Encryption and terror: how can government get the balance right? – ITProPortal

The emergence of multinational, mass-scale, internet-based social networks at the start of the 21st Century has changed the rules of communication like no other invention since the birth of broadcast radio 100 years previously.

Never before has it been possible for anyone to disseminate information, talk and share on such a mass scale, across the barriers of language and political borders. It's marvellous on so many levels.

But there's a dark side. Add easy-to-use, easy-to-access, high-strength encryption into the equation, as has indeed happened over the last few years, and we have a recipe for disaster. Terrorists and law-breakers are empowered like no previous era - and it may feel like there's no means to stop them without major incursions to civil liberties.

It's very clear that terrorist groups and other criminals are using encryption to organise their activities without fear of being detected, because strong encryption has become so easy.

Encryption proliferation, through popular messaging services - available for free, to anyone - makes it impossible for our security services to exercise their investigatory powers in the digital world in the same way they can in the physical domain.

In the physical domain, we expect privacy, of course. We expect to be able to come into our houses and close the door behind us, and no-one is allowed to come in and bother us. Quite right, too.

Unless we've broken the law and it demands we either be arrested or our property investigated.

Then, those privacy rights are clearly less important than the rule of law.

At that point, as members of a democratic society, we're bound to agree that - having obtained a judicial warrant through the laws we consent to as members of this society - security and law enforcement services ought to be able to bash through people's doors and conduct a thorough search.

But those actions are no longer available to our peacekeepers in the digital realm. The doors they have a legal warrant to breach won't break down. The wire-tap that was obtained through the courts yields only gibberish.

This cannot stand. We can't live safely in a society in which our security forces work blind and deaf.

This weakness for security and privacy are born out of design. The outer layers of the Internet, where social networks and messaging apps exist, have moved faster than its lowest levels.

The technological foundations of the Internet, invented in 1969 to enhance communications between a limited number of academic, corporate and defence systems, as DARPANET have barely moved on.

There was no thought around maintaining personal privacy on these systems back then, nor was there any thought given to the widespread use of sophisticated encryption systems.

Much the same thing is true of our legislature which, in the UK, relies on a complex system of precedents and legal acts, dating back centuries. Many current lawmakers continue to have a weak grasp of technology, and are prone to making over-generalisations that are neither practical, nor ultimately in their nation's best interest.

In short, we need to change the Internet, and our social networks.

We need to retrofit our wonderful, but dated, 1969 communications network with the powers it needs to continue to provide the amazing benefits it has done to date, but with safety and privacy embedded.

We need a blanket policy that will treat everyone the same, and give everyone their rightly deserved privacy.

A mechanism for privacy should be provided at the application layer of the Internet and this involves several steps, and some caveats.

To join future networks, identities ought to be verified. This is a complex area, and the verification credentials required of a 10-year-old girl might not be the same ones required of a 30-year-old man. But the broad proposition is that everyone should have a verifiable identity on the Internet that remains the same throughout one's life, much like your passport.

That, in itself, poses questions about privacy. If I were a young, closeted gay man, for example, then I may be looking for information and connections on the Internet that means a verified identity could threaten my privacy, and have further ramifications for my private life. That needs to be protected against.

Or what if I am now a 40-year-old businesswoman, who perhaps made some regrettable choices in my youth that are shown online? Again, people deserve that degree of privacy, just as they would normally find it in the physical world.

So, everything to be encrypted by law. Everything. Nobody, and no commercial organisation, will be allowed to read or identify your messages, browsing history or any other content you have produced on the Internet through any kind of scanning without your explicit consent.

The proviso is that when your actions and your content are encrypted, very securely, then the keys to that encryption action are retained by the service provider.

If the law enforcement or national security authorities require access to those keys, then the regulated service provider will yield them, for the specific actions for which they have a warrant. Only people with something to hide should have anything to fear - again, only warranted authorities would be allowed access.

This, I believe, is the only solution. We need privacy. We need security. We cannot continue as a free, democratic society without a balance between those two things. At Scentrics, we've put years of research into the problem, and we believe that legitimised key escrow, through agencies regulated by government, as telcos and ISPs already are, is the only solution.

There's no doubt that a transition to such a state will be resisted by some, and from well-meaning intentions. People, by-and-large, don't want to change. There's a knee-jerk lobby ready to resist any change to the status quo perceived as any infringement to existing rights. And not least, be sure that such a change would require a considerable body of legislation, communication and reassurance. It will be a long, hard road.

