HBO Hack Highlights Importance of Encryption, Data Governance – eSecurity Planet

ByJeff Goldman, Posted August 2, 2017

1.5 TB of data, including unreleased episodes of upcoming shows, was stolen and leaked online.

Hackers recently claimed to have breached HBO's systems and stolen 1.5 TB of data including upcoming episodes of Ballers and Room 104, Entertainment Weekly reports.

In response, HBO stated that an incident had "resulted in the compromise of proprietary information," adding, "We immediately began investigating the incident and are working with law enforcement and outside cyber security firms."

In an email to employees, HBO chairman and CEO Richard Plepler wrote, "I can assure you that senior leadership and our extraordinary technology team, along with outside experts, are working round the clock to protect our collective interests. The efforts across multiple departments have been nothing short of herculean."

Protecting Key Data

AlertSec CEO Ebba Blitz told eSecurity Planet by email that the breach should serve as a clear reminder that hacking isn't limited to financial, health and personal information.

"All information is vulnerable because some hackers are motivated by the thrill of it," Blitz said. "They steal because they can, not because the information always has any real long-term value. All data needs to be protected with encryption."

Gemalto CTO of data protection Jason Hart said by email that broadcasters in particular face a unique threat. "Due to the nature of the industry, hackers have the opportunity to access data as it is transmitted between multiple data centers, and so they require solutions to help encrypt their high value TV transmissions -- without interfering with the audience's viewing experience," he said.

"HBO now joins a list of other Hollywood victims of crime such as Netflix and Sony," Hart added. "This incident is another reminder that broadcasters must invest in fundamental security controls and practices -- encryption, key management and two-factor authentication -- to control access to highly sought-after content and protect it in the event that a breach takes place."

Data Governance

Richard Stiennon, chief strategy officer at Blancco Technology Group, said the HBO breach is a great example of the importance of data governance. "Content producers and all the parties involved in shooting, editing and post-production processing and distribution should be on high alert," he said. "They should immediately review their data governance policies and discover the weak links in protecting their content and shore up their defenses. An information governance policy should take into account where critical content resides at all times."

Still, a recent Thycotic survey of over 400 global business and security executives found that four out of five companies don't know where their sensitive data is located or how to secure it.

And while 80 percent of data breaches involve stolen or weak credentials, 60 percent of companies still don't adequately protect privileged accounts. Two out of three companies don't fully measure whether their disaster recovery will work as planned, and four out of five never measure the success of security training investments.

"It's really astonishing to ... see just how many people are failing at measuring the effectiveness of their cyber security and performance against best practices," Thycotic chief security scientist Joseph Carson said in a statement.

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HBO Hack Highlights Importance of Encryption, Data Governance - eSecurity Planet

UpVote: Turkish regime jails IT trainers in encryption clampdown – Ars Technica UK

Chris McGrath/Getty Images

On UpVote this week we discuss Turkey's deepening crackdown against critics of the Erdogan regime, which recently imprisoned IT trainers who were teaching citizens how to secure their digital communications.

We're joined by Amnesty Internationals tech adviser, Tanya O'Carroll, to work out why the net has widened to include tech experts who help human rights' advocates stay safe in a country that is increasingly and chillingly hostile to freedom of speech, following a failed coup to topple president Recep Tayyip Erdogan in 2016.

End-to-end encryption isn't only perceived as a threat to oppressive regimes, however. This week, the UK's home secretary Amber Rudd once again pushed tech firms such as Facebook and Google to do more to prevent terrorists from using their services. Rudd claimed "real people" dont care about an app's security. Is she sure about that?

UpVote is a Wired and Ars Technica UK co-production hosted by Rowland Manthorpe and Kelly Fiveash.

This episode was recorded on Wednesday, August 2.

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Physicists Take Big Step Towards Quantum Computing and Encryption with new Experiment – Universe Today

Quantum entanglement remains one of the most challenging fields of study for modern physicists. Described by Einstein as spooky action at a distance, scientists have long sought to reconcile how this aspect of quantum mechanics can coexist with classical mechanics. Essentially, the fact that two particles can be connected over great distances violates the rules of locality and realism.

