Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/08/cryptanalysis_o_5.html
DefCon talk here.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/08/cryptanalysis_o_5.html
DefCon talk here.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/07/on_the_twitter_.html
Twitter was hacked this week. Not a few people’s Twitter accounts, but all of Twitter. Someone compromised the entire Twitter network, probably by stealing the log-in credentials of one of Twitter’s system administrators. Those are the people trusted to ensure that Twitter functions smoothly.
The hacker used that access to send tweets from a variety of popular and trusted accounts, including those of Joe Biden, Bill Gates, and Elon Musk, as part of a mundane scam — stealing bitcoin — but it’s easy to envision more nefarious scenarios. Imagine a government using this sort of attack against another government, coordinating a series of fake tweets from hundreds of politicians and other public figures the day before a major election, to affect the outcome. Or to escalate an international dispute. Done well, it would be devastating.
Whether the hackers had access to Twitter direct messages is not known. These DMs are not end-to-end encrypted, meaning that they are unencrypted inside Twitter’s network and could have been available to the hackers. Those messages — between world leaders, industry CEOs, reporters and their sources, heath organizations — are much more valuable than bitcoin. (If I were a national-intelligence agency, I might even use a bitcoin scam to mask my real intelligence-gathering purpose.) Back in 2018, Twitter said it was exploring encrypting those messages, but it hasn’t yet.
Internet communications platforms — such as Facebook, Twitter, and YouTube — are crucial in today’s society. They’re how we communicate with one another. They’re how our elected leaders communicate with us. They are essential infrastructure. Yet they are run by for-profit companies with little government oversight. This is simply no longer sustainable. Twitter and companies like it are essential to our national dialogue, to our economy, and to our democracy. We need to start treating them that way, and that means both requiring them to do a better job on security and breaking them up.
In the Twitter case this week, the hacker’s tactics weren’t particularly sophisticated. We will almost certainly learn about security lapses at Twitter that enabled the hack, possibly including a SIM-swapping attack that targeted an employee’s cellular service provider, or maybe even a bribed insider. The FBI is investigating.
This kind of attack is known as a “class break.” Class breaks are endemic to computerized systems, and they’re not something that we as users can defend against with better personal security. It didn’t matter whether individual accounts had a complicated and hard-to-remember password, or two-factor authentication. It didn’t matter whether the accounts were normally accessed via a Mac or a PC. There was literally nothing any user could do to protect against it.
Class breaks are security vulnerabilities that break not just one system, but an entire class of systems. They might exploit a vulnerability in a particular operating system that allows an attacker to take remote control of every computer that runs on that system’s software. Or a vulnerability in internet-enabled digital video recorders and webcams that allows an attacker to recruit those devices into a massive botnet. Or a single vulnerability in the Twitter network that allows an attacker to take over every account.
For Twitter users, this attack was a double whammy. Many people rely on Twitter’s authentication systems to know that someone who purports to be a certain celebrity, politician, or journalist is really that person. When those accounts were hijacked, trust in that system took a beating. And then, after the attack was discovered and Twitter temporarily shut down all verified accounts, the public lost a vital source of information.
There are many security technologies companies like Twitter can implement to better protect themselves and their users; that’s not the issue. The problem is economic, and fixing it requires doing two things. One is regulating these companies, and requiring them to spend more money on security. The second is reducing their monopoly power.
The security regulations for banks are complex and detailed. If a low-level banking employee were caught messing around with people’s accounts, or if she mistakenly gave her log-in credentials to someone else, the bank would be severely fined. Depending on the details of the incident, senior banking executives could be held personally liable. The threat of these actions helps keep our money safe. Yes, it costs banks money; sometimes it severely cuts into their profits. But the banks have no choice.
The opposite is true for these tech giants. They get to decide what level of security you have on your accounts, and you have no say in the matter. If you are offered security and privacy options, it’s because they decided you can have them. There is no regulation. There is no accountability. There isn’t even any transparency. Do you know how secure your data is on Facebook, or in Apple’s iCloud, or anywhere? You don’t. No one except those companies do. Yet they’re crucial to the country’s national security. And they’re the rare consumer product or service allowed to operate without significant government oversight.
For example, President Donald Trump’s Twitter account wasn’t hacked as Joe Biden’s was, because that account has “special protections,” the details of which we don’t know. We also don’t know what other world leaders have those protections, or the decision process surrounding who gets them. Are they manual? Can they scale? Can all verified accounts have them? Your guess is as good as mine.
In addition to security measures, the other solution is to break up the tech monopolies. Companies like Facebook and Twitter have so much power because they are so large, and they face no real competition. This is a national-security risk as well as a personal-security risk. Were there 100 different Twitter-like companies, and enough compatibility so that all their feeds could merge into one interface, this attack wouldn’t have been such a big deal. More important, the risk of a similar but more politically targeted attack wouldn’t be so great. If there were competition, different platforms would offer different security options, as well as different posting rules, different authentication guidelines — different everything. Competition is how our economy works; it’s how we spur innovation. Monopolies have more power to do what they want in the quest for profits, even if it harms people along the way.
This wasn’t Twitter’s first security problem involving trusted insiders. In 2017, on his last day of work, an employee shut down President Donald Trump’s account. In 2019, two people were charged with spying for the Saudi government while they were Twitter employees.
Maybe this hack will serve as a wake-up call. But if past incidents involving Twitter and other companies are any indication, it won’t. Underspending on security, and letting society pay the eventual price, is far more profitable. I don’t blame the tech companies. Their corporate mandate is to make as much money as is legally possible. Fixing this requires changes in the law, not changes in the hearts of the company’s leaders.
This essay previously appeared on TheAtlantic.com.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/10/dark_web_site_t.html
The US Department of Justice unraveled a dark web child-porn website, leading to the arrest of 337 people in at least 18 countries. This was all accomplished not through any backdoors in communications systems, but by analyzing the bitcoin transactions and following the money:
Welcome to Video made money by charging fees in bitcoin, and gave each user a unique bitcoin wallet address when they created an account. Son operated the site as a Tor hidden service, a dark web site with a special address that helps mask the identity of the site’s host and its location. But Son and others made mistakes that allowed law enforcement to track them. For example, according to the indictment, very basic assessments of the Welcome to Video website revealed two unconcealed IP addresses managed by a South Korean internet service provider and assigned to an account that provided service to Son’s home address. When agents searched Son’s residence, they found the server running Welcome to Video.
To “follow the money,” as officials put it in Wednesday’s press conference, law enforcement agents sent fairly small amounts of bitcoin — roughly equivalent at the time to $125 to $290 — to the bitcoin wallets Welcome to Video listed for payments. Since the bitcoin blockchain leaves all transactions visible and verifiable, they could observe the currency in these wallets being transferred to another wallet. Law enforcement learned from a bitcoin exchange that the second wallet was registered to Son with his personal phone number and one of his personal email addresses.
Remember this the next time some law enforcement official tells us that they’re powerless to investigate crime without breaking cryptography for everyone.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/02/blockchain_and_.html
In his 2008 white paper that first proposed bitcoin, the anonymous Satoshi Nakamoto concluded with: “We have proposed a system for electronic transactions without relying on trust.” He was referring to blockchain, the system behind bitcoin cryptocurrency. The circumvention of trust is a great promise, but it’s just not true. Yes, bitcoin eliminates certain trusted intermediaries that are inherent in other payment systems like credit cards. But you still have to trust bitcoin — and everything about it.
Much has been written about blockchains and how they displace, reshape, or eliminate trust. But when you analyze both blockchain and trust, you quickly realize that there is much more hype than value. Blockchain solutions are often much worse than what they replace.
First, a caveat. By blockchain, I mean something very specific: the data structures and protocols that make up a public blockchain. These have three essential elements. The first is a distributed (as in multiple copies) but centralized (as in there’s only one) ledger, which is a way of recording what happened and in what order. This ledger is public, meaning that anyone can read it, and immutable, meaning that no one can change what happened in the past.
The second element is the consensus algorithm, which is a way to ensure all the copies of the ledger are the same. This is generally called mining; a critical part of the system is that anyone can participate. It is also distributed, meaning that you don’t have to trust any particular node in the consensus network. It can also be extremely expensive, both in data storage and in the energy required to maintain it. Bitcoin has the most expensive consensus algorithm the world has ever seen, by far.
Finally, the third element is the currency. This is some sort of digital token that has value and is publicly traded. Currency is a necessary element of a blockchain to align the incentives of everyone involved. Transactions involving these tokens are stored on the ledger.
Private blockchains are completely uninteresting. (By this, I mean systems that use the blockchain data structure but don’t have the above three elements.) In general, they have some external limitation on who can interact with the blockchain and its features. These are not anything new; they’re distributed append-only data structures with a list of individuals authorized to add to it. Consensus protocols have been studied in distributed systems for more than 60 years. Append-only data structures have been similarly well covered. They’re blockchains in name only, and — as far as I can tell — the only reason to operate one is to ride on the blockchain hype.
All three elements of a public blockchain fit together as a single network that offers new security properties. The question is: Is it actually good for anything? It’s all a matter of trust.
Trust is essential to society. As a species, humans are wired to trust one another. Society can’t function without trust, and the fact that we mostly don’t even think about it is a measure of how well trust works.
The word “trust” is loaded with many meanings. There’s personal and intimate trust. When we say we trust a friend, we mean that we trust their intentions and know that those intentions will inform their actions. There’s also the less intimate, less personal trust — we might not know someone personally, or know their motivations, but we can trust their future actions. Blockchain enables this sort of trust: We don’t know any bitcoin miners, for example, but we trust that they will follow the mining protocol and make the whole system work.