But consider the alternative. Across most of the Internet, private networks are harvesting everything you do, say and post. And make no mistake that state authorities are not equally interested in probing your digital persona on a mass scale. You have no privacy whatsoever in the current environment. Encryption will change the rules for that engagement - in the favour of private citizens.

The encryption tools we have now are empowering terrorists, who currently face no checks to their organisation, recruitment, and operational efforts. That cannot be allowed. Whereas server-centric encryption against verified identities will make it very hard for them to continue.

What's it to be? The status quo we have at present is entirely untenable. And the terrorists will win if we drag our feet. As for the future we are proposing? It requires compromises, but making rational compromises which balance safety and civil liberties is the very foundation of rational society.

Paran Chandrasekaran, CEO, Scentrics Image Credit: Sergey Nivens / Shutterstock

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Encryption and terror: how can government get the balance right? - ITProPortal

Ixia’s Active SSL Sheds Light On Encrypted Traffic – No Jitter

Ixia's Active SSL Sheds Light On Encrypted Traffic By employing a network packet broker, tool can handle decryption/encryption without negatively impacting performance.

By employing a network packet broker, tool can handle decryption/encryption without negatively impacting performance.

Instead of turning a blind eye (literally) to the traffic or overburdening critical tools, Ixia's Active SSL feature lets a network packet broker handle the decrypt/encrypt process without negatively impacting performance.

The job of a network manager is really hard and continues to get harder. Complexity has increased, new devices are connected at an alarming rate, and shadow IT has run amok in most companies. However, no trend has made the network manager's life more challenging than the rise of encrypted traffic.

Encryption is the ultimate Catch-22. At first it seems like a great idea in that SSL hides traffic from the bad guys. But then you quickly realize it enables those same hackers to hide threats from the monitoring and security tools that network managers rely on to manage and protect the network.

One solution is to have the tools decrypt, do whatever they're supposed to do, and then re-encrypt the traffic. But the SSL decryption/encryption process is processor-intensive and can bring the tools to their knees, so many network and security professionals let the encrypted traffic go by and hope and pray it isn't malicious. Last year, a ZK Research study found that almost 50% of organizations admit to turning security features off in favor of performance -- and encrypted traffic is a big contributor to that percentage.

Ixia offers up a better alternative to the encrypted traffic conundrum. Instead of turning a blind eye (literally) to the traffic or overburdening critical tools, Ixia's Active SSL feature lets a network packet broker handle the decrypt/encrypt process without negatively impacting performance.

The past several years has seen an explosion in the number of purpose-built network tools aimed at helping network managers understand what's happening on the network and how to secure it. The resulting tool sprawl has created a surge of interest in network packet brokers, which Ixia describes as a middleman for network monitoring traffic. These devices make adding new tools plug and play, performing the majority of the heavy lifting of traffic so the tools can do what they were meant to do and no more.

Ixia has added the Active SSL feature to its SecureStack software set that runs on its Vision One network packet brokers. Ixia's customers can use the platform to identify performance problems across physical and virtual networks as well as better secure the environment. Active SSL highlights include:

Active SSL also uses something called "ephemeral keys" to provide forward secrecy and protect past and future data exchanges. Ephemeral keys are cryptographic keys generated for each execution of the key establishment process. The use of the ephemeral keys means traffic is un-encrypted, inspected, and re-encrypted before being sent back to the network.

Some organizations have shied away from encrypting traffic because of the overhead involved in doing so, but the IETF's Transport Layer Security (TLS) 1.0 standard, which uses ephemeral keys, improves both security and performance. With TLS, the use of encrypted traffic will likely accelerate, making Active SSL and other solutions that can help bring light to a growing blind spot.

Follow Zeus Kerravala on Twitter and Google+! @zkerravala Zeus Kerravala on Google+

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Ixia's Active SSL Sheds Light On Encrypted Traffic - No Jitter

Active Management of Open Source Components Delivers Measurable Improvements Claims Sonatype Report – InfoQ.com

In July, Sonatype released their third annual State of the Software Supply Chain report concluding that when organisations actively manage the quality of open source components in software applications they see a 28% improvement in developer productivity (through reduction in manual governance), a 30% reduction in overall development costs, and a 48% increase in application quality (as application vulnerabilities are removed early reducing their incidence in production). Analysis also showed that applications built by teams utilising automated governance tools reduced the percentage of defective components by 63%.

Derek Weeks, VP and DevOps Advocate at Sonatype told InfoQ:

The data comes from a number of different sources; empirical data assessed from Maven Central for Java and Sonatype has indexed other repositories such NPMJS.org (Javascript), the NuGet Gallery (.Net) and PyPi.org (Python). We also research throughout the year, constantly keeping an eye on the market for news and stories about open source components, quality and practices and regulations.

