Monthly Archives: July 2017

National Science Foundation Awards $450k for Cryptocurrency Incentive Study – CoinDesk

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A Princeton University researcher has receivedmore than $400,000 in federal funding to study mechanism incentivesand their applications to cryptocurrencies like bitcoin.

The study project, "Duality-based tools for simple vs. optimal mechanism design and applications to cryptocurrency", is being led by Seth Weinberg, an assistant professor of computer science at Princeton. The grant, worth $450,000, was awarded on 28th June by the National Science Foundation. The project is set to begin in September and will last until August 31, 2020, according to the NSF.

As theorganization's website explains:

"A secondary focus of this project is to apply these theoretical foundations to resolve cryptocurrency incentive issues arising within Bitcoin, an emerging cryptocurrency. While bitcoin has remained largely immune to traditional security breaches, numerous incentive issues have been discovered which could undermine its future security if not properly addressed."

Though cryptocurrencies constitute only part of the research study its primary focus is the design of algorithmic mechanisms and the theoretical incentives at play its the latest instance of a projectthat involves the tech receiving federal backing.

In mid-2015, the NSF awarded $3m to theInitiative for Cryptocurrency and Contracts (IC3), a research effort involving academics from Cornell, the University of Maryland and the University of California Berkeley. The NSF has also moved to back cybersecurity-related research that involves blockchain.

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Russia’s tech world embraces cryptocurrency markets – Russia Beyond the Headlines

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In the first nine minutes of its Initial Coin Offering (ICO) New York-based Starta Accelerator raised more than $1.6 million. This is just one of many successful projects that recently secured investment in the cryptocurrency world. What is the Russian ICO craze all about and why is it proliferating?

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This blockchain investment mechanism is rapidly becoming very popular among Russian entrepreneurs. Source: Jens Kalaene/Global Look Press

Facing a shortage of venture capital at home and coming up against wary international investors intimidated by U.S. and EU sanctions, more Russian tech projects are tapping into cryptocurrency markets. In the first half of 2017, a growing number of Russian startups successfully completed an ICO, raising millions of dollars in Bitcoins and other cryptocurrencies from backers across the globe.

This blockchain investment mechanism is rapidly becoming very popular among Russian entrepreneurs seeking to raise capital. By the time Starta Accelerator had closed its ICO on July 4, the company had raised a total of about $5 million for 21 startups from Russia, Ukraine and Belarus; each of which is already incorporated and working in the U.S.

One of the most successful recent ICOs in the Russian startup sector was Supercomputer Organized by Network Mining (SONM), which raised $42 million from 8,744 backers in just four days.

The project is described as Airbnb for computers, and SONMs secure and cost-effective fog supercomputer is designed for general-purpose computing, from mobile app hosting to DNA analysis. The project will revolutionize the computing market, claimed Sergey Ponomarev, the companys CEO.

SONM is a blockchain-powered project, but more startups are coming from the real economy. In mid June, ZrCoin, an innovative factory that recycles metallurgical waste, raised more than $7 million from almost 4,000 backers on Waves, a blockchain-based cryptocurrency platform. We raised twice as much funding as planned, commented ZrCoins co-founder, Andrey Nokonorov.

The new factory will consist of two production lines in Siberia transforming industrial waste into synthetic zirconium with a total capacity of 800 tons. Each ZrCoin token is backed with one kilogram (2.2 pounds) of zirconium dioxide.

ICO as a means for Russian tech to raise capital has attracted the attention of the countrys politicians. Boris Titov, the business ombudsman and billionaire, is creating a new incubator for entrepreneurs hosted on the blockchain platform, Waves. The project was founded in 2016 by Russian entrepreneur Sasha Ivanov and is now one of the most popular ICO platforms.

Sasha Ivanov. / WAVES

In June, Titov signed an agreement with Sasha Ivanov to create an ICO Incubator called People of Growth, whose purpose is to help companies in different sectors of the real economy obtain ICO funding.

Russia is one of the most advanced countries in blockchain technology, and thats why Russian founders are behind many ICOs in the world, said Ivanov. The interest in ICO and cryptocurrency is growing rapidly both in Russia and around the world.

According to Ivanov, Bitcoin was legalized in Japan this spring, and the cryptocurrency community is hoping to see a similar process in other countries. Entrepreneurs are also inspired by the success of previous ICOs and the amounts raised, although the lack of venture capital is one of the main reasons this is happening.

About six months ago Titov launched his own cryptocurrency, Upcoin, to promote his political movement, the Party of Growth. The coins were integrated into the party loyalty program to reward supporters with a number of benefits, such as discounts for education.