Most blockchain enthusiasts have a unnaturally narrow definition of trust. They’re fond of catchphrases like “in code we trust,” “in math we trust,” and “in crypto we trust.” This is trust as verification. But verification isn’t the same as trust.
In 2012, I wrote a book about trust and security, Liars and Outliers. In it, I listed four very general systems our species uses to incentivize trustworthy behavior. The first two are morals and reputation. The problem is that they scale only to a certain population size. Primitive systems were good enough for small communities, but larger communities required delegation, and more formalism.
The third is institutions. Institutions have rules and laws that induce people to behave according to the group norm, imposing sanctions on those who do not. In a sense, laws formalize reputation. Finally, the fourth is security systems. These are the wide varieties of security technologies we employ: door locks and tall fences, alarm systems and guards, forensics and audit systems, and so on.
These four elements work together to enable trust. Take banking, for example. Financial institutions, merchants, and individuals are all concerned with their reputations, which prevents theft and fraud. The laws and regulations surrounding every aspect of banking keep everyone in line, including backstops that limit risks in the case of fraud. And there are lots of security systems in place, from anti-counterfeiting technologies to internet-security technologies.
In his 2018 book, Blockchain and the New Architecture of Trust, Kevin Werbach outlines four different “trust architectures.” The first is peer-to-peer trust. This basically corresponds to my morals and reputational systems: pairs of people who come to trust each other. His second is leviathan trust, which corresponds to institutional trust. You can see this working in our system of contracts, which allows parties that don’t trust each other to enter into an agreement because they both trust that a government system will help resolve disputes. His third is intermediary trust. A good example is the credit card system, which allows untrusting buyers and sellers to engage in commerce. His fourth trust architecture is distributed trust. This is emergent trust in the particular security system that is blockchain.
What blockchain does is shift some of the trust in people and institutions to trust in technology. You need to trust the cryptography, the protocols, the software, the computers and the network. And you need to trust them absolutely, because they’re often single points of failure.
When that trust turns out to be misplaced, there is no recourse. If your bitcoin exchange gets hacked, you lose all of your money. If your bitcoin wallet gets hacked, you lose all of your money. If you forget your login credentials, you lose all of your money. If there’s a bug in the code of your smart contract, you lose all of your money. If someone successfully hacks the blockchain security, you lose all of your money. In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expertise to audit?
Blockchain enthusiasts point to more traditional forms of trust — bank processing fees, for example — as expensive. But blockchain trust is also costly; the cost is just hidden. For bitcoin, that’s the cost of the additional bitcoin mined, the transaction fees, and the enormous environmental waste.
Blockchain doesn’t eliminate the need to trust human institutions. There will always be a big gap that can’t be addressed by technology alone. People still need to be in charge, and there is always a need for governance outside the system. This is obvious in the ongoing debate about changing the bitcoin block size, or in fixing the DAO attack against Ethereum. There’s always a need to override the rules, and there’s always a need for the ability to make permanent rules changes. As long as hard forks are a possibility — that’s when the people in charge of a blockchain step outside the system to change it — people will need to be in charge.
Any blockchain system will have to coexist with other, more conventional systems. Modern banking, for example, is designed to be reversible. Bitcoin is not. That makes it hard to make the two compatible, and the result is often an insecurity. Steve Wozniak was scammed out of $70K in bitcoin because he forgot this.
Blockchain technology is often centralized. Bitcoin might theoretically be based on distributed trust, but in practice, that’s just not true. Just about everyone using bitcoin has to trust one of the few available wallets and use one of the few available exchanges. People have to trust the software and the operating systems and the computers everything is running on. And we’ve seen attacks against wallets and exchanges. We’ve seen Trojans and phishing and password guessing. Criminals have even used flaws in the system that people use to repair their cell phones to steal bitcoin.
Moreover, in any distributed trust system, there are backdoor methods for centralization to creep back in. With bitcoin, there are only a few miners of consequence. There’s one company that provides most of the mining hardware. There are only a few dominant exchanges. To the extent that most people interact with bitcoin, it is through these centralized systems. This also allows for attacks against blockchain-based systems.
These issues are not bugs in current blockchain applications, they’re inherent in how blockchain works. Any evaluation of the security of the system has to take the whole socio-technical system into account. Too many blockchain enthusiasts focus on the technology and ignore the rest.
To the extent that people don’t use bitcoin, it’s because they don’t trust bitcoin. That has nothing to do with the cryptography or the protocols. In fact, a system where you can lose your life savings if you forget your key or download a piece of malware is not particularly trustworthy. No amount of explaining how SHA-256 works to prevent double-spending will fix that.
Similarly, to the extent that people do use blockchains, it is because they trust them. People either own bitcoin or not based on reputation; that’s true even for speculators who own bitcoin simply because they think it will make them rich quickly. People choose a wallet for their cryptocurrency, and an exchange for their transactions, based on reputation. We even evaluate and trust the cryptography that underpins blockchains based on the algorithms’ reputation.
To see how this can fail, look at the various supply-chain security systems that are using blockchain. A blockchain isn’t a necessary feature of any of them. The reasons they’re successful is that everyone has a single software platform to enter their data in. Even though the blockchain systems are built on distributed trust, people don’t necessarily accept that. For example, some companies don’t trust the IBM/Maersk system because it’s not their blockchain.
Irrational? Maybe, but that’s how trust works. It can’t be replaced by algorithms and protocols. It’s much more social than that.
Still, the idea that blockchains can somehow eliminate the need for trust persists. Recently, I received an email from a company that implemented secure messaging using blockchain. It said, in part: “Using the blockchain, as we have done, has eliminated the need for Trust.” This sentiment suggests the writer misunderstands both what blockchain does and how trust works.
Do you need a public blockchain? The answer is almost certainly no. A blockchain probably doesn’t solve the security problems you think it solves. The security problems it solves are probably not the ones you have. (Manipulating audit data is probably not your major security risk.) A false trust in blockchain can itself be a security risk. The inefficiencies, especially in scaling, are probably not worth it. I have looked at many blockchain applications, and all of them could achieve the same security properties without using a blockchain — of course, then they wouldn’t have the cool name.
Honestly, cryptocurrencies are useless. They’re only used by speculators looking for quick riches, people who don’t like government-backed currencies, and criminals who want a black-market way to exchange money.
To answer the question of whether the blockchain is needed, ask yourself: Does the blockchain change the system of trust in any meaningful way, or just shift it around? Does it just try to replace trust with verification? Does it strengthen existing trust relationships, or try to go against them? How can trust be abused in the new system, and is this better or worse than the potential abuses in the old system? And lastly: What would your system look like if you didn’t use blockchain at all?
If you ask yourself those questions, it’s likely you’ll choose solutions that don’t use public blockchain. And that’ll be a good thing — especially when the hype dissipates.
This essay previously appeared on Wired.com.
I have wanted to write this essay for over a year. The impetus to finally do it came from an invite to speak at the Hyperledger Global Forum in December. This essay is a version of the talk I wrote for that event, made more accessible to a general audience.
It seems to be the season for blockchain takedowns. James Waldo has an excellent essay in Queue. And Nicholas Weaver gave a talk at the Enigma Conference, summarized here. It’s a shortened version of this talk.
EDITED TO ADD (2/17): Reddit thread.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/01/new_attack_agai_3.html
This is clever:
How the attack works:
- Attacker added tens of malicious servers to the Electrum wallet network.
- Users of legitimate Electrum wallets initiate a Bitcoin transaction.
- If the transaction reaches one of the malicious servers, these servers reply with an error message that urges users to download a wallet app update from a malicious website (GitHub repo).
- User clicks the link and downloads the malicious update.
- When the user opens the malicious Electrum wallet, the app asks the user for a two-factor authentication (2FA) code. This is a red flag, as these 2FA codes are only requested before sending funds, and not at wallet startup.
- The malicious Electrum wallet uses the 2FA code to steal the user’s funds and transfer them to the attacker’s Bitcoin addresses.
The problem here is that Electrum servers are allowed to trigger popups with custom text inside users’ wallets.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/07/nicholas_weaver_2.html
Cryptocurrencies, although a seemingly interesting idea, are simply not fit for purpose. They do not work as currencies, they are grossly inefficient, and they are not meaningfully distributed in terms of trust. Risks involving cryptocurrencies occur in four major areas: technical risks to participants, economic risks to participants, systemic risks to the cryptocurrency ecosystem, and societal risks.
I haven’t written much about cryptocurrencies, but I share Weaver’s skepticism.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/06/regulating_bitc.html
Ross Anderson has a new paper on cryptocurrency exchanges. From his blog:
Bitcoin Redux explains what’s going wrong in the world of cryptocurrencies. The bitcoin exchanges are developing into a shadow banking system, which do not give their customers actual bitcoin but rather display a “balance” and allow them to transact with others. However if Alice sends Bob a bitcoin, and they’re both customers of the same exchange, it just adjusts their balances rather than doing anything on the blockchain. This is an e-money service, according to European law, but is the law enforced? Not where it matters. We’ve been looking at the details.
Post Syndicated from Roderick Bauer original https://www.backblaze.com/blog/backing-up-your-cryptocurrency/
In our blog post on Tuesday, Cryptocurrency Security Challenges, we wrote about the two primary challenges faced by anyone interested in safely and profitably participating in the cryptocurrency economy: 1) make sure you’re dealing with reputable and ethical companies and services, and, 2) keep your cryptocurrency holdings safe and secure.
