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Topic: [ANN][NOTE]DNotes - Celebrating DNotes 3rd Birthday - Forum Now Open - page 40. (Read 814539 times)

hero member
Activity: 493
Merit: 500

If you want to publish this, feel free.

To Hack or Crack, that is the question...

Hacker? Cracker? User? Programmer? Coder? Really not much difference today but, there was a time when being any of these was a revered and sought after position to be in.

Not to belabor the point but, back in the days when all this started, '70s & '80s, a "hacker" was someone with the skills to actually take a few circuit boards, or, make a few circuit boards, wire them together and create something that might become the forerunner of the modern computer. And, not just computers but all manor of electronic circuits and devices. To be able to "hack" a circuit together was a banner of excellence in hobbyist circles, a title to be earned, a moniker of respect and admiration from the GOOD guys!

A "Cracker" on the other hand was someone that used his skills for illegal purposes such as making free long distance calls or getting the pinball machine to give you free games. Crackers were revered as well but by a totally different group of people. Some of us belonged to both the dark side and the light side but one or the other soon won out.

So, what is (was?) a Hacker really? If you could turn grandpa's old tube radio into a guitar amp, you were a "hacker". If you could build an electronic timer for your Christmas lights, you were a hacker. In reality, if you could re-purpose old electronics into something new, you were a "Hacker". And lets not forget creating stuff from scratch.  I can remember going to Radio Shack to buy blank PC boards and etching solution to make my own circuit boards. We would take a "magic marker" and draw the lines on the copper side of the board for where we wanted the copper to connect components together then, cover the board in etching solution (acid) to eat away all the unwanted copper. As far as the design was concerned, you either copied the layout from articles in "Electronics" magazine or, you drew it out by yourself using your very own brain!

After that, we would use alcohol to remove the marker, drill holes for the components, mount and solder, and, "Ta Da!" a logic board, or radio, or frequency counter or whatever circuit you had the skill and patience to make. THAT was hacking. Connecting home made logic boards and displays together into a rudimentary computer? THAT was hacking! Think about it, this was unknown territory to most of us. We would run around like crazy people if we could get  a couple of chips to add whole numbers and light an LED to prove it! Words like "Altair", "ENIAC","Pegasus", "Colossus" and "AN/FSQ-7" excited us. Later, "TRS-80" and "Commodore" could draw our attention from across a crowded room. It was a magical time and we were the wizards of the realm.   

Today, it seems, we have lost the wonder, the imagination, the self satisfaction of making something with our own two hands that performed a function heretofore not performed. At least, most of us have. And that is where DNotes and other digital currencies draw us in. Once again, we have the ability to create something that performs a heretofore unknown or unused function, put it out there and watch it grow and amaze people. And the carrot is still being dangled on the stick. If we do it well enough, there will be substantial rewards. 

One of the things my friend and I designed and built in the back of his TV shop was patented. It wasn't glamorous, it never went into production but, it was patented and that, even though it cost us considerable money, was worth all the effort especially because the reward WAS in the effort and seeing the device work. Today, even the electronic hobbyist mostly uses "off the shelf" components and purpose built circuit boards. Want to add an audio amplifier to your project? Order a pre-built board from DigiKey. Need a power supply? There are thousands of pre-built modules to choose from.

What it all boils down to is this: people are creative. We have an inherent need to build and admire our work. Say the guy next door builds a swing set for his kids. It's the same thing, even if he bought a kit, it's the same thing. He used his hands and his brain to create something that did not previously exist.

Today, the Internet has enabled almost all of us on the planet to create something, to make a mark, to say "Look what I did!" The good guys and the bad guys are still there but now they get to hide behind a keyboard, to play both sides of the field, to hide in the digital shadows. The lines have blurred and those who don't know the history involved or, choose to ignore it for there own gain, are only making the problem worse. The popular press does not learn from it's mistakes since there is no longer any understanding of what a "mistake" is or why integrity is so important when publishing something most people will automatically take as gospel.

Have we lost the wonder of those pre-internet days when a blinking LED put you on top of the world? Maybe but, I would like to think it's just a matter of time before the next big think hits. Has that already happened? Perhaps. Perhaps it's the reason we are all here and reading this.

So, to all the true hackers out there, bravo! Keep up the good work. And, to all the crackers out there, it's time to come in from the cold, use your skills to advance the greater good and we will all profit in the long run.
     