The report also highlighted the growth in consumption of open source components in software development; year-over-year downloads of Java components grew 68% (52 billion in 2016), JavaScript downloads grew 262% (59 billion in 2016), and demand for Docker components is expected to grow by 100% in the next 12 months (12 billion downloads).

Weeks said:

Innovation is king, speed is critical, open source is at centre stage. Because speed is critical, any developer or CIO or CEO will say if you can do something in one second versus fifteen minutes, choose the one second option. This is why people are choosing the download from the internet option rather than the build from scratch option.

Part of the challenge for organisations using open source components is that, according to the report, open source software (OSS) projects take a mean time of 233 days to remediate a known vulnerability - and only 15.8% of OSS projects do actively fix vulnerabilities.

Weeks said:

Most open source projects are perhaps not aware of the vulnerabilities - maybe the security researchers are not able to effectively communicate their findings with the projects. Maybe there arent enough people that understand secure coding practices in the projects themselves in order to assess and remediate the vulnerabilities. This is conjecture on my part.

Sonatype claims that high-functioning DevOps organizations are utilizing machine automation to govern the quality of open source components flowing through their software supply chains thereby improving software hygiene.

Weeks said:

People need to be aware of what open source components they are using in their software development. Awareness changes behaviours; build a bill of materials of your software. Once you have the bill of materials you can assess what is good. This awareness needs to happen much more than it does now. If you want to understand if you are using good or bad components, the earlier this happens the better. If you are delivering this intelligence to developers they can make choices and embed secure coding practices early in the coding cycle.

We asked Weeks if there is security skills shortage. He said:

Yes and no. With every new movement in the IT industry theres always a shortage of skills but the way the IT industry continues to evolve is by finding tools and solutions to automate these things. You can say there is an application security skills shortage or you can say I have a person manually assessing the security of an application - what if instead of having them work manually, have them automate part of that analysis or security as part of their job? That makes that person in that organisation more productive. Technology and automation is the answer to skills shortage - we innovate our way out of it.

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Chronicled Completes Technical Pilot Demonstrating Cryptographic Anonymous Transfer of SGTINs for Supply Chain … – PR Newswire (press release)

In addition to removing trust barriers and multi-party friction and bottlenecks, Chronicled's technical pilot represents the first step towards full prevention and elimination of the entry of counterfeit products and components into the supply chain. Within the cryptographic framework of the pilot, an SGTIN can be in the possession of only a single trading partner at any given time. Any duplication will alert the network to the existence and location of a counterfeit asset.

The first market vertical that Chronicled is tackling with the methodology -- in partnership with The LinkLab -- is the pharmaceutical supply chain. An FDA regulatory regime called the Drug Supply Chain Security Act (DSCSA) calls for full end-to-end track and trace of pharma products by 2023 on an interoperable platform. However, under conventional approaches, the pharmaceutical industry fears the leakage of sensitive business intelligence that could tip-off their trading and financing partners about purchasing patterns and business volumes.

"Our team has been working hard on this key privacy issue, and as a result Chronicled is now the first to successfully demonstrate this cryptographically secure method of anonymous physical asset identity transfer," said Chronicled CEO, Ryan Orr. "As an immediate next step, we plan to continue to work with industry partners to implement current supply chain workflows using this technology while optimizing for volume, aggregation, returns, recalls, and performance considerations."

"This is the first step in a longer-term plan to fundamentally improve the way assets move through supply chains by using blockchain technology to immutably track the provenance of any object with an SGTIN," said Chronicled CTO, Maurizio Greco.

Data written to a blockchain are transparent and immutable and do not rely on central databases or human intermediaries. Because of this, the zk-SNARK methodology is not susceptible to human error or conventional hacking. The framework piloted by Chronicled prevents any leakage of company identity, shipment information, and transaction volumes and makes the usage of a blockchain ledger resistant to unwanted usage or analysis of data by an industry analyst or malicious third party. Associated smart contracts allow a regulator to fully and reliably audit the provenance of an asset after the fact, without the need for prior knowledge, continuous monitoring, or the need for trust in the various organizations operating within the supply chain.

"In early August, Chronicled will host a clean-room session with three experts in the field of applied cryptography to verify the robustness of the technical method and publish independent assessments in a public forum," said Chronicled Engineer Maksym Petkus.

