, which can be offline or automatic online (need to be carried out by the upper-level service).

In other words:

Miners have the right to decide on data storage and retrieval.
This is the idea of a free market, where users can choose miners to serve them, and miners have the right to decide whether to serve a user or a specific data.

In other words, miners have the right to decide what to store on their hard drives. At the same time, search transactions for users can also be rejected, that is, even if I have data, I can refuse service.

To put it bluntly, the Filecoin network is a distributed network with a large number of miners, that is, storage service providers. But in the real world, every mining pool and mining machine has people and operating entities. These operating entities are no different from centralized storage service providers, must comply with national or regional laws, must meet regulatory requirements, and achieve data compliance.

What should miners do to meet the compliance requirements.
Quite simply, miners need to do what centralized storage service providers need to do to meet compliance. What are the specific compliance requirements, you can directly refer to the “Network Security Law” issued by our country, and mainly refer to GDPR in the world. I had a special article two years ago: here comes GDPR, is blockchain compliant? It can be used as a reference.

So specifically, the requirements may be very different for different miners. For example, if you just mortgage the storage space and have no real data for the user, there is no problem with the security of the user data; in addition, if the data you store is public data, it is not a big problem. However, once you start storing users’ real data, especially non-public data, the situation becomes more complicated. There are two main considerations: first, it should comply with the provisions of the law; second, it should not infringe upon the rights and interests of others. This includes the identification of illegal data (such as pornography, gambling, impairing national security, etc.), safe storage and leakage of data, privacy protection of user data, and so on. In addition, it also includes the protection of not excessive mining and use of user data, the right to delete users’ own data, and the right to forget users.

These parts of the Filecoin network itself do not provide, but these services do not conflict with the Filecoin network, can be fully integrated, that is to say, are compatible. Again, Filecoin only provides the underlying infrastructure, while the upper-level services, including content compliance, dealmaking, content mining and so on, are mainly and should be solved by ecological builders.

How to protect users’ privacy.
Let’s talk about one more related topic: about user privacy. Filecoin aims to establish a general platform and a platform for free exchange of information. Although miners have complete control over their storage services. However, a free platform is easier to generate more applications, which is the only way for Web3.0.

In a free-flowing data platform, the protection of privacy is more important. Under the centralized storage mode, users often have no choice but to choose the trust platform, which provides security and privacy protection with the help of their own technical strength. However, we still often hear about various incidents of privacy leakage. However, in networks like Filecoin, because the storage is more decentralized and the security protection strength of storage service providers (miners) is uneven, user data security and privacy protection are more difficult.

However, a general trend should be that users should be responsible for the privacy of their data. The centralized platform cannot be fully trusted, and it is difficult to trust the miners. In Web3.0 network, user data should be encrypted and stored, and can be selectively shared and traded. The encryption of user data should be carried out on the user side, and at the same time, due to the participation of the block chain, the storage and sharing of passwords can be completed through the block chain transaction.

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