Great article RJF, very interesting and inspiring.
sr. member
Activity: 420
Merit: 250
AKA RJF - Since '14 - On line since '84

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom


Clearly an inside job or, at least, with help from inside. Sometimes, we give too much credit to "hackers" (actually "crackers" if, unlike the media, we choose to use proper terminology). Bank employees, at the lower levels, are grossly under paid and not at all appreciated. A recipe for disaster if there ever was one.

   

You're right, hacker has been used by the media as a blanket statement to cover a wide variety of con artists.

That is a very good point, they tend to use 'hackers' as the scapegoat when it has not been proven what exactly transpired. Do you think we need a DCEBrief article around that topic?

If you want to publish this, feel free.

To Hack or Crack, that is the question...

Hacker? Cracker? User? Programmer? Coder? Really not much difference today but, there was a time when being any of these was a revered and sought after position to be in.

Not to belabor the point but, back in the days when all this started, '70s & '80s, a "hacker" was someone with the skills to actually take a few circuit boards, or, make a few circuit boards, wire them together and create something that might become the forerunner of the modern computer. And, not just computers but all manor of electronic circuits and devices. To be able to "hack" a circuit together was a banner of excellence in hobbyist circles, a title to be earned, a moniker of respect and admiration from the GOOD guys!

A "Cracker" on the other hand was someone that used his skills for illegal purposes such as making free long distance calls or getting the pinball machine to give you free games. Crackers were revered as well but by a totally different group of people. Some of us belonged to both the dark side and the light side but one or the other soon won out.

So, what is (was?) a Hacker really? If you could turn grandpa's old tube radio into a guitar amp, you were a "hacker". If you could build an electronic timer for your Christmas lights, you were a hacker. In reality, if you could re-purpose old electronics into something new, you were a "Hacker". And lets not forget creating stuff from scratch.  I can remember going to Radio Shack to buy blank PC boards and etching solution to make my own circuit boards. We would take a "magic marker" and draw the lines on the copper side of the board for where we wanted the copper to connect components together then, cover the board in etching solution (acid) to eat away all the unwanted copper. As far as the design was concerned, you either copied the layout from articles in "Electronics" magazine or, you drew it out by yourself using your very own brain!

After that, we would use alcohol to remove the marker, drill holes for the components, mount and solder, and, "Ta Da!" a logic board, or radio, or frequency counter or whatever circuit you had the skill and patience to make. THAT was hacking. Connecting home made logic boards and displays together into a rudimentary computer? THAT was hacking! Think about it, this was unknown territory to most of us. We would run around like crazy people if we could get  a couple of chips to add whole numbers and light an LED to prove it! Words like "Altair", "ENIAC","Pegasus", "Colossus" and "AN/FSQ-7" excited us. Later, "TRS-80" and "Commodore" could draw our attention from across a crowded room. It was a magical time and we were the wizards of the realm.   

Today, it seems, we have lost the wonder, the imagination, the self satisfaction of making something with our own two hands that performed a function heretofore not performed. At least, most of us have. And that is where DNotes and other digital currencies draw us in. Once again, we have the ability to create something that performs a heretofore unknown or unused function, put it out there and watch it grow and amaze people. And the carrot is still being dangled on the stick. If we do it well enough, there will be substantial rewards. 

One of the things my friend and I designed and built in the back of his TV shop was patented. It wasn't glamorous, it never went into production but, it was patented and that, even though it cost us considerable money, was worth all the effort especially because the reward WAS in the effort and seeing the device work. Today, even the electronic hobbyist mostly uses "off the shelf" components and purpose built circuit boards. Want to add an audio amplifier to your project? Order a pre-built board from DigiKey. Need a power supply? There are thousands of pre-built modules to choose from.

What it all boils down to is this: people are creative. We have an inherent need to build and admire our work. Say the guy next door builds a swing set for his kids. It's the same thing, even if he bought a kit, it's the same thing. He used his hands and his brain to create something that did not previously exist.

Today, the Internet has enabled almost all of us on the planet to create something, to make a mark, to say "Look what I did!" The good guys and the bad guys are still there but now they get to hide behind a keyboard, to play both sides of the field, to hide in the digital shadows. The lines have blurred and those who don't know the history involved or, choose to ignore it for there own gain, are only making the problem worse. The popular press does not learn from it's mistakes since there is no longer any understanding of what a "mistake" is or why integrity is so important when publishing something most people will automatically take as gospel.

Have we lost the wonder of those pre-internet days when a blinking LED put you on top of the world? Maybe but, I would like to think it's just a matter of time before the next big think hits. Has that already happened? Perhaps. Perhaps it's the reason we are all here and reading this.