In this post, we’re going to focus on how to make sure you don’t lose any of your cryptocurrency holdings through accident, theft, or carelessness. You do that by backing up the keys needed to sell or trade your currencies.
Of the 16.4 million bitcoins said to be in circulation in the middle of 2017, close to 3.8 million may have been lost because their owners no longer are able to claim their holdings. Based on today’s valuation, that could total as much as $34 billion dollars in lost value. And that’s just bitcoins. There are now over 1,500 different cryptocurrencies, and we don’t know how many of those have been misplaced or lost.
Now that some cryptocurrencies have reached (at least for now) staggering heights in value, it’s likely that owners will be more careful in keeping track of the keys needed to use their cryptocurrencies. For the ones already lost, however, the owners have been separated from their currencies just as surely as if they had thrown Benjamin Franklins and Grover Clevelands over the railing of a ship.
In our previous post, we reviewed how cryptocurrency keys work, and the common ways owners can keep track of them. A cryptocurrency owner needs two keys to use their currencies: a public key that can be shared with others is used to receive currency, and a private key that must be kept secure is used to spend or trade currency.
Many wallets and applications allow the user to require extra security to access them, such as a password, or iris, face, or thumb print scan. If one of these options is available in your wallets, take advantage of it. Beyond that, it’s essential to back up your wallet, either using the backup feature built into some applications and wallets, or manually backing up the data used by the wallet. When backing up, it’s a good idea to back up the entire wallet, as some wallets require additional private data to operate that might not be apparent.
No matter which backup method you use, it is important to back up often and have multiple backups, preferable in different locations. As with any valuable data, a 3-2-1 backup strategy is good to follow, which ensures that you’ll have a good backup copy if anything goes wrong with one or more copies of your data.
One more caveat, don’t reuse passwords. This applies to all of your accounts, but is especially important for something as critical as your finances. Don’t ever use the same password for more than one account. If security is breached on one of your accounts, someone could connect your name or ID with other accounts, and will attempt to use the password there, as well. Consider using a password manager such as LastPass or 1Password, which make creating and using complex and unique passwords easy no matter where you’re trying to sign in.
There are numerous ways to be sure your keys are backed up. Let’s take them one by one.
1. Automatic backups using a backup program
If you’re using a wallet program on your computer, for example, Bitcoin Core, it will store your keys, along with other information, in a file. For Bitcoin Core, that file is wallet.dat. Other currencies will use the same or a different file name and some give you the option to select a name for the wallet file.
To back up the wallet.dat or other wallet file, you might need to tell your backup program to explicitly back up that file. Users of Backblaze Backup don’t have to worry about configuring this, since by default, Backblaze Backup will back up all data files. You should determine where your particular cryptocurrency, wallet, or application stores your keys, and make sure the necessary file(s) are backed up if your backup program requires you to select which files are included in the backup.
Backblaze B2 is an option for those interested in low-cost and high security cloud storage of their cryptocurrency keys. Backblaze B2 supports 2-factor verification for account access, works with a number of apps that support automatic backups with encryption, error-recovery, and versioning, and offers an API and command-line interface (CLI), as well. The first 10GB of storage is free, which could be all one needs to store encrypted cryptocurrency keys.
2. Backing up by exporting keys to a file
Apps and wallets will let you export your keys from your app or wallet to a file. Once exported, your keys can be stored on a local drive, USB thumb drive, DAS, NAS, or in the cloud with any cloud storage or sync service you wish. Encrypting the file is strongly encouraged — more on that later. If you use 1Password or LastPass, or other secure notes program, you also could store your keys there.
3. Backing up by saving a mnemonic recovery seed
A mnemonic phrase, mnemonic recovery phrase, or mnemonic seed is a list of words that stores all the information needed to recover a cryptocurrency wallet. Many wallets will have the option to generate a mnemonic backup phrase, which can be written down on paper. If the user’s computer no longer works or their hard drive becomes corrupted, they can download the same wallet software again and use the mnemonic recovery phrase to restore their keys.
The phrase can be used by anyone to recover the keys, so it must be kept safe. Mnemonic phrases are an excellent way of backing up and storing cryptocurrency and so they are used by almost all wallets.
A mnemonic recovery seed is represented by a group of easy to remember words. For example:
eye female unfair moon genius pipe nuclear width dizzy forum cricket know expire purse laptop scale identify cube pause crucial day cigar noise receive
The above words represent the following seed:
0a5b25e1dab6039d22cd57469744499863962daba9d2844243fec 9c0313c1448d1a0b2cd9e230a78775556f9b514a8be45802c2808e fd449a20234e9262dfa69
These words have certain properties:
Bitcoin and most other cryptocurrencies such as Litecoin, Ethereum, and others use mnemonic seeds that are 12 to 24 words long. Other currencies might use different length seeds.
4. Physical backups — Paper, Metal
Some cryptocurrency holders believe that their backup, or even all their cryptocurrency account information, should be stored entirely separately from the internet to avoid any risk of their information being compromised through hacks, exploits, or leaks. This type of storage is called “cold storage.” One method of cold storage involves printing out the keys to a piece of paper and then erasing any record of the keys from all computer systems. The keys can be entered into a program from the paper when needed, or scanned from a QR code printed on the paper.
Printed public and private keys
Some who go to extremes suggest separating the mnemonic needed to access an account into individual pieces of paper and storing those pieces in different locations in the home or office, or even different geographical locations. Some say this is a bad idea since it could be possible to reconstruct the mnemonic from one or more pieces. How diligent you wish to be in protecting these codes is up to you.
Mnemonic recovery phrase booklet
There’s another option that could make you the envy of your friends. That’s the CryptoSteel wallet, which is a stainless steel metal case that comes with more than 250 stainless steel letter tiles engraved on each side. Codes and passwords are assembled manually from the supplied part-randomized set of tiles. Users are able to store up to 96 characters worth of confidential information. Cryptosteel claims to be fireproof, waterproof, and shock-proof.
Cryptosteel cold wallet
Of course, if you leave your Cryptosteel wallet in the pocket of a pair of ripped jeans that gets thrown out by the housekeeper, as happened to the character Russ Hanneman on the TV show Silicon Valley in last Sunday’s episode, then you’re out of luck. That fictional billionaire investor lost a USB drive with $300 million in cryptocoins. Let’s hope that doesn’t happen to you.
Whether you store your keys on your computer, an external disk, a USB drive, DAS, NAS, or in the cloud, you want to make sure that no one else can use those keys. The best way to handle that is to encrypt the backup.
With Backblaze Backup for Windows and Macintosh, your backups are encrypted in transmission to the cloud and on the backup server. Users have the option to add an additional level of security by adding a Personal Encryption Key (PEK), which secures their private key. Your cryptocurrency backup files are secure in the cloud. Using our web or mobile interface, previous versions of files can be accessed, as well.
Our object storage cloud offering, Backblaze B2, can be used with a variety of applications for Windows, Macintosh, and Linux. With B2, cryptocurrency users can choose whichever method of encryption they wish to use on their local computers and then upload their encrypted currency keys to the cloud. Depending on the client used, versioning and life-cycle rules can be applied to the stored files.
Other backup programs and systems provide some or all of these capabilities, as well. If you are backing up to a local drive, it is a good idea to encrypt the local backup, which is an option in some backup programs.
Some experts recommend using a different address for each cryptocurrency transaction. Since the address is not the same as your wallet, this means that you are not creating a new wallet, but simply using a new identifier for people sending you cryptocurrency. Creating a new address is usually as easy as clicking a button in the wallet.
One of the chief advantages of using a different address for each transaction is anonymity. Each time you use an address, you put more information into the public ledger (blockchain) about where the currency came from or where it went. That means that over time, using the same address repeatedly could mean that someone could map your relationships, transactions, and incoming funds. The more you use that address, the more information someone can learn about you. For more on this topic, refer to Address reuse.
Note that a downside of using a paper wallet with a single key pair (type-0 non-deterministic wallet) is that it has the vulnerabilities listed above. Each transaction using that paper wallet will add to the public record of transactions associated with that address. Newer wallets, i.e. “deterministic” or those using mnemonic code words support multiple addresses and are now recommended.
There are other approaches to keeping your cryptocurrency transaction secure. Here are a couple of them.
Multi-signature refers to requiring more than one key to authorize a transaction, much like requiring more than one key to open a safe. It is generally used to divide up responsibility for possession of cryptocurrency. Standard transactions could be called “single-signature transactions” because transfers require only one signature — from the owner of the private key associated with the currency address (public key). Some wallets and apps can be configured to require more than one signature, which means that a group of people, businesses, or other entities all must agree to trade in the cryptocurrencies.
Deep Cold Storage
Deep cold storage ensures the entire transaction process happens in an offline environment. There are typically three elements to deep cold storage.
First, the wallet and private key are generated offline, and the signing of transactions happens on a system not connected to the internet in any manner. This ensures it’s never exposed to a potentially compromised system or connection.
Second, details are secured with encryption to ensure that even if the wallet file ends up in the wrong hands, the information is protected.
Third, storage of the encrypted wallet file or paper wallet is generally at a location or facility that has restricted access, such as a safety deposit box at a bank.
Deep cold storage is used to safeguard a large individual cryptocurrency portfolio held for the long term, or for trustees holding cryptocurrency on behalf of others, and is possibly the safest method to ensure a crypto investment remains secure.
You should always make sure that you are using the latest version of your app or wallet software, which includes important stability and security fixes. Installing updates for all other software on your computer or mobile device is also important to keep your wallet environment safer.