Formally, this is a violation of Bells Ineqaulity, a theory which has been used for decades to show that locality and realism are valid despite being inconsistent with quantum mechanics. However, in a recent study, a team of researchers from the Ludwig-Maximilian University (LMU) and the Max Planck Institute for Quantum Optics in Munich conducted tests which once again violate Bells Inequality and proves the existence of entanglement.

Their study, titled Event-Ready Bell Test Using Entangled Atoms Simultaneously Closing Detection and Locality Loopholes, was recently published in the Physical Review Letters. Led by Wenjamin Rosenfeld, a physicist at LMU and the Max Planck Institute for Quantum Optics, the team sought to test Bells Inequality by entangling two particles at a distance.

John Bell, the Irish physicist who devised a test to show that nature does not hide variables as Einstein had proposed. Credit: CERN

Bells Inequality (named after Irish physicist John Bell, who proposed it in 1964) essentially states that properties of objects exist independent of being observed (realism), and no information or physical influence can propagate faster than the speed of light (locality). These rules perfectly described the reality we human beings experience on a daily basis, where things are rooted in a particular space and time and exist independent of an observer.

However, at the quantum level, things do not appear to follow these rules. Not only can particles be connected in non-local ways over large distances (i.e. entanglement), but the properties of these particles cannot be defined until they are measured. And while all experiments have confirmed that the predictions of quantum mechanics are correct, some scientists have continued to argue that there are loopholes that allow for local realism.

To address this, the Munich team conducted an experiment using two laboratories at LMU. While the first lab was located in the basement of the physics department, the second was located in the basement of the economics department roughly 400 meters away. In both labs, teams captured a single rubidium atom in an topical trap and then began exciting them until they released a single photon.

As Dr. Wenjamin Rosenfeld explained in an Max Planck Institute press release:

Our two observer stations are independently operated and are equipped with their own laser and control systems. Because of the 400 meters distance between the laboratories, communication from one to the other would take 1328 nanoseconds, which is much more than the duration of the measurement process. So, no information on the measurement in one lab can be used in the other lab. Thats how we close the locality loophole.

The experiment was performed in two locations 398 meters apart at the Ludwig Maximilian University campus in Munich, Germany. Credit: Rosenfeld et al/American Physical Society

Once the two rubidium atoms were excited to the point of releasing a photon, the spin-states of the rubidium atoms and the polarization states of the photons were effectively entangled. The photons were then coupled into optical fibers and guided to a set-up where they were brought to interference. After conducting a measurement run for eight days, the scientists were able to collected around 10,000 events to check for signs entanglement.

This would have been indicated by the spins of the two trapped rubidium atoms, which would be pointing in the same direction (or in the opposite direction, depending on the kind of entanglement). What the Munich team found was that for the vast majority of the events, the atoms were in the same state (or in the opposite state), and that there were only six deviations consistent with Bells Inequality.

These results were also statistically more significant than those obtained by a team of Dutch physicists in 2015. For the sake of that study, the Dutch team conducted experiments using electrons in diamonds at labs that were 1.3 km apart. In the end, their results (and other recent tests of Bells Inequality) demonstrated that quantum entanglement is real, effectively closing the local realism loophole.

As Wenjamin Rosenfeld explained, the tests conducted by his team also went beyond these other experiments by addressing another major issue. We were able to determine the spin-state of the atoms very fast and very efficiently, he said. Thereby we closed a second potential loophole: the assumption, that the observed violation is caused by an incomplete sample of detected atom pairs.

By obtaining proof of the violation of Bells Inequality, scientists are not only helping to resolve an enduring incongruity between classical and quantum physics. They are also opening the door to some exciting possibilities. For instance, for years, scientist have anticipated the development of quantum processors, which rely on entanglements to simulate the zeros and ones of binary code.

Computers that rely on quantum mechanics would be exponentially faster than conventional microprocessors, and would ushering in a new age of research and development. The same principles have been proposed for cybersecurity, where quantum encryption would be used to cypher information, making it invulnerable to hackers who rely on conventional computers.

Last, but certainly not least, there is the concept of Quantum Entanglement Communications, a method that would allow us to transmit information faster than the speed of light. Imagine the possibilities for space travel and exploration if we are no longer bound by the limits of relativistic communication!