So, to all the true hackers out there, bravo! Keep up the good work. And, to all the crackers out there, it's time to come in from the cold, use your skills to advance the greater good and we will all profit in the long run.
     
legendary
Activity: 1610
Merit: 1060
This is a very interesting concept and a good way to promote Bitcoin.


21 Inc Launches First Proof-of-Concept for Bitcoin Computer Network
Jacob Donnelly | Published on March 15, 2016 at 23:25 GMT

With its signature hardware product now shipping to users in the US, Canada and Europe, 21 Inc is seeking to roll out its next stage in development, a decentralized, bitcoin-incentivized network of the devices.

21 Inc announced the launch of Ping21 today, a new proof-of-concept it envisions as a competitor to website monitoring services such as Pingdom or AlertFox. Today, webmasters use such services to determine how a website is performing in different markets, in the case of Pingdom, paying between $13 and $454 a month for the service.

What 21's grid now allows is that Bitcoin Computers all around the world to be called with a single command, a factor the company said offers advantages over the pinging networks of today.

For example, a company's website might be up and running in New York, but in Florida, Spain, and South Korea, there could be problems. However, with the Ping21 service, a webmaster could issue a single command and receive the uptime and status of their website in dozens of countries.

Rather than paying the hundreds of dollars for a subscription, the cost per ping would drop significantly, the company said. By utilizing its recently launched Micropayments Marketplace, a client can submit a request to the network along with bitcoin for payment.

Bitcoin Computers enrolled in the Ping21 service will then be automatically contacted to perform a ping, check the website, collect any necessary data and submit it back to the marketplace where the user can aggregate stats.

After its launch, the company is focusing on allowing developers to expand on other applications for its bitcoin-incentivized grid.

Read More:
http://www.coindesk.com/21-proof-concept-bitcoin-iot/
legendary
Activity: 1610
Merit: 1060
hero member
Activity: 493
Merit: 500
Happy St. Patrick's Day.
legendary
Activity: 1610
Merit: 1060
I liked this story, it made me reminisce about the first time I bought Bitcoin in a shady back alley (not recommended). Their business partner was arrested a couple years later for running an illegal poker site.
----------


Dealing With Fraud In The Bitcoin World

http://www.forbes.com/sites/jonathanchester/2016/03/16/dealing-with-fraud-in-the-bitcoin-world/#50d7deab1b40

Bitcoin has been around since 2008, but it’s still in its infancy. That means a lack of regulation, fraud, ponzi schemes, and more. The Bitcoin industry has it all, making it the new Wild West. Digital gold is hiding “just beneath the surface,” waiting for those opportunistic, innovative and brave enough to test these uncharted territories. So what can you expect to encounter in this new frontier as one of the early pioneers?

When you take your first step into the bitcoin industry, it can feel like you’ve entered the 2015 Doc and Marty visited in “Back to the Future”. This new digital currency has big promises, from reducing international wage payment fees and delays (like what we do at Bitwage) to providing banking services to the 2.5 billion people who are financially underserved.

If you dig a little deeper and look at the blockchain itself (the architecture and technology behind Bitcoin), it even has the ability to create systems beyond the financial industry. There are applications popping up for things such as an incorruptible voting system and organizations that are run completely by computers, called decentralized autonomous organizations. It’s not hard to believe flying cars are too far away.

With all this new technology and new opportunities to improve outdated systems, the lack of regulation attracts a world of fraudsters and less savory entrepreneurs looking for a way to make a quick buck. In the past, these ponzi schemes and frauds were aimed at consumers (such as the alleged case against Gaw Miners), but now they’re focusing on business owners within the bitcoin industry too.

Those of us that have been in the Bitcoin Wild West since the beginning know it’s difficult to open a bank account when you’re just starting out. When a company is new, it has no revenue or close to zero investment. They have no financial history and can even be seen as a potential shadow entity for money laundering. So you can’t really blame the banks. The risk is often not worth the potential reward. This bitcoin-averse banking climate across the industry set the stage for my first run-in with a fraudster targeting entrepreneurs.

I went to my first bitcoin and blockchain conference, Inside Bitcoins, in Las Vegas in 2014.  (Before you even say it, yes, this industry definitely knows how to have a good time.) It was there that I met Arnold (his name has been changed for the sake of privacy). He had that classic 1980s mobster look, slicked back hair and a suit that had been worn a couple more times than it should have before getting cleaned.

He came up to me and asked what we are doing at Bitwage. After I explained our mission he asked if we were having trouble getting a bank account. Since it is such a commonly known problem within the industry, I was curious to figure out what his angle was. I said we were, and he responded, “Great, we actually run a bank. The way it works is we provide you banking services in exchange for a 5% stake in your company.” Immediately I thought, “Are you kidding me?! Who in the right mind would do this?!” I listened to the rest of his pitch and walked away thinking, “I’m sure no one takes this guy seriously.”

