The AML/KYC firewall and how it relates to EOS and Bitshares

EOS is a big project. It's going to be AML/KYC friendly in many aspects. Let's discuss those..

Some basic facts.

• Bitshares is a hybrid decentralized exchange. It can function anonymously and it also has a feature called
  Asset User Whitelists that can allow it to be AML/KYC compliant for certain tokens and trades

• EOS is a hybrid network. It can function anonymously and it also paves the way for AML/KYC compliance should the block producers running the network decide to implement that restriction.

• Bitshares will be able to talk to the various EOS networks through their AML/KYC "firewall" possibly through a middle-chain as mentioned in this soundcloud archive of the March 3, 2018 Bitshares talkshow. Thanks to @chuckyfucky for posting it.

We already have EOS Go which is not block.one, but instead the first DAC/DAO built for EOS. They are a self-organized group of community EOS enthusiasts helping facilitate all EOS community launch efforts.

To be clear, block.one is NOT launching the EOS blockchain.

• That happens by the decentralized community to do that part. EOS Go is simply one organized entity that seems the most popular that I've heard of so far.
• EOS Go has broadcast a meeting they had with Thomas Cox, VP of Product at block.one here and here (Read the video descriptions for timelines on when Thomas Cox talks)

Dan Larimer is also quoted in chat as saying :

• "The purchase agreement gives us the right for identification documents of all who use the smart contracts as needed to comply with laws."

He's right! Sure enough if you read the purchase agreement for EOS tokens here it says:

• By buying EOS Tokens, Buyer represents and warrants to each of the block.one Parties that.... [..] 5.1 Buyer is not a U.S. person or a Chinese person.

..and just above that, the purchase agreement also states:

Upon Company’s request, Buyer will immediately provide to Company information and documents that Company, in its sole discretion, deems necessary or appropriate to comply with any laws, regulations, rules or agreements, including without limitation judicial process. Such documents include, but are not limited to, passport, driver’s license, utility bills, photographs of associated individuals, government identification cards, or sworn statements. Buyer consents to Company disclosing such information and documents in order to comply with applicable laws, regulations, rules or agreements. Buyer acknowledges that Company may refuse to distribute EOS Tokens to Buyer until such requested information is provided.

Now some of you might be getting freaked out.

• What? I can't use EOS tokens without AML/KYC compliance?

• What? I can't be a block producer unless I meet the requirements of EOS Go?

• What is going on?

Listen.

EOS Go doesn't control the EOS code anymore than you and I do. They are just forming a public organization that has wide enough respect by the general public to be the particular chain that is recognized to be the valid EOS chain. This is my opinion only and not what they've specifically said.

So what do you think is going to happen @intelliguy ?

Aha, that's probably why you are reading this article.

I fully believe, at this stage, EOS Go is proving itself to be a valuable organization, almost like an "EOS Foundation" for vetting block producers, broadcasting what's going on with EOS and block.one, and they're quite organized. I would be shocked if the block producers they grade the highest aren't the most voted block producers who get the job.

I also believe we'll also see a more decentralized EOS fork. Whether or not it survives will be a test of that network. Either way the snapshot taking place on June 1, 2018 will become public information. To be honest, it's public information right now. The Ethereum ERC20 tokens claimed as EOS are already public information.

So what we're going to see some EOS blockchains this year. Under the social contract of acknowledging EOS token holders, every fork of EOS would have to support those tokens to be recognized by the public.

A good blog post I found dated 8 months ago by @cob discusses this thought further is this one:
https://steemit.com/eos/@cob/shedding-some-light-on-the-eos-token-purchase-agreement

That single EOS snapshot will probably give birth to multiple EOS blockchains, with multiple block producers.

It is that chain that runs the best, with the most solid block producers as judged by the entire cryptocurrency public that wins this game.

As far as AML/KYC compliance goes, that is out of the hands of block.one because they aren't running any chain.

• It becomes a duck shoot for regulators. Which EOS fork are they likely to successfully go after the most? In addition, which chain is big business and big money most likely to support as well?

• 

The easiest targets of EOS forks to regulate of course will be AML/KYC complaint forks. However, that is more likely where big business and big money wants to be with.

So I think we're going to see both chains exist. Some smart contracts will end up on the AML/KYC complaint fork and some smart contracts will end up on the most popular decentralized forked version of the EOS chain.

So if you want to be a block producer for EOS, you're going to have to research which EOS fork you want to be on..

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DISCLAIMER: I have no affiliation with Block.One, or EOS Go, and I'm not an official spokesperson for anything to do with EOS. There may be gross errors or omitting facts contained in this article. I've tried to link to where I've received my information. It is up to the reader to do their own research and due diligence. No statements made herein are to be taken as financial or investment advice. I am not a professional financial advisor.

[Last minute Edit] A youtube presentation by EOS NY was covered and can be heard in this post which is a different group than EOS GO.

Please re-steem so other people can understand these EOS concepts.