Genome cryptography is the new way to secure your DNA data – New Atlas

A new technique uses cryptography to keep most of an individual's entire genome secure, only allowing others to access information on specific genes (Credit: SSilver/Depositphotos)

DNA security and privacy is a looming problem that scientists and researchers are only just starting to grapple with. A team at Stanford has now developed a technique that can "cloak" irrelevant genomic information, allowing scientists to access key disease-related mutations without revealing an individual's broader genome sequence.

In a world where everything from dating profiles to medical diagnoses are drawing on DNA data, we're currently just forced to hope that each company with access to our DNA is acting responsibly with out genetic fingerprints. But for many, hope is not enough, and nor should it be. With genomic information becoming increasingly of value, a demand has arisen for a way to secure that data while still being able to enjoy the benefits of DNA analysis.

"Often people who have diseases, or those who know that a particular genetic disease runs in their family, are the most reluctant to share their genomic information because they know it could potentially be used against them in some way," says Gill Bejerano, associate professor of developmental biology, of pediatrics and of computer science. "They are missing out on helping themselves and others by allowing researchers and clinicians to learn from their DNA sequences."

To address such concerns, the Stanford team developed a technique based on a classic cryptographic protocol, known as garbled circuit or Yao's protocol. The individual encrypts their own genome using an algorithm on their smartphone or computer, which translates specific gene variants into a linear set of values that are securely uploaded into the cloud. On the other end of the transaction, the researcher (or any second-party) accesses only the data that is pertinent to their investigation.

"In this way, no person or computer, other than the individuals themselves, has access to the complete set of genetic information," says Bejerano.

The team demonstrated the process by executing several practical demonstrations, including identifying specific gene mutations in patients with rare diseases and comparing a baby's DNA with his parents to target the likely cause of a genetic disease. In all tested instances, at least 97 percent of each subject's unique DNA information was completely hidden from the researchers.

As well as protecting a person's privacy when having their DNA processed for medical reasons, this technique could theoretically be applied to more commercial contexts, such as ancestry genome studies or even the rising field of nutrigenomics.

"There is a general conception that we can only find meaningful differences by surveying the entire genome," says Bejerano. "But these meaningful differences make up only a very tiny proportion of our DNA. There are now amazing tools in computer science and cryptography that allow researchers to pinpoint only these differences while keeping the remainder of the genome completely private."

Just recently it was demonstrated that synthetic DNA could be created containing malware that allows a malicious party to gain control of the computer that sequences it. As we learn more and more about what our genetic fingerprint means, the value of that fingerprint will only increase. In the future, the DNA marketplace will be big business and security protocols such as this new Stanford technique are going to be important.

The team's research was published in the journal Science.

Source: Stanford Medicine

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Genome cryptography is the new way to secure your DNA data - New Atlas

Op Ed: A Cryptographic Design Perspective of Blockchains: From Bitcoin to Ouroboros – Nasdaq

How does one design a blockchain protocol? Back in 2013, while in Athens, I set out to design a non-proof-of-work-based blockchain protocol motivated by the debt crisis in Greece, looming bank liquidity problems and the increasing discussions about the possibility of having a parallel currency. The new protocol had to be based on proof of stake to make sure that it can run even on cellphones and be secure independent of any computational power existing that is external to it.

Very soon it became clear that the problem was going to need much more than a few months' work. Fast-forward three years to 2016: I was at the University of Edinburgh and had joined forces with IOHK whose CEO, Charles Hoskinson, was poised to solve the same problem. The protocol, "Ouroboros" as it would be eventually named, was there but the core of the security proof was still elusive when my good friend Alexander Russell visited me.

Together, we tackled the problem of proving the security of the system. Whiteboards were filled over and over again until we felt we mined a true gem: a clean combinatorial argument that enabled us to argue mathematically the security of the scheme.

Security is an elusive concept. Take a system that is able to withstand a given set of adverse operational conditions. When can we call it secure? What if it collapses in the next moment when it is subjected to a slightly different set of conditions? Or when it is given inputs different from any that have been tried before?

Security cannot be demonstrated via experiment alone since attacker ingenuity can rarely be completely enumerated within any reasonable timeframe. Cryptographic design, thus, has to somehow scale this "universal quantifier": the system should be called secure only if it withstands all possible attacks.

In response to this fundamental problem, "provable security" emerged as a rigorous discipline within cryptography that promotes the co-development of algorithms and (so-called) proofs of security. Such proofs come in the form of theorems that, under certain assumptions and threat models that describe what the attacker can and cannot do, establish the security of cryptographic algorithms. In this fashion, modern cryptographic design pushes the "burden of proof" to the proposer of an algorithm.

