Check out the new SourceForge HTML5 internet speed test! No Flash necessary and runs on all devices. ×
IBM

Banks Adopting Blockchain 'Dramatically Faster' Than Expected (reuters.com) 59

Banks and other financial institutions are adopting blockchain technology "dramatically faster" than initially expected, with 15 percent of top global banks intending to roll out full-scale, commercial blockchain products in 2017, IBM said on Wednesday. Reuters reports: The technology company said 65 percent of banks expected to have blockchain projects in production in three years' time, with larger banks -- those with more than 100,000 employees -- leading the charge. IBM, whose findings were based on a survey of 200 banks, said the areas most commonly identified by lenders as ripe for blockchain-based innovation were clearing and settlement, wholesale payments, equity and debt issuance and reference data. Blockchain, which originates from digital currency bitcoin, works as an electronic transaction-processing and record-keeping system that allows all parties to track information through a secure network, with no need for third-party verification.
Cloud

Microsoft Partners With Bank of America On Blockchain Trade Finance (securityweek.com) 43

wiredmikey quotes a report from SecurityWeek: Microsoft and Bank of America Merrill Lynch said they are working together to make financial transactions more efficient with blockchain technology -- the foundation of bitcoin digital currency. Blockchains are considered tamper-proof registers in which entries are time-stamped and linked to previous "blocks" in a data chain. As expected, the technology that drives the shadowy bitcoin cryptocurrency is drawing interest from the established banking industry, which sees a potential to revolutionize the sector. The companies said they will build and test frameworks for blockchain-powered exchanges between businesses and their customers and banks. Microsoft plans to use its Azure cloud service platform to enable blockchain transactions between a major corporate treasury and a financial institution. "Blockchains serve as public ledgers considered easy to audit and verify. They are also automated, speeding up transactions and limiting potential for error or revision," the report adds. The companies said that by using blockchain technology, they can digitalize and automate trade finance processes, which are traditionally highly manual, time-consuming and costly.
Bitcoin

Japanese To Pay Utility Bills Using Bitcoin (thestack.com) 36

An anonymous reader quotes a report from The Stack: Japanese citizens will soon be able to pay their utility bills using bitcoin. The facility is being provided by Coincheck Denki, a new service offered by the Japanese bitcoin company, which will be available to users in November. Coincheck outlined the new plan on its website. Also called 'Coincheck Electricity,' it will allow users to pay their electricity bills directly from their Coincheck bitcoin wallet. It also offers a discount plan for heavy users of electricity, with 4-6% of the total bill discounted for heavy users of electricity who pay in bitcoin. Coincheck's parent company, Reju Press, initially partnered with Mitsuwa Inc., to create the bitcoin payment system. Coincheck now works with Mitsuwa subsidiary E-Net Inc., and has formed a partnership with Marubeni Power Retail Corporation, which operates power plants in 17 locations in central Japan. Marubeni has offices in 66 countries worldwide, although no plans have been announced to take the bitcoin payment option outside of Japan. While the initial bitcoin payment rollout is for electricity bills, Coincheck plans to expand its offerings to bitcoin payment for 'life infrastructure,' to include payment of gas, water and mobile phone bills. It may even partner with landlords to allow customers of Coincheck to pay rent using bitcoin. The bitcoin payment plan will be rolled out in Chubu, Kanto (including Tokyo) and Kansai regions to start, with additional areas to be added sequentially. The company hopes to offer bitcoin payment options to one million electric customers within the first year.
Bitcoin

Federal Judge Rules Bitcoin Is Money In Case Tied To JPMorgan Hack (reuters.com) 87

