You're misunderstanding. me. VPNs work in terms of what they do, but they don't solve this problem for the relay, for the media server, for the CDN. The expense and obligations are still there, regardless of what users do with VPNs.

These are the entities that suffer the legal consequences.

How does Nostr work if it's nobody dares run a relay, media server or CDN without the mandated guardrails? And without the mandated guardrails it's too much of a legal risk. That is the real question, not can a user get a VPN.

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Yes I am struggling to follow the point you are making. Gap in my knowledge about how the Internet/ nostr works behinds the scenes isn't helping.

Are nostr relays anonymous? Can authorities identify a nostr relay and fine them for sharing certain messages / content?

Authorities can identify a Nostr relay and fine the operator for sharing content, yes. By design all relay content is public (for Nostr proper).

If the relay operator is outside of the UK then the operator can be charged in abstentia, can be prevented from entering the UK, can be prosecuted on entry to the UK, can be prevented from interfacing with UK businesses, etc.

That's terrible.

I need to clarify something. If I run my own nostr relay, how can an authority find me? Through ip address? Can using a vpn hide my location? How about tor, can that hide my identity?