In the world of academic cryptography, gone are the days when someone could propose a protocol or algorithm and proclaim it secure because it was able to withstand a handful of known attacks. Instead, modern cryptographic design requires due diligence by the designers to ensure that no attack exists within a convincing and well-defined threat model.

This approach has been a tremendously powerful and inspiring paradigm within cryptography. For instance, the notion of a secure channel has been studied for more than 40 years. This is the fundamental cryptographic primitive that allows the proverbial Alice and Bob to send messages to each other safely in the presence (and possibly active interference) of an attacker. Today's provable security analysis, even using automated tools, has unearthed attacks against secure channel protocols like TLS that were unanticipated by the security community.

Back in 2009 though, the blockchain was a concept that was presented outside regular academic cryptographic discourse. A brief white paper and a software implementation were sufficient to fuel its initial adoption that expanded rapidly. In retrospect, this was perhaps the only way for this fringe idea to ripple the waters of scientific discourse sufficiently and force a paradigm shift (in the sense of Thomas S. Kuhn's " Structure of Scientific Revolutions ") in terms of how the consensus problem was to be studied henceforth.

As the shift settled though, a principled approach became direly needed. The newly discovered design space appears to be vast and the avenues of exploring it too numerous. The "burden of proof" needs to return to the designer.

Blockchain protocols need to become systematized, as they have gradually become one of the dominant themes in distributed consensus literature. The blockchain is not the problem; it is the solution. But in this case, one may wonder, what was the problem?

In 2014, jointly with Juan Garay and Nikos Leonardos, we put forth a first description of "the problem" in the form of what we called a "robust transaction ledger." Such a ledger is implemented by a number of unauthenticated nodes and provides two properties, called persistence and liveness. Persistence mandates that nodes never disagree about the placement of transactions once they become stable, while liveness requires that all (honestly generated) transactions eventually become stable. Using this model, we provided a proof of security for the core of the Bitcoin protocol (a suitably simplified version of the protocol that we nicknamed the "bitcoin backbone").

Given this proof, a natural question a cryptographer will ask is whether this protocol is really the best possible solution to the problem. "Best" here is typically interpreted in two ways: first, in terms of the efficiency of the solution; and second, in terms of the relevance and applicability of the threat model and the assumptions used in the security proof.

Efficiency is a particular concern for the Bitcoin blockchain. With all its virtues, the protocol is not particularly efficient in terms of processing time or resource consumption. This is exactly where "proof of stake" emerged as a possible alternative and a more efficient primitive for building blockchain protocols.

So, is it possible to use proof of stake to provably implement a robust transaction ledger? By 2016, with our Bitcoin backbone work already presented, this was a well-defined question; and the answer came with Ouroboros: our proof-of-stake-based blockchain protocol.

The unique characteristic of Ouroboros is that the protocol was developed in tandem with a proof of security that aims to communicate in a succinct way that the proposed blockchain protocol satisfies the properties of a robust transaction ledger. Central to the proof is a combinatorial analysis of a class of strings that admit a certain discrete structure that maps to a blockchain fork. We called "forkable" those strings that admit a non-trivial such structure, and our proof shows that their density becomes minutely small as the length of the string grows.

With this argument, we showed how there is an opportunity for the nodes running the protocol to converge to a unique history. The protocol then dictates how to take advantage of this opportunity by running a cryptographic protocol that enables the nodes to produce a random seed, which, in turn, is used to sample the next sequence of parties to become active. As a result, the protocol facilitates the next convergence step to take place; in this way, it can continue ad infinitum following a cyclical process that was also the inspiration for its name. Ouroboros is the Greek word for the snake that eats its tail, an ancient Greek symbol for re-creation.

Having the protocol and its proof in hand gave us the unique opportunity for peer review, i.e., asking fellow cryptographers to evaluate the construction and its associated security proof as part of the formal submission process to a major cryptology conference.

Peer reviewing at the top cryptology venues is a painstakingly rigorous process that goes on for months. Papers are first reviewed independently by at least three experts, and afterward a discussion for each paper rages on as the three reviewers, as well as other members of the scientific committee, get involved and try to converge on the intellectual merits of each submission.

As a result of successfully passing this rigorous peer review process, Ouroboros was accepted and included in the program of Crypto 2017 , the 37th annual cryptology conference. Crypto is one of the flagship conferences of the International Association for Cryptologic Research (IACR) and is one of the most exciting places for a cryptographer to be, as the program always contains research on the cutting edge of the discipline.