Roughly two months ago, a Miami-Dade judge ruled that bitcoin does not actually qualify as money. Now, it appears that bitcoin does indeed qualify as money, according to U.S. District Judge Alison Nathan in Manhattan. "Bitcoins are funds within the plain meaning of that term," Nathan wrote. "Bitcoins can be accepted as a payment for goods and services or bought directly from an exchange with a bank account. They therefore function as pecuniary resources and are used as a medium of exchange and a means of payment." Reuters provides some backstory in its report: Bitcoin qualifies as money, a federal judge ruled on Monday, in a decision linked to a criminal case over hacking attacks against JPMorgan Chase and Co and other companies. U.S. District Judge Alison Nathan in Manhattan rejected a bid by Anthony Murgio to dismiss two charges related to his alleged operation of Coin.mx, which prosecutors have called an unlicensed bitcoin exchange. Murgio had argued that bitcoin did not qualify as "funds" under the federal law prohibiting the operation of unlicensed money transmitting businesses. But the judge, like her colleague Jed Rakoff in an unrelated 2014 case, said the virtual currency met that definition. Authorities have said Coin.mx was owned by Gery Shalon, an Israeli man who, along with two others, was charged with running a sprawling computer hacking and fraud scheme targeting a dozen companies, including JPMorgan, and exposing personal data of more than 100 million people. That alleged scheme generated hundreds of millions of dollars of profit through pumping up stock prices, online casinos, money laundering and other illegal activity, prosecutors have said.
The Courts

'Unpatent' Begins Crowdfunding Challenges To Bad Patents (unpatent.co) 115

"Unpatent is a crowdfunding platform that eliminates bad patents," reads their web site. "We do that by crowdsourcing the prior art -- that is all the evidence that makes clear that a patent was not novel -- and filing reexamination requests to the patent office." An anonymous Slashdot reader reports: "Everyone in the world can back the crowdfunding campaign against the patent," explains their site, which includes a special section with "Featured stupid patents". The first $16,000 raised covers the lawyers and fees at the U.S. Patent and Trademark Office, and "The rest is distributed to those who find valid prior art...any evidence that a patent is not novel. We review all the prior art pieces and reward those that may invalidate a claim... Then, we file an ex partes reexamination to the USPTO."

Their team includes Lee Cheng, the legal officer at Newegg, "worldwide renowned as the patent trolls' nightmare," as well as Lus Cuende, who created his own Linux distro when he was 15 and is now CTO of Stampery, a company using the Bitcoin blockchain to notarize data.

They're currently targeting the infamous US8738435 covering "personalized content relating to offered products and services," which in February the EFF featured as their "stupid patent of the month." Its page on Unpatent.co argues that "Taking something so obvious such as personalizing content and offers...and writing the word online everywhere shouldn't grant you a monopoly over it." Unpatent's slogan? "We invalidate patents that shouldn't exist."
The Almighty Buck

These Are the Six Crypto-Currencies Approved By Apple (softpedia.com) 74

An anonymous reader quotes Softpedia: Anthony Di Iorio, founder of Jaxx, a crypto-currency wallet, claims that an Apple representative revealed to him the six crypto-currencies allowed on the App Store, during a private phone conversation... Di Iorio had this conversation with the Apple employee after the company removed his Jaxx iOS app from the store. The Apple employee told Di Iorio that they had to remove his app because it featured support for Dash, another blockchain technology, touted as an alternative to Bitcoin.

During the conversation, Di Iorio asked what crypto-currencies Apple approves of, so he'd know what to remove from Jaxx's iOS version and get his app back on the App Store. Di Iorio says that Apple is comfortable approving apps on its App Store that handle only six crypto-currencies: Bitcoin, Dogecoin, Litecoin, Ethereum, the DAO and Ripple. Reaction to Apple's list of approved crypto-currencies wasn't positive, at least on Twitter. Most users criticized Apple's decision to limit the list to only six, which they considered might thwart the evolution of other, lesser-known crypto-currencies.

