censorship defined

Censorship refers to the restriction and filtering of information, transactions, or activities. In the context of Web3, it typically describes the blocking or removal of on-chain data by nodes, miners, platforms, or front-end interfaces. Censorship in Web3 involves compliance, governance, and technical decisions, impacting fund transfers, content publication, and application availability. It can occur at various layers, including network entry points, transaction packaging and broadcasting, application interfaces, or within legal and regulatory frameworks. The extent and severity of censorship depend on the authority and incentives of the participants involved.
Abstract
1.
Censorship refers to the control and restriction of blockchain transactions, content, or user access by centralized entities.
2.
Blockchain technology achieves censorship resistance through decentralized design, ensuring transactions cannot be blocked by any single authority.
3.
Centralized exchanges and custodial services may implement censorship due to regulatory requirements, freezing user assets or restricting transactions.
4.
Censorship resistance is a core value of Web3, safeguarding users' financial sovereignty and freedom of expression.
censorship defined

What Is Censorship? What Does Censorship Mean in Web3?

Censorship refers to the restriction and filtering of information or transactions. In the context of Web3, censorship describes actions by network participants or external forces that block, delay, or remove on-chain transactions and data.

In practice, censorship can originate from government regulations, platform policies, infrastructure operators, or decisions made by block producers. Censorship does not always mean permanent deletion; more commonly, it results in transactions not being included in blocks for extended periods, front-end applications becoming inaccessible, or specific smart contract interactions being made difficult.

Why Is Censorship a Key Topic in the Internet and Blockchain?

Censorship is frequently discussed because digital infrastructure is highly centralized, with a few entry points controlling vast flows of information and capital. Blockchain promotes "censorship resistance" as a way to reduce the risk of single points of failure or blockage.

On the traditional internet, domains, cloud services, and app stores can all become points of censorship. In the blockchain world, even though ledgers are public and participation is open, entry points (such as front-end websites and RPC nodes) and block production (where validators select transactions) can still be subject to censorship, impacting overall usability.

How Can Censorship Occur on Blockchains?

Censorship can happen at any step between a user submitting a transaction and its inclusion in a block. The most direct form is when block producers refuse to include certain transactions in blocks or continuously delay their inclusion.

Transactions usually enter the mempool (transaction pool) before being packaged into a block. If node operators filter transactions from specific addresses or contracts, those transactions will struggle to propagate through the network. Block producers (miners in proof-of-work or validators in proof-of-stake) who use specialized relay services to build blocks might filter transactions based on compliance policies.

RPC acts as the “interface service” for interacting with the blockchain—similar to a map guiding you. If an RPC provider blocks certain requests, users may be unable to send transactions even if they have them ready. Layer 2 networks (L2) rely on sequencers to queue and submit transactions to the main chain. If sequencer operations are too centralized, they can also become points of censorship.

What Is the Difference Between Censorship and Censorship Resistance?

Censorship is the act of blocking or restricting. Censorship resistance means a system is designed so that no single party can easily prevent valid transactions from reaching the ledger over time.

Censorship resistance typically relies on decentralization (no single point of control), open participation (permissionless access), redundant pathways (multiple clients and network entry points), and economic incentives (block producers earn fees for including transactions). These features raise the cost and reduce the persistence of censorship. While they don’t guarantee “censorship can never happen,” they make it significantly harder and less sustainable.

What Are Real-World Cases of Censorship on Public Blockchains like Ethereum?

Two widely discussed examples highlight that censorship risks are very real.

First, Tornado Cash was sanctioned by the U.S. Treasury in August 2022. Afterward, related front-ends and code hosting platforms were taken offline or restricted, and on-chain interactions were affected (source: U.S. Treasury announcement, 2022). This illustrates how legal measures and front-end-level censorship can work together.

Second, after Ethereum’s Merge, some block producers used specific relays to build blocks and chose to filter out transactions from sanctioned addresses. Community monitoring showed that during 2022–2023, a significant portion of blocks was built by OFAC-compliant relays, raising concerns about on-chain censorship risks (source: MEV Watch, 2023). While this proportion later changed, the event highlighted the possibility of censorship during block production.

How Does Censorship Manifest on Exchanges and Front-End Layers?

Platforms and front-ends are the primary gateways for most Web3 users. Platform-level censorship involves compliance checks and risk controls; front-end websites may restrict access based on geographic location or filter API requests.

For example, Gate’s compliance announcements and listing procedures may restrict certain products or features according to local regulations—this is platform-level censorship, distinct from on-chain consensus. On the front-end side, some decentralized application websites may block IPs from specific regions, requiring users to seek alternative interfaces or interact directly with smart contracts.

How Can Regular Users Protect Themselves from Censorship Risks?

Step 1: Maintain Self-Custody. Use non-custodial wallets and securely store seed phrases and hardware wallets to reduce reliance on centralized platform accounts and limit exposure to account-level censorship.

Step 2: Prepare Multiple Access Paths. Set up multiple RPC providers and backup front-ends. When necessary, manually input public node addresses into your wallet to avoid being blocked by a single provider.

Step 3: Understand Gas Fees and Network Congestion. Increasing transaction fees during peak times helps your transaction get included faster and prevents delays that could be mistaken for censorship.

Step 4: Stay Informed About Compliance Announcements and Regional Policies. Platform changes may affect deposit/withdrawal or trading features; plan ahead for possible interruptions by switching networks or using cross-chain bridges if necessary.