Your cryptocurrency funds can be lost forever if you don’t have a backup plan for your peers and family. If the location of your wallets or your passwords is not known by anyone when you are gone, there is no hope that your funds will ever be recovered. Taking a bit of time on these matters can make a huge difference.
Are you comfortable with how you’re managing and backing up your cryptocurrency wallets and keys? Do you have a suggestion for keeping your cryptocurrencies safe that we missed above? Please let us know in the comments.
*To the Moon — Crypto slang for a currency that reaches an optimistic price projection.
Post Syndicated from Roderick Bauer original https://www.backblaze.com/blog/cryptocurrency-security-challenges/
Most likely you’ve read the tantalizing stories of big gains from investing in cryptocurrencies. Someone who invested $1,000 into bitcoins five years ago would have over $85,000 in value now. Alternatively, someone who invested in bitcoins three months ago would have seen their investment lose 20% in value. Beyond the big price fluctuations, currency holders are possibly exposed to fraud, bad business practices, and even risk losing their holdings altogether if they are careless in keeping track of the all-important currency keys.
It’s certain that beyond the rewards and risks, cryptocurrencies are here to stay. We can’t ignore how they are changing the game for how money is handled between people and businesses.
On top of all that, blockchain, the underlying technology behind cryptocurrencies, is already being applied to a variety of business needs and itself becoming a hot sector of the tech economy. Blockchain is bringing traceability and cost-effectiveness to supply-chain management — which also improves quality assurance in areas such as food, reducing errors and improving accounting accuracy, smart contracts that can be automatically validated, signed and enforced through a blockchain construct, the possibility of secure, online voting, and many others.
Like any new, booming marketing there are risks involved in these new currencies. Anyone venturing into this domain needs to have their eyes wide open. While the opportunities for making money are real, there are even more ways to lose money.
We’re going to cover two primary approaches to staying safe and avoiding fraud and loss when dealing with cryptocurrencies. The first is to thoroughly vet any person or company you’re dealing with to judge whether they are ethical and likely to succeed in their business segment. The second is keeping your critical cryptocurrency keys safe, which we’ll deal with in this and a subsequent post.
The short history of cryptocurrency has already seen the demise of a number of companies that claimed to manage, mine, trade, or otherwise help their customers profit from cryptocurrency. Mt. Gox, GAW Miners, and OneCoin are just three of the many companies that disappeared with their users’ money. This is the traditional equivalent of your bank going out of business and zeroing out your checking account in the process.
That doesn’t happen with banks because of regulatory oversight. But with cryptocurrency, you need to take the time to investigate any company you use to manage or trade your currencies. How long have they been around? Who are their investors? Are they affiliated with any reputable financial institutions? What is the record of their founders and executive management? These are all important questions to consider when evaluating a company in this new space.
Would you give the keys to your house to a service or person you didn’t thoroughly know and trust? Some companies that enable you to buy and sell currencies online will routinely hold your currency keys, which gives them the ability to do anything they want with your holdings, including selling them and pocketing the proceeds if they wish.
That doesn’t mean you shouldn’t ever allow a company to keep your currency keys in escrow. It simply means that you better know with whom you’re doing business and if they’re trustworthy enough to be given that responsibility.
If you’re an owner of cryptocurrency, you know how this all works. If you’re not, bear with me for a minute while I bring everyone up to speed.
Cryptocurrency has no physical manifestation, such as bills or coins. It exists purely as a computer record. And unlike currencies maintained by governments, such as the U.S. dollar, there is no central authority regulating its distribution and value. Cryptocurrencies use a technology called blockchain, which is a decentralized way of keeping track of transactions. There are many copies of a given blockchain, so no single central authority is needed to validate its authenticity or accuracy.
The validity of each cryptocurrency is determined by a blockchain. A blockchain is a continuously growing list of records, called “blocks”, which are linked and secured using cryptography. Blockchains by design are inherently resistant to modification of the data. They perform as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable, permanent way. A blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. On a scaled network, this level of collusion is impossible — making blockchain networks effectively immutable and trustworthy.
The other element common to all cryptocurrencies is their use of public and private keys, which are stored in the currency’s wallet. A cryptocurrency wallet stores the public and private “keys” or “addresses” that can be used to receive or spend the cryptocurrency. With the private key, it is possible to write in the public ledger (blockchain), effectively spending the associated cryptocurrency. With the public key, it is possible for others to send currency to the wallet.
Cryptocurrency “coins” can be lost if the owner loses the private keys needed to spend the currency they own. It’s as if the owner had lost a bank account number and had no way to verify their identity to the bank, or if they lost the U.S. dollars they had in their wallet. The assets are gone and unusable.
Given the importance of these keys, and lack of recourse if they are lost, it’s obviously very important to keep track of your keys.
If you’re being careful in choosing reputable exchanges, app developers, and other services with whom to trust your cryptocurrency, you’ve made a good start in keeping your investment secure. But if you’re careless in managing the keys to your bitcoins, ether, Litecoin, or other cryptocurrency, you might as well leave your money on a cafe tabletop and walk away.
Just like other numbers you might wish to keep track of — credit cards, account numbers, phone numbers, passphrases — cryptocurrency keys can be stored in a variety of ways. Those who use their currencies for day-to-day purchases most likely will want them handy in a smartphone app, hardware key, or debit card that can be used for purchases. These are called “hot” wallets. Some experts advise keeping the balances in these devices and apps to a minimal amount to avoid hacking or data loss. We typically don’t walk around with thousands of dollars in U.S. currency in our old-style wallets, so this is really a continuation of the same approach to managing spending money.
A “hot” wallet, the Bread mobile app
Some investors with large balances keep their keys in “cold” wallets, or “cold storage,” i.e. a device or location that is not connected online. If funds are needed for purchases, they can be transferred to a more easily used payment medium. Cold wallets can be hardware devices, USB drives, or even paper copies of your keys.
A “cold” wallet, the Trezor hardware wallet
A “cold” wallet, the Ledger Nano S
A “cold” Bitcoin paper wallet
Wallets are suited to holding one or more specific cryptocurrencies, and some people have multiple wallets for different currencies and different purposes.
A paper wallet is nothing other than a printed record of your public and private keys. Some prefer their records to be completely disconnected from the internet, and a piece of paper serves that need. Just like writing down an account password on paper, however, it’s essential to keep the paper secure to avoid giving someone the ability to freely access your funds.
In a post this coming Thursday, Securing Your Cryptocurrency, we’ll discuss the best strategies for backing up your cryptocurrency so that your currencies don’t become part of the millions that have been lost. We’ll cover the common (and uncommon) approaches to backing up hot wallets, cold wallets, and using paper and metal solutions to keeping your keys safe.
In the meantime, please tell us of your experiences with cryptocurrencies — good and bad — and how you’ve dealt with the issue of cryptocurrency security.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/03/tracing_stolen_.html
Previous attempts to track tainted coins had used either the “poison” or the “haircut” method. Suppose I open a new address and pay into it three stolen bitcoin followed by seven freshly-mined ones. Then under poison, the output is ten stolen bitcoin, while under haircut it’s ten bitcoin that are marked 30% stolen. After thousands of blocks, poison tainting will blacklist millions of addresses, while with haircut the taint gets diffused, so neither is very effective at tracking stolen property. Bitcoin due-diligence services supplant haircut taint tracking with AI/ML, but the results are still not satisfactory.
We discovered that, back in 1816, the High Court had to tackle this problem in Clayton’s case, which involved the assets and liabilities of a bank that had gone bust. The court ruled that money must be tracked through accounts on the basis of first-in, first out (FIFO); the first penny into an account goes to satisfy the first withdrawal, and so on.
Ilia Shumailov has written software that applies FIFO tainting to the blockchain and the results are impressive, with a massive improvement in precision. What’s more, FIFO taint tracking is lossless, unlike haircut; so in addition to tracking a stolen coin forward to find where it’s gone, you can start with any UTXO and trace it backwards to see its entire ancestry. It’s not just good law; it’s good computer science too.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/03/interesting_art_1.html
This is a good article on the complicated story of hacker Marcus Hutchins.
Post Syndicated from Robert Graham original http://blog.erratasec.com/2018/03/what-john-oliver-gets-wrong-about.html
The latest ransomware kicking everyone’s ass is Gandcrab which has infected an estimated 50,000 computers, fortunately for the victims, Bitdefender has released a free Gandcrab ransomware decryption tool as a part of the No More Ransom Project.
There’s nothing particularly notable about the ransomware itself other than it combines two existing exploit kits to compromise people and it takes payment in Dash, which is a privacy coin, rather than Bitcoin (which is a first as far as I know).
Post Syndicated from Eevee original https://eev.ee/blog/2018/02/18/tech-wishes-for-2018/
Anonymous asks, via money:
What would you like to see happen in tech in 2018?
(answer can be technical, social, political, combination, whatever)
I’m not really qualified to speak in depth about either of these things, but let me put my foot in my mouth anyway:
Bitcoin was a neat idea. No, really! Decentralization is cool. Overhauling our terrible financial infrastructure is cool. Hash functions are cool.
Unfortunately, it seems to have devolved into mostly a get-rich-quick scheme for nerds, and by nearly any measure it’s turning into a spectacular catastrophe. Its “success” is measured in how much a bitcoin is worth in US dollars, which is pretty close to an admission from its own investors that its only value is in converting back to “real” money — all while that same “success” is making it less useful as a distinct currency.
Blah, blah, everyone already knows this.
