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Yes I'm aware that it checks against a known database but clearly there can be collisions. So eventually it will share someone's private images.

It would need to have 30 collisions before anything even took place, which realistically isn't going to happen.

Most cameras nowadays can easily take a burst of 30 visually very similar images in a second.

Lots of people leave their cameras in burst mode.

Or rather, it will share some gray blob apparently.

What is the point of sharing a gray blob? How is that going to prove anything?

I think the gray blob refers to engineered hash collisions, like the example in the article link.