While the initial pilot is being implemented using a Parity client on Ethereum, it is compatible with other blockchain systems, including Quorum and Hyperledger, which Chronicled also supports. When fully implemented, the system is expected to represent a major step towards eliminating much of the friction that exists under present regulatory and trade regimes, as data privacy is afforded while at the same time the record of custody and provenance is immutably and cryptographically secured. This unique solution to solving the competing requirements of full privacy, and also item level provenance when requested by a regulator, will represent a major move toward digitalization, trust, and interoperability in global trade flows.

More broadly, the pilot lays the foundation for the implementation of secure, automated business practices on blockchain systems. Follow-on use cases might include IoT-based verification of physical custody of a physical shipment as a precursor to being able to transfer custody of an SGTIN to the next trading partner in the chain; or, immediate, secure fulfillment of contractual obligations, including, for example, automated payment upon delivery of a shipment.

About ChronicledBased in San Francisco, Chronicled is a technology company leveraging blockchain and IoT to power smart, secure supply chain solutions. Chronicled secures IoT device identities, data, and event logs and automates IoT-dependent business logic through smart contracts. Chronicled is also a founding member of the Trusted IoT Alliance, with the mission of creating open source tools and standards to connect IoT and blockchain ecosystems to deliver business value.

About The LinkLabThe LinkLab is a unique supply chain consulting group founded to provide life science companies guidance and support to meet world-wide serialization regulations. With deadlines fast approaching, we work to provide companies with innovative approaches to ensure gaps are identified, timelines are met, and business value is realized. The LinkLab formed from observing the Pharma industry's progression in establishing electronic management of prescription medicines and seeing a need for improvements. With experience going back to 2008 in planning for California's ePedigree law, The LinkLab principals have, for the last four years, focused on projects which support the packaging, distribution, and commercial requirements of serializing prescription medicines. To learn more, visit http://www.thelinklab.com/.

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Chronicled Completes Technical Pilot Demonstrating Cryptographic Anonymous Transfer of SGTINs for Supply Chain ... - PR Newswire (press release)

Macron’s emails RELEASED: WikiLeaks publishes documents and there’s 790 mentions of BREXIT – Express.co.uk

GETTY

Assanges network says the emails have been verified through its DKIM system.

French investigators said in June they found no traces of a Russian hacking group in the cyberattack on Macrons election campaign.

The thousands of emails were released on Monday as a searchable index.

In total, 71,848 emails, 26,506 attachments and 4,493 unique senders are included in the leak.

However, early on WikiLeaks said it had confirmed the 21,075 emails were sent or received by addresses associated with the campaign.

This is done by checking domain keys used to sign emails.

More than 21,000 were verified while there are 50,773 emails it could not verify.

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1 of 10

It is believed that Julian Assange chooses to live in Sweden because the country's media laws are among the world's most protective for journalists

A statement said WikiLeaks believes based on statistical sampling that the overwhelming majority of the remainder are also authentic.

It said: As the emails are often in chains and include portions of each other, it is usually possible to confirm the integrity other emails in the chain as a result of the DKIM verified emails within it.

Macrons camp was attacked with a hack just days before his run-off victory over Marine Le Pen.

Russia was blamed initially.

Head of Frances cybersecurity agency, Guillaume Poupard, has said there is no evidence of Russian interference.

Whistleblower Assange has spent five years holed up in Londons Ecuadorian embassy after originally moving in to avoid extradition to Sweden to face rape charges.

These charges have since been dropped but Julian Assange still fears he will be seized if he leaves the embassy and taken to America to face punishment for releasing secret information.

GETTY

WikiLeaks fans will be able to trawl through the emails which reference Brexit hundreds of times and show the Macron camp was keeping a keen eye on everything Marine le Pen did.

In an interesting development, multiple emails go against the French tough line on Brexit.

In a recent chain, Macron's industrial and military adviser said Britain should be kept onside because it is the "most important" military player in Europe.

Another adviser told Macron the EU seemed less appealing without Britain.

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Macron's emails RELEASED: WikiLeaks publishes documents and there's 790 mentions of BREXIT - Express.co.uk

Elad Gil and Silicon Valley’s bright future in cryptocurrency, genetics … – TechCrunch

A disappointed Pokmon GO Fest attendee has proposed class-action lawsuit againstNiantic

Elad Gil is running around the Color Genomics office when I come to meet him for a little sit-down. The place is full for a Friday afternoon. Theres a worker taking calls on the couch in the front and plenty of others pacing about in the background.

The office is tucked away in an unassuming industrial area of Burlingame, California, in a building that reminds me of some 60s-style government structure. Color is easy to spot. First suite on the first floor and the only one with, well, bright color.