Titov is authorized by President Vladimir Putin to protect the rights of entrepreneurs in Russia. In 2017, he attended Donald Trumps inauguration in Washington D.C.

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Russia's tech world embraces cryptocurrency markets - Russia Beyond the Headlines

WikiLeaks drops new CIA tools, BothanSpy and Gyrfalcon – SC Magazine

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WikiLeaks drops new CIA tools, BothanSpy and Gyrfalcon

WikiLeaks latest Vault7 offering includes two CIA hacking tools, BothanSpy and Gyrfalcon 2.0, which can swipe SSH credentials.

BothanSpy and Gyrfalcon target the Windows and Linux operating systems, respectively, reported Bleeping Computer.

According to the BothanSpy user manual, posted by Wikileaks and dating from 2015, this malware will is a tool that targets the SSH client program Xshell and steals user credentials for all active SSH sessions. BothanSpy will exfiltrate the stolen credentials through the Fire and Collect (F&C) channel and out to disk on the attacker-side. By using F&C, BothanSpy never touches disk.

The even older Gyrfalcon manual states The application compresses, encrypts, and stores the collected data into a collection file kept on the Linux platform's file system. Gyrfalcon is capable of collecting full or partial OpenSSH session traffic including user name and passwords of OpenSSH users.

Bleeping Computer noted that WikiLeaks has previously released 13 pieces of malware the hacktivist group claims has been pulled from the CIA.

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WikiLeaks drops new CIA tools, BothanSpy and Gyrfalcon - SC Magazine

WikiLeaks: CIA steals SSH credentials from Windows and Linux with BothanSpy and Gyrfalcon tools – BetaNews

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The latest addition to WikiLeaks' Vault 7 cache of CIA tools and documents gives details of tools used by the agency to attack Windows and Linux computers. The BothanSpy and Gyrfalcon projects can be used to intercept and exfiltrate SSH (Secure Shell) credentials.

BothanSpy is used to target Windows, while Gyrfalcon is used for Linux machines, with both working in different ways. A number of popular distros can be hit by Gyrfalcon, including CentOS, Debian, RedHat, openSUSE and Ubuntu, and both tools function as implants that steal credentials before transmitting them to a CIA server.

The leaked documentation for the tools was updated as recently as March 2015, and the file relating to BothanSpy reveals that XShell needs to be installed as it itself installs as a Shellterm extension. There are smatterings of humor throughout the file, with a warning that: "It does not destroy the Death Star, nor does it detect traps laid by The Emperor to destroy Rebel fleets." There is also the introductory quip: "Many Bothan spies will die to bring you this information, remember their sacrifice."

Writing about the Windows tools, BothanSpy, WikiLeaks says:

BothanSpy is an implant that targets the SSH client program Xshell on the Microsoft Windows platform and steals user credentials for all active SSH sessions. These credentials are either username and password in case of password-authenticated SSH sessions or username, filename of private SSH key and key password if public key authentication is used. BothanSpy can exfiltrate the stolen credentials to a CIA-controlled server (so the implant never touches the disk on the target system) or save it in an encrypted file for later exfiltration by other means. BothanSpy is installed as a Shellterm 3.x extension on the target machine.

The Linux tool is different, and the guide warns that anyone using it must "obtain a thorough understanding of the Linux/UNIX command line interface and shells such as bash, csh, and sh." There is the additional note that: "Both the library and application must be installed with root privileges, however, they do not need root privilege to execute successfully on the Linux platform. Therefore, the operator must be confident with their understanding of Linux to use root privileges and not muck up the Linux platform's configuration."

About Gyrfalcon WikiLeaks says:

Gyrfalcon is an implant that targets the OpenSSH client on Linux platforms (centos, debian, rhel, suse, ubuntu). The implant can not only steal user credentials of active SSH sessions, but is also capable of collecting full or partial OpenSSH session traffic. All collected information is stored in an encrypted file for later exfiltration. It is installed and configured by using a CIA-developed root kit (JQC/KitV) on the target machine.

You can read more about BothanSpy and Gyrfalcon over on WikiLeaks.

Image credit: i3alda and Stanislaw Mikulski / Shutterstock

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WikiLeaks: CIA steals SSH credentials from Windows and Linux with BothanSpy and Gyrfalcon tools - BetaNews

Edward Snowden On Chris Christie Sunbathing Pic: ‘The …

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WASHINGTON National Security Agency whistleblowerEdward Snowdensays aphotographer managed to capture the politics of an era when he snapped a photo of New Jersey Gov.Chris Christie(R) lounging with his family and friends on an otherwise empty stretch of beach.

