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Because of this, I think that the future will be worse than proprietary, it will be API based. We will no longer own any software, but instead must call an API via the internet. Even then, it could still be reversed I suppose. But distributing binaries simply does not make any sense whatsoever as people can just reverse engineer it on a weekend.

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In that case, wouldn't piracy shift to hacking the servers and exfiltrating the binaries/code?

Sure, but what are you going to do with such a binary? It is probably high distributed. For instance, i don’t think we are ever going to get any games that is not streamed. At some point, the cost of reverse engineering a binary becomes way too cheap. Frankly speaking, assembly code might as well be source code today.

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