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RE: How is Sia going to behave about copyrighted material and illegal stuff?
A very tough problem. They could implemet a voting system to flag illegal content. But since most of the data is not public it probably wouldn't be sufficient.
Yea, there should be a sort of consensus system, but I think that the flagging system may lead to its abuse, as happens in Youtube.
I don't know how you would do that, given all of the data is encrypted and only the owner of the data can know the contents.