Gil offers me a water and we sit down in a little conference room. Jokingly, he says maybe he can do something funny for the featured image for my article like pretend to hold up the color wheel logo. Katie would never let me do that, he says, referring to his chief marketing officer and ex-Twitter employee Katie Jacobs Stanton. Hes nerdy funny. I like that.

Gil came to Silicon Valley with impressive academic credentials, including a degree in mathematics, another in molecular biology and a PhD in biology from MIT. It was 2001, and he had hoped to make a dent in the universe. But the timing was off. The country was already headed toward an economic downturn, then 9-11 happened.

He was at a telecom company that quickly grew to 150 people and shortly after shrank to a tenth of the size in five rounds of layoffs. Gil was cut in the third round.

That was a turning point for him.

All these people helped, he said. Like big brand-name VCs were referring me to companies just to help. They were like, Everythings collapsing. Youre some random person who showed up with a PhD in biology. You have no job prospects.

He went on to hold prominent positions at Google and Twitter and now as a co-founder in Color Genomics. Hes also an investor in several well-known startups including Airbnb, Square, Stripe and Pinterest and is in a position, which hes known to readily use, to give back to Silicon Valley in much the same way.

But, a dark cloud has been hanging over the Valley lately. News of several incidents of sexual harassment and sex discrimination of female founders have toppled VCs once seen as demigods and caused some to lose hope in the dream.

SB: Ive heard people say Silicon Valley is over. Theyve kind of almost lost faith in their heroes, and then theres all these other little pop-up satellite Silicon Valley-esque cities starting to come up. Do you think Silicon Valley is over?

EG: Oh God, no. I think its best days are ahead of itDo you know the last time they said that Silicon Valley was over?

SB: When?

EG: Theres two times.One was in the early 90s where they were like Its over. Theres nothing left to be done.

SB: At the height of the semiconductors.

EG: Yeah, because all the semiconductor stuff was really sort of like 70s and 80s. And then in early 90s 91, 92, 93 theres the internet. And I was talking to somebody who was really prominent in the internet wave, and he was like I moved out here in like 93 and everybody thought it was over.

Literally, that was the thing. They were like The best times are behind us. All the stuff that could be done has been done. Its over. And then a small group of people were like Lets do stuff on the internet. Others were like Thats insanity. Like the internets a stupid toy thing that connects five universities. Who cares? Then of course, Netscape happened, and then theres a wave of innovations, and then in the bubble that I moved into with my perfect bad timing, the collapse I moved into. In that period, everybodys like Oh, theres nothing interesting on the internet, and we have to go back to hard tech. And Kleiner Perkins got into clean tech, and all these people were talking about nano tech, and it was like Silicon Valley is over, and theres nothing to do. We need to find new industries. Thats literally what happened.

Then all the social waves happened, and the mobile waves happened Just like theres a business cycle, theres a venture cycle, and innovation cycle. You end up with these gaps, and I think were just going through a period where theres less obvious things.

Interjection: We started talking about cryptocurrencies, ice cream, health tech and whats next in Silicon Valley. Ive cut a bunch of this short for brevity.

EG:I basically think the last six months have been cryptocurrencys Netscape moment, and I think were still trying to figure out whats Google, and whats PayPal, and Yahoo, and what to keep in with this first wave.

SB: [Cryptocurrency] scares people, especially when its very new.

EG:Totally. You remember the first internet. People were like Oh, nobodys going to buy anything on that. Theyre not going to put a credit into a website. Thats madness.Now weve got Instacart, Amazon..

Can I say something, and then argue that I never said it when you have a tape? Can I do that purposefully?

SB: Okay. What do you want to argue?

EG: I never said I like chocolate ice cream. I like chocolate chip, or something like that.

SB: And Ill be like No, on the record. This is where he said it.

Okay, so kind of wrapping this up. Where do you see Color fitting in in all of this?

EG: Yeah. I think Color was sort of part of a very early first wave of the visual data areaSo really our focus is on how do you unlock information thats sort of locked up for people, make it something they can actually use to help manage their own health.

SB: People might say it makes it a lot harder if you have to go through your physician first to get this information. I think thats kind of the allure of these at-home health tests a lot of the time.

EG: I think it depends on how much friction you can take out of the physician process, but also the flip of it is, if physicians are telling people that they should consider it, thats actually a really powerful way, as well, for people to participate. So I think there are sort of two sides of the same coin.

As an Ashkanazi Jew, I remember going to my doctor and like Hey, should I be taking these genetic tests for cystic fibrosis and Tay-sachs and all this other stuff as a carrier? And he was like, Oh yeah. Youre Jewish. Sure. You should do it.