Vitalik Buterin, who helped create Ethereum with Di lorio, tweeted "For the record: despite being a beneficiary of this instance of (private) regulatory protectionism, I oppose it."
Piracy

Judge Allows Kim Dotcom To Livestream Court Hearing (mashable.com) 72

Kim Dotcom has been granted the right to livestream his extradition appeal on YouTube. The appeal hearing began Monday, but will be livestreamed tomorrow because "the cameraman needs to set this up professionally and implement the judge's live streaming rules." tweets Kim Dotcom. Mashable reports: "The United States, which wants Dotcom extradited from New Zealand, is against the request. Dotcom says a livestream is the only way to ensure a fair hearing. The U.S. is seeking the extradition of Dotcom and other Megaupload co-founders in hopes of taking them to court in America on charges of money-laundering, racketeering and copyright infringement. The charges stem from the operation of file-sharing website Megaupload, founded by Dotcom in 2005 and once the 13th most popular website on the internet. Users could upload movies, music and other content to the site and share with others, a practice the U.S. considers copyright infringement. The website reportedly made around $175 million before the FBI took it down in 2012. The U.S. says Megaupload cost copyright holders around $500 million, though Dotcom says it's not his fault users chose to upload the shared copyrighted material. Dotcom was arrested in 2012 after police raided his home, but was released on bail. A judge ruled in favor of his extradition to the U.S. in 2015, though Dotcom said at the time the judge was not interested in a fair hearing." Dotcom plans to revive Megaupload on January 20, 2017, urging people to "buy bitcoin while cheap," since he claims the launch will send the bitcoin price soaring way above its current $575 value. Every file transfer taking place over Megaupload "will be linked to a tiny Bitcoin micro transaction," Dotcom posted on Twitter.
Bitcoin

Kim Dotcom Will Revive Megaupload, Linking File Transfers To Bitcoin Microtransactions (fortune.com) 76

Long-time Slashdot reader SonicSpike quotes an article from Fortune: The controversial entrepreneur Kim Dotcom said last month that he was preparing to relaunch Megaupload, the file-sharing site that U.S. and New Zealand authorities dramatically shut down in 2012, with bitcoins being involved in some way... This system will be called Bitcache, and Dotcom claimed its launch would send the bitcoin price soaring way above its current $575 value.

The launch of Megaupload 2.0 will take place on January 20, 2017, he said, urging people to "buy bitcoin while cheap, like right now, trust me..." Crucially, Dotcom said the Bitcache system would overcome bitcoin's scaling problems. "It eliminates all blockchain limitations," he claimed.

Every file transfer taking place over Megaupload "will be linked to a tiny Bitcoin micro transaction," Dotcom posted on Twitter. His extradition trial begins Monday, and he's asking the court to allow live-streaming of the trial "because of global interest in my case." Meanwhile, the FBI apparently let the registration lapse on the Megaupload domain, which they seized in 2012, and Ars Technica reports that the site is now full of porn ads.
Bitcoin

'SingularDTV' Will Use Ethereum For DRM On A Sci-Fi TV Show (rocknerd.co.uk) 78

It's "an epic sci-fi adventure about the human race's journey into a theoretical technological Singularity." Or is it an "entertainment industry boondoggle...part DRM snake oil marketing, part pseudo-Bitcoin scam and part sincere Singularitarian weirdness?" Long-term Slashdot reader David Gerard writes: SingularDTV is an exciting new blockchain-based entertainment industry startup. Their plan is to adapt the DRM that made $121.54 for Imogen Heap, make their own completely pre-mined altcoin and use that to somehow sell two million views of a sci-fi TV show about the Singularity. Using CODE, which is explicitly modeled on The DAO ... which spectacularly imploded days after its launch. There's a white paper [PDF], but here's an analysis of why these schemes are a terrible idea for musicians.
'Singular' will be a one-hour adventure/drama "that explores the impact technology will have on the future of our planet and how it will shape the evolution of our human race," set in the years 2021 to 2045, "as an unprecedented technological revolution sweeps over the world..."
Security