Rarely does a photographer capture the politics of an era in one frame, Snowden posted Monday on Twitter, along with The Star-Ledgers front page showing Christiekicked back on a state beachthat hed ordered closed to the public amid a state government shutdown.

Snowden also retweeted a post from Steve Politi, the newspapers sports columnist, showing throngs of beachgoers crowded at one end of a long stretch of sandy shore.

On Sunday,NJ Advance Mediapublished several aerial photostaken by Andrew Mills showing Christie, along with family and friends, at New Jerseys Island Beach State Park, the site of an official governors residence.The park was one ofseveral closedover the holiday weekend after lawmakers failed to pass a state budget.

Inan interview with Fox 5in New York on Monday, Christie mocked local media, saying, What a great bit of journalism by The Star-Ledger and I really wonder about journalists who spend money flying planes to look whether people are actually where they said they would be. He said he announced his plans to vacation at the New Jersey residence regardless of whether a shutdown occurred and dismissed the idea that the beach closure was in any way his fault.

In a separate interview Monday withFox 29in Philadelphia, Christie was asked about people who are upset about not being able to enjoy the beach over the holiday weekend.

Im sorry theyre not the governor, he said. This is a residence.

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On Encryption, Archiving, and Accountability – Freedom to Tinker

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As Elites Switch to Texting, Watchdogs Fear Loss of Accountability, says a headline in todays New York Times. The story describes a rising concern among rule enforcers and compliance officers:

Secure messaging apps like WhatsApp, Signal and Confide are making inroads among lawmakers, corporate executives and other prominent communicators. Spooked by surveillance and wary of being exposed by hackers, they are switching from phone calls and emails to apps that allow them to send encrypted and self-destructing texts. These apps have obvious benefits, but their use is causing problems in heavily regulated industries, where careful record-keeping is standard procedure.

Among those industries is the government, where laws often require that officials work-related communications be retained, archived, and available to the public under the Freedom of Information Act. The move to secure messaging apps frustrates these goals.

The switch to more secure messaging is happening, and for good reason, because old-school messages are increasingly vulnerable to compromisethe DNC and the Clinton campaign are among the many organizations that have paid a price for underestimating these risks.

The tradeoffs here are real. But this is not just a case of choosing between insecure-and-compliant or secure-and-noncompliant. The new secure apps have three properties that differ from old-school email: they encrypt messages end-to-end from the sender to the receiver; they sometimes delete messages quickly after they are transmitted and read; and they are set up and controlled by the end user rather than the employer.

If the concern is lack of archiving, then the last propertyuser control of the account, rather than employer controlis the main problem. And of course that has been a persistent problem even with email. Public officials using their personal email accounts for public business is typically not allowed (and when it happens by accident, messages are supposed to be forwarded to official accounts so they will be archived), but unreported use of personal accounts has been all too common.

Much of the reporting on this issue (but not the Times article) makes the mistake of conflating the personal-account problem with the fact that these apps use encryption. There is nothing about end-to-end encryption of data in transit that is inconsistent with archiving. The app could record messages and then upload them to an archivewith this upload also protected by end-to-end encryption as a best practice.

The second property of these appsdeleting messages shortly after usehas more complicated security implications. Again, the message becoming unavailable to the user shortly after use need not conflict with archiving. The message could be uploaded securely to an archive before deleting it from the endpoint device.

You might ask why the user should lose access to a message when that message is still stored in an archive. But this makes some sense as a security precaution. Most compromises of communications happen through the users access, for example because an attacker can get the users login credentials by phishing. Taking away the users access, while retaining access in a more carefully guarded archive, is a reasonable security precaution for sensitive messages.

But of course the archive still poses a security risk. Although an archive ought to be more carefully protected than a user account would be, the archive is also a big, high-value target for attackers. The decision to create an archive should not be taken lightly, but it may be justified if the need for accountability is strong enough and the communications are not overly sensitive.

The upshot of all of this is that the most modern, secure approaches to secure communication are not entirely incompatible with the kind of accountability needed for government and some other users. Accountable versions of these types of services could be created. These would be less secure than the current versions, but more secure than old-school communications. The barriers to creating these are institutional, not technical.

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On Encryption, Archiving, and Accountability - Freedom to Tinker

Top five questions about using quantum-safe security in financial transactions – Banking Technology

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Isaras Scott Totzke answers top five questions on quantum-safe security in financial transactions

A wide range of technology-driven sectors will be affected by the advent of universal quantum computing many experts say will happen by 2026, but the financial industry has particular reason to be concerned.