Over the next few months, I would run into Arnold at various conferences. I’d see him speaking with other members in the industry, many of whom I considered friends. I was baffled. I kept asking myself, “How could people like this guy? Is this guy actually legitimate? Am I missing something?”

A few months later, I found out my suspicions were right. Arnold and his executive team were arrested for operating an illegal Bitcoin exchange and fraud. I was actually a little shocked.  I felt like the guy might be running a scheme through some sort of loophole and I knew I didn’t want to go into business with him, but I did not think he was actually running an illegal operation. I couldn’t believe it.

Fortunately, neither Bitwage nor none of my personal acquaintances were affected, but there were a few new, early-stage entrepreneurs who fell victim to the unregulated Wild West. What is the lesson here? Well for starters, always make sure to apply the “appropriate level of due diligence” to all of your potential business partners. Luckily, as the market is maturing, we are seeing much less fraud and many more innovative technologies (Such as technologies that help artists protect their intellectual property). Now, enough with all this fraud talk, where’s my hoverboard?

Great story, and it will continue for a while. The industry is maturing but greed will never go away. There will always be someone just too ready to exploit that. Proceed with caution and seek out the trusted brand. Be patience, if you find the right opportunity, as good things seldom happen overnight.
legendary
Activity: 1932
Merit: 1111
DNotes
I liked this story, it made me reminisce about the first time I bought Bitcoin in a shady back alley (not recommended). Their business partner was arrested a couple years later for running an illegal poker site.
----------


Dealing With Fraud In The Bitcoin World

http://www.forbes.com/sites/jonathanchester/2016/03/16/dealing-with-fraud-in-the-bitcoin-world/#50d7deab1b40

Bitcoin has been around since 2008, but it’s still in its infancy. That means a lack of regulation, fraud, ponzi schemes, and more. The Bitcoin industry has it all, making it the new Wild West. Digital gold is hiding “just beneath the surface,” waiting for those opportunistic, innovative and brave enough to test these uncharted territories. So what can you expect to encounter in this new frontier as one of the early pioneers?

When you take your first step into the bitcoin industry, it can feel like you’ve entered the 2015 Doc and Marty visited in “Back to the Future”. This new digital currency has big promises, from reducing international wage payment fees and delays (like what we do at Bitwage) to providing banking services to the 2.5 billion people who are financially underserved.

If you dig a little deeper and look at the blockchain itself (the architecture and technology behind Bitcoin), it even has the ability to create systems beyond the financial industry. There are applications popping up for things such as an incorruptible voting system and organizations that are run completely by computers, called decentralized autonomous organizations. It’s not hard to believe flying cars are too far away.

With all this new technology and new opportunities to improve outdated systems, the lack of regulation attracts a world of fraudsters and less savory entrepreneurs looking for a way to make a quick buck. In the past, these ponzi schemes and frauds were aimed at consumers (such as the alleged case against Gaw Miners), but now they’re focusing on business owners within the bitcoin industry too.

Those of us that have been in the Bitcoin Wild West since the beginning know it’s difficult to open a bank account when you’re just starting out. When a company is new, it has no revenue or close to zero investment. They have no financial history and can even be seen as a potential shadow entity for money laundering. So you can’t really blame the banks. The risk is often not worth the potential reward. This bitcoin-averse banking climate across the industry set the stage for my first run-in with a fraudster targeting entrepreneurs.

I went to my first bitcoin and blockchain conference, Inside Bitcoins, in Las Vegas in 2014.  (Before you even say it, yes, this industry definitely knows how to have a good time.) It was there that I met Arnold (his name has been changed for the sake of privacy). He had that classic 1980s mobster look, slicked back hair and a suit that had been worn a couple more times than it should have before getting cleaned.

He came up to me and asked what we are doing at Bitwage. After I explained our mission he asked if we were having trouble getting a bank account. Since it is such a commonly known problem within the industry, I was curious to figure out what his angle was. I said we were, and he responded, “Great, we actually run a bank. The way it works is we provide you banking services in exchange for a 5% stake in your company.” Immediately I thought, “Are you kidding me?! Who in the right mind would do this?!” I listened to the rest of his pitch and walked away thinking, “I’m sure no one takes this guy seriously.”

Over the next few months, I would run into Arnold at various conferences. I’d see him speaking with other members in the industry, many of whom I considered friends. I was baffled. I kept asking myself, “How could people like this guy? Is this guy actually legitimate? Am I missing something?”

