Of course miners will know whether transaction involve a sanctioned entity. These wallets will be listed. Mining nodes in the US will not be allowed to put UTXOs that originate from those wallets in new blocks.
It does not seem reasonable in the slightest. There is no way to know a transaction is forbidden. Anyway, this technology was invented so tyrants have no power here.
You will take my node from my cold dead hands!
Then you can't do it without having a law enforcement issue coming your way. It'll be like distributing copyrighted content but worse
It's illegal to run over pedestrians, but I built my car without any windows, so there's no way for me to know who or what I might be running over!
Good luck with that!
You've been confused into thinking that laws can't apply to them merely because laws haven't yet been written to apply to them. Now that governments feel they have a reason to write these laws, the laws are being written. In the early years of the Internet, purchases on the Internet were not taxed. That does not mean they couldn't be taxed, despite what many people thought.
We live on different planets. I don’t think you even understand where I am coming from.
This is not about making laws or government irrelevant. Of course a global transparent ledger of all transactions is beneficial to enforce sanctions, track criminals, etc. it is for this reason alone that playing with ideas like “we going to make it illegal to use Bitcoin unless you use this special module that enforces rule xyz” is just absurd.
Senator Warren can no more make it illegal to run Bitcoin Core then force you to run BitcoinEW with new denylists daily. It is irrelevant that any politician or government doesn’t want bad guys to use it. They will. Of course the politicians and government will use this evidence trail to bring the bad guys to Justice. What is irrelevant is the wishes of one politician, one government. The software is. They can ignore it, they can use it for investigations, they can use it. The idea of rounding people up for using one version of software in a democracy is tyrannical!
What this entire thread mess of madness was about was the idea that it would be illegal — if you touch 8333 or run the naughty international version that Senator Warren does not approve of, or run an unregistered node, or any other such insane fantasies is just dreams cos you don’t get what Satoshi was all about yet.
I would say this is the wrong framing. If the law forbids transacting with Russia, it doesn't matter if you do those transactions by meeting up with a Russian agent in a dark alley, or by running a complex computer algorithm. If you choose to execute an algorithm which makes it difficult or impossible for you to tell if you are in violation of the law, you had better be certain that it also makes it impossible for the government to tell. If it does not, you're going to find yourself in trouble. It doesn't matter if you frame your activity as merely running open source code.
There are real parallels here with the crypto wars of the 90s. Or Tor. Or BitTorrent.
Why suddenly we have folks wanting to go back to the 90s is quite troubling.