Einstein wasnt wrong when he characterized quantum entanglements as spooky action. Indeed, much of the implications of this phenomena are still as frightening as they are fascinating to physicists. But the closer we come to understanding it, the closer we will be towards developing an understanding of how all the known physical forces of the Universe fit together aka. a Theory of Everything!

Further Reading: LMU, Physical Review Letters

By Matt Williams - Matt Williams is the Curator of Universe Today's Guide to Space. He is also a freelance writer, a science fiction author and a Taekwon-Do instructor. He lives with his family on Vancouver Island in beautiful British Columbia.

Bell's Inequality, classical physics, Featured, Max Planck Institute for Quantum Optics, quantum entanglement, quantum mechanics

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Indonesia lifts threat to ban encrypted app Telegram – The Philadelphia Tribune

JAKARTA, Indonesia The Indonesian government lifted its threat to ban the encrypted messaging app Telegram because its taking steps to block negative content that includes forums for Islamic State group supporters. But it warned other sites could now face scrutiny.

Rudiantara, the Minister of Communications and Information Technology, who met Tuesday with Telegram co-founder Pavel Durov announced that we have agreed to keep Telegram accessible.

Many other social media sites, messaging apps and file and video sharing systems are used Indonesia, he said, specifically mentioning Facebook and Google as platforms that could be scrutinized in the near future.

Earlier this month, the ministry said it was preparing to shut down Telegram in Indonesia, where it has several million users, if it didnt develop procedures to block unlawful content including pro-Islamic State group discussion groups.

As a partial measure, it asked internet companies in the worlds most populous Muslim nation to block access to 11 addresses offering the web version of Telegram. Durov apologized for failing to quickly respond to the Indonesian governments requests for apparent terror content to be blocked, blaming a miscommunication.

Rudiantara, who uses one name, said the ministry and Telegram will put in place standard operating procedures that improve the ability to address the negative content in Telegram. The blocking measures against web Telegram could be lifted next week, he said.

Suspected militants arrested by Indonesian police have told authorities that they communicated with each other via Telegram and received orders and directions to carry out attacks through the app, including from Bahrun Naim, an Indonesian with the Islamic State group in Syria accused of orchestrating several attacks in the past 18 months.

Critics of the governments threat said it would make more sense to monitor the IS discussion groups for possible intelligence than banning the app.

Durov told reporters there would a line of direct communication between the ministry and top people in Telegram but also said he wouldnt have come to Indonesia if the government had made any requests that would require Telegrams encryption to be compromised.

The basis of Telegram is a 100 percent promise of encryption. This is why our company exists, he said.

Weve discussed ways to block the public channels available for the propaganda of terrorism, which is something that we are committed to do globally, and particularly Indonesia, Durov said.

The free messaging service can be used as a smartphone app and on computers through a web interface or desktop messenger. Its strong encryption has contributed to its popularity with those concerned about privacy and secure communications in the digital era but also attracted militant groups and other criminal elements.

Durov said about 20,000 people sign up to use Telegram in Indonesia daily. It has at least 100 million users worldwide, a figure released by Telegram in February 2016. (AP)

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A Field Guide to Open Source Software Licensing – DABCC.com

Industry research shows that 95% of organizations use Open Source Software (OSS) in their mission critical applications. There are a number of reasons for this, including being able to develop applications faster and with higher quality. And, hey, its free, right? Last year (2016), there were 79 billion (with a B) downloads of OSS components!

At the same time, most organizations have no idea how much open source code they are actually using. In fact, the data says that organizations typically are aware of less than 10% of the open source software they are using.

For enterprises that are developing applications for internal use, OSS represents a potential security risk there are software vulnerabilities in many OSS components. Well known OSS exploits include Heartbleed, Ghost and Shellshock. How many of those 79 billion downloads had more than 1 software vulnerability? 1 out of every 16. Thats more than 4.9 billion OSS components.

What can you do about this?