SB: Sure. Gotta be proactive.

EG: But I had to bring it up, right? Its something thats often recommended for Ashkenazi Jews to do. So, were basically trying to create an online version of that, where youre still working with the physician but theres different ways for you to work with him.

SB:Where do you think people can innovate further in the health tech space right now? What would you like to see?

EG: Yeah. Um, thats a great question. I think ultimately, theres so much data available ambiently through peoples bodiesThis company Cardiogram that I mentioned. Im a small investor there, from a disclosure perspective. Thats a good example of where youre just ambiently recording and then telling people that they may have had a heart attack. I think that those are some themes that are really intriguing.

I think the top part in health care is that the people who are often benefiting the most from things, arent necessarily the people making the buying decisions. There are some things at a low enough price-point, so that really changes the adoption rates of different tested products. Thats one obstacle, in terms of larger scale adoptions.

SB: Okay. I think well end it on that.

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Is Kazakhstan the next cryptocurrency hotspot? – Crypto Insider (press release) (blog)

Back in 2014, Kairat Kelimbetov, then-head of Kazakhstans National Bank suggested that Bitcoin could be a form of financial pyramid scheme. The common belief among Kazakhstani officials was that cryptocurrencies could undermine the countrys already struggling tenge.

The tenge absolutely was struggling, though.

Nearly 80 percent of the Kazakhstan National Banks reserves, deposited from customers, are not kept in tenge, the countrys national currency. Though the number is lower for businesses, the fact that most of the banks reserves are in dollars, euro, and other currencies is not encouraging for the countrys national currency. Even still, with the tenge having fallen over 70% between 2008 and 2014 due to rampant corruption and low oil prices, media rumors of a BTC ban were circulating the Central Asian nation throughout 2014.

Things began to change, however, and as cryptocurrencies increased in popularity and other countries began to relax their positions, the Kazakhstan government followed suit. The Kazakhstani even saw their first BTC ATM in late 2015. Seeing the need for change, the government began the race to regulate cryptos in 2016, allowing the National Bank leverage to monitor the situation, according to Daniyar Akishev.

In June 2017, Kazakhstan announced plans to begin selling blockchain based bonds. The idea was to provide investors with a low-cost, commission-free, and speedy medium for purchasing bonds. While not necessarily a new idea, it was a landmark event for Kazakhstan in the blockchain race.

Showing an even greater commitment to the governments efforts to adapt to the technology taking root across the world, President of Kazakhstan Nursultan Nazarbayev announced that It is high time to look into the possibility of launching the international payment unit. It will help the world get rid of monetary wars, black-marketeering and decrease volatility at markets, at the 10th Astana International Forum (AIF). According to Nazarbayev, All countries should be represented there equally. This is a difficult question but it should be solved. This signaled a distinct shift in ideology from officials 2014 decry of the subject.

From that surprising announcement, a fresh movement was seemingly born. In mid-July, working with Deloitte, Kesarev Consulting, Waves Platform, and legislation firm Juscutum, the Astana International Financial Center (AIFC) announced that the coalition would be working together to develop supportive cryptocurrency regulation in Kazakhstan. We consider this project as a perfect opportunity to create a new jurisdiction, which would be most favorable for crypto projects in the world, said Head of Juscutum, Artem Afyan.

Kazakhstani officials clearly recognize the need to adapt to the rapidly changing techno-economic environment, and theres no lack of enthusiasm from the trading population either. Kazakhstans move to become the worlds second government to regulate cryptocurrencies puts it on track to become a hub for crypto-startups, blockchain businesses, and ICOs. The financial implications of this move could prove to be more than beneficial to the nations struggling economy.

But Kazakhstan is not the only country in Eurasia to catch the Bitcoin bug. Belarus has recently approved the use of blockchain technology for its securities market, while Poland last year promoted an idea to move to a cashless economy favorable to blockchain-based security systems. Even Ukraine has lofty goals involving cryptocurrency.

The blockchain race is on, and those who act fast and efficiently could emerge as leaders in the crypto-revolution.

Images from Wikimedia commons and Forexnewsnow.com

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Cryptocurrency 101 – TechJuice – TechJuice (press release) (blog)

Cryptocurrency is the talk of the town now, its everywhere, from thousands of digital coin ATMs installed over the world to the hospital in Pakistan offering to accept the digital currency. Among all the debate about its legality and profitability, an unfamiliar mind finds itself confused over the word cryptocurrency. Now we are going to discuss all the whats and the hows of cryptocurrency.