Step 5: Assess Financial and Legal Risks. Interacting with sanctioned addresses or high-risk contracts may result in legal consequences or asset freezes—make careful decisions and comply with local regulations.

What Technical Solutions Exist to Mitigate Censorship?

On the technical front, communities are actively working to enhance censorship resistance. The core strategy is distributing authority and pathways while minimizing single points of failure in block production.

For Ethereum, this includes client diversity and using multiple relays to avoid reliance on any single block builder; separating block producers from block builders (PBS) to keep transaction selection open; advocating for “inclusion lists” and transparent policies to avoid opaque filtering. Decentralized node networks strengthen RPC resilience; Layer 2s are exploring decentralized sequencers and failover mechanisms.

How Might Censorship Evolve in the Future?

In coming years, regulatory requirements and decentralization technologies will continue to compete and coexist. Decentralized sequencers for L2s and improved data availability solutions are expected to reduce centralized censorship risks, though some networks will remain dependent on a few operators in the short term.

Regulations and platform policies may tighten further, leading front-ends and entry points to exercise more caution. At the same time, open-source initiatives and redundant infrastructure will expand user access options. Overall, censorship resistance will remain an ongoing process involving both engineering advancements and governance—not a one-time fix.

Why Does Censorship Still Matter in Web3?

Censorship determines whether users can successfully record legitimate transactions on-chain, access applications smoothly, and maintain asset and information availability. Understanding how censorship works—and its limits—helps users choose more resilient tools and make practical trade-offs between compliance and technology. For users and developers committed to Web3’s long-term growth, censorship resistance is not just an ideal but a concrete design requirement for products and infrastructure.

FAQ

Will Censorship Affect My Transactions on Gate?

Censorship primarily affects transaction validation at the blockchain network level rather than on exchanges. Gate is a centralized trading platform subject to local regulations but will not freeze your assets due to blockchain protocol-level censorship. However, if you use decentralized applications or non-custodial wallets, you should be aware of potential network-level censorship risks.

How Can I Tell If an Address or Transaction Is Being Censored?

You can check transaction status using a block explorer like Etherscan. Transactions subject to censorship typically remain unconfirmed for extended periods or stay pending. Some validators may refuse to include transactions from specific addresses, resulting in delayed or failed transactions. It's advisable to monitor network health indicators and validator behavior reports.

What Is the Relationship Between the OFAC Sanctions List and Censorship?

The OFAC (U.S. Office of Foreign Assets Control) sanctions list influences both exchanges’ and some validators’ behaviors. Addresses included on this list may be blocked from withdrawals by exchanges or filtered out by certain validators’ transactions. This is a practical example of censorship in action—and a source of compliance pressure for Web3 platforms.

How Can I Safely Hold and Transfer Crypto Assets Under Censorship Risk?

Use a layered approach: choose non-custodial wallets over exchange wallets; consider privacy coins or protocols for greater anonymity; use decentralized exchanges for trading; monitor OFAC lists to avoid receiving sanctioned funds. Trading on Gate is relatively safe, but for long-term storage it's best to transfer assets to wallets under your direct control.

Can Censorship Prevent Certain Tokens From Being Listed on Exchanges?

Yes—exchanges conduct compliance checks before listing tokens. If a token is linked to sanctioned projects or illegal activities, exchanges may refuse to list it or may delist it later. Gate performs risk control audits when selecting assets for listing to ensure compliance with local laws where it operates.

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Related Glossaries
Commingling
Commingling refers to the practice where cryptocurrency exchanges or custodial services combine and manage different customers' digital assets in the same account or wallet, maintaining internal records of individual ownership while storing the assets in centralized wallets controlled by the institution rather than by the customers themselves on the blockchain.
Define Nonce
A nonce is a one-time-use number that ensures the uniqueness of operations and prevents replay attacks with old messages. In blockchain, an account’s nonce determines the order of transactions. In Bitcoin mining, the nonce is used to find a hash that meets the required difficulty. For login signatures, the nonce acts as a challenge value to enhance security. Nonces are fundamental across transactions, mining, and authentication processes.
AUM
Assets Under Management (AUM) refers to the total market value of client assets currently managed by an institution or financial product. This metric is used to assess the scale of management, the fee base, and liquidity pressures. AUM is commonly referenced in contexts such as public funds, private funds, ETFs, and crypto asset management or wealth management products. The value of AUM fluctuates with market prices and capital inflows or outflows, making it a key indicator for evaluating both the size and stability of asset management operations.
Rug Pull
Fraudulent token projects, commonly referred to as rug pulls, are scams in which the project team suddenly withdraws funds or manipulates smart contracts after attracting investor capital. This often results in investors being unable to sell their tokens or facing a rapid price collapse. Typical tactics include removing liquidity, secretly retaining minting privileges, or setting excessively high transaction taxes. Rug pulls are most prevalent among newly launched tokens and community-driven projects. The ability to identify and avoid such schemes is essential for participants in the crypto space.
Decrypt
Decryption is the process of converting encrypted data back to its original readable form. In cryptocurrency and blockchain contexts, decryption is a fundamental cryptographic operation that typically requires a specific key (such as a private key) to allow authorized users to access encrypted information while maintaining system security. Decryption can be categorized into symmetric decryption and asymmetric decryption, corresponding to different encryption mechanisms.

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