The security standards behind secure email and internet connections are ubiquitous throughout fintech, protecting financial collateral as well as the most sensitive personal identity data in financial transactions.

In fact, the fundamental activities that the financial industry relies on to function today can be stopped in their tracks whenever quantum computers capable of breaking the cryptography they use become commercially available, including:

These are all integral to how commerce functions in the 21stcentury, and to how consumers connect with their finances. Financial institutions and fintech developers will have to update all of the systems using the affected cryptography, whether theyre built in-house, outsourced to partners, or provided by OEM partners. Try identifying parties required to coordinate upgrades to quantum-safe security and the scope becomes very wide for any one of the above activities.

These are the top five questions for fintech decision makers to consider:

Yes. If you store customer data, protect corporate information, or secure employee data, you are at risk.

The first stage is understanding what systems and information you have at risk. Quantum readiness assessments help you identify your organisations quantum risks, develop an upgrade path, and deliver a plan to move forward.

New technology decisions must consider long-term privacy and security capabilities. You need to begin by identifying privacy and secrecy obligations that extend beyond the time when quantum computers might become a real threat, evaluating solutions and planning your migration to quantum resistant infrastructure, and ensuring your security vendors have quantum resistant solutions on their roadmaps.

The roll-out of a complete transition to quantum safe security should be complete before quantum computers capable of breaking your cryptography become commercially available. However, for some parts of your security systems, cryptographic agility to select classical and quantum resistant algorithms may remove any risk.

Look for solutions being considered for standardisation, and prioritise acost-effective solution that provides the type of crypto agility you need to deploy quantum resistant algorithms that will protect your systems from quantum attacks.

Like todays encryption technology, the leading candidates for standardisation already benefit from years of academic scrutiny and review of their security properties.

Any technology that relies on public key cryptography, including emerging tech like blockchain, has built its security guarantee on that cryptography being unbreakable. If that cryptography is vulnerable to attack, then all the promise of the technology is lost, and the time and effort spent integrating that technology into your business offering is wasted.

When quantum computers arrive, IT departments should already have migrated those solutions to quantum-safe encryption, a process that could take up to ten years in some cases.

The key to adopting new technologies is to build quantum-safe solutions into them from the start, making a hybrid transition process possible wherever you can.

By Scott Totzke, CEO ofIsara

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Top five questions about using quantum-safe security in financial transactions - Banking Technology

Pamela Anderson drops Julian Assange a vegan lunch at the … – The Sun

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The Baywatch actress looked glamorous as she visited the Wikileaks founder today

PAMELA Anderson was spotted dropping off a vegan lunch to her pal Julian Assange at the Ecuadorian Embassy today just days after she enjoyed a romantic dinner date with French football star Adil Rami.

Baywatch star Pammy whose close friendship with Wikileaks founder Assange has set tongues wagging looked glamorous in a classy red dress and sunglasses outside the embassy in West London today.

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She was clutching a black handbag and a paper bag containing a tasty vegan lunch for Assange, who is still holed up in the embassy despite Sweden dropping rape charges against him.

Assange has been living in the Ecuadorian Embassy for almost five years following allegations of sexual assault, costing Brit taxpayers millions in policing costs around the building.

It comes two weeks after the 49-year-old actress wrote a cringe-worthy online love letter to sexy Assange calling for world leaders to help set him free.

But she has also been seen enjoying a dinner date with 31-year-old Sevilla and France ace Adil Rami, sparking rumours the pair could be an item.

The blonde star smiled at photographers as she arrived at the embassy today sporting black sunglasses and high heels.

Animal rights activist Pamela opened her own pop-up vegan restaurant La Table du March in France this week.

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Pamela visitedWikiLeaks founder Julian Assange ten times in recent months at the Ecuadorian embassy in London sparking speculation the pair could be romantically involved.

Asource observed that Pammieseems to be wearing sexier outfits every time she visits.

The odd couple were introduced by Vivienne Westwood in August 2014 when Pam sought advice from him about her new animal rights charity.

In an interview with Australian hosts Kyle and Jackie O she pretty much confirmed their relationship saying things happen for sure.

Julian also spoke to the show about Pamela, but refused to confirm the romance rumours.

He said: Shes an attractive person with an attractive personality.

Shes no idiot at all! Psychologically, shes very savvy.

AP:Associated Press

In an interview with PEOPLE, the platinum blonde Canadian-born actress once again remained coy on whether she was in a physical relationship with Assange.

She said: Julian is trying to free the world by educating it. It is a romantic struggle I love him for this.

I understand that our affair and the curiosity surrounding that might bring some attention to his situation.