Cryptocurrency is a digital currency which is created and accessed electronically and can be used to buy things electronically. Just like dollar, rupees or yen, various conventional currencies circulating today, there are more than 900 cryptocurrencies available. Most famous of them is Bitcoin, the first cryptocurrency invented in 2009. Ethereum, Litecoin, Factom and dozen others are also used in a fair amount.

Cryptocurrency serves the same purpose as conventional currency except for the one main difference: it is decentralized i.e. there is no central bank regulating it. There is no intermediary present between two dealing parties. In the case of conventional currencies, banks have all the record and they charge fees for their services. However, in the case of cryptocurrency, there are no banks present to cut fees. It is the anonymity ensured by the absence of intermediary which has made it famous; just like in emails and phone calls, where our message travels from A to B without relying on a third-party, thus ensuring our privacy.

But the question arises who regulates the transactions? What if someone just duplicates their cryptocurrency or uses it for more than one transaction? To solve this problem, an online public ledger, Blockchain, keeps and updates all the record of transactions. It is the technology at the heart of Bitcoin and other cryptocurrencies. It uses cryptography to make transactions secure and makes them publicly available while ensuring the users anonymity, thus also helping to reduce fraud. Since it is publicly available, the whole community can verify the authenticity of a transaction.

State Bank of Pakistan hasnt announced any regulations for the cryptocurrency, which means that digital currency neither holds the status of money nor it is illegal to use. However, earlier this year, FBR launched action against those involved in money laundering and tax evasion through digital currency, and SECP warned the public to beware of scams in cryptocurrency. Apart from this, there arent any comments by the Government of Pakistan.

The majority of countries have no legislation regarding any digital currency. Japan has given it the status of legal tender. However, Saudi Arabia, Bangladesh, and few other countries have declared it illegal, citing their concern over its possible use in money laundering.

The reason for the absence of any clear legislation is that the cryptocurrency is still in developing phase and a very small fraction of public uses it. Unless major investors enter this market, we cannot expect a word about its legality from the government.

Because of the absence of any third party, it offers a number of benefits.

No one knows how much digital currency you have and what transaction you have made unless you make your online wallet public. Compared to conventional currency, where banks carry all the information regarding your balance and transactions, it is up to you how much information you want to share with others.

Whenever you make a transaction, data is updated on Blockchain, an online ledger, but your identity is kept private. If someone wants to verify a transaction they would look it up in Blockchain, but they wont know your name. However, this privacy must not be confused with complete anonymity; you are still required to prove your identity while signing up.

Of what use a currency is if you cannot buy things with it. Many websites accept cryptocurrency as payment. For instance, Overstock.com accepts Bitcoins as payment and the good thing is they also ship to Pakistan. You can also top up your prepaid mobile phone using Bitrefill. Freelancers also prefer to use cryptocurrency, as it reduces their transaction fees and increases their earning by 2% to 5%.

Yes, there are many risks and disadvantages of using cryptocurrency.

There are a limited number of coins at the moment and demand varies from day to day. The rate of digital currency adoption may hamper or increase depending on the press coverage and other factors. But point needing emphasis is that overall trend is upwards. Earlier this year Bitcoin surpassed the value of one ounce of gold. Around the same time, it also dropped by 30%. Its a high-risk medium and you better not keep your savings in it.

You wont find any ATM for cryptocurrency in Pakistan. There arent any local retailers offering to accept any digital currency. So, you cant simply go out in the market and use cryptocurrency; it still has a lot of growing to do. The price that vendor cuts for processing your transaction keep changing, servers often dont work and it takes a whole day to do just one transaction. Cryptocurrency is new to this world and is still under development, but still, it is improving with every passing day.

World of cryptocurrency is an uncharted territory. It is so new that there isnt any legislation regarding its taxation. The government hasnt classified it either as a commodity or a currency. There are no statements regarding taxation of cryptocurrency. There is still a lot of confusion about its taxability. So, in order to avoid trouble, it is advisable to establish a record keeping system and keep a track of when is cryptocurrency acquired and when it is disposed of.

In the next story, I will tell you about the most popular cryptocurrency Bitcoin. I will also give you a detailed explanation on what you can do to buy Bitcoin or other coins in Pakistan.

Feel free to drop your questions below for further discussion.

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Wall Street stunned over AMD’s blowout results due to cryptocurrency mining demand – CNBC

Investors are mesmerized with AMD's impressive second quarter as cryptocurrency mining demand drove the company's financial results above Wall Street's expectations.