Furthermore, Ouroboros will be the settlement layer of the Cardano blockchain to be rolled out by IOHK in 2017, making it one of the swiftest technology transfer cases from a basic research publication to a system to be used by many thousands in just one year.

While all this may seem like a happy conclusion to the quest for a proof-of-stake blockchain, we are far from being done. On the contrary, we are still, as a community, at the very beginning of this expedition that will delve deep into blockchain design space. There are still too many open questions to solve, and new systems will be built on the foundations of the research that our community is laying out today.

Ouroboros image courtesy of Wikimedia Commons .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Op Ed: A Cryptographic Design Perspective of Blockchains: From Bitcoin to Ouroboros - Nasdaq

Cryptographers and Geneticists Unite to Analyze Genomes They Can’t See – Scientific American

A cryptographer and a geneticist walk into a seminar room. An hour later, after a talk by the cryptographer, the geneticist approaches him with a napkin covered in scrawls. The cryptographer furrows his brow, then nods. Nearly two years later, they reveal the product of their combined prowess: an algorithm that finds harmful mutations without actually seeing anyones genes.

The goal of the scientists, Stanford University cryptographer Dan Boneh and geneticist Gill Bejerano, along with their students, is to protect the privacy of patients who have shared their genetic data. Rapid and affordable genome sequencing has launched a revolution in personalized medicine, allowing doctors to zero in on the causes of a disease and propose tailor-made solutions. The challenge is that such comparisons typically rely on inspecting the genes of many different patientsincluding patients from unrelated institutions and studies. The simplest means to do this is for the caregiver or scientist to obtain patient consent, then post every letter of every gene in an anonymized database. The data is usually protected by licensing agreements and restricted registration, but ultimately the only thing keeping it from being shared, de-anonymized or misused is the good behavior of users. Ideally, it should be not just illegal but impossible for a researchersay, one who is hacked or who joins an insurance companyto leak the data.

When patients share their genomes, researchers managing the databases face a tough choice. If the whole genome is made available to the community, the patient risks future discrimination. For example, Stephen Kingsmore, CEO of Rady Children's Institute for Genomic Medicine, encounters many parents in the military who refuse to compare their genomes with those of their sick children, fearing they will be discharged if the military learns of harmful mutations. On the other hand, if the scientists share only summaries or limited segments of the genome, other researchers may struggle to discover critical patterns in a diseases genetics or to pinpoint the genetic causes of individual patients health problems.

Boneh and Bejerano promise the best of both worlds using a cryptographic concept called secure multiparty computation (SMC). This is, in effect, an approach to the millionaires problema hypothetical situation in which two individuals want to determine who is richest without revealing their net worth. SMC techniques work beautifully for such conjectural examples, but with the exception of one Danish sugar beet auction, they have almost never been put into practice. The Stanford groups work, published last week in Science, is among the first to apply this mind-bending technology to genomics. The new algorithm lets patients or hospitals keep genomic data private while still joining forces with faraway researchers and clinicians to find disease-linked mutationsor at least that is the hope. For widespread adoption, the new method will need to overcome the same pragmatic barriers that often leave cryptographic innovations gathering dust.

Intuitively, Boneh and Bejeranos plan seems preposterous. If someone can see they can leak it. And how could they infer anything from a genome they cant see? But cryptographers have been grappling with just such problems for years. Cryptography lets you do a lot of things like [SMC]keep data hidden and still operate on that data, Boneh says. When Bejerano attended Bonehs talk on recent developments in cryptography, he realized SMC was a perfect fit for genomic privacy.

The particular SMC technique that the Stanford team wedded to genomics is known as Yaos protocol. Say, for instance, that Alice and Bobthe ever-present denizens of cryptographers imaginationswant to check whether they share a mutation in gene X. Under Yaos protocol Alice (who knows only her own genome) writes down the answer for every possible combination of her and Bobs genes. She then encrypts each one twiceanalogous to locking it behind two layers of doorsand works with Bob to find the correct answer by strategically arranging a cryptographic garden of forking paths for him to navigate.

She sets up outer doors to correspond to the possibilities for her gene. Call them Alice doors: If Bob enters door 3, any answers he finds inside will assume that Alice has genetic variant 3. Behind each Alice door, Alice adds a second layer of doorsthe Bob doorscorresponding to the options for Bobs gene. Each combination of doors leads to the answer for the corresponding pair of Alice and Bobs genes. Bob then simply has to get the right pair of keys (essentially passwords) to unlock the doors. By scrambling the order of the doors and carefully choosing who gets to see which keys and labels, Alice can ensure that the only answer Bob will be able to unlock is the correct one, although still preventing herself from learning Bobs gene or vice versa.