A few months later, I found out my suspicions were right. Arnold and his executive team were arrested for operating an illegal Bitcoin exchange and fraud. I was actually a little shocked.  I felt like the guy might be running a scheme through some sort of loophole and I knew I didn’t want to go into business with him, but I did not think he was actually running an illegal operation. I couldn’t believe it.

Fortunately, neither Bitwage nor none of my personal acquaintances were affected, but there were a few new, early-stage entrepreneurs who fell victim to the unregulated Wild West. What is the lesson here? Well for starters, always make sure to apply the “appropriate level of due diligence” to all of your potential business partners. Luckily, as the market is maturing, we are seeing much less fraud and many more innovative technologies (Such as technologies that help artists protect their intellectual property). Now, enough with all this fraud talk, where’s my hoverboard?

Yep, I would recommend the closest starbucks or mcdonalds lol. Luckily it has become easier and easier to buy and sell digital currency. Fraud is still an issue, but I think incorporating digital currency into legitimate systems and establishments will give everyone the opportunity to utilize it without being subject to shady back alley deals Smiley. Glad you walked away unscathed.
hero member
Activity: 493
Merit: 500
I liked this story, it made me reminisce about the first time I bought Bitcoin in a shady back alley (not recommended). Their business partner was arrested a couple years later for running an illegal poker site.
----------


Dealing With Fraud In The Bitcoin World

http://www.forbes.com/sites/jonathanchester/2016/03/16/dealing-with-fraud-in-the-bitcoin-world/#50d7deab1b40

Bitcoin has been around since 2008, but it’s still in its infancy. That means a lack of regulation, fraud, ponzi schemes, and more. The Bitcoin industry has it all, making it the new Wild West. Digital gold is hiding “just beneath the surface,” waiting for those opportunistic, innovative and brave enough to test these uncharted territories. So what can you expect to encounter in this new frontier as one of the early pioneers?

When you take your first step into the bitcoin industry, it can feel like you’ve entered the 2015 Doc and Marty visited in “Back to the Future”. This new digital currency has big promises, from reducing international wage payment fees and delays (like what we do at Bitwage) to providing banking services to the 2.5 billion people who are financially underserved.

If you dig a little deeper and look at the blockchain itself (the architecture and technology behind Bitcoin), it even has the ability to create systems beyond the financial industry. There are applications popping up for things such as an incorruptible voting system and organizations that are run completely by computers, called decentralized autonomous organizations. It’s not hard to believe flying cars are too far away.

With all this new technology and new opportunities to improve outdated systems, the lack of regulation attracts a world of fraudsters and less savory entrepreneurs looking for a way to make a quick buck. In the past, these ponzi schemes and frauds were aimed at consumers (such as the alleged case against Gaw Miners), but now they’re focusing on business owners within the bitcoin industry too.

Those of us that have been in the Bitcoin Wild West since the beginning know it’s difficult to open a bank account when you’re just starting out. When a company is new, it has no revenue or close to zero investment. They have no financial history and can even be seen as a potential shadow entity for money laundering. So you can’t really blame the banks. The risk is often not worth the potential reward. This bitcoin-averse banking climate across the industry set the stage for my first run-in with a fraudster targeting entrepreneurs.

I went to my first bitcoin and blockchain conference, Inside Bitcoins, in Las Vegas in 2014.  (Before you even say it, yes, this industry definitely knows how to have a good time.) It was there that I met Arnold (his name has been changed for the sake of privacy). He had that classic 1980s mobster look, slicked back hair and a suit that had been worn a couple more times than it should have before getting cleaned.

He came up to me and asked what we are doing at Bitwage. After I explained our mission he asked if we were having trouble getting a bank account. Since it is such a commonly known problem within the industry, I was curious to figure out what his angle was. I said we were, and he responded, “Great, we actually run a bank. The way it works is we provide you banking services in exchange for a 5% stake in your company.” Immediately I thought, “Are you kidding me?! Who in the right mind would do this?!” I listened to the rest of his pitch and walked away thinking, “I’m sure no one takes this guy seriously.”

Over the next few months, I would run into Arnold at various conferences. I’d see him speaking with other members in the industry, many of whom I considered friends. I was baffled. I kept asking myself, “How could people like this guy? Is this guy actually legitimate? Am I missing something?”

A few months later, I found out my suspicions were right. Arnold and his executive team were arrested for operating an illegal Bitcoin exchange and fraud. I was actually a little shocked.  I felt like the guy might be running a scheme through some sort of loophole and I knew I didn’t want to go into business with him, but I did not think he was actually running an illegal operation. I couldn’t believe it.