The chipmaker reported better-than-expected second-quarter earnings and guidance Tuesday. Its shares surged more than 10 percent in after-hours trading following the report and were up more than 9 percent in early regular trading Wednesday.

"AMD turned in a solid beat to our and consensus estimates as the company's new Ryzen desktop CPU ramped into production and GPU demand outstripped supply," Stifel analyst Kevin Cassidy wrote in a note to clients Wednesday. "While management wasn't specific on how much, the GPU revenue upside was driven by cryptocurrency applications."

AMD shares have rallied 102 percent through Tuesday in the previous 12 months compared with the S&P 500's 14 percent return. That performance ranks No. 4 in the entire S&P 500, according to FactSet.

Cryptocurrency miners use graphics cards from AMD and Nvidia to "mine" new coins, which can then be sold or held for future appreciation. AMD traditionally has a better reputation for mining cryptocurrencies.

The ethereum cryptocurrency is up more than 2,400 percent year to date through Wednesday, while bitcoin is up about 160 percent this year, according to data from industry website CoinDesk.

In June, AMD shares jumped after the company told CNBC that the dramatic rise in digital currency prices has driven demand for its graphics cards. At the time, major computer hardware retailers had sold out of AMD's recently launched RX 570 and RX 580 models.

Digital currency mining was the key topic during AMD's earnings conference call with Wall Street on Tuesday evening. Analysts asked company management three times for clarification on the magnitude and sustainability of cryptocurrency mining demand.

One analyst noted the company is working to mitigate future downside risk and is not incorporating continued digital currency mining outperformance in its guidance.

"Crypto mining helped stimulate demand for AMD GPUs in Q2, which we think could translate to a risk should cryptocurrency values decline, AMD is working to manage the crypto risk by targeting supply to the core GPU gaming market, and working with some of its AIB [add in board] partners to offer specific feature sets to segment the market between gaming & mining," Jefferies analyst Mark Lipacis wrote Wednesday. "AMD is not including upside from mining in its outlook."

Lipacis reiterated his buy rating on the company and raised his price target to $19 from $16, representing 35 percent upside from Tuesday's close.

To be sure, some analysts are still skeptical about AMD after its big run.

"We were surprised at the aftermarket reaction for the stock," Morgan Stanley analyst Joseph Moore wrote Wednesday. "We continue to be somewhat cynical on the long-term intrinsic value of the stock, despite being excited about Zen and maintaining numbers that are above the Street. As street numbers start to catch up, absolute valuation levels are going to matter more."

Moore reiterated his equal weight rating and $11 price target for AMD shares.

CNBC's Michael Bloom contributed to this story.

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Wall Street stunned over AMD's blowout results due to cryptocurrency mining demand - CNBC

Wikileaks Releases Emails From Macron Campaign – Fortune

Wikileaks published over 20,000 emails stolen from the election campaign of French President, Emmanuel Macron, on Monday morning along with a tool to search the documents.

The leaked emails, which includes records of campaign expenses and logistics, do not so far appear to contain any obvious bombshells though it could take days for the media and others to properly review their contents.

According to Wikileaks, which announced the publication on Twitter and on its website, the emails span eight years and are from thousands of people:

Today, Monday 31 July 2017, WikiLeaks publishes a searchable archive of 21,075 unique verified emails associated with the French presidential campaign of Emmanual Macron. The emails range from 20 March 2009 to 24 April 2017. The 21,075 emails have been individually forensically verified

The full archive of 71,848 emails with 26,506 attachments from 4,493 unique senders is provided for context.

A brief review by Fortune of a sample of the emails turned up largely mundane items like a bill for secretarial services, and a significant part of the trove consists of newsletters that Macron-affiliated staff received from media outlets like Le Monde.

There are, though, some emails that discuss the rise of U.S. President Donald Trump, including one from a French government economist that describes Trump as a "political hybrid animal," whose campaign was built on an America-first message.

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Wikileaks created turmoil in the U.S. Presidential election last year by leaking emails stolen from Hillary Clinton's campaign Chair, John Podesta, and is regarded by many as a propaganda outlet for the Russian government.

In its short statement announcing the release of the Macron campaign emails, Wikileaks noted French cyber-security authorities had not attributed earlier leaks to Russia and said certain hacking attacks had come with false attribution.

Monday's document dump comes months after hackers leaked emails from the Macron campaign days before the French election in Maya move that ultimately had little effect on the results, which saw Macron soundly defeat French far-right candidate Marine Le Pen.

Last week, Reuters reported that Russia had created bogus Facebook pages to spy on the Macron campaign.

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Wikileaks Releases Emails From Macron Campaign - Fortune