Using a digital equivalent of this process, the Stanford team demonstrated three different kinds of privacy-preserving genomic analyses. They searched for the most common mutations in patients with four rare diseases, in all cases finding the known causal gene. They also diagnosed a babys illness by comparing his genome with those of his parents. Perhaps the researchers biggest triumph was discovering a previously unknown disease gene by having two hospitals search their genome databases for patients with identical mutations. In all cases the patients full genomes never left the hands of their care providers.

In addition to patient benefits keeping genomes under wraps would do much to soothe the minds of the custodians of those genome databases, who fear the trust implications of a breach, says Giske Ursin, director of the Cancer Registry of Norway. We [must] always be slightly more neurotic, she says. Genomic privacy likewise offers help for second- and third-degree relatives, [who] share a significant fraction of the genome, notes Bejeranos student Karthik Jagadeesh, one of the papers first authors. Bejerano further points to the conundrums genomicists face when they spot harmful mutations unrelated to their work. The ethical question of what mutations a genomicist must scan for or discuss with the patient does not arise if most genes stayed concealed.

Bejerano argues the SMC technique makes genomic privacy a practical option. Its a policy statement, in some sense. It says, If you want to both keep your genome private and use it for your own good and the good of others, you can. You should just demand that this opportunity is given to you.

Other researchers and clinicians, although agreeing the technique is technically sound, worry that it faces an uphill battle on the practical side. Yaniv Erlich, a Columbia University assistant professor of computer science and computational biology, predicts the technology could end up like PGP (pretty good privacy) encryption. Despite its technical strengths as a tool for encrypting e-mails, PGP is used by almost no onelargely because cryptography is typically so hard to use. And usability is of particular concern to medical practitioners: Several echo Erlichs sentiment that their priority is diagnosing and treating a condition as quickly as possible, making any friction in the process intolerable. Its great to have it as a tool in the toolbox, Erlich says, but my senseis that the field is not going in this direction.

Kingsmore, Erlich and others are also skeptical that the papers approach would solve some of the real-world problems that concern the research and clinical communities. For example, they feel it would be hard to apply it directly to oncology, where genomes are useful primarily in conjunction with detailed medical and symptomatic records.

Still, Kingsmore and Erlich do see some potential for replacing todays clunky data-management mechanisms with more widespread genome sharing. In any case, the takeaway for Bejerano is not that genome hiding is destined to happen, but that it is a technological possibility. You would think we have no choice: If we want to use the data, it must be revealed. Now that we know that is not true, it is up to society to decide what to do next.

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Julian Assange, Eclipse Truther – Gizmodo – Gizmodo

Astronomers, doctors and other experts alike are in total agreement on one pointdont stare at a solar eclipse without eye protection unless you want to damage your vision or go blind, you goddamn idiot.

This warning was in large part heeded by all but the very uninformed or the very impulsive, categories which both naturally included President Donald Trump, who soaked in as much luxurious unshielded eclipse viewing as he could on Monday. Now Wikileaks chief Julian Assange, whose behavior and vaguely pro-Trump leanings have grown more concerning in direct proportion to the amount of time he has spent locked inside the Ecuadorian embassy in London, is warning the public not to fall for Big Safety Glasses grift.

Early Monday evening, Assange tweeted Theres no danger staring directly at the moon during a total eclipse. Before/after, the moon only partly covers the sun = usual sun danger.

He added, You look away when you see it ending. Eyes also move to protect themselves. The hysteria seems to be sustained by glasses company profits.

In fairness to Assange, hes not wrong that a total solar eclipse is, in theory, safe to look at during the very short period of time that the main body of the sun is covered entirely by the moon. In that extremely limited circumstance, only parts of the the suns corona which do not emit enough energy to damage the eye are visible.

But the vast majority of people viewing an eclipse never see a totality. Theyll see a partial eclipse, which is when only a significant percentage of the sun is covered (as in New York today, where only 72 percent of the sun was obscured). Because so much of the sun is covered during a partial eclipse, ones eyes may not move to protect themselves. Instead, the sun will dim enough that one could get fooled into staring at it, even as its frying the interior of their retinas.

As NASA noted, the reason one should still use protective glasses or other equipment during a total solar eclipse is because as the moon rotates in front of the sun, its very difficult to determine the exact window of time someone might have to look at it. Again, since the vast majority of people are not in the path of the totalitythough may believe they are, especially if theyre close to itits really, really for the best that everyone just wears the damn safety glasses. For both of these reasons, advocating otherwise sounds an awful lot like a teenage boy arguing he doesnt need to wear a condom because he knows when to pull out.