Read the entire article here, A Field Guide to Open Source Software Licensing

via the fine folks at Flexera Software

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Percona Announces Speakers, Tutorials and Sponsors for Percona Live Open Source Database Conference Europe … – GlobeNewswire (press release)

August 03, 2017 03:00 ET | Source: Percona

RALEIGH, N.C., Aug. 03, 2017 (GLOBE NEWSWIRE) -- Percona, the company that delivers enterprise-class MySQL, MongoDB and other open source database solutions and services, today revealed the initial roster of speakers, tutorials and sponsors for Percona Live Open Source Database Conference Europe 2017, taking place September 25-27, 2017 at the Radisson Blu Royal Hotel in Dublin, Ireland. The special Early Bird registration discount rate is only available until August 8, 2017, and a special room rate at the Radisson Blu Royal Hotel expires on August 14, 2017. Sponsorship opportunities are still available.

The Percona Live Open Source Database Conference Europe, which was completely sold-out in 2016, is the premier event for individuals and businesses developing and using open source software.

The conference theme this year is Championing Open Source Databases, with sessions onMySQL, MariaDB, MongoDBandother open source database technologies, including time series databases, PostgreSQL and RocksDB. The 2017 conference will feature a range of keynote addresses, in-depth discussions and hands-on tutorials for three formal tracks Developer, Business/Case Studies and Operations.

The full conference schedule will be announced in the coming weeks, but the list of speakers and topics is already impressive, with representatives from Dropbox, Facebook, Oracle, VMware and more. The roster currently includes the following:

Keynote Addresses

Breakout Sessions MySQL:

MongoDB:

Other Open Source Database Topics:

Tutorials

Sponsorships Sponsors for Percona Live Open Source Database Conference Europe 2017 are already signing up. Sponsorship offers the opportunity to interact with hundreds of DBAs, sysadmins, developers, CTOs, CEOs, business managers, technology evangelists, solution vendors, and entrepreneurs who typically attend the event. Current sponsors include:

Diamond Sponsor Continuent Gold Sponsor VividCortex

Percona Live Conferences

What: Percona Live Open Source Database Conference Europe 2017 Where: Radisson Blu Royal Hotel,8 Golden Lane, Dublin, Ireland When: September 25-27, 2017

About Percona

With more than 3,000 customers worldwide, Percona is the only company that delivers enterprise-class solutions for both MySQL, MongoDB and other open source databases across traditional and cloud-based platforms. The company providesSoftware, Support, Consulting, andManaged Services to large, well-known global brands such as Cisco Systems, Time Warner Cable, Alcatel-Lucent, Rent the Runway and the BBC, as well as smaller enterprises looking to maximize application performance while streamlining database efficiencies. Well established as thought leaders, Percona experts author content for the Percona Database Performance Blog and the Percona Live Open Source Database Conferences draw attendees and expert technical speakers from around the world. For more information, visitwww.percona.com.

Percona, XtraBackup, TokuDB and Fractal Tree are registered trademarks of Percona LLC or its subsidiaries. All other registered and unregistered trademarks in this document are the sole property of their respective owners.

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Black Duck reports record revenues and revenue growth as well as significant increase in new customers for first … – Automotive World (press…

Black Duck, the global leader in automated solutions for securing and managing open source software, today reported record revenue and record revenue growth for the first half of 2017.

The company said new and add-on revenue from subscriptions to Black Duck Hub, its flagship open source security solution, grew by 77 percent in the first half of 2017 and subscription renewal rates for Hub were in the mid-90-percent range.

Black Duck had a 64 percent increase in new customers during 2016, and the company said it nearly matched the 2016 new-customer total in the first half of 2017. Notable customers added to the portfolio since January include HPE, Carbon Black, Exact Group BV, and Copper Leaf.

CEO Lou Shipley said the company expects overall revenue growth for 2017 will exceed 30 percent in 2017, up 50 percent from 2016.

Were encouraged by our first-half performance and were on track for an equally strong second half of 2017, said Shipley.

Open source software dominates application development today and organizations are increasingly recognizing the need for more effective open source security and management throughout their software development lifecycle. This drives demand for Hub because it helps reduce risk by addressing difficult open source security and management challenges without slowing development, Shipley said.

