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Network Packet Inspection Meaning

Network packet inspection (often Deep Packet Inspection or DPI) is a method used by network administrators and security systems to examine the data within a packet as it passes through a checkpoint. In fintech, this is used for cybersecurity-detecting viruses, spam, or intrusion attempts.

In the crypto context, packet inspection is controversial. It can be used by authoritarian regimes to identify and block cryptocurrency traffic (like the "Great Firewall" of China).

Since crypto transactions have unique data signatures, an ISP using DPI can throttle or block connections to Bitcoin nodes. To counter this, developers work on encryption protocols and "Obfuscation" techniques (like the Tor Network or specialized VPNs) to wrap crypto traffic in a way that makes it look like regular HTTPS web traffic.

This ensures that the network remains accessible even in hostile network environments.

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