There was no safe time for Trump to look at the eclipse, because the sun was only 80 percent obscured in Washington, D.C.

Glasses company profits seems a little naive, considering high demand took retailers by surprise and the rarity of major eclipses does not really seem all that conducive to the formation of an astronomy-industrial complex, but heythe next time Assange wants to take a cake out of the oven or something, hes free to defy Big Oven Mitts too. Whatever.

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Democrat’s Call for FBI Probe of Meeting Gets Assange and Rohrabacher’s Goat – OC Weekly

Monday, August 21, 2017 at 7:24 a.m.

Harley Rouda asked the FBI to investigate Dana Rohrabacher's meeting with Julian Assange.

HarleyforCongress.com

On Friday, we told you about criticism by the Democratic Congressional Campaign Committee and a Democratic opponent of Rep. Dana Rohrabacher (R-Waaaay Up Putin's Ass) meeting two days before with Wikileaks founder Julian Assange.

Now, another Democratic rival has asked for an FBI investigation into Rohrabacher's political and financial ties to Russia in the wake of the meeting.

Putin's waterboy?

Illustration by Greg Houston

Actually, Harley Rouda, who is one of nine announced candidates seeking The Mouth That Rohrabachered's 48th Congressional District seat next year, says he is amending his original complaint sent to the FBI in regards to the veteran congressman.

"Despite the fact that intelligence agencies across the globe have repeatedly and continuously asserted that WikiLeaks and its founder Julian Assange coordinated with Russian actors in their leaks of DNC emails, and that Rohrabachers colleagues have claimed that he is paid by Vladimir Putin, Rohrabacher took this meeting anyway," writes Rouda.

The candidate concluded that, "As an American citizen, I strongly urge you to open up an investigation as soon as possible and if necessary, subpoenaing the necessary documents to make a determination about Congressman Rohrabachers potential unlawful ties to Russia and its officials."

The Washington Post sent Rouda's letter to Rohrabacher, who reportedly replied that if anybodys politicizing foreign policy, it aint me.

Rouda's letter was met with a more menacing response from Assange via Twitter:

That led to a Rouda retweet:

Here is Rouda's full letter:

To: Los Angeles Field Office, Federal Bureau of Investigation From: Harley E. Rouda Jr. Subject: Congressman Dana Rohrabacher

To Whom It May Concern:

In light of an article in the Aug. 17, 2017, edition of the Los Angeles Times entitled: Rep. Dana Rohrabacher meets with WikiLeaks founder Julian Assange, plans to tell Trump what he heard, Id like to amend my original letter to the FBI to include this disturbing new information demonstrating the potential depths of Rohrabachers political and financial ties to Russia and Vladimir Putin.

Despite the fact that intelligence agencies across the globe have repeatedly and continuously asserted that WikiLeaks and its founder Julian Assange coordinated with Russian actors in their leaks of DNC emails, and that Rohrabachers colleagues have claimed that he is paid by Vladimir Putin, Rohrabacher took this meeting anyway.

In the statement released by Rohrabachers office and his subsequent interview with the Daily Caller, it was revealed that Congressman Dana Rohrabacher not only met with the infamous fugitive Julian Assange, but that he and Assange also talked about what might be necessary to get [Assange] out and discussed a pardon from Trump.

As an American citizen, I strongly urge you to open up an investigation as soon as possible and if necessary, subpoenaing the necessary documents to make a determination about Congressman Rohrabachers potential unlawful ties to Russia and its officials. The American public needs to definitively know whether Rohrabacher has any financial ties to the Russian regime.

Sincerely,

Harley E. Rouda Jr.

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Democrat's Call for FBI Probe of Meeting Gets Assange and Rohrabacher's Goat - OC Weekly

Mark Cuban backs new $20 million cryptocurrency venture fund – CNBC

Onetime bitcoin skeptic Mark Cuban is warming to the digital currency world.

The billionaire is backing a new venture capital fund for cryptocurrency-related investments called 1confirmation. Founded by Nick Tomaino, former business development manager at Coinbase, the fund plans to raise $20 million, according to a Monday filing with the Securities and Exchange Commission.

"It's an interesting space that I [want] to get involved with and learn more" about, Cuban said in an email to CNBC Tuesday. He did not specify the size of his investment.

Cuban's opinion on digital currencies has changed fairly recently. In an Aug. 14 tweet, the Dallas Mavericks owner admitted he "might have to finally buy some" bitcoin, contrasting with a June tweet that said he thought bitcoin was in a "bubble."

"Bias should be up because of finite supply. Until crypto or US politics intrude, and they will," he added in another tweet on Aug. 14.

