How much trust can you put in Telegram messenger?

Messaging programs are a closely watched application category, with experts scrutinizing how communications are protected from government surveillance dragnets and hackers. The primary defense invariably involves encryption, but just saying an application uses encryption by no means ensures its secure.

One of the latest programs to come under fire is Telegram, which is backed by Pavel Durov[cq], who also founded the popular Russian social networking site Vkontakte. Telegram is a free desktop and mobile application launched in 2013 that promotes itself as taking back our right to privacy.

Telegram is well intended but has several weak spots, said Alex Rad[cq], who has a background in application security testing and reverse engineering. He and researcher Juliano Rizzo, who discovered two major attacks against SSL (Secure Sockets Layer), have been analyzing Telegram intermittently since last year as a side project to help improve its security.

They went public on Sunday with a blog post pointing out problems with Telegram, which may cause concern for those who are particularly worried about how such messaging systems could be compromised. Rad said in a phone interview that his correspondence with Telegram has been cordial but a bit tense.

What bothered me about Telegram was the way they market themselves versus the reality of how people use their application, said Rad, who lives in Stockholm.

For example, Telegram doesnt implement end-to-end encryption by default, a technique that ensures a message is encrypted on a device and is only decrypted by a recipient. That kind of encryption is regarded as the safest way to send information.

To send a fully encrypted message, Telegram users must initiate a secret chat. But Rad said there are potential problems with how a secret chat is set up that could make it vulnerable to a man-in-the-middle (MITM) attack.

Before a secret chat begins, two Telegram users see an image that verifies their connection hasnt been tampered with. Rad describes in the blog post how an attacker could replace that image with one of their own, potentially giving assurance to users that their chat is secure when it is not.

Determining whether the MITM attack would even be feasible leads to an academic argument about computing power. Telegram has dismissed the attack in a blog post as too expensive to pull off. It also requires that the attacker already has access to Telegrams servers, an assumption that Rad concedes makes a MITM attack on two users less likely given the vast hacking opportunities that such a position would afford anyway. But he also said his theoretical attack could be made impossible by using a stronger encryption algorithm, a trivial upgrade for Telegram.

Telegrams Markus Ra[cq] said via email that while his company contests the feasibility of Rads attack, Telegrams secret chats are evolving constantly, and well make sure they stay secure even as potential attackers gain processing power over time.

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How much trust can you put in Telegram messenger?

Linux Foundation debuts IoTivity open source project for IoT products and services

Linux Foundation

Linux Foundation is set to host developer collaboration for IoTivity, the open source project sponsored by the Open Interconnect Consortium to provide software framework offering connectivity for the Internet of Things (IoT). The standard and the open source implementation will bring about interoperability among products and services regardless of maker and across multiple industries, including smart home, automotive, industrial automation, and healthcare.

Announced as a preview release, the open source software framework for IoTivity comes as a collaborative project and is set to allow interoperability between devices, products and services for the IoT. The project plans to release a reference implementation of the IoT standards being defined by the OIC, founded in July last year and currently includes over 50 members.

The Open Interconnect Consortium (OIC), with vendors across multiple industries such as automotive, consumer electronics, enterprise, healthcare, home automation, industrial and wearables, will define the connectivity requirements to improve interoperability between the billions of devices making up the IoT.

The OIC will deliver a specification, an open source implementation and a certification program ensuring interoperability regardless of form factor, operating system, service provider or transport technology creating a "Network of Everything".

The Linux Foundation hosts a variety of collaborative projects with an emphasis on code development. Open standards and specifications continue to play a fundamental role in software development, but common code bases are becoming the defacto way to accelerate innovation.

Open source software and collaborative development are the building blocks to get us there, said Jim Zemlin, executive director at The Linux Foundation. IoTivity is an exciting opportunity for the open source community to help advance this work.

Research firm, IDC expects the installed base of the IoT will be approximately 212 billion things globally by the end of 2020. This is expected to include 30.1 billion installed connected (autonomous) things. These devices are connecting to each other using multiple, and often incompatible approaches. The members of the Open Interconnect Consortium believe that in order to achieve this scale, the industry will need both the collaboration of the open source community and industry standards to drive interoperability of these devices.

As a Linux Foundation Collaborative Project, IoTivity is governed by an independent steering group that liaises with the OIC. The project is open to all and includes RESTful-based APIs. It is expected to be available in various programming languages for a variety of operating systems and hardware platforms.

The IoTivity project is licensed under the Apache License version 2.0.