New Linux Trojan Is A DDoS Tool, a Bitcoin Miner, and Web Ransomware (softpedia.com) 63

An anonymous reader writes: A trojan that targeted Drupal sites on Linux servers last May that was incredibly simplistic and laughable in its attempt to install (and fail) web ransomware on compromised websites, has now received a major update and has become a top threat on the malware scene. That trojan, named Rex, has evolved in only three months into an all-around threat that can: (1) compromise servers and devices running platforms like Drupal, WordPress, Magento, Jetspeed, Exarid, AirOS; (2) install cryptocurrency mining in the background; (3) send spam; (4) use a complex P2P structure to manage its botnet; and (5) install a DDoS agent which crooks use to launch DDoS attacks.

Worse is that they use their DDoS capabilities to extort companies. The crooks send emails to server owners announcing them of 15-minute DDoS tests, as a forewarning of future attacks unless they pay a ransom. To scare victims, they pose as a known hacking group named Armada Collective. Other groups have used the same tactic, posing as Armada Collective, and extorting companies, according to CloudFlare.

Bitcoin

DDoSCoin: New Crypto-Currency Rewards Users For Participating In DDoS Attacks (softpedia.com) 45

An anonymous reader writes from a report via Softpedia: "In the most innovative, weirdest, and stupidest idea of the month, two researchers from the University of Colorado Boulder and the University of Michigan have created a crypto-currency that rewards people for participating in DDoS attacks," reports Softpedia. "Called DDoSCoin, this digital currency rewards a person (the miner) for using their computer as part of a DDoS attack. Just like Bitcoin, DDoSCoin uses cryptographic data to provide a proof-of-work. In DDoSCoin's case, this proof-of-work is extracted from the TLS connection a miner establishes with the website they're supposed to attack." This means that DDoSCoin can be used only with DDoS attacks on TLS-enabled websites. Participating in DDoS attacks gives miners DDoSCoin, which can then be converted in Bitcoin or fiat currency. Furthermore, anyone can request a DDoS attack via the PAY_TO_DDOS transaction. The research paper that proposes DDoSCoin is only a theoretical exercise, and a DDoSCoin crypto-currency does not currently exist in the real world. For now.
Crime

Kansas Couple Sues IP Mapping Firm For Turning Their Life Into a 'Digital Hell' (arstechnica.com) 175

Ever since James and Theresa Arnold moved into their rented 623-acre farm in Butler County, Kansas, in March 2011, they have seen "countless" law enforcement officials and individuals turning up at their farm day and night looking for links to alleged theft and other supposed crime. We covered this story on Slashdot a few months ago. All of these people are arriving because of a rounding error on a GPS location, which wrongly points people to their farm. ArsTechnica adds:In their lawsuit filed against MaxMind, the IP mapping firm, the Arnolds allege: "The following events appeared to originate at the residence and brought trespassers and/or law enforcement to the plaintiffs' home at all hours of the night and day: stolen cars, fraud related to tax returns and bitcoin, stolen credit cards, suicide calls, private investigators, stolen social media accounts, fund raising events, and numerous other events." James Arnold has even been "reported as holding girls at the residence for the purpose of making pornographic films."
United States

US To Auction $1.6 Million Worth of Bitcoin From Various Cases (reuters.com) 67

An anonymous reader shares a Reuters report: The U.S. government said on Monday it plans to auction over 2,700 bitcoin that were forfeited during several cases, including the prosecution of the creator of the online black market known as Silk Road. The U.S. Marshals Service said that the online auction would be held on Aug. 22, and that potential bidders must register by Aug. 18. The bitcoin are worth about $1.6 million, according to the Bitstamp exchange. The auction is the latest by the Marshals Service of the digital currency. It completed four prior auctions from June 2014 to November 2015 of bitcoin seized during the prosecution of Ross Ulbricht, who authorities say ran Silk Road.
Security