In late June, Cuban said he planned to participate in an initial coin offering by Unikrn, an online esports betting site in which he holds a stake.

Earlier that month, Cuban tweeted that he didn't know when or by how much the price of bitcoin, which has soared in value this year, would correct. He did acknowledge then that the blockchain technology backing bitcoin had value and that it "will be at the core of most transactions in the future. Healthcare, finance etc all will use it."

IBM announced Tuesday that it will work with major food companies such as Wal-Mart, Unilever, Tyson Foods, Dole and Kroger to "identify new areas where the global supply chain can benefit from blockchain."

However, bitcoin's surge and a rush of funds into initial coin offerings have attracted more investment attention.

Bitcoin has quadrupled in value this year and hit a record last Thursday of $4,522.13 with a market capitalization of about $74 billion, according to CoinDesk. Initial coin offerings, which are fundraising events used by cryptocurrency-related start-ups, have raised $1.37 billion so far this year, CoinDesk data showed.

Source: CoinDesk

The launch of the 1confirmation fund comes amid increased fundraising for cryptocurrency-related businesses.

On Aug. 10, digital currency storage and exchange company Coinbase announced it raised $100 million in private equity funding led by Dropbox investor IVP. That marks the largest single traditional funding round for a public blockchain or cryptocurrency start-up, according to CoinDesk.

Other participants in 1confirmation include Brendan Eich, creator of the JavaScript computer programming language; Balaji Srinivasan, board partner at technology venture capital firm Andreessen Horowitz, and David Vorick, who is building a blockchain-based cloud storage system called Sia. The fund's founder, Tomaino, is also a principal at venture fund Runa Capital.

Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank," which features Mark Cuban as a panelist.

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Mark Cuban backs new $20 million cryptocurrency venture fund - CNBC

Asus Debuts Specialized Motherboard for Cryptocurrency Miners – CoinDesk

Computer hardware maker Asus hasrevealed a new motherboard with features geared specifically toward cryptocurrency miners.

Dubbed the B250 Mining Expert, the board was debuted over the weekend by Asus'Republic of Gamers, the Taiwan-based manufacturer's high-end gaming brand.

And while the product'srelease date and price aren't known yet, it nonetheless represents the latest signal that the mainstream hardware industry is expanding its cryptocurrency footprint.Further, theannouncement comes months after Asusbegan rolling outGPUsdesigned specifically with crypto-miners in mind aimed to take full advantage of the digital "gold rush" now taking place.

The B250 Mining Expert motherboard itself boasts a total of 19 PCI-Express expansion slots, compared to the 12, eight or six slots featured oncompetitors' products.

The idea is that cryptocurrency miners who use computing power (and lots of electricity) toadd new transactions to a blockchain, receivingnewly minted coins as a reward want to run as a many graphics cards as possible. The forthcoming board, according to the specs that are circulating, has roughly the capacity of two to three regular-sized motherboards.

The 19 expansion slots are split into threegroups, each containing 24 dedicated pins. This allows the mining rig to be connected to three power supply units at once, stabilizing the rig for multi-GPU usage. The board also boasts a variety of features likely toappeal to miners, such as live visual statistics.

As previously reported by CoinDesk, other major GPU makers like Nvidia and AMD have moved in recent months to capitalize on the spike indemand for products that can be used for mining.

Earlier this month,Nvidia CEO Jen-Hsun Huang issued bullish statements on the prospects for his firm's entry into the mining space, suggesting that it could be a long-term revenue driver.

"Cryptocurrency and blockchain are here to stay," he said.

ProductimageviaAsus

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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A Very Dumb Mistake Costs Cryptocurrency Investors Big Time – WIRED

The digital financial services developer Enigma prides itself on ultra-secure products . The company's Catalyst platform protects financial info with a cutting-edge combination of blockchain-inspired privacy technology and cryptography. So it comes as no small surprise that on Monday, scammers took over the company's website, mailing lists, and Slack accounts by exploiting some extremely basic security mistakes Enigma had made. The blunders also facilitated a scam that ultimately cost Enigma supporters almost $500,000.

Enigma has planned an Initial Coin Offering for September 11an unregulated cryptocurrency fund-raising campaign that startups use when they want to raise capital for their company without going through the process of working with an established financial institution or venture capital fund. (The SEC has promised to clamp down on these ICOs , but so far is in the exploratory phase.)

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With the ICO in mind, scammers compromised official Enigma channels to create a sense of legitimacy and urgency. The plot proved easy to pull off. At least one of the passwords protecting the Enigma accounts, which included a Slack account with administrative privileges, had previously leaked, and reports indicate that the accounts weren't protected by two-factor authentication.