What concerns me slightly more is the gold rush hype cycle, which is putting cryptocurrency and “blockchain” in the news and lending it all legitimacy. People have raked in millions of dollars on ICOs of novel coins I’ve never heard mentioned again. (Note: again, that value is measured in dollars.) Most likely, none of the investors will see any return whatsoever on that money. They can’t, really, unless a coin actually takes off as a currency, and that seems at odds with speculative investing since everyone either wants to hoard or ditch their coins. When the coins have no value themselves, the money can only come from other investors, and eventually the hype winds down and you run out of other investors.
I fear this will hurt a lot of people before it’s over, so I’d like for it to be over as soon as possible.
That said, the hype itself has gotten way out of hand too. First it was the obsession with “blockchain” like it’s a revolutionary technology, but hey, Git is a fucking blockchain. The novel part is the way it handles distributed consensus (which in Git is basically left for you to figure out), and that’s uniquely important to currency because you want to be pretty sure that money doesn’t get duplicated or lost when moved around.
But now we have startups trying to use blockchains for website backends and file storage and who knows what else? Why? What advantage does this have? When you say “blockchain”, I hear “single Git repository” — so when you say “email on the blockchain”, I have an aneurysm.
Bitcoin seems to have sparked imagination in large part because it’s decentralized, but I’d argue it’s actually a pretty bad example of a decentralized network, since people keep forking it. The ability to fork is a feature, sure, but the trouble here is that the Bitcoin family has no notion of federation — there is one canonical Bitcoin ledger and it has no notion of communication with any other. That’s what you want for currency, not necessarily other applications. (Bitcoin also incentivizes frivolous forking by giving the creator an initial pile of coins to keep and sell.)
And federation is much more interesting than decentralization! Federation gives us email and the web. Federation means I can set up my own instance with my own rules and still be able to meaningfully communicate with the rest of the network. Federation has some amount of tolerance for changes to the protocol, so such changes are more flexible and rely more heavily on consensus.
Federation is fantastic, and it feels like a massive tragedy that this rekindled interest in decentralization is mostly focused on peer-to-peer networks, which do little to address our current problems with centralized platforms.
And hey, you know what else is federated? Banks.
Again, the tech is cool and all, but the marketing hype is getting way out of hand.
Maybe what I really want from 2018 is less marketing?
For one, I’ve seen a huge uptick in uncritically referring to any software that creates or classifies creative work as “AI”. Can we… can we not. It’s not AI. Yes, yes, nerds, I don’t care about the hair-splitting about the nature of intelligence — you know that when we hear “AI” we think of a human-like self-aware intelligence. But we’re applying it to stuff like a weird dog generator. Or to whatever neural network a website threw into production this week.
And this is dangerously misleading — we already had massive tech companies scapegoating The Algorithm™ for the poor behavior of their software, and now we’re talking about those algorithms as though they were self-aware, untouchable, untameable, unknowable entities of pure chaos whose decisions we are arbitrarily bound to. Ancient, powerful gods who exist just outside human comprehension or law.
It’s weird to see this stuff appear in consumer products so quickly, too. It feels quick, anyway. The latest iPhone can unlock via facial recognition, right? I’m sure a lot of effort was put into ensuring that the same person’s face would always be recognized… but how confident are we that other faces won’t be recognized? I admit I don’t follow all this super closely, so I may be imagining a non-problem, but I do know that humans are remarkably bad at checking for negative cases.
Hell, take the recurring problem of major platforms like Twitter and YouTube classifying anything mentioning “bisexual” as pornographic — because the word is also used as a porn genre, and someone threw a list of porn terms into a filter without thinking too hard about it. That’s just a word list, a fairly simple thing that any human can review; but suddenly we’re confident in opaque networks of inferred details?
I don’t know. “Traditional” classification and generation are much more comforting, since they’re a set of fairly abstract rules that can be examined and followed. Machine learning, as I understand it, is less about rules and much more about pattern-matching; it’s built out of the fingerprints of the stuff it’s trained on. Surely that’s just begging for tons of edge cases. They’re practically made of edge cases.
I’m reminded of a point I saw made a few days ago on Twitter, something I’d never thought about but should have. TurnItIn is a service for universities that checks whether students’ papers match any others, in order to detect cheating. But this is a paid service, one that fundamentally hinges on its corpus: a large collection of existing student papers. So students pay money to attend school, where they’re required to let their work be given to a third-party company, which then profits off of it? What kind of a goofy business model is this?
And my thoughts turn to machine learning, which is fundamentally different from an algorithm you can simply copy from a paper, because it’s all about the training data. And to get good results, you need a lot of training data. Where is that all coming from? How many for-profit companies are setting a neural network loose on the web — on millions of people’s work — and then turning around and selling the result as a product?
This is really a question of how intellectual property works in the internet era, and it continues our proud decades-long tradition of just kinda doing whatever we want without thinking about it too much. Nothing if not consistent.
A bit tougher, since computers are pretty alright now and everything continues to chug along. Maybe we should just quit while we’re ahead. There’s some real pie-in-the-sky stuff that would be nice, but it certainly won’t happen within a year, and may never happen except in some horrific Algorithmic™ form designed by people that don’t know anything about the problem space and only works 60% of the time but is treated as though it were bulletproof.
The giants are getting more giant. Maybe too giant? Granted, it could be much worse than Google and Amazon — it could be Apple!
Amazon has its own delivery service and brick-and-mortar stores now, as well as providing the plumbing for vast amounts of the web. They’re not doing anything particularly outrageous, but they kind of loom.
Ad company Google just put ad blocking in its majority-share browser — albeit for the ambiguously-noble goal of only blocking obnoxious ads so that people will be less inclined to install a blanket ad blocker.
Twitter is kind of a nightmare but no one wants to leave. I keep trying to use Mastodon as well, but I always forget about it after a day, whoops.
Facebook sounds like a total nightmare but no one wants to leave that either, because normies don’t use anything else, which is itself direly concerning.
IRC is rapidly bleeding mindshare to Slack and Discord, both of which are far better at the things IRC sadly never tried to do and absolutely terrible at the exact things IRC excels at.
The problem is the same as ever: there’s no incentive to interoperate. There’s no fundamental technical reason why Twitter and Tumblr and MySpace and Facebook can’t intermingle their posts; they just don’t, because why would they bother? It’s extra work that makes it easier for people to not use your ecosystem.
I don’t know what can be done about that, except that hope for a really big player to decide to play nice out of the kindness of their heart. The really big federated success stories — say, the web — mostly won out because they came along first. At this point, how does a federated social network take over? I don’t know.
I… don’t really have a solid grasp on what’s happening in tech socially at the moment. I’ve drifted a bit away from the industry part, which is where that all tends to come up. I have the vague sense that things are improving, but that might just be because the Rust community is the one I hear the most about, and it puts a lot of effort into being inclusive and welcoming.
So… more projects should be like Rust? Do whatever Rust is doing? And not so much what Linus is doing.
I haven’t heard this brought up much lately, but it would still be nice to see. The Bay Area runs on open source and is raking in zillions of dollars on its back; pump some of that cash back into the ecosystem, somehow.
I’ve seen a couple open source projects on Patreon, which is fantastic, but feels like a very small solution given how much money is flowing through the commercial tech industry.
Nice. Fuck ads.
One might wonder where the money to host a website comes from, then? I don’t know. Maybe we should loop this in with the above thing and find a more informal way to pay people for the stuff they make when we find it useful, without the financial and cognitive overhead of A Transaction or Giving Someone My Damn Credit Card Number. You know, something like Bitco— ah, fuck.
I don’t know. What are we working on at the moment? Wayland? Do Wayland, I guess. Oh, and hi-DPI, which I hear sucks. And please fix my sound drivers so PulseAudio stops blaming them when it fucks up.
Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/12/bitcoin-in-crypto-we-trust.html
Tim Wu, who coined “net neutrality”, has written an op-ed on the New York Times called “The Bitcoin Boom: In Code We Trust“. He is wrong about “code”.
Wu builds a big manifesto about how real-world institutions can’t be trusted. Certainly, this reflects the rhetoric from a vocal wing of Bitcoin fanatics, but it’s not the Bitcoin manifesto.
Instead, the word “trust” in the Bitcoin paper is much narrower, referring to how online merchants can’t trust credit-cards (for example). When I bought school supplies for my niece when she studied in Canada, the online site wouldn’t accept my U.S. credit card. They didn’t trust my credit card. However, they trusted my Bitcoin, so I used that payment method instead, and succeeded in the purchase.
Real-world currencies like dollars are tethered to the real-world, which means no single transaction can be trusted, because “they” (the credit-card company, the courts, etc.) may decide to reverse the transaction. The manifesto behind Bitcoin is that a transaction cannot be reversed — and thus, can always be trusted.
Deliberately confusing the micro-trust in a transaction and macro-trust in banks and governments is a sort of bait-and-switch.
“It was, after all, a carnival of human errors and misfeasance that inspired the invention of Bitcoin in 2009, namely, the financial crisis.”
Not true. Bitcoin did not appear fully formed out of the void, but was instead based upon a series of innovations that predate the financial crisis by a decade. Moreover, the financial crisis had little to do with “currency”. The value of the dollar and other major currencies were essentially unscathed by the crisis. Certainly, enthusiasts looking backward like to cherry pick the financial crisis as yet one more reason why the offline world sucks, but it had little to do with Bitcoin.
A generation ago, multi-user time-sharing computer systems had a similar problem. Before strong encryption, users had to rely on password protection to secure their files, placing trust in the system administrator to keep their information private. Privacy could always be overridden by the admin based on his judgment call weighing the principle of privacy against other concerns, or at the behest of his superiors. Then strong encryption became available to the masses, and trust was no longer required. Data could be secured in a way that was physically impossible for others to access, no matter for what reason, no matter how good the excuse, no matter what.
