- The Jeep Cherokee Hack (Kaspersky) — details from the Black Hat talk.
- The Complete Beginner’s Guide to Blockchain Technology — in case you’ve been slipping on your nerd cred.
- Automation Angst (The Economist) — discusses three papers: (1) automation creates new jobs; (2) the sweet-spot of automation has been in mid-range intellectual, mid-rate physical tasks; and (3) know the history of automation/unemployment scares.
- Observational Signatures of Self-Destructive Civilisations (arXiv) — Using the Earth as an example, we consider a variety of scenarios in which humans could extinguish their own technological civilisation. Each scenario presents some form of observable signature that could be probed by astronomical campaigns to detect and characterise extrasolar planetary systems. I feel like there’s a business form of this paper, too …
Four short links: 14 August 2015
Jeep Hack, Blockchain for Beginners, Three Next:Economy Papers, and Signs of Self-Destruction
Our future sits at the intersection of artificial intelligence and blockchain
The O'Reilly Radar Podcast: Steve Omohundro on AI, cryptocurrencies, and ensuring a safe future for humanity.
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I met up with Possibility Research president Steve Omohundro at our Bitcoin & the Blockchain Radar Summit to talk about an interesting intersection: artificial intelligence (AI) and blockchain/cryptocurrency technologies. This Radar Podcast episode features our discussion about the role cryptocurrency and blockchain technologies will play in the future of AI, Omohundro’s Self Aware Systems project that aims to ensure intelligent technologies are beneficial for humanity, and his work on the Pebble cryptocurrency.
Synthesizing AI and crypto-technologies
Bitcoin piqued Omohundro’s interest from the very start, but his excitement built as he started realizing the disruptive potential of the technology beyond currency — especially the potential for smart contracts. He began seeing ways the technology will intersect with artificial intelligence, the area of focus for much of his work:
I’m very excited about what’s happening with the cryptocurrencies, particularly Ethereum. I would say Ethereum is the most advanced of the smart contracting ideas, and there’s just a flurry of insights, and people are coming up every week with, ‘Oh we could use it to do this.’ We could have totally autonomous corporations running on the blockchain that copy what Uber does, but much more cheaply. It’s like, ‘Whoa what would that do?’
I think we’re in a period of exploration and excitement in that field, and it’s going to merge with the AI systems because programs running on the blockchain have to connect to the real world. You need to have sensors and actuators that are intelligent, have knowledge about the world, in order to integrate them with the smart contracts on the blockchain. I see a synthesis of AI and cryptocurrencies and crypto-technologies and smart contracts. I see them all coming together in the next couple of years.
Beyond bitcoin and the blockchain to booming business
Widespread blockchain adoption requires understanding between developers and domain experts.
Editor’s note: this post is part of our investigation into the future of money. The full video compilation from our first event, Bitcoin & the Blockchain, is now available.
The vision for bitcoin and the blockchain is unabashedly optimistic, though already it is being realized. More and more technologists, venture capitalists, financial institutions, and even regulators are seeing its long-term potential to transform industries, from financial services to data management to the Internet of Things. In the medium term, there remain hurdles to overcome before blockchain technology can offer sufficiently compelling solutions for the complex financial and technological world we live in, but there is progress to date — and it’s promising.
Blockchain-based remittance vehicles offered by Coins.ph, BitPagos, and BitPesa, though early stage, aim to take a chunk of the $450 billion remittance industry by offering speedier, more efficient, and cheaper alternatives to traditional solutions. BitPay offers bitcoin/fiat payment processing for merchants as well as bank integration. Increasingly, private investors are diversifying their portfolios by purchasing bitcoin alongside traditional assets. Most recently, Coinbase even received funding from a group of blue-chip investors, including the New York Stock Exchange, and launched its own exchange, signaling both greater acceptance by the financial services industry as well as confidence in its future value. Ripple Labs has taken a very different approach with its protocol, permitting the decentralized transmission of practically any currency type — cryptographic or fiat — like an SMTP for money, and circumventing traditional payment networks. And to this end, it’s already inked agreements with Cross River Bank (New Jersey), CBW Bank (Kansas), and Fidor Bank (Germany), with more on the horizon. Read more…
Better currency through programming
The O'Reilly Radar Podcast: Vitalik Buterin on bitcoin, the blockchain, Ethereum, and the future of money.