The hackers began defacing the company's main site and Slack accounts, and pushed a special "pre-sale" ahead of the ICO, directing money toward their own cryptocurrency wallet. They also went rogue on the company's mailing lists. Many users realized that the push was a scam, but the hustle did tempt some interested backers into sending 1,492 coins in the cryptocurrency Ethereum, which converts to almost $495,000.

Enigma said in a statement on Monday that its community fund-raiser, also called a crowd sale, was always set definitively for September 11, and emphasized that its secure servers had not been hacked. But a spokesperson confirmed that the scammers compromised account passwords using various methods. And in response to the incident, the company says it is adding strong, random passwords and two-factor authentication for each account, plus implementing robust password changing and better system compartmentalization. "Weve moved up a number of critical security steps and taken additional measures to protect the community going forward," says Tor Bair, Enigma's head of marketing and growth. "Were now very well aware of the potential threats and are taking no chances."

Though honest mistakes can happen at any growing organization, the Enigma community grappled with the implications of the incident on Monday, wondering how a specialized cryptography company could only now be realizing the need for stringent account hygiene. "This will go down in crypto history as one of the stupidest moments ever. We need a meme," one Reddit user wrote. Some Redditors even claimed that they used the breached credential repository Have I Been Pwned to determine that the Enigma accounts scammers accessed reused a previously exposed account password from CEO Guy Zyskind. But Zyskind told WIRED that none of the breached Enigma accounts relied on reused passwords.

While the Enigma team worked to restore secure Slack service, the community's discussion moved to secure messaging app Telegram. "No word on honoring those who were scammed b/c of y'all negligence and poor security? Speaks volumes," a user called Jay wrote in the open chatroom. Many users indicated support for Enigma, though, and seemed satisfied with the company's remediation efforts.

"Hacking accounts that do not have dual-factor authentication enabled and other best in class security measures is a trivial hack for most dedicated attackers," says Chris Pierson, the general counsel and chief security officer of the payment platform Viewpost. "To the public it looks as if the company has been hacked, and provides a significant amount of negative press about the companys security and privacy responsibilities."

Enigma said on Monday evening that it is working to mitigate the damage. We're actively investigating the scam attempt and the parties involved with multiple partners, including vigilant members of our community, other companies in our space, and exchanges, Bair says.

Since they are unregulated by the governmentfor now, anywayICOs have perks that make them appealing to cryptocurrency companies, but by their nature they are also less predictable than standard fund-raising avenues. In mid July, scammers stole roughly $7 million from supporters during the ICO of the cryptocurrency management platform CoinDash. A few days later, hackers stole $32 million in Ethereum (though much of it was later recovered) by exploiting a vulnerability in a crypto product called Parity Wallet.

"The news of the attack is certainly not surprising," says Eric Klonowski, a senior advanced threat research analyst at the internet security firm Webroot. "Investors were ready to part with their money at a moments notice, and the attacker was prepared to capitalize.... That said, recent core cryptocurrency heists are all a result of third-party vulnerabilities and their handling of investments, and not in the cryptography or implementation itself."

With the September 11 ICO still rapidly approaching, at least Enigma has some time to get its first-line security right.

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A Very Dumb Mistake Costs Cryptocurrency Investors Big Time - WIRED

Philippines Central Bank Grants First Cryptocurrency Exchange Licenses – CoinDesk

The central bank of the Philippines has granted licenses to two local bitcoin exchanges, according to reports.

Daily newspaper The Philippine Starreportedthe developments on Sunday, citing statements from central bank chief Nestor Espenilla Jr.

The Bangko Sentral ng Pilipinas firstreleased its rules for domestic exchanges in February, seeking to lay down a foundation for the country's nascent cryptocurrency space. Yet the central bank has seen relatively little interest from prospective applicants, according to one official who commented to local media in late July.

That said, Espenilla, who spoke during a financial technology event over theweekend, indicated that the central bank is being proactive about bringing exchanges under its regulatory auspices.

"We see a rapid increase in the trajectory. It is coming from a small base but increasing that is why we decided to require them to register," he told attendees.

Espenilla also offered some figures on the local bitcoin trade, according to the news source, saying that exchanges are seeing as much as $6 million in volume a month a figure that represents three times the $2 million per month seen last year.

"We are moving to regulate them," Espenilla emphasized.

Financial districtof Manillaimage via Shutterstock

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Philippines Central Bank Grants First Cryptocurrency Exchange Licenses - CoinDesk

With Attacks Soaring, India Races to Regulate Cryptocurrencies – Bloomberg

A giant cyberattack that crippled Indias largest container port in June provided a costly wake up call for a country determined to digitize its mostly-informal $2 trillion economy.