You don’t possess Bitcoins. Instead, all the coins are on the public blockchain under your “address”. What you possess is the secret, private key that matches the address. Transferring Bitcoin means using your private key to unlock your coins and transfer them to another. If you print out your private key on paper, and delete it from the computer, it can never be hacked.
Trust is in this crypto operation. Trust is in your private crypto key.
The manifesto “in code we trust” has been proven wrong again and again. We don’t trust computer code (software) in the cryptocurrency world.
The most profound example is something known as the “DAO” on top of Ethereum, Bitcoin’s major competitor. Ethereum allows “smart contracts” containing code. The quasi-religious manifesto of the DAO smart-contract is that the “code is the contract”, that all the terms and conditions are specified within the smart-contract code, completely untethered from real-world terms-and-conditions.
Then a hacker found a bug in the DAO smart-contract and stole most of the money.
In principle, this is perfectly legal, because “the code is the contract”, and the hacker just used the code. In practice, the system didn’t live up to this. The Ethereum core developers, acting as central bankers, rewrote the Ethereum code to fix this one contract, returning the money back to its original owners. They did this because those core developers were themselves heavily invested in the DAO and got their money back.
Similar things happen with the original Bitcoin code. A disagreement has arisen about how to expand Bitcoin to handle more transactions. One group wants smaller and “off-chain” transactions. Another group wants a “large blocksize”. This caused a “fork” in Bitcoin with two versions, “Bitcoin” and “Bitcoin Cash”. The fork championed by the core developers (central bankers) is worth around $20,000 right now, while the other fork is worth around $2,000.
So it’s still “in central bankers we trust”, it’s just that now these central bankers are mostly online instead of offline institutions. They have proven to be even more corrupt than real-world central bankers. It’s certainly not the code that is trusted.
Wu repeats the well-known reference to Amazon during the dot-com bubble. If you bought Amazon’s stock for $107 right before the dot-com crash, it still would be one of wisest investments you could’ve made. Amazon shares are now worth around $1,200 each.
The implication is that Bitcoin, too, may have such long term value. Even if you buy it today and it crashes tomorrow, it may still be worth ten-times its current value in another decade or two.
This is a poor analogy, for three reasons.
The first reason is that we knew the Internet had fundamentally transformed commerce. We knew there were going to be winners in the long run, it was just a matter of picking who would win (Amazon) and who would lose (Pets.com). We have yet to prove Bitcoin will be similarly transformative.
The second reason is that businesses are real, they generate real income. While the stock price may include some irrational exuberance, it’s ultimately still based on the rational expectations of how much the business will earn. With Bitcoin, it’s almost entirely irrational exuberance — there are no long term returns.
The third flaw in the analogy is that there are an essentially infinite number of cryptocurrencies. We saw this today as Coinbase started trading Bitcoin Cash, a fork of Bitcoin. The two are nearly identical, so there’s little reason one should be so much valuable than another. It’s only a fickle fad that makes one more valuable than another, not business fundamentals. The successful future cryptocurrency is unlikely to exist today, but will be invented in the future.
The lessons of the dot-com bubble is not that Bitcoin will have long term value, but that cryptocurrency companies like Coinbase and BitPay will have long term value. Or, the lesson is that “old” companies like JPMorgan that are early adopters of the technology will grow faster than their competitors.
Bitcoin is not about replacing real-world institutions but about untethering online transactions.
The trust in Bitcoin is in crypto — the power crypto gives individuals instead of third-parties.
The trust is not in the code. Bitcoin is a “cryptocurrency” not a “codecurrency”.
Post Syndicated from Michal Zalewski original http://lcamtuf.blogspot.com/2017/12/the-deal-with-bitcoin.html
For all that has been written about Bitcoin and its ilk, it is curious that the focus is almost solely what the cryptocurrencies are supposed to be. Technologists wax lyrical about the potential for blockchains to change almost every aspect of our lives. Libertarians and paleoconservatives ache for the return to “sound money” that can’t be conjured up at the whim of a bureaucrat. Mainstream economists wag their fingers, proclaiming that a proper currency can’t be deflationary, that it must maintain a particular velocity, or that the government must be able to nip crises of confidence in the bud. And so on.
Much of this may be true, but the proponents of cryptocurrencies should recognize that an appeal to consequences is not a guarantee of good results. The critics, on the other hand, would be best served to remember that they are drawing far-reaching conclusions about the effects of modern monetary policies based on a very short and tumultuous period in history.
In this post, my goal is to ditch most of the dogma, talk a bit about the origins of money – and then see how “crypto” fits the bill.
The emergence of money is usually explained in a very straightforward way. You know the story: a farmer raised a pig, a cobbler made a shoe. The cobbler needed to feed his family while the farmer wanted to keep his feet warm – and so they met to exchange the goods on mutually beneficial terms. But as the tale goes, the barter system had a fatal flaw: sometimes, a farmer wanted a cooking pot, a potter wanted a knife, and a blacksmith wanted a pair of pants. To facilitate increasingly complex, multi-step exchanges without requiring dozens of people to meet face to face, we came up with an abstract way to represent value – a shiny coin guaranteed to be accepted by every tradesman.
It is a nice parable, but it probably isn’t very true. It seems far more plausible that early societies relied on the concept of debt long before the advent of currencies: an informal tally or a formal ledger would be used to keep track of who owes what to whom. The concept of debt, closely associated with one’s trustworthiness and standing in the community, would have enabled a wide range of economic activities: debts could be paid back over time, transferred, renegotiated, or forgotten – all without having to engage in spot barter or to mint a single coin. In fact, such non-monetary, trust-based, reciprocal economies are still common in closely-knit communities: among families, neighbors, coworkers, or friends.
In such a setting, primitive currencies probably emerged simply as a consequence of having a system of prices: a cow being worth a particular number of chickens, a chicken being worth a particular number of beaver pelts, and so forth. Formalizing such relationships by settling on a single, widely-known unit of account – say, one chicken – would make it more convenient to transfer, combine, or split debts; or to settle them in alternative goods.
Contrary to popular belief, for communal ledgers, the unit of account probably did not have to be particularly desirable, durable, or easy to carry; it was simply an accounting tool. And indeed, we sometimes run into fairly unusual units of account even in modern times: for example, cigarettes can be the basis of a bustling prison economy even when most inmates don’t smoke and there are not that many packs to go around.
In the end, the development of coinage might have had relatively little to do with communal trade – and far more with the desire to exchange goods with strangers. When dealing with a unfamiliar or hostile tribe, the concept of a chicken-denominated ledger does not hold up: the other side might be disinclined to honor its obligations – and get away with it, too. To settle such problematic trades, we needed a “spot” medium of exchange that would be easy to carry and authenticate, had a well-defined value, and a near-universal appeal. Throughout much of the recorded history, precious metals – predominantly gold and silver – proved to fit the bill.
In the most basic sense, such commodities could be seen as a tool to reconcile debts across societal boundaries, without necessarily replacing any local units of account. An obligation, denominated in some local currency, would be created on buyer’s side in order to procure the metal for the trade. The proceeds of the completed transaction would in turn allow the seller to settle their own local obligations that arose from having to source the traded goods. In other words, our wondrous chicken-denominated ledgers could coexist peacefully with gold – and when commodity coinage finally took hold, it’s likely that in everyday trade, precious metals served more as a useful abstraction than a precise store of value. A “silver chicken” of sorts.
Still, the emergence of commodity money had one interesting side effect: it decoupled the unit of debt – a “claim on the society”, in a sense – from any moral judgment about its origin. A piece of silver would buy the same amount of food, whether earned through hard labor or won in a drunken bet. This disconnect remains a central theme in many of the debates about social justice and unfairly earned wealth.
If there is one advantage of chicken ledgers over precious metals, it’s that all chickens look and cluck roughly the same – something that can’t be said of every nugget of silver or gold. To cope with this problem, we needed to shape raw commodities into pieces of a more predictable shape and weight; a trusted party could then stamp them with a mark to indicate the value and the quality of the coin.
At first, the task of standardizing coinage rested with private parties – but the responsibility was soon assumed by the State. The advantages of this transition seemed clear: a single, widely-accepted and easily-recognizable currency could be now used to settle virtually all private and official debts.
Alas, in what deserves the dubious distinction of being one of the earliest examples of monetary tomfoolery, some States succumbed to the temptation of fiddling with the coinage to accomplish anything from feeding the poor to waging wars. In particular, it would be common to stamp coins with the same face value but a progressively lower content of silver and gold. Perhaps surprisingly, the strategy worked remarkably well; at least in the times of peace, most people cared about the value stamped on the coin, not its precise composition or weight.
And so, over time, representative money was born: sooner or later, most States opted to mint coins from nearly-worthless metals, or print banknotes on paper and cloth. This radically new currency was accompanied with a simple pledge: the State offered to redeem it at any time for its nominal value in gold.
Of course, the promise was largely illusory: the State did not have enough gold to honor all the promises it had made. Still, as long as people had faith in their rulers and the redemption requests stayed low, the fundamental mechanics of this new representative currency remained roughly the same as before – and in some ways, were an improvement in that they lessened the insatiable demand for a rare commodity. Just as importantly, the new money still enabled international trade – using the underlying gold exchange rate as a reference point.
For much of the recorded history, banking was an exceptionally dull affair, not much different from running a communal chicken
ledger of the old. But then, something truly marvelous happened in the 17th century: around that time, many European countries have witnessed
the emergence of fractional-reserve banks.