In this Radar Podcast, I chat with Vitalik Buterin, founder of Ethereum and co-founder of Bitcoin Magazine. We met at our Bitcoin & the Blockchain summit in San Francisco to talk about the disruptive potential of the bitcoin and blockchain technologies. He also outlined some of the problems he’s trying to solve with Ethereum and weighed in on how the use cases of money are going to change over the next 10 to 20 years.
Buterin told me that his father initially introduced him to bitcoin in 2011, and he wasn’t immediately interested — in fact, he outright rejected it, thinking, “It looks like it has no intrinsic value, and it’s obviously not going to work.” As he kept hearing about, he decided to investigate more and came to the realization that ultimately led him to create the Ethereum platform:
I immediately recognized that the way bitcoin works is the way that money should work. It’s exactly the correct approach, where you have: here’s the address you’re supposed to send to, here’s how much you want to send, here’s the button to send it. It’s money made for the Internet, not like the credit card approach, where you just basically give everyone the details to take as much as they want from your bank account.
On a trip to Israel, Buterin encountered projects, such as Colored Coins and Mastercoin, using blockchain technology for things other than bitcoin currency. “They were trying to let people issue their own assets,” he said. “They were trying tack features on top, tack financial contracts on top.” The protocols, Buterin noted, were overly complicated and he realized there might be a better way: “You could make it much simpler just by replacing everything with a programming language, and then if you do that, then people can write as many features as they want in the programming language after the fact.”
Four short links: 2 April 2015
250 Whys, Amazon Dash, Streaming Data, and Lightning Networks
- What I Learned from 250 Whys — Let’s Plan for a Future Where We’re All As Stupid as We Are Today.
- Thoughts on Amazon Dash (Matt Webb) — In a way, we’re really seeing the future of marketing here. We’ve separated awareness (advertising) and distribution (stores) for so long, but it’s no longer the way. When you get a Buy Now button in a Tweet, you’re seeing ads and distribution merging, and the Button is the physical instantiation of this same trend. […] in the future every product will carry a buy button.
- A Collection of Links for Streaming Algorithms and Data Structures — is this not the most self-evident title ever?
- Lightning Networks (Rusty Russell) — I finally took a second swing at understanding the Lightning Network paper. The promise of this work is exceptional: instant, reliable transactions across the bitcoin network. But the implementation is complex, and the draft paper reads like a grab bag of ideas; but it truly rewards close reading! It doesn’t involve novel crypto, nor fancy bitcoin scripting tricks. There are several techniques that are used in the paper, so I plan to concentrate on one per post and wrap up at the end. Already posted part II.
The real challenge going forward: we can't trust anything.
A few weeks ago, I wrote about postmodern computing, and characterized it as the computing in a world of distrust.
This morning, I read Steve Bellovin’s blog post, What Must We Trust? — Bellovin explains that “modern” (my word) security is founded on the idea of a “Trusted Computing Base” (TCB), defined (in part) in the United States’ Defense Department’s Orange Book. There were parts of a system that you had to trust, and you had to guard their integrity vigilantly: the kernel, certainly, but also specific configuration files, executables, and so on.
The TCB has always been problematic, particularly since (at least initially) it did not consider the problem of network connections. But networking aside, Bellovin argues that recent events have blown the idea of a “trusted” system to bits. We’ve seen attacks against (Bellovin’s list) batteries, webcams, USB, and more. If Andromedans (Bellovin doesn’t want to say NSA) have managed to infiltrate our disk drives, what can trust mean? And it would be naive to think that this stops with devices that have disk drives. Our devices, from Fitbits to data centers, have been pwnd even before they’re built. Read more…
Four short links: 16 February 2015
Grace Hopper, Car Dashboard UIs, DAO Governance, and Sahale.
- The Queen of Code — 12m documentary on Grace Hopper, produced by fivethirtyeight.com.
- Car Dashboard UI Collection — inspiration board for your (data) dashboards.
- Subjectivity-Exploitability Tradeoff — Voting-based DAOs, lacking an equivalent of shareholder regulation, are vulnerable to attacks where 51% of participants collude to take all of the DAO’s assets for themselves […] The example supplied here will define a new, third, hypothetical form of blockchain or DAO governance. Every day we’re closer to Stross’s Accelerando.