Black Duck highlighted other significant areas of momentum during the first half of 2017:

In February, Forrester Research published a report punctuating the importance of Software Composition Analysis (SCA) in helping enterprises know whats in their code. The report offered insights into the strategies and solutions available to gain visibility into open source software use and identified the vendors best positioned to help reduce security, management and IP risk. Black Duck was alone in Forresters leader category. Building world-class partnerships is a major corporate goal for 2017, said Shipley, and were encouraged by the strategic partnerships we developed in the first half of this year. He said that as the software development and delivery process becomes increasingly complex spanning AppDev, DevOps, SecDevOps, Containers, the Cloud and IoT a strong ecosystem partnerships and technology integrations is vital. Black Duck has announced integrations or partnerships with Google, Red Hat, Microsoft, Atlassian, and Pivotal.

Black Ducks global headcount has increased 25 percent from 281 to 350 employees worldwide since January. The company expanded the footprint of its Burlington, MA, headquarters in 2016 and Shipley said, weve already outgrown the expansion space and well add more in the coming months. The company introduced Hub in the first quarter of 2015 and Shipley said that significant investments in engineering, in research and in innovation over the last two years have helped us deliver the product capabilities and functionality that have established us as a category leader. Well continue to invest heavily to maintain that leadership. In late 2016, the company established the Black Duck Center for Open Source Research and Innovation (COSRI) and two new groups in Belfast, Northern Ireland, and Vancouver, Canada, are conducting cutting-edge research in open source security vulnerability management, in data mining and in machine learning to drive product innovation.

In April, COSRI released its landmark 2017 Open Source Security and Risk Analysis (OSSRA) detailing audit of more than 1,000 applications that showed significant cross-industry risks related to open source vulnerabilities and license-compliance challenges.

The COSRI report found high levels of open source usage 96 percent of the audited applications contained open source and significant risk to open source security vulnerabilities. More than 60 percent of the applications contained open source security vulnerabilities.

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Bitcoin cash is already the third most valuable cryptocurrency – Quartz

Bitcoin cash, the offshoot of cryptocurrency bitcoin that was created yesterday, is now worth $7.6 billion, according to data provider Coin Marketcap. That pegs the value of all the bitcoin cash in circulation at 17% of bitcoins total market value of $44.4 billion. This makes bitcoin cash the third most valuable cryptocurrency, behind bitcoin and ethereum. It trades under the BCH symbol on most exchanges, while bitcoin retains BTC.

Bitcoin cashs vault up the valuation charts can be explained by its provenance as a fork of bitcointhink of it like the splitting of an amoeba in two. The market value of all the coins in circulationusually referred to as the market cap in cryptocurrency jargonis calculated by multiplying a coins price by the total supply of coins in circulation. When bitcoin cash splintered off from bitcoin, it also inherited the supply of coins in circulation. In other words, there is roughly the same amount of bitcoin cash in circulation as bitcoin, and both cryptocurrencies each currently have 16.5 million units in circulation.

There are slightly more bitcoins in circulation than bitcoin casha difference of 474 coinsbecause when bitcoin cash forked, there was a period of several hours when no new bitcoin cash blocks were mined. In the meantime, bitcoin miners continued to find blocks, introducing new coins to the circulating supply.

A chain split is a slow and confusing event, even with a deadline. Bitcoin cash had a much publicized deadline of Aug 1, 12:20 UTC (or 8:20am US Eastern time) for the split to occur. Yet it wasnt until hours later that the split actually took place.

The reason for this confusing state of affairs is as much about semantics as technicalities. Firstly, the bitcoin cash software uses a particular calculation for time called median time past thats based not on clock time but on the number of blocks mined after the 12:20 deadline. Since there is an element of chance that determines when exactly a block is mined, experts could only estimate when the bitcoin cash software would kick in. In practice, this meant that the bitcoin cash software would only activate about an hour after 12:20 UTC, which was the case.

Once bitcoin cash was activated, the bitcoin cash blockchain stopped growing for several hours, while the bitcoin blockchain continued to add new blocks as normal. This activation happened at 12:37 UTC when both blockchains had just mined block number 478,558this would be the last common block shared between bitcoin and bitcoin cash. All future blocks would send the coins on their independent trajectories.

There was confusion as the bitcoin cash blockchain stalled at block 478,558. What would normally happen is that a new block would have been mined478,559in about 10 minutes. But as hours went by, it became clear that not enough miners were committing processing power to the new blockchain to discover a new block. This was because the new chain also inherited the difficulty threshold for finding a new block from the bitcoin blockchain, meaning a massive amount of processing power would be required.

