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So far pi-hole[1] network based ad-blocker has proven to be the best use of the Raspberry Pi i bought and didn't know what to do with it.

[1] https://pi-hole.net/

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Seems interesting. What is the performance/latency penalty?

Performance seems fine (on a Pi 2). I am going to have to add some URLs to the whitelist though, as it has recently started affecting the ability to log into Xbox Live.

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