Where does the direct image hosting take place? I'd thought that media in the block chain itself was too unwieldy. Is media still processed as a link but with Steemit having procured its own integrated free hosting solution?
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Probably, and if anything goes wrong. POOF. you have no more pictures and no way to fix them, because they disabled the edit and delete commands.
Edit needs to be be permanent, especially in cases where someone uses a copyrighted image and the owner asks them to take it down. How would this be possible, unless Steemit hires someone to clean old posts manually?
Edits are permanent now. That is the problem, after 30 days you cannot ever fix or delete the things you post.
Using your copyrighted image scenario, no one can remove infringing content to fix a DMCA request after 30 days because Steemit Disabled the Edit and Delete commands after 30 days.
The choice is either to support the user's rights to maintain and control their info, or to support refusing DMCA takedown requests.
Thank you for the question, this DMCA example explains the problem they are causing much better.