if theres kid porn in the chain and i have the client installed, then i have kid pr0n on my pc. how do i verify the kid porn?
It has been discussed here.
https://bitcointalk.org/index.php?topic=191039.0Fortunately right now there is only a link to the porn on Tor. But it is certainly possible to put a series of numbers into the block chain such that when put together can be read by an image viewer.
The thing is, it cannot be taken out of the chain without compromising the whole chain.
The only way to address this would be for miners to filter every transaction for a potentially harmful series of numbers and catch it before it goes onto the chain. But that is just about impossible and harmful to Bitcoin itself.
Like I said, I love Bitcoin but the first time someone is prosecuted for having kiddie porn on their computer because of the blockchain, then Bitcoin will suffer horribly. This would be the answer that governments could use to cripple Bitcoin.