At this stage, although the chains have split, the new chain didnt yet have any new blocks, so was technically simply a stalled version of the bitcoin blockchain. Most observers in the bitcoin world thought it would take hours, or even days, for miners to devote enough processing power to the bitcoin cash blockchain to discover a block.

But around six hours later, ViaBTC, a Chinese mining pool based in Shenzhen that has vocally supported bitcoin cash, added block number 478,559 to the bitcoin cash blockchain. This block was 1.9 megabytes in sizenearly double the maximum size allowed on the bitcoin blockchain. Compare this to the same block on the bitcoin blockchain, which coincidentally was also mined by ViaBTC, but was only 272 kilobytes in size. Subsequent blocks, however, have been well below 1 MB, reflecting the small number of transactions on the new blockchain.

Two metaphors from the traditional equity markets have been used to describe the creation of bitcoin cash: a stock split or a dividend. But there are good reasons to think that bitcoins split is not like a stock split at all, as this CoinDesk piece suggests. For starters, a stock split doesnt change the assets value; it simply adjusts the quantity and therefore price of the stock on the market. An increase in the number of stocks leads to a commensurate drop in price, without changing the fundamentals of the company in question.

Bitcoins fork doesnt split existing units of bitcoinin fact, the bitcoin price has remained more or less the same throughout (which could be seen as a bullish vote of confidence in the cryptocurrencys continued supremacy). Neither have any new units of bitcoin been created by the fork.

Instead, what happened is more like cloning. Thats because anyone who held bitcoin before the split would now also hold the equivalent amount of bitcoin cash. This makes the bitcoin fork more like a dividend: investors who held on to bitcoin and werent scared off by the fork were now credited with an equal amount of bitcoin cash.

A major cryptocurrency forking, and the market supporting both resulting coins, isnt as weird as it sounds. This already happened with ethereum in July 2016, when a philosophical disagreement among ethereum holders led to a hard fork, creating ethereum and ethereum classic.

Ethereum classic has gained influential backers, such as venture capitalist Barry Silbert. Ethereum classic is traded on a handful of major exchanges. It has a market value of $1.3 billion, or 6% of ethereums $21 billion. As ethereum went on a dizzying rally this year, so did ethereum classic, rising by 16-fold from the start of the year to a peak of nearly $22 per unit in June.

But ethereum classics rally was muted compared to ethereums 40-fold increase over the same period. Nevertheless, its price trades well below that of ethereum, with each unit of ethereum classic trading for just over 0.05 ether.

While the ethereum and bitcoin splits share some similarities such as a contentious dispute over the fundamentals of each protocol, bitcoins split is more significant. Whereas ethereum classic has maintained all the features of ethereum when it splitincluding preserving the transactions that allowed funds to be stolen from the Decentralized Autonomous Organization last summer, which was the root of the disagreementbitcoin cash has significant differences in its underlying programming.

Chief among them is an eight-fold increase in the block size limit, allowing bitcoin cash miners to handle eight-megabyte blocks compared to bitcoins one megabyte. Being able to handle more transactions helps bitcoin cash act more like a payment channel, which is what its proponents are advocating.

One way to get bitcoin cash is to buy it. Its now trading on several major exchanges (heres a list), with the bulk of trading volume taking place on Kraken and Bittrex, according to Crypto Compare.

The other way to get bitcoin cash is to claim it from any bitcoin holdings you owned before the fork. In theory, its simple: All private keysbasically the password to unlocking bitcoin holdingsare identical on both the bitcoin and bitcoin cash blockchains. This means you use the same private key to access funds on both chains. But in practice, this can be tricky.

The most reliable, though fiddly, method is to run a bitcoin cash full node. This is software that downloads the entire bitcoin cash blockchain , which is around 126 gigabytes, and also checks the validity of live transactions on the bitcoin cash network. Import the private keys from your existing bitcoin wallet to the wallet linked to the bitcoin cash full-node. You should then be able to access the new bitcoin cash funds. Check out the detailed instructions, and several other methods, including hardware wallets and paper wallets, in this Bitcoin Magazine piece.