Fortunately, neither Bitwage nor none of my personal acquaintances were affected, but there were a few new, early-stage entrepreneurs who fell victim to the unregulated Wild West. What is the lesson here? Well for starters, always make sure to apply the “appropriate level of due diligence” to all of your potential business partners. Luckily, as the market is maturing, we are seeing much less fraud and many more innovative technologies (Such as technologies that help artists protect their intellectual property). Now, enough with all this fraud talk, where’s my hoverboard?
hero member
Activity: 493
Merit: 500

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom


Clearly an inside job or, at least, with help from inside. Sometimes, we give too much credit to "hackers" (actually "crackers" if, unlike the media, we choose to use proper terminology). Bank employees, at the lower levels, are grossly under paid and not at all appreciated. A recipe for disaster if there ever was one.

   

You're right, hacker has been used by the media as a blanket statement to cover a wide variety of con artists.

That is a very good point, they tend to use 'hackers' as the scapegoat when it has not been proven what exactly transpired. Do you think we need a DCEBrief article around that topic?

I think it's a good idea. I wouldn't consider all hackers to be bad, but sometimes even I can inadvertently present them all in that light, it's simply a force of habit. Just like technology is neither inherently good or evil, it's how the skills are used. There are lots of ethical hackers who put their skill to good use and help improve security systems, it would be a shame if they were lumped in with a bunch of criminals.
legendary
Activity: 1932
Merit: 1111
DNotes

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom


Clearly an inside job or, at least, with help from inside. Sometimes, we give too much credit to "hackers" (actually "crackers" if, unlike the media, we choose to use proper terminology). Bank employees, at the lower levels, are grossly under paid and not at all appreciated. A recipe for disaster if there ever was one.

   

You're right, hacker has been used by the media as a blanket statement to cover a wide variety of con artists.

That is a very good point, they tend to use 'hackers' as the scapegoat when it has not been proven what exactly transpired. Do you think we need a DCEBrief article around that topic?
hero member
Activity: 493
Merit: 500

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom


Clearly an inside job or, at least, with help from inside. Sometimes, we give too much credit to "hackers" (actually "crackers" if, unlike the media, we choose to use proper terminology). Bank employees, at the lower levels, are grossly under paid and not at all appreciated. A recipe for disaster if there ever was one.

   

You're right, hacker has been used by the media as a blanket statement to cover a wide variety of con artists.
sr. member
Activity: 420
Merit: 250
AKA RJF - Since '14 - On line since '84

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom


Clearly an inside job or, at least, with help from inside. Sometimes, we give too much credit to "hackers" (actually "crackers" if, unlike the media, we choose to use proper terminology). Bank employees, at the lower levels, are grossly under paid and not at all appreciated. A recipe for disaster if there ever was one.

   
sr. member
Activity: 420
Merit: 250
AKA RJF - Since '14 - On line since '84
Found this interesting piece on coindesk. Bitcoin and Public Blockchains Will Power the Smart Contracts Revolution

[...]  

Target market

But who needs this service? Why would someone seek an environment where such un-alterable settlement would offer any efficiency? Well, like all things blockchain, these features will find their efficiency through any agency that stands to gain from the regulatory benefits of not having custody of funds.

Or, better still, these features would offer efficiencies in the world of the underserviced, where custodians for these funds are either unavailable – or worse still, to be found amongst the company of problematic institutions without insurance or verified holdings.

At the moment, two distinct classes of 'blockchains' are tackling this market: public blockchains such as bitcoin, and distributed ledgers (sometimes labelled "private blockchains").

However, both systems have shortcomings in their current forms that are impacting their ability to find widespread adoption.

Private blockchains miss the efficiencies of smart contracts in a number of obvious ways.

Chiefly, bearer assets are not supported, and thus value of any kind is not escrowed. This means that despite the outcomes in which a "distributed ledger" or "private blockchain" determines how funds should be routed, moderation and regulatory hurdles will nonetheless be present at the time funds are delivered through an incumbent network.

This begs the question as to why the custodian of the funds doesn't just execute a user's code on their own servers, perhaps with a cryptographically verifiable receipt. Thus far, users haven't needed such features on registered assets, and the jury's out as to whether there will be any efficiency here going forward.

If you believe that the 'blockchain' was the invention of digital bearer assets by Satoshi Nakamoto, then public blockchains are necessarily where all smart contract efficiencies will manifest. However, these systems are also encumbered with non-trivial technical hurdles.