As the scale of the attack became clear, Finance Minister Arun Jaitley called an urgent meeting. Those invited included top officials from the home, technology and finance ministries as well as the central bank governor, financial markets regulator and the countrys top planner, according to the letter of invitation seen by Bloomberg.

On the agenda was bitcoin -- the virtual currency demanded by extortionists who had held to ransom the Jawaharlal Nehru Port Trust, along with nuclear power stations and oil companies across Europe, America and Asia.

Policy makers in Asias third-largest economy, still reeling from a self-inflicted ban on high denomination notes last November, wanted to weigh their options to regulate virtual money.A presentation to the meeting -- also seen by Bloomberg -- flagged concerns about rising, unregulated exchanges trading bitcoins. Anonymity of ownership and surging value, the presentation noted, had made it the favorite currency of cyber criminals increasingly targeting Indian systems.

Bitcoin last week soared past $4,000 for the first time on growing optimism that faster transaction times will hasten its spread.

Meanwhile, demands for ransom payments in cryptocurrency in India surged 300 percent in 2016 compared to the previous year, said Bengaluru-based SISA Information Security, which investigated Indias biggest data breach of about 3.2 million debit cards last October.The company this month launched a security operations center to monitor cyberattacks on governments and private sector, said Nitin Bhatnagar, head of business development at SISA, which audits online payment systems.

Its an alarming situation said Bhatnagar. But the expertise in Indian industry is still missing.

The governments Computer Emergency Response Team -- India (CERT-In) reported more than 50,000 attacks on companies last year.

With more than 27,000 reported attacks so far this year -- from phishing and viruses to intrusive malware that cripples systems -- India is trying to keep pace with securing dataat companies and banks. The July roll out of a nationwide tax that seeks to digitize every monetary transaction in the nation of 1.3 billion people, a fourth of whom are illiterate, has only added to the urgency at a time when cyberattacks like Wannacry and Petya fuel cyberwar worries.

Whats reported in CERT is a minuscule percentage. Its the tip of the iceberg, said Sandeep Sudan, head global corporate security at Reliance Industries Ltd., Indias biggest company, which launched the countrys fourth generation mobile service last year, said. You neednt be an IT guy even. Today anybody can do it.

Reliance had to investigate an alleged leak of personal data of more than 100 million users by a little-known website, Reuters reported last month. According to CERT, 34 Indian companies were affected by ransomware attacks in May and June alone.

Digital currencies have proliferated as money managers invested in blockchain -- the technology used to verify and record cryptocurrency transactions -- and set up funds to speculate on currencies in the markets. But India is still to catch up with digital currency regulation.

In Russia, the US and Japan, regulators have classified cryptocurrencies as either property or legal payment methods to co-opt them in a bid to stop money laundering. China and the UAE have strong firewalls, while India is still studying regulatory options, the government presentation shows.

By contrast, policy makers in the southern Indian state of Andhra Pradesh, which last month joined the non-profit Enterprise Ethereum Alliance, are exploring ways to use blockchain technology. The state is looking to build a digital ledger to create a permanent audit trail for land registries. J.A. Chowdary, chief secretary and adviser to the states chief minister, did not respond to calls or emailed questions.

Fourteen months ago, the RBI asked banks to "immediately" put in place a cyber-security policy, coinciding with Prime Minister Narendra Modis emphasis on the use of the Aadhaar biometric database to transfer subsidies to bank accounts of beneficiaries of state programs. It is not clear what progress has been made.

"We are now storing more and more citizens data, said Neeta Verma, director general at National Informatics Centre, responsible for encryption and data security for all government welfare programs and offices. As volumes of data grow, we have also increased the encryption we provide, Verma said,noting plans to hire an extra 355 people to boost her data security team.

India expects a six-fold growth in digital transactions to 25 billion in the year to March 2018, up from 4 billion in 2015-16, according to the World Payments Report 2017. A chunk of this would come from online filings by 8 million tax payers every month under the goods and services tax and increased compliance on income tax.

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The June presentation made to the finance minister lists a number of concerns about virtual currencies. It explored banning trade in cryptocurrencies, regulating and taxing it or treating it as a digital asset similar to gold. Still, some of these strategies may not be the most effective way forward, said Amit Jaju, executive director at Ernst & Young Ltd.s fraud investigation and dispute services.

It would be like banning a bank because a kidnapper used cash as ransom, Jaju said over phone from Mumbai.

With assistance by Dhwani Pandya

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With Attacks Soaring, India Races to Regulate Cryptocurrencies - Bloomberg