Hackers Bring Ethics To Las Vegas (backchannel.com) 33

Steven Levy, who has been extensively covering the world of hackers for decades (fun fact: the first time he wrote about it, the word "hacker" didn't really mean much), is sharing the changing perception about hacker conferences, and hackers themselves. In a newsletter, Backchannel's Levy writes about Black Hat conference: What I find most striking in the coverage of these events is that they are no longer seen as outlaw gatherings, but rather conclaves that form a valuable portion of the digital security mosaic. This is a big change from the long period, beginning in the late 1980s, during which the term "hacker" became synonymous with malfeasants, punks, and criminals. The glorious originals -- people who invented just about everything great we do on computers, including the internet -- were outraged at the denigration of a word that was once a badge of honor. [...]
The hackers who attend those conferences are true to that ethic. There's a core morality to both events, built on privacy, equal access to systems, and personal freedom. There's indignation at poorly built systems. There's contempt at those who see computers and the internet as means of controlling people instead of seeing them as tools of liberation.
So who gets to decide what a hacker is in 2016? The question comes up constantly because the term retains some fuzziness. I'll put aside the unquestioned hacker status of coders and designers who innovate on products and private infrastructure. Blissfully, it's now OK for Silicon Valley geeks to proudly declare themselves hackers, the best example of which is Facebook CEO Mark Zuckerberg's naming of his corporate philosophy as "The Hacker Way." But I'm wondering about those people who take the law into their own hands, sometimes not even taking care to limit collateral damage of innocent people. While true hackers generally don't wreak actual destruction, there are some who invade or even tamper with systems for what they consider moral purposes. Some call it hacktivism. Does that mean they are still hackers? That's tough to answer. Hacking into a system doesn't make you a hacker. Using a computer to steal a credit card or a Bitcoin doesn't do it, either. If you work for China and hack into Google; if you work for Russia and hack into the DNC; or if you work for the United States of America and plant a software time bomb in a nuclear centrifuge in Iran -- you are not necessarily a hacker.

Bitcoin

Bitcoin Exchange Bitfinex Says It Was Hacked, Roughly $60M Stolen (reuters.com) 117

An anonymous reader quotes a report from Reuters: Hong Kong-based digital currency exchange Bitfinex said late on Tuesday it has suspended trading on its exchange after it discovered a security breach, according to a company statement on its website. The company said it has also suspended deposits and withdrawals of digital currencies from the exchange. "We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen," the company said. "We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up." The company said it has reported the theft to law enforcement. It said it has not yet determined the value of digital currencies stolen from customer accounts. CoinDesk reports that the company confirmed roughly 120,000 BTC (more than $60 million) has been stolen via social media. "In response, bitcoin prices fell to $560.16 by 19:30 UTC, $530 by 23:30 and $480 at press time, CoinDesk USD Bitcoin Price Index (BPI) data reveals," reports CoinDesk. "This price was roughly 20% lower than the day's opening of $607.37 and 27% below the high of $658.28 reached on Saturday, July 30th, when the digital currency began pushing lower."
Security

Hacker Selling Data For 200 Million Yahoo Users On The Dark Web (softpedia.com) 65

An anonymous reader writes from a report via Softpedia: A listing was published today on TheRealDeal Dark Web marketplace claiming to be offering data on over 200 million Yahoo users, sold by the same hacker that was behind the LinkedIn, Tumblr, MySpace, and VK data dumps. In statements to Softpedia, Yahoo said it was investigating the breach, but based on the seller's reputation, it is very likely the data is authentic. The data is up for sale for 3 Bitcoin (approximately ~$1,800), and based on the sample the hacker provided, the data dump includes details such as usernames, MD5-hashed passwords, and dates of birth for all users. For some records, there is also a backup email address, country of origin, and ZIP code for U.S. users. The hacker, called Peace, has also told Softpedia that he previously made $50,000 from the LinkedIn breach alone, and over $65,000 in total from all breaches.
Bitcoin

