Illegal spying,data collection and servalince violates our 4th and by self censorship 1st amendment regardless of how it's done .although this system may seem better than the current dragnet model if you look at the trend of selective enforcement of laws and the fact that the average American commits several felonies a year without even realizing it the potential for abuse buy either system is terrifying.
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I don't know enough about the proposed system to comment accurately.. He is claiming it is 'legal' - however, yes, the devil is in the details.