Primarily, the notion of "fungibility" is still the source of a large part of the burden for these systems, as it would be assumed that securities for which a bearer could be reversibly determined will still enable regulators and moderators to exercise roadblocks in a smart contract's execution.

Thus far, only the bitcoin blockchain is tackling this hurdle, with promising developments in the form of "confidential transactions" and even "coin joining".

Another hurdle that still remains the source of much debate in the public blockchain space is that of the "Hash Strength" of a public blockchain. Put simply, this strength represents the amount of energy burned to secure a blockchain.

As the financial gains for those executing contracts in a public blockchain increases, so too does the incentive for an attacker to disrupt that blockchain. In the case of bitcoin, the cost to disrupt the blockchain is approximately $1m US dollars per day, which is formidable, though still a bit too small for the aspirations of many large institutions.

And for comparison, the next largest public smart contract platform, Ethereum, is trivially dismissable at a current "hashrate" of about $25,000 usd per day.


[...]

One note I wanted to make on "cost to disrupt the blockchain" being 1m US per day, or Ethereum being 25k per day. I feel this statement trivializes what it would actually take. That figure might be close to accurate, assuming you could actually rent or purchase that much hashrate on a daily basis, and the owners who rented it to you would allow it to be used for such a purpose. The initial investment required for that kind of equipment would be more like 300 million, assuming you could find enough manufacturers who could produce that kind of output in a reasonable timeframe. Never mind the cost and limitations of running that kind of equipment.

Otherwise a pretty good article.


Sensational headlines and blanket statements never present the whole picture, just the part that sucks you in.  Grin 
hero member
Activity: 493
Merit: 500
Proposal To Give 45% of Block Reward To Bitcoin Node Operators Is Silly

http://themerkle.com/proposal-to-give-45-of-block-reward-to-bitcoin-node-operators-is-silly/

Throughout the years, there has been a lot of discussion on whether or not people should receive an incentive for supporting the Bitcoin network by running a full node. Even though there is no need to reward people for these steps, new ideas to change that situation keep popping up now and then. One particular Reddit user would take a page out of DASH’s book and pay up to 45% of the block reward to node operators. Such an idea would never be viable, though, as it would ultimately lead to centralization.
 
At this point, there are over 6,000 Bitcoin nodes in existence, and none of these operators are getting paid for doing so. No one is complaining about that either, even though some people might prefer to have some monetary incentive attached to being a Bitcoin node operator.

For some unknown reason, people in the Bitcoin community assume these people should get paid for supporting the network. While there may be a certain logic behind that idea, it is not feasible in the Bitcoin world by any means. Bitcoin nodes help broadcast transactions to miners, but they are not producing any proof-of-work to make this happen.

That does not mean running a Bitcoin node is free of charge, though, as the computer used will need electricity, and there will be a slight strain on computer resources such as the CPU and hard disk speed. Should users be compensated for voluntarily dedicating a part of their resources to securing the Bitcoin network? Probably not.

One user on Reddit posted how it would be an interesting idea to change the Bitcoin protocol and reward node owners with 45% of the current block reward. That would mean that miners, who spend a lot of money to generate blocks on the network, would close to half of their earnings in favor of people who voluntarily run a bitcoin wallet on a device. While such a solution can easily be opened up to the general public, there will be a significant backlash from Bitcoin miners to this idea.

It’d be good if there were a way to incentivize people running a Bitcoin Node, but such a situation would only bring more centralization to the ecosystem. Nothing would stop a collective of individuals to deploy thousands of Bitcoin nodes and take the lion share of the reward for themselves, rendering the entire point of incentivizing node owners completely moot.
---------------


I have to say although node owners receiving 45% of the block reward is an absurd idea, and gross overpayment, I disagree with the author in that I fully support a small reward for running a node. If the reward were kept well below the breakeven cost of running that node, it wouldn't increase the chances of centralization, because there isn't enough incentive for an individual to run a "node farm". It would just be enough of a payment to say, "thank you, we appreciate you supporting the network".

Even at .1% of the block reward, each node (using current figures) would recieve around 13,000 satoshis per day; not quite enough to offset power and bandwidth, but at least it's something!
legendary
Activity: 1932
Merit: 1111
DNotes

This is my favorite find of the day. It is an analysis of the benefits of holding Bitcoin in your portfolio, published by Grayscale Investments, sponsor of the Bitcoin Investment Trust.


Diversify Your Portfolio with an Allocation to Bitcoin

http://grayscale.co/wp-content/uploads/2016/03/Grayscale-Paper-1.pdf

Great find, and example of how it could improve your overall portfolio.