Thats fine, but Id rather not go into private details. Lets just say everyone deserves love.

After pursuing rape allegations for seven years, Swedens director of public prosecutions Marianne Ny decided to drop the case in May because there was no possibility of arresting him in the foreseeable future.

The prosecutor filed a request to the Stockholm District Court to revoke the arrest warrant.

But she said: "If [Assange] at a later date, makes himself available, I will be able to decide to resume the investigation immediately."

Shortly after the announcement Assange posted a picture of himself smiling on Twitter.

But theMet Police were quick to warn Assange: Well still arrest you.

Scotland Yard said they were obliged to execute an arrest warrant of Assange, which remains outstanding from when he failed to attend Westminster Court on June 29 2012.

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Donald Trump Jr., Julian Assange Blast CNN Deal With Redditor Behind Donald Trump’s NetworkBashing GIF – Deadline

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CNN went with something remarkablehappened in its Wednesday morning reporting on its KFile team tracking down the Reddit user who originated the GIF President Donald Trump used to bash the cable news network on Twitter.

CNN found the Reddit user who created the GIF of Donald Trumpwhere he punches CNN, New Days Alisyn Camerota reported on the networks New Day. And then, here comes the remarkable part: he apologized for having done this, she beamed.

By remarkable, she meant CNNs I-team agreed not to include the identity of HanA**holeSolo in its report about tracking him down, but said it reserves the right to identify him in future reports, should Mr. A**holeSolo ever repeat his ugly behavior on social media.

Not everyone was so pleased as Camerota with the outcome. Donald Trump Jr. and Julian Assange are among those calling it blackmail, extortion, etc., after #CNNBlackmail trended Tuesday night on Twitter:

On Monday, the Redditor who had boasted he originated the CNN-bashing GIF suddenly apologized for same after learning CNN knew who he was.

CNNs Andrew Kaczynski reported Tuesday night HanA**holeSolo pleaded with the network not to reveal his identity, saying he is scared for his personal safety, and because, he said, it would embarrass him to be outed as the person behind the GIF, as well as his various anti-Semitic and racist Reddit rants.

HanA**holeSolo initially boasted he originated the GIF behind Trumps tweet in which Trump is seen pounding on the head of a man whose face has been swapped for the CNN logo. He first shared the GIF last Wednesday; CNN reported it found no earlier instance of the GIF that subsequently was edited to add sound before being tweeted by Trump on Sunday.

After Trumps tweet, HanA**holeSolo took a victory lap, via Reddit: Holy s!! I wake up and have my morning coffee and who retweets my spost but the MAGA EMPORER himself!!! I am honored!!

CNNs KFile identified the man, using information he posted on Reddit and Facebook, and reached out to him on Monday. On Tuesday, he posted a lengthy apology on the subreddit /The_Donald, in which he said he admires and respects the press and all of mankind, and deleted his other offensive posts. Moderators of /The_Donald subreddit took down his apology.

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CFTC Formally Registers New Cryptocurrency Swap Execution Facility – CoinDesk

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The US Commodity Futures Trading Commission (CFTC) has granted blockchain startup LedgerX its formal registration as a swap execution facility (SEF), making it the second company ever to be granted the ability to trade digital currency derivatives.

While a notable milestone, it's the latest in a long process for LedgerX that is still far from over. Still pending approval is the final regulatory milestone to launching what could end up being the first cryptocurrency options firm licensed by the CFTCto do business in any number of cryptocurrencies, including bitcoin and ether.

LedgerX CEO Paul Chou told CoinDesk:

"We are pleased to have received full registration as a SEF from the CFTC for the trading of digital currency derivatives."

Founded in 2013, LedgerX first received a temporary approval to operate as an SEF in 2015, but this latest development makes that decision final. With today's registration, LedgerX is now required to comply with provisions set forth in the Commodity Exchange Act (CEA) and other regulations specific to the CFTC.

New Jersey-based Tera-Exchange was registered as an SEF last year.

As part of the New York-based startup's push to become the first derivatives clearing organization (DCO) registered to trade cryptocurrencies, the firm earlier this year raised $11.4mled by investors Miami International Holdings and Huiyin Blockchain Venture Investments.

As a result of that capital, Chou believes LedgerX is on the cusp of creating acryptocurrency options market that could increase the number of institutional investors able to invest in the asset class and help stabilize the price of the currency by enabling a more reliable hedges.

"We look forward to working with the CFTC on finalizing the DCO registration," he said.

Editor's Note: This article has been amended to show that Tera Excahnge was registered as an SEF last year.

Image of commodities via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

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