UK Online Safety Act Drives Surge in Trustless VPN Signups Amid Privacy Concerns

Signups for virtual private networks (VPNs) are surging in the UK following new provisions from the Online Safety Act that enforce age and identity checks and require sites to block certain content. Trustless or decentralized VPNs, which tap into blockchain technology, are also seeing an increase in traffic and users, despite stiff competition from mainstream products. Critics argue that the rules are being applied too broadly and threaten users' privacy.

Virtual private network (VPN) signups are surging in the UK following the implementation of new provisions from the Online Safety Act. The act, which came into effect on July 25, enforces age and identity checks and requires sites to block certain content, has led to an increase in VPN usage among UK residents.

According to Harry Halpin, CEO of Nym Technologies, the firm behind NymVPN, there has been an uptick in signups and traffic since the new rules came into effect [1]. This trend is not limited to NymVPN; spokespeople from other trustless VPNs have also reported similar increases. Trustless or decentralized VPNs, which leverage blockchain technology, are benefiting from this surge, despite stiff competition from more mainstream products.

VPNs encrypt users' internet traffic, making browsing history and location harder to trace. They allow users to access websites blocked in the UK and dodge identity checks. The increased use of VPNs comes as UK residents push back against the Online Safety Act. Critics argue that the rules are being applied too broadly and that even adults are struggling to access legal content.

The Online Safety Act requires websites to block access to material harmful to children, such as porn sites. Users can remove these blocks by providing documents like bank statements or passports to verify their age and identity. However, critics contend that the act's broad application and mandatory age and identity checks threaten users' privacy. Moreover, the blocks are easily circumvented using VPNs, which may not effectively protect children as intended.

Trustless or decentralized VPNs are advertised as more private and secure alternatives to commercial VPNs. Unlike centralized VPNs, which can see users' internet traffic, decentralized VPNs operate similarly to blockchains, with no central point of control. This reduces the trust barrier and makes it difficult for authorities to request user data or for the VPNs to log data.

However, there are downsides to the enhanced privacy offered by decentralized VPNs. Freqnik, a core developer at Meile dVPN, notes that while decentralized networks reduce the trust barrier, they are also prone to bad actors [1]. Furthermore, some users may find that decentralized VPNs are not as performant as centralized counterparts. According to Halpin, the extra level of anonymity provided by NymVPN does slow it down, though it is sufficient for instant messages and cryptocurrency transactions.

The surge in VPN usage is not limited to decentralized VPNs. According to Seema Shah, VP of research and insights at Sensor Tower, five VPN apps have experienced explosive growth and reached the top 10 free apps on Apple's UK App Store by Monday [2]. Multiple VPN makers have also reported spikes in visitors and sign-ups. For instance, Proton VPN reported a 1,400% increase in sign-ups originating in the UK just a few minutes after the Online Safety Act went into effect [2].

The increase in VPN usage is part of a broader trend of people using circumvention tools to access services online anonymously. As governments seek to enforce content restrictions, there is an escalating cat-and-mouse game between users and authorities. While proponents of the Online Safety Act point to progress in age verification and content moderation, digital rights advocates warn that normalizing such mechanisms creates the possibility of more aggressive enforcement in the future.

References:
[1] https://finance.yahoo.com/news/trustless-vpn-signups-surge-uk-111817865.html
[2] https://www.wired.com/story/vpn-use-spike-age-verification-laws-uk/