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I worry this still puts the "host" of a community at risk. In some jurisdictions, storing functional links to CSAM on your device, even in text form, is effectively the same thing as saving the actual media file locally. This means that a community admin would need to have some sort of system in place on their own machine to scan and remove those, which there doesn't currently seem to be a mechanism in place to do automatically.
Right now, it seems like a lot more responsibility for the end-user when creating a community, as opposed to the relatively consequence-free route of creating a community on Lemmy/Reddit.
Community moderation is the same as Lemmy/Reddit, Seedit community owners assign mods who have to keep the community clean, they can remove posts, mark them as nsfw/spoiler, ban users (from their community), banning a list of words or links to prevent users from publishing them, set up a mod queue (this is in the roadmap), etc.
It’s actually safer to run a community on Seedit, because it’s just a text file on IPFS that cannot include media files, and it’s not attached to any identity of the owner nor does it use centralized domains or SSL. There’s no IP logging, and the community owner can delete the community at any time, leaving no trace, since there’s no centralized database of communities.
And since all data is on IPFS, it’s not immutable, it can expire as soon as it has no more seeders. Compare this with blockchains, where text data is permanent, it can never be deleted once it’s in a block. Links to CSAM have been found in Bitcoin/Ethereum, and they can never get deleted.