These private ventures operated according to a simple scheme: they accepted people’s coin
for safekeeping, promising to pay a premium on every deposit made. To meet these obligations and to make a profit, the banks then
used the pooled deposits to make high-interest loans to other folks. The financiers figured out that under normal circumstances
and when operating at a sufficient scale, they needed only a very modest reserve – well under 10% of all deposited money – to be
able to service the usual volume and size of withdrawals requested by their customers. The rest could be loaned out.
The very curious consequence of fractional-reserve banking was that it pulled new money out of thin air.
The funds were simultaneously accounted for in the statements shown to the depositor, evidently available for withdrawal or
transfer at any time; and given to third-party borrowers, who could spend them on just about anything. Heck, the borrowers could
deposit the proceeds in another bank, creating even more money along the way! Whatever they did, the sum of all funds in the monetary
system now appeared much higher than the value of all coins and banknotes issued by the government – let alone the amount of gold
sitting in any vault.
Of course, no new money was being created in any physical sense: all that banks were doing was engaging in a bit of creative accounting – the sort of which would probably land you in jail if you attempted it today in any other comparably vital field of enterprise. If too many depositors were to ask for their money back, or if too many loans were to go bad, the banking system would fold. Fortunes would evaporate in a puff of accounting smoke, and with the disappearance of vast quantities of quasi-fictitious (“broad”) money, the wealth of the entire nation would shrink.
In the early 20th century, the world kept witnessing just that; a series of bank runs and economic contractions forced the governments around the globe to act. At that stage, outlawing fractional-reserve banking was no longer politically or economically tenable; a simpler alternative was to let go of gold and move to fiat money – a currency implemented as an abstract social construct, with no predefined connection to the physical realm. A new breed of economists saw the role of the government not in trying to peg the value of money to an inflexible commodity, but in manipulating its supply to smooth out economic hiccups or to stimulate growth.
(Contrary to popular beliefs, such manipulation is usually not done by printing new banknotes; more sophisticated methods, such as lowering reserve requirements for bank deposits or enticing banks to invest its deposits into government-issued securities, are the preferred route.)
The obvious peril of fiat money is that in the long haul, its value is determined strictly by people’s willingness to accept a piece of paper in exchange for their trouble; that willingness, in turn, is conditioned solely on their belief that the same piece of paper would buy them something nice a week, a month, or a year from now. It follows that a simple crisis of confidence could make a currency nearly worthless overnight. A prolonged period of hyperinflation and subsequent austerity in Germany and Austria was one of the precipitating factors that led to World War II. In more recent times, dramatic episodes of hyperinflation plagued the fiat currencies of Israel (1984), Mexico (1988), Poland (1990), Yugoslavia (1994), Bulgaria (1996), Turkey (2002), Zimbabwe (2009), Venezuela (2016), and several other nations around the globe.
For the United States, the switch to fiat money came relatively late, in 1971. To stop the dollar from plunging like a rock, the Nixon administration employed a clever trick: they ordered the freeze of wages and prices for the 90 days that immediately followed the move. People went on about their lives and paid the usual for eggs or milk – and by the time the freeze ended, they were accustomed to the idea that the “new”, free-floating dollar is worth about the same as the old, gold-backed one. A robust economy and favorable geopolitics did the rest, and so far, the American adventure with fiat currency has been rather uneventful – perhaps except for the fact that the price of gold itself skyrocketed from $35 per troy ounce in 1971 to $850 in 1980 (or, from $210 to $2,500 in today’s dollars).
Well, one thing did change: now better positioned to freely tamper with the supply of money, the regulators in accord with the bankers adopted a policy of creating it at a rate that slightly outstripped the organic growth in economic activity. They did this to induce a small, steady degree of inflation, believing that doing so would discourage people from hoarding cash and force them to reinvest it for the betterment of the society. Some critics like to point out that such a policy functions as a “backdoor” tax on savings that happens to align with the regulators’ less noble interests; still, either way: in the US and most other developed nations, the purchasing power of any money kept under a mattress will drop at a rate of somewhere between 2 to 10% a year.
Well… countless tomes have been written about the nature and the optimal characteristics of government-issued fiat currencies. Some heterodox economists, notably including Murray Rothbard, have also explored the topic of privately-issued, decentralized, commodity-backed currencies. But Bitcoin is a wholly different animal.
In essence, BTC is a global, decentralized fiat currency: it has no (recoverable) intrinsic value, no central authority to issue it or define its exchange rate, and it has no anchoring to any historical reference point – a combination that until recently seemed nonsensical and escaped any serious scrutiny. It does the unthinkable by employing three clever tricks:
It allows anyone to create new coins, but only by solving brute-force computational challenges that get more difficult as the time goes by,
It prevents unauthorized transfer of coins by employing public key cryptography to sign off transactions, with only the authorized holder of a coin knowing the correct key,
It prevents double-spending by using a distributed public ledger (“blockchain”), recording the chain of custody for coins in a tamper-proof way.
The blockchain is often described as the most important feature of Bitcoin, but in some ways, its importance is overstated. The idea of a currency that does not rely on a centralized transaction clearinghouse is what helped propel the platform into the limelight – mostly because of its novelty and the perception that it is less vulnerable to government meddling (although the government is still free to track down, tax, fine, or arrest any participants). On the flip side, the everyday mechanics of BTC would not be fundamentally different if all the transactions had to go through Bitcoin Bank, LLC.
A more striking feature of the new currency is the incentive structure surrounding the creation of new coins. The underlying design democratized the creation of new coins early on: all you had to do is leave your computer running for a while to acquire a number of tokens. The tokens had no practical value, but obtaining them involved no substantial expense or risk. Just as importantly, because the difficulty of the puzzles would only increase over time, the hope was that if Bitcoin caught on, latecomers would find it easier to purchase BTC on a secondary market than mine their own – paying with a more established currency at a mutually beneficial exchange rate.
The persistent publicity surrounding Bitcoin and other cryptocurrencies did the rest – and today, with the growing scarcity of coins and the rapidly increasing demand, the price of a single token hovers somewhere south of $15,000.
Predicting is hard – especially the future. In some sense, a coin that represents a cryptographic proof of wasted CPU cycles is no better or worse than a currency that relies on cotton decorated with pictures of dead presidents. It is true that Bitcoin suffers from many implementation problems – long transaction processing times, high fees, frequent security breaches of major exchanges – but in principle, such problems can be overcome.
That said, currencies live and die by the lasting willingness of others to accept them in exchange for services or goods – and in that sense, the jury is still out. The use of Bitcoin to settle bona fide purchases is negligible, both in absolute terms and in function of the overall volume of transactions. In fact, because of the technical challenges and limited practical utility, some companies that embraced the currency early on are now backing out.
When the value of an asset is derived almost entirely from its appeal as an ever-appreciating investment vehicle, the situation has all the telltale signs of a speculative bubble. But that does not prove that the asset is destined to collapse, or that a collapse would be its end. Still, the built-in deflationary mechanism of Bitcoin – the increasing difficulty of producing new coins – is probably both a blessing and a curse.
It’s going to go one way or the other; and when it’s all said and done, we’re going to celebrate the people who made the right guess. Because future is actually pretty darn easy to predict — in retrospect.
Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/12/crypto_is_being.html
I agree with Lorenzo Franceschi-Bicchierai, “Cryptocurrencies aren’t ‘crypto’“:
Lately on the internet, people in the world of Bitcoin and other digital currencies are starting to use the word “crypto” as a catch-all term for the lightly regulated and burgeoning world of digital currencies in general, or for the word “cryptocurrency” — which probably shouldn’t even be called “currency,” by the way.
To be clear, I’m not the only one who is mad about this. Bitcoin and other technologies indeed do use cryptography: all cryptocurrency transactions are secured by a “public key” known to all and a “private key” known only to one party — this is the basis for a swath of cryptographic approaches (known as public key, or asymmetric cryptography) like PGP. But cryptographers say that’s not really their defining trait.
“Most cryptocurrency barely has anything to do with serious cryptography,” Matthew Green, a renowned computer scientist who studies cryptography, told me via email. “Aside from the trivial use of digital signatures and hash functions, it’s a stupid name.”
It is a stupid name.
Post Syndicated from Blogs on Grafana Labs Blog original https://grafana.com/blog/2017/12/01/timeshiftgrafanabuzz-1w-issue-24/
It’s hard to believe it’s already December. Here at Grafana Labs we’ve been spending a lot of time working on new features and enhancements for Grafana v5, and finalizing our selections for GrafanaCon EU. This week we have some interesting articles to share and a number of plugin updates. Enjoy!
Grafana 4.6.2 is now available and includes some bug fixes:
<operators in WHERE clause #9871
Monitoring Camel with Prometheus in Red Hat OpenShift: This in-depth walk-through will show you how to build an Apache Camel application from scratch, deploy it in a Kubernetes environment, gather metrics using Prometheus and display them in Grafana.
How to run Grafana with DeviceHive: We see more and more examples of people using Grafana in IoT. This article discusses how to gather data from the IoT platform, DeviceHive, and build useful dashboards.
How to Install Grafana on Linux Servers: Pretty self-explanatory, but this tutorial walks you installing Grafana on Ubuntu 16.04 and CentOS 7. After installation, it covers configuration and plugin installation. This is the first article in an upcoming series about Grafana.
Monitoring your AKS cluster with Grafana: It’s important to know how your application is performing regardless of where it lives; the same applies to Kubernetes. This article focuses on aggregating data from Kubernetes with Heapster and feeding it to a backend for Grafana to visualize.