North Korea Is Blackmailing Top South Korean Online Retailer For $2.66 Million (softpedia.com) 45

An anonymous reader writes from a report via Softpedia: South Korea says that North Korea is behind a data breach that occurred last May, where hackers stole details about 10 million user accounts from Interpark.com, one of the country's biggest shopping portals. The hackers later tried to extort Interpark management by requesting for 3 billion won ($2.66 million / 2.39 million euros), otherwise they were going to release the data on the internet. [The hackers wanted the money transferred to their accounts as Bitcoin.] Authorities say they tracked the source of the hack to an IP in North Korea, previously used in other attacks on South Korean infrastructure. "Besides the evidence related to the IP addresses and the techniques used in the attacks, investigators also said that the emails Interpark management received, written in the Korean language, contained words and vocabulary expressions that are only used in the North," reports Softpedia.
Bitcoin

EU Plans To Create Database of Bitcoin Users With Identities and Wallet Addresses (softpedia.com) 130

An anonymous reader writes from a report via Softpedia: "The European Commission is proposing the creation of a database that will hold information on users of virtual currencies," reports Softpedia. "The database will record data on the user's real world identity, along with all associated wallet addresses." The database will be made available to financial investigation agencies in order to track down users behind suspicious operations. The creation of this database is part of a regulatory push that the EU got rolling after the Paris November 2015 terror attacks, and which it officially put forward in February 2016, and later approved at the start of July 2016. Legally, this is an attempt to reform the Anti-Money Laundering Directive (AMLD). The current draft is available here. The current AMLD draft reads: "The report shall be accompanied, if necessary, by appropriate proposals, including, where appropriate, with respect to virtual currencies, empowerments to set-up and maintain a central database registering users' identities and wallet addresses accessible to FIUs, as well as self-declaration forms for the use of virtual currency users."
Bitcoin

Bitcoin Not Money, Rules Miami Judge In Dismissing Laundering Charges (miamiherald.com) 150

An anonymous reader quotes a report from Miami Herald: Bitcoin does not actually qualify as money, a Miami-Dade judge ruled Monday in throwing out criminal charges against a Miami Beach man charged with illegally selling the virtual currency. The defendant, Michell Espinoza, was charged with illegally selling and laundering $1,500 worth of Bitcoins to undercover detectives who told him they wanted to use the money to buy stolen credit-card numbers. But Miami-Dade Circuit Judge Teresa Mary Pooler ruled that Bitcoin was not backed by any government or bank, and was not "tangible wealth" and "cannot be hidden under a mattress like cash and gold bars." "The court is not an expert in economics, however, it is very clear, even to someone with limited knowledge in the area, the Bitcoin has a long way to go before it the equivalent of money," Pooler wrote in an eight-page order. The judge also wrote that Florida law -- which says someone can be charged with money laundering if they engage in a financial transaction that will "promote" illegal activity -- is way too vague to apply to Bitcoin. "This court is unwilling to punish a man for selling his property to another, when his actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning," she wrote. Espinoza's case is believed to be the first money-laundering prosecution involving Bitcoin.
Bitcoin

'Tor and Bitcoin Hinder Anti-Piracy Efforts' (torrentfreak.com) 103

An anonymous reader writes: A new report published by the European Union Intellectual Property Office identifies a wide range of 'business models' that are used by pirate sites. The organization, which announced a new collaboration with Europol this week, signals Bitcoin and the Tor network as two key threats to ongoing anti-piracy efforts. According to the research, several infringing business models rely on encryption-based technologies. The Tor network and Bitcoin, for example, are repeatedly mentioned as part of this "shadow landscape." "It more and more relies on new encrypted technologies like the TOR browser and the Bitcoin virtual currency, which are employed by infringers of IPR to generate income and hide the proceeds of crime from the authorities," the report reads.

Slashdot Top Deals