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Linux Foundation debuts IoTivity open source project for IoT products and services

No Country For Any Business: Imagining Britain Without Encryption

Its January 2018, just less than threeyears after David Cameron secured a second-term as Prime Minister largely thanks to a Labour Party bereft of a true leader, variousgaffescommitted by the far right UK Independence Party, and an almost non-existent showing from the Liberal Democrats. But the polls have turned against Cameron. Though the recent return of Tony Blair as Labour leader has brought his party back from the brink, its theeconomy tilting back into recession and a general sense of social unease that are causing many to call for Camerons resignation.

The economic strife has partly been brought about by a general decline in business activity. Many foreign firms have fled the country due to the speedy introduction and enactment of the Anti-Terror Communications Act 2016, which was spawned shortly after the Charlie Hebdo attacks in Paris and implicitly outlawed the use of encryption in modern communications technologies. As many businesses use such comms systems, this has perverselyopened up more corporatedata to criminals and intelligence agents from countries seeking to establish digital espionage operations inside organisations across industries. Technology providers, including Apple Apple, Google Google, Facebook and Microsoft, have been asked to either make the algorithms that generate encryption keys more predictable and therefore weaken their offerings with backdoor access, or grant governments access to those keys. Some have decidedto close their respectiveUK shops in protest. Others are simply being as uncooperative as they can.

Even native companies are looking for new homes. The worst impact has come from the rapidly diminishing finance industry of the capital, where banks, who rely on off-the-shelf encryption technologies as much as terrorists do, have decided to move operations to less repressive environments.The once-burgeoning technology industry has been eviscerated, as the UK is deemed a backwards country afraid of secure systems, meaning more significant job cuts across London, Manchester, Cambridge and other tech hubs. Property is one of only a few industries left unharmed by the Act, thanks to the continuing foreign investment in flats and homes that remain uninhabited.

The government has refused to say whether any terrorist plots have yet been foiled thanks to the introduction of the law, such has been the blanket reticence of the Cameron regime in recent months. Freedom of Information requests have revealed the strengthened Regulatory and Investigatory Powers Act (RIPA) has been used more than 12,000 times in the last year by the Metropolitan Police alone, but in a third of cases those on the receiving end were journalists and human rights activists. Again, theres no information on the number of extremist plots uncoveredby police or agents using the laws. Its believed the few terrorists who are planning attacks continue to use open source encryption toolsstill available to those with the wherewithal to employ them. For what has citizens privacy has been obliterated?

Meanwhile, cyber crime has spiralled out of control, as hackers have repeatedly uncovered the governmentbackdoors installed in servers across UK data centres. Data loss has grown 100 per cent in just a year. Almost every server is now considered compromised by malicious hackers and government spies

Prime Minister David Cameron

All this, in early 2015, does not seem like an impossible future, though the return of Blair to the political classes might be a prophecytoo far. But this isthe nightmare Cameron appears willing to coax into existence with his bizarre, technologically-illiterate insistence the government should be able to circumvent all protections on general communications so that every message sent inside the country can be read by the state. Outside of the obvious detrimental effects on freedom of speech and privacy, and the questionable impact itwould have on real-world terrorism, its apparent the British economy would also suffer greatly.

Take the word of a company that provides web encryption and security services for a number of UK government websites, CloudFlare. Its CEO Matthew Prince told Forbes finance firms would have good reason to relocate if Cameron got his quasi-Orwellian state. If youre a large financial institution working out of the City and all of a sudden youre not able to use strong crypto, then thats a reason to locate less of your infrastructure in the City, Prince said.

Tech firms, especially those in the US, will either push back or pull out of the UKaltogether. Britain has no effective sovereignty. Most online services are run by US startups who frankly dont give a toss about Cameron thinks. Instagram, for example, had only 11 employees when Facebook bought them; they already had hundreds of millions of users. Firms like that dont answer the phone, not even to users, and certainly not to foreign policemen, said professor Ross Anderson, from the cryptography team at the University of Cambridge.

Fundamentally, Google, Apple or CloudFlare are about securing users trust if were ordered to do something which is inherently about weakening the technical protection of that trust, that is anathema to what were trying to do, Prince added. Its safe to say tech companies would push back fairly strongly. Whilst there wouldnt be a mass exodus, there would likely be a diaspora who relocated to countries where they have better guarantees around their civil liberties and the security of their operations.

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No Country For Any Business: Imagining Britain Without Encryption

Bitcoin price plunge sparks new crash fears

Bitcoin had a stand at the CES exhibition in Las Vegas last week. Photograph: Ethan Miller/Getty Images

The price of one bitcoin has plunged by more than a quarter in just two days, prompting fears that the currency is in the midst of its fourth major crash.