CoinStatistics: With the price of Bitcoin skyrocketing, more and more people are interested in cryptocurrencies. This is a cool dashboard that has a lot of stats about popular cryptocurrencies, and has a calculator to let you know when you can buy that lambo.
Using OpenNTI As A Collector For Streaming Telemetry From Juniper Devices: Part 1: This series will serve as a quick start guide for getting up and running with streaming real-time telemetry data from Juniper devices. This first article covers some high-level concepts and installation, while part 2 covers configuration options.
How to Get Metrics for Advance Alerting to Prevent Trouble: What good is performance monitoring if you’re never told when something has gone wrong? This article suggests ways to be more proactive to prevent issues and avoid the scramble to troubleshoot issues.
Thoughtworks: Technology Radar: We got a shout-out in the latest Technology Radar in the Tools section, as the dashboard visualization tool of choice for Prometheus!
Tickets are going fast for GrafanaCon EU, but we still have a seat reserved for you. Join us March 1-2, 2018 in Amsterdam for 2 days of talks centered around Grafana and the surrounding monitoring ecosystem including Graphite, Prometheus, InfluxData, Elasticsearch, Kubernetes, and more.
We have a number of plugin updates to highlight this week. Authors improve plugins regularly to fix bugs and improve performance, so it’s important to keep your plugins up to date. We’ve made updating easy; for on-prem Grafana, use the Grafana-cli tool, or update with 1 click if you’re using Hosted Grafana.
Clickhouse Data Source – The Clickhouse Data Source received a substantial update this week. It now has support for Ace Editor, which has a reformatting function for the query editor that automatically formats your sql. If you’re using Clickhouse then you should also have a look at CHProxy – see the plugin readme for more details.
Influx Admin Panel – This panel received a number of small fixes. A new version will be coming soon with some new features.
Some of the changes (see the release notes) for more details):
In between code pushes we like to speak at, sponsor and attend all kinds of conferences and meetups. We have some awesome talks and events coming soon. Hope to see you at one of these!
We scour Twitter each week to find an interesting/beautiful dashboard and show it off! #monitoringLove
— Raj Dutt (@nopzor) November 30, 2017
YIKES! Glad it’s not – there’s good attention and bad attention.
Let us know if you’re finding these weekly roundups valuable. Submit a comment on this article below, or post something at our community forum. Find an article I haven’t included? Send it my way. Help us make timeShift better!
Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/11/a-thanksgiving-carol-how-those-smart.html
Thanksgiving Holiday is a time for family and cheer. Well, a time for family. It’s the holiday where we ask our doctor relatives to look at that weird skin growth, and for our geek relatives to fix our computers. This tale is of such computer support, and how the “smart” engineers at Twitter have ruined this for life.
My mom is smart, but not a good computer user. I get my enthusiasm for science and math from my mother, and she has no problem understanding the science of computers. She keeps up when I explain Bitcoin. But she has difficulty using computers. She has this emotional, irrational belief that computers are out to get her.
This makes helping her difficult. Every problem is described in terms of what the computer did to her, not what she did to her computer. It’s the computer that needs to be fixed, instead of the user. When I showed her the “haveibeenpwned.com” website (part of my tips for securing computers), it showed her Tumblr password had been hacked. She swore she never created a Tumblr account — that somebody or something must have done it for her. Except, I was there five years ago and watched her create it.
Another example is how GMail is deleting her emails for no reason, corrupting them, and changing the spelling of her words. She emails the way an impatient teenager texts — all of us in the family know the misspellings are not GMail’s fault. But I can’t help her with this because she keeps her GMail inbox clean, deleting all her messages, leaving no evidence behind. She has only a vague description of the problem that I can’t make sense of.
This last March, I tried something to resolve this. I configured her GMail to send a copy of all incoming messages to a new, duplicate account on my own email server. With evidence in hand, I would then be able solve what’s going on with her GMail. I’d be able to show her which steps she took, which buttons she clicked on, and what caused the weirdness she’s seeing.
Today, while the family was in a state of turkey-induced torpor, my mom brought up a problem with Twitter. She doesn’t use Twitter, she doesn’t have an account, but they keep sending tweets to her phone, about topics like Denzel Washington. And she said something about “peaches” I didn’t understand.
This is how the problem descriptions always start, chaotic, with mutually exclusive possibilities. If you don’t use Twitter, you don’t have the Twitter app installed, so how are you getting Tweets? Over much gnashing of teeth, it comes out that she’s getting emails from Twitter, not tweets, about Denzel Washington — to someone named “Peaches Graham”. Naturally, she can only describe these emails, because she’s already deleted them.
“Ah ha!”, I think. I’ve got the evidence! I’ll just log onto my duplicate email server, and grab the copies to prove to her it was something she did.
I find she is indeed receiving such emails, called “Moments”, about topics trending on Twitter. They are signed with “DKIM”, proving they are legitimate rather than from a hacker or spammer. The only way that can happen is if my mother signed up for Twitter, despite her protestations that she didn’t.
I look further back and find that there were also confirmation messages involved. Back in August, she got a typical Twitter account signup message. I am now seeing a little bit more of the story unfold with this “Peaches Graham” name on the account. It wasn’t my mother who initially signed up for Twitter, but Peaches, who misspelled the email address. It’s one of the reasons why the confirmation process exists, to make sure you spelled your email address correctly.
It’s now obvious my mom accidentally clicked on the [Confirm] button. I don’t have any proof she did, but it’s the only reasonable explanation. Otherwise, she wouldn’t have gotten the “Moments” messages. My mom disputed this, emphatically insisting she never clicked on the emails.
It’s at this point that I made a great mistake, saying:
“This sort of thing just doesn’t happen. Twitter has very smart engineers. What’s the chance they made the mistake here, or…”.
I recognized condescension of words as they came out of my mouth, but dug myself deeper with:
“…or that the user made the error?”
This was wrong to say even if I were right. I have no excuse. I mean, maybe I could argue that it’s really her fault, for not raising me right, but no, this is only on me.
Regardless of what caused the Twitter emails, the problem needs to be fixed. The solution is to take control of the Twitter account by using the password reset feature. I went to the Twitter login page, clicked on “Lost Password”, got the password reset message, and reset the password. I then reconfigured the account to never send anything to my mom again.
But when I logged in I got an error saying the account had not yet been confirmed. I paused. The family dog eyed me in wise silence. My mom hadn’t clicked on the [Confirm] button — the proof was right there. Moreover, it hadn’t been confirmed for a long time, since the account was created in 2011.
I interrogated my mother some more. It appears that this has been going on for years. She’s just been deleting the emails without opening them, both the “Confirmations” and the “Moments”. She made it clear she does it this way because her son (that would be me) instructs her to never open emails she knows are bad. That’s how she could be so certain she never clicked on the [Confirm] button — she never even opens the emails to see the contents.
My mom is a prolific email user. In the last eight months, I’ve received over 10,000 emails in the duplicate mailbox on my server. That’s a lot. She’s technically retired, but she volunteers for several charities, goes to community college classes, and is joining an anti-Trump protest group. She has a daily routine for triaging and processing all the emails that flow through her inbox.
So here’s the thing, and there’s no getting around it: my mom was right, on all particulars. She had done nothing, the computer had done it to her. It’s Twitter who is at fault, having continued to resend that confirmation email every couple months for six years. When Twitter added their controversial “Moments” feature a couple years back, somehow they turned on Notifications for accounts that technically didn’t fully exist yet.
Being right this time means she might be right the next time the computer does something to her without her touching anything. My attempts at making computers seem rational has failed. That they are driven by untrustworthy spirits is now a reasonable alternative.
Those “smart” engineers at Twitter screwed me. Continuing to send confirmation emails for six years is stupid. Sending Notifications to unconfirmed accounts is stupid. Yes, I know at the bottom of the message it gives a “Not my account” selection that she could have clicked on, but it’s small and easily missed. In any case, my mom never saw that option, because she’s been deleting the messages without opening them — for six years.
Twitter can fix their problem, but it’s not going to help mine. Forever more, I’ll be unable to convince my mom that the majority of her problems are because of user error, and not because the computer people are out to get her.
Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/11/don-jr-ill-bite.html
So Don Jr. tweets the following, which is an excellent troll. So I thought I’d bite. The reason is I just got through debunk Democrat claims about NetNeutrality, so it seems like a good time to balance things out and debunk Trump nonsense.
The issue here is not which side is right. The issue here is whether you stand for truth, or whether you’ll seize any factoid that appears to support your side, regardless of the truthfulness of it. The ACLU obviously chose falsehoods, as I documented. In the following tweet, Don Jr. does the same.
It’s a preview of the hyperpartisan debates are you are likely to have across the dinner table tomorrow, which each side trying to outdo the other in the false-hoods they’ll claim.
Need something to discuss over #Thanksgiving dinner? Try this
Stock markets at all time highs
Lowest jobless claims since 73
6 TRILLION added to economy since Election
1.5M fewer people on food stamps
Consumer confidence through roof
Lowest Unemployment rate in 17 years #maga
— Donald Trump Jr. (@DonaldJTrumpJr) November 23, 2017
What we see in this number is a steady trend of these statistics since the Great Recession, with no evidence in the graphs showing how Trump has influenced these numbers, one way or the other.
Again, let’s graph this:
As we can see, jobless claims have been on a smooth downward trajectory since the Great Recession. It’s difficult to see here how President Trump has influenced these numbers.
Again we find nothing in the graph that suggests President Trump is responsible for any change — it’s been improving steadily since the Great Recession.
One thing to note is that, technically, it’s not “through the roof” — it still quite a bit below the roof set during the dot-com era.
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