Bitcoin: a way to enhance returns
In addition to helping mitigate downside risk, an investment in bitcoin can also enhance overall portfolio
returns. For example, Figure 4 illustrates the performance of a sample globally-allocated portfolio of
stocks, bonds, commodities, and cash held over a 12-mo investment horizon. In a traditional investor’s
portfolio, for example, with a larger weighting to stocks and a smaller allocation to cash, the return of
this hypothetical base portfolio would have been -6.9%.

In our low-rate and slow-growth environment, investors have been looking to alternative assets to boost
returns. An alternative asset to consider adding to a portfolio is bitcoin. Given the low correlation to
other assets, and decreasing volatility, investing in bitcoin could help boost gains, while adding minimal
risk to one’s overall portfolio. When we reallocate a portion of commodities into bitcoin within the
aforementioned base portfolio, the total performance improves by about 2.3%, with the portfolio only
returning -4.6%. The portfolio’s risk remains fairly similar as measured by the portfolio’s annual standard
deviation. While past performance is no guarantee of future results, this illustrates the value in adding
bitcoin to enhance returns, without necessarily taking on additional risk. In particular, reallocating funds
from an existing alternative asset such as commodities into a growth asset such as bitcoin improves
performance
legendary
Activity: 1638
Merit: 1005

This is my favorite find of the day. It is an analysis of the benefits of holding Bitcoin in your portfolio, published by Grayscale Investments, sponsor of the Bitcoin Investment Trust.


Diversify Your Portfolio with an Allocation to Bitcoin

http://grayscale.co/wp-content/uploads/2016/03/Grayscale-Paper-1.pdf
hero member
Activity: 493
Merit: 500

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom

That is unfortunate and very understandable concerns. There has been a lot of talk about private blockchains, centralized and semi centralized currencies, and the fact remains that a decentralized system is superior for everyone's protection. Though I can understand their interest and want to create a centralized solution.

I'd be hesitant in giving bank employees more power over transaction history, it's quite conceivable that an inside job may take place or hackers could obtain the necessary information to alter transactions themselves. But if the banks want to go ahead and create a pseudo blockchain, that's really a centralized cloud computer, they should be encouraged to proceed full steam ahead!
legendary
Activity: 1932
Merit: 1111
DNotes

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom

That is unfortunate and very understandable concerns. There has been a lot of talk about private blockchains, centralized and semi centralized currencies, and the fact remains that a decentralized system is superior for everyone's protection. Though I can understand their interest and want to create a centralized solution.
legendary
Activity: 1638
Merit: 1005

This is why I will never trust the banks with their own private blockchain!! 100 different financial institutions in 30 different countries were involved.


Bangladesh central bank chief resigns after $101 million heist

The chief of Bangladesh's central bank has resigned after losing $101 million in a bank heist that spanned at least four countries and raised questions over the international banking system's vulnerability to cyberattack.

A spokesman for Prime Minister Sheikh Hasina said the resignation of Bangladesh Bank Governor Atiur Rahman was accepted on Tuesday. Fazle Kabir, a former finance minister, has been chosen as Rahman's replacement.

Bank robbers successfully made five transfers out of Bangladesh Bank's account at the New York Fed in early February.

The request appeared to come from a Bangladesh server, and the thieves supplied the correct bank codes to authenticate the transfers, the New York Fed said.

Officials in Bangladesh suggested that hackers were to blame. The New York Fed maintains that it was not hacked.

Spoofing servers is a common technique that hackers use to steal money and hide their tracks. It's akin to placing a phone call using a number from another area code -- your call could be coming from Los Angeles but appear to be coming from Chicago.

It's unclear how the robbers obtained the correct bank codes, however.

Most of the stolen funds ended up in accounts located in the Philippines, while roughly $20 million went to Sri Lanka.

Bangladesh Bank said it has recovered all the money it lost to Sri Lankan accounts, and was "working closely" with authorities in the Philippines to recover the remaining funds.

The robbers tried to steal $850 million more, but the New York Fed denied those transactions. It's not clear why the $101 million in Bangladesh Bank funds was allowed to be transferred to third-party accounts in foreign countries.

The Bangladesh central bank said it was hopeful that all of the missing funds would be returned

"We are optimistic about recovering the money we lost," said AFM Asaduzzaman, a spokesman for Bangladesh Bank, prior to Rahman's resignation.

Rahman could not immediately be reached for comment.

http://money.cnn.com/2016/03/15/technology/bangladesh-bank-new-york-fed-bank-robbers-resign/index.html?iid=hp-stack-dom
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