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SponsorBlock only works because the sponsored segments are at the same location for every viewer. If Youtube spliced in their own ads they could easily do it at variable intervals preventing any crowd sourced database of ad segment timestamps. To be honest, nothing really stops Youtube from just turning on Widevine encryption for all videos (not just purchased/rented TV & movies) besides breaking compatibility with old devices. Sure widevine can be circumvented but most of the best/working cracks are not public.

Which only works long enough for someone to make some sort of video diffing system and removes anything others didn't get at that timestamp or something

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