- Sahale — open source cascading workflow visualizer to help you make sense of tasks decomposed into Hadoop jobs. (via Code as Craft)
More than a currency, bitcoin is an enabling technology
The O'Reilly Radar Podcast: Balaji Srinivasan on the bigger picture of bitcoin, liquid markets, and the future of regulation.
The promise of bitcoin and blockchain extends well beyond its potential disruption as a currency. In this Radar Podcast episode, Balaji Srinivasan, a general partner at Andreessen Horowitz, explains how bitcoin is an enabling technology and why it’s like the Internet, in that “bitcoin will do for value transfer what the Internet did for communication — make it programmable.” I met up with Srinivasan at our recent O’Reilly Radar Summit: Bitcoin & the Blockchain, where he was speaking — you can see his talk, and all the others from the event, in the complete video compilation now available.
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The bigger picture of bitcoin
More than just a digital currency, bitcoin can serve as an instigator for new markets. Srinivasan explained the potential for everything to become a liquid market:
“Bitcoin is a platform for programmable money, programmable interchange, or anything of value. That’s very general. People have probably heard at this point about how you can use a blockchain to trade — in theory — stocks, or houses, or other kinds of things, but programmable value transfer is even bigger than just trading things which we know already exist.
“One analogy I would give is in 1988, it was not possible to find information on anything instantly. Today, most of the time it is. From your iPhone or your Android phone, you can google pretty much anything. In the same way, I think what bitcoin is going to mean, is markets in everything. That is, everything will have a price on it — everything will be a liquid market. You’ll be able to buy and sell almost anything. Where today the fixed costs of setting up such a market is too high for anything other than things that are fairly valuable, tomorrow it’ll be possible for even images or things you would not even think of normally buying and selling.”
Four short links: 27 January 2015
Autonomous Corporations, Abstract Thought, Down Rounds, and Distributed Messaging
- Decentralised Autonomous Corporations — Charlie Stross’s near-future fiction of Accelerando comes closer to reality: Malice – revenge for waking him up – sharpens Manfred’s voice. “The president of agalmic.holdings.root.184.97.AB5 is agalmic.holdings.root.184.97.201. The secretary is agalmic.holdings.root.184.D5, and the chair is agalmic.holdings.root.184.E8.FF. All the shares are owned by those companies in equal measure, and I can tell you that their regulations are written in Python. Have a nice day, now!” He thumps the bedside phone control and sits up, yawning, then pushes the do-not-disturb button before it can interrupt again. After a moment he stands up and stretches, then heads to the bathroom to brush his teeth, comb his hair, and figure out where the lawsuit originated and how a human being managed to get far enough through his web of robot companies to bug him.
- Coding is Not the New Literacy (Chris Grainger) — We build mental models of everything – from how to tie our shoes to the way macro-economic systems work. With these, we make decisions, predictions, and understand our experiences. If we want computers to be able to compute for us, then we have to accurately extract these models from our heads and record them. Writing Python isn’t the fundamental skill we need to teach people. Modeling systems is. Amen!
- Let’s Stop Laughing at Groupon (Fortune) — it is much easier to survive a valuation decline as a public company than as a private one.
- nsq — Bitly’s open sourced realtime distributed messaging platform.
Bitcoin is just the first app to use blockchain technology
Understanding the value of the blockchain above and beyond bitcoin.
Editor’s note: Lorne Lantz is a program co-chair for our O’Reilly Radar Summit: Bitcoin & the Blockchain on January 27, 2015, in San Francisco. For more on the program and for registration information, visit the Bitcoin & the Blockchain event website.
I remember the first time I heard about bitcoin. It was June 2012, and I was invited to a bitcoin meetup. The whole time I was sitting there, I thought these were a bunch of computer geeks playing around with nerd money.
At the same time, I felt excited about the possibilities. If what the bitcoin believers were saying was true, it could become something very big. When I took a closer look, I realized why it could be so groundbreaking: decentralization.
Unlike other currencies and payment networks, bitcoin is not controlled by a bank, government, or financial institution. Instead, thousands of computers around the world verify transactions and manage a global decentralized ledger. This innovative technology is called the blockchain, and it provides a unique pathway that allows — for the first time — many computers that don’t trust each other to achieve consensus. In bitcoin’s case, they are achieving consensus on updates to the global ledger. Read more…