Some exchanges also automatically credit pre-fork bitcoin holders with bitcoin cash. These include Kraken, Bittrex, and Bitfinex. This seems simple, but there can be several drawbacks. You must rely on the exchange to credit the new coins, which can be a slow process, and you may be unable to withdraw the new funds immediately, as Kraken users are currently experiencing.

Some exchanges also apply a discount to the amount of bitcoin cash thats credited, like Bitfinex, which offers 0.85 bitcoin cash for every bitcoin. The discount was applied because the exchange claimed customers were manipulating its peer-to-peer margin financing system to inflate the amount of bitcoin cash they would receive.

Bitcoin cash is now, for all intents and purposes, an asset independent of bitcoin. It must develop its own ecosystem of developers, exchanges, and startups in order to flourish.

Bitcoin cashs price will be an important indicator of its future potential. If it is indeed what bitcoin ought to bea payment system with a large transaction capacity, as its advocates arguethe market should value it above bitcoin at some point in the future.

Another important indicator will be the amount of hash rate or processing power that miners commit to bitcoin cash. There isnt a data source for the hashrate on the bitcoin cash network yet, but we know that miners are crunching 6.4 million terahashes per second on the bitcoin network. That consumes an estimated 15 terawatt hours of electricity a year, putting the bitcoin networks consumption between Turkmenistan and North Korea, if it were ranked with countries.

If miners abandon bitcoin cash because mining it turns out not to be profitable, then bitcoin cash could wither away. As one expert observer of the fork, Andrew Chow, who developed the widely watched BTC Fork Monitor, told me, if that happened, the new chain would simply be dead.

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Bitcoin cash is already the third most valuable cryptocurrency - Quartz

South Korean Lawmaker Seeks to Tighten Cryptocurrency Rules – CoinDesk

A South Korean lawmaker has proposed amending the country's Electronic Financial Transaction Act to more closely regulatecryptocurrencies.

According to several South Korean media outlets, including theFinancial NewsandSeoul Economic Daily, the proposal was put forth this week by Park Yong-Jin, a representative from theDemocratic Party who has been at the center of recent regulatory deliberations.

The amendments would seek todefine digital currency businesses and classify different partiesas digital currency traders, brokers, issuers and managers.

Itfurther mandates businesses hold deposits or provide insurance to hedge against potential cybercrime incidents, and aims toapply a 500 million South Korean won ($450,000) capital reserve threshold for any business that operates cryptocurrency trading service prior to seeking an approval from the authority.

Provisions for preventingmarket manipulation and money laundering usingdigital currencies are also included in the changes.

Parkis seeking a moreregulated environment amid recent surging prices of major cryptocurrencies like bitcoin and ethereum. Theproposalfollowsa recent panel hosted by the politicianat a public hearing to argue for regulations coveringdigital currency.

As for a next step, the bill is expected to be presented to the regular session of the National Assembly in September, at which point, it needs the approval of the country's Financial Services Commission.

As reported by CoinDesk, the financial regulator convened its first initiative last November to launcha regulatory policy on cryptocurrency. However, as of today, its policy plans still remain unclear.

Seoul, South Korea image 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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Options Exchange CBOE to Launch Cryptocurrency Derivatives in 2017 – CoinDesk

The Chicago Board Options Exchange (CBOE) has partnered with Gemini, the bitcoin exchange backed by investors Cameron and Tyler Winklevoss, as part of a bid to launch cryptocurrency derivatives trading.

According to the Wall Street Journal, the agreement will find the CBOE leveraging Gemini's data for the launch of dedicated product listings in 2017. Opened to traders in 2015, Gemini is a New York-based exchange offering bitcoin and ether markets, as well as daily auctions of the cryptocurrencies.

The CBOE is still waiting for regulatory approval on the move, the report said, which would provide institutional investors with an avenue to hedge against volatility in the fast-growing cryptocurrency markets. Already, the total value of all cryptocurrencies from just over $10 billion at the start of the year, to a high of $115 billion in June.

Further, the announcement comes at a time when institutional investors are increasingly taking note of this price appreciation, and are seeking to determine opportunities for the technology that fit into their existing business models.

Most notably, it follows a decision by the Commodities Futures Trading Commission to grant a license to LedgerX last week that would allow it to clear and custody cryptocurrency derivatives for assets like bitcoin and ether.

Markets trading image 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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