Correct me if I'm wrong, but only the cryptocurrency transactions are stored in the steemit blockchain, right @dantheman?. The posts are stored in a database no differently than a Reddit post. Therefore, the post could be censored AND the payouts still happen. What's the difference?
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The posts, votes, transactions, comments, changes to account, everything is on the blockchain. I think the reputation thing is being piloted on the frontend, and thus isn't on the blockchain.