On Tuesday morning, the currency was being traded at $267 a coin on Bitstamp, the largest individual exchange. However, by late Wednesday afternoon that had collapsed to just $195 - a fall of 27%.

The slide means that the currency has fallen by more than 80% from its record high of $1,150 reached in November 2013.

Unlike that crash, and the two before it in the summer of 2011 and spring of 2013, this time the cryptocurrency has not been the victim of a speculative bubble that then popped. Rather, the price of bitcoin has been declining fairly consistently since June 2014, when it started falling after months of temporary stability at about $600 a coin.

Greg Schvey, a partner at cryptocurrency data firm TradeBlock, told the New York Times that the new precipitous decline showed signs of a squeeze on bitcoin. People have these very real fiat-based liabilities that they have to pony up for, and to do that, theyre going to have to sell Bitcoins, he said.

The bitcoin network runs on the processing power of miners - computers put to work solving algorithmic puzzles in exchange for rewards in the currency. Companies that have invested millions of dollars into building specialised server farms have come to dominate the mining process, and received their share of the rewards.

But Schvey suggests that the real money those companies borrowed to start operating were beginning to be called in, forcing them to sell some of their proceeds that they may otherwise have held on to in the hope of a recovery in the price of bitcoin.

Further, the cryptocurrency has been shaken by yet another attack on the infrastructure that enables it to function as a working economy. Bitstamp reported a successful hacking attack in early January, which forced it to close its doors temporarily after $5.6m of bitcoin were stolen. While the attack was nowhere near as severe as that which took down the once-leading exchange, MtGox, last year, it still alarmed many.

In the face of the slump, many bitcoin proponents are turning their attention to a more fundamental technology called the blockchain. Sitting at the core of the bitcoin currency, the blockchain is the concept that allows money to be traded on a truly decentralised basis, but some argue that its capability goes far beyond that. The comparison most often drawn is that if bitcoin is an application, such as email, the blockchain is more like the whole internet.

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Bitcoin price plunge sparks new crash fears

Bitcoin keeps falling Wednesday

The exchange ultimately resumed services after admitting that about $5 million worth of bitcoins had been stolen. O'Connor said the development may have spooked some cryptocurrency speculators, as Bitstamp had a reputation as one of the more professional outfits in the bitcoin community.

"I would imagine they were inundated with requests for withdrawal on Friday," he said.

Read MoreBitcoin breaks another key level

Another factor weighing on the cryptocurrency is that Russia is beginning to ban bitcoin-related websites, "Fast Money" trader Brian Kelly pointed out in a blog post.

Still, the selling that continued into Wednesday may also be part of a vicious cycle, as some have theorized on the influential Reddit bitcoin forum. In other words, the low prices may be forcing volunteers who "mine" new bitcoins to cut their losses. If the price falls below the electricity and hardware costs of "mining" bitcoinsa process that involves solving highly complex mathematical algorithmsthen the enterprise becomes unprofitable, and some miners will be forced to sell their holdings and give up.

That said, bitcoin's death has been predicted many times (one site has counted 29 obituaries), and some predict that the technology behind the system could live well beyond the currency it now supports.

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Bitcoin keeps falling Wednesday

Bitcoin in freefall as virtual currency plunges below $US250

Confidence in the virtual economy appears to be waning. Photo: Getty

The price of Bitcoin has plunged below $US250 and appears to be in freefall, as sell orders dominate global exchanges and investors flee the cryptocurrency.

Bitcoin's entrance into 2015 has been appalling, in the last 10 days alone the price has lost 26 per cent in value. Its rapid decline in recent weeks suggests confidence in the virtual currency is evaporating.

On Wednesday, CoinDesk recorded the price dropping to about $224 from $267, below where it began in April 2013. Large sell orders were triggered as Bitcoin sank through the $US250 mark, which traders have flagged as an imporant psychological barrier.

Bitcoin price plummets. Photo: CoinDesk

"We are seeing some huge orders sitting waiting at the $US200 mark and a lot of volume," an IG analyst told Fairfax Media. "That could be the next resistance point but we don't really know where Bitcoin is heading at the moment.

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"I think it might hover around where it is for a while."

Some analysts pointed to the $US5 million hack of major exchange Bitstamp at the beginning of January as a potential spook for traders. The exchange suspended activity after the theft of 19,000 Bitcoins, however trading began again at the end of last week.

While some traders may be scurrying to pile on the short swaps or top-up their margin accounts, the plummeting price of Bitcoin has been felt throughout the cryptocurrency economy. Miners have found the sharp drop in price has directly affected their ability to stay in business.

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Bitcoin in freefall as virtual currency plunges below $US250

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