202.9 Lesson - censorshipResistance

Screen: censorshipResistance

Headline: No permission required

Reward: 5

Text: Censorship-resistance is an attribute that has become increasingly important in the digital age, as it refers to the difficulty that external parties, such as corporations or governments, have in preventing an individual from using a particular good.

This attribute is particularly valuable for individuals living under regimes that enforce capital controls or prohibit certain forms of trade. Bitcoin is often cited as being a censorship-resistant good due to its decentralized, peer-to-peer network, which allows for transactions to be made without human intervention or permission.

In contrast, the fiat banking system is regulated by states and requires human intervention to report and prevent certain uses of monetary goods, such as capital controls.

Gold, although it is not issued by states, can be difficult to transmit at a distance and is therefore more subject to state regulation.

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QUIZ

Question: Which of the following is a reason that Bitcoin is considered a censorship-resistant good?

Answer: Its decentralized, peer-to-peer network

Feedback: You are correct. The decentralized, peer-to-peer network of Bitcoin allows for transactions to be made without permission, making it a censorship-resistant good

Correct: true

Answer: Its physical nature

Feedback: No. In fact, physical goods often require permission to cross borders and can easily be confiscated. Better luck next time

Correct: false

Answer: Its regulation by states

Feedback: Sorry, but the opposite is actually true. The fiat banking system, which is regulated by states, requires human intervention to report and prevent certain uses of monetary goods, making it prone to censorship. Try again!

Correct: false