CryptoThis - Bitcoin Difficulty Estimator

So there's a coin that has more solo miners than all the Bitcoins, Litecoin and Ethereum put together? And it scales to MILLIONS of mining modes using Wolfram research? #3 total node count behind BTC and ETH and in testnet? Stephen Wolfram and DIffie are advisers... You're joking right?

So there's a coin that has more solo miners than all the Bitcoins, Litecoin and Ethereum put together? And it scales to MILLIONS of mining modes using Wolfram research? #3 total node count behind BTC and ETH and in testnet? Stephen Wolfram and DIffie are advisers... You're joking right? submitted by finish-the-thought to CryptoCurrency [link] [comments]

[uncensored-r/Bitcoin] In 2013, I built an algorithm that made predictions about BTC price fluctuations and mining diffi...

The following post by GangsterWisdom is being replicated because the post has been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7g9dra
The original post's content was as follows:
My algorithm showed a "rubber banding" effect. With outliers excluded from my data, it was 94% accurate. With outliers included with my data, it was still 85% accurate.
When difficulty sees large gains, price (USD valuation) will rise steadily, then begin dropping sharply.
When BTC to USD sees large gains, difficulty will change at a slower rate at first, then drop sharply in terms of growth proportion to it's standard deviations of movement.
We are currently witnessing this rubber band lag on difficulty fueled by the giant price increase.
As difficulty drops, more miners will enter the market, and liquidity in the "minted" supply of Bitcoins will increase.
Ultimately, from an economics standpoint, this transition will act as a harmonious correction in either direction, for either rubber banding case.
Bitcoin has a built-in harmonic motion between the liquid market, USD valuation, difficulty, and supply/demand liquidity.
My algorithm lines up with most of the hedge fund guys throwing out large 5 figure valuations for 2018.
I would declare with a degree of certainty above 50% that we will see a valuation of between $12,500 and $20,000 in early spring/late winter.
This will be followed by a gradual decline until near mid-end of Summer.
At which point valuation will begin increasing again, and will hit more... asinine valuations, near the end of 2018. [[This timing range of Summer to Winter of 2018 is the most logical location for a major bubble and crash event, according my current algorithms.]]
The real threat of a bubble exists still, BUT, Bitcoin has developed a resistance to massive market swings, and as it's overall USD valuation increases, the risk is dropping steeply.
You must consider that these days, for Bitcoin's valuation to move $50 USD, requires BILLIONS of USD in trade transactions to occur.
Since mainstream Wallstreet isn't a heavy player in Bitcoin still, this makes BTC immune/resistant to flash crashes, as most long term HODLers are "indoctrinated" and won't fall prey to panic. (Yet, few players in the Bitcoin space are not and could not throw around hundreds of millions of dollars just to create a synthetic pump or crash, unlike 2011-2013 when some larger whales could tip the whole market.)
The amount of liquid capital in BTC owned by "panicky public" is becoming a negligible amount in proportion, and will soon cease having any real effect on day to day valuations.
Financiers, wall street, hedge funds. If anyone in your financial department has an opinion within the realm of the following:
"I don't understand it."
"It's a scam."
"It's not worth looking into."
"It is too volatile."
I would solemnly consider a one to one meeting with that employee. Bitcoin's market cap is higher than the majority of Fortune 500 companies annual revenue. Bitcoin's daily trade magnitudes are between 2 billion and 10 billion USD worth of DAILY active movement.
If an employee is refusing to even look into it, because they "don't understand" or "believe it is a scam"
Make them look into it, or fire their negligent ass. That level of ignorance is equally as bad, as if your company had a major competitor rising in their market space, and this employee refused to research that competitor at all.
That's the type of value movement going on now.
Tulip mania boomed and exploded in roughly 2-3 years.
This is NOT a tulip situation.
Bitcoin was established in 2010 and has had growth outpacing every other financial investment possible for the LAST SEVEN YEARS.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Shamir vs. Diffie on Bitcoin

Shamir vs. Diffie on Bitcoin submitted by Egon_1 to Bitcoin [link] [comments]

@_cryptome_: Bitcoin Ponzi Consensus Speakers May 14-16, NYC, wonderful variety of suits and geeks, pols and ceos. glams and hoods. Whit Diffie to muse on crypto rise and fall Icarus. https://t.co/fPBjnpxInB

submitted by SpecialAgentRando to cryptome [link] [comments]

@_cryptome_: Cryptome celebrated a Mother of Public Key Cryptography, Whitfield Diffie, yesterday, he in NYC to save Bitcoin from utter Ponzi depravity. @mattblaze https://t.co/Zq5KyOGo5i

submitted by SpecialAgentRando to cryptome [link] [comments]

TIL about Elliptic curve Diffie–Hellman: Encrypted messaging using Bitcoin addresses is possible

http://en.wikipedia.org/wiki/Elliptic_curve_Diffie%E2%80%93Hellman
During an interview with the NXT developers for Let's Talk Bitcoin, I learned that NXT has a protocol-specified, blockchain-contained encrypted messaging system using Elliptic Curves. So messages can be encrypted with your NXT (or Bitcoin) public/private key pair. I've always thought EC was just for message signing, but TIL it can also be used for key exchange.
Has anyone implemented this in such a way that a Bitcoin address is all you need to send an encrypted message to another Bitcoin user? If not I'm somewhat surprised.
Edit: I should've said bitcoin public keys, not addresses
submitted by pinhead26 to Bitcoin [link] [comments]

Shamir vs. Diffie on Bitcoin

Shamir vs. Diffie on Bitcoin submitted by MuchBitcoin to MuchBitcoin [link] [comments]

Diffie-Hellman Key Exchange in Bitcoin Transactions

submitted by MeanOfPhidias to math [link] [comments]

Bitcoin predecessors that created some foundational principles for bitcoin

Bitcoin predecessors that created some foundational principles for bitcoin submitted by AlonShvarts to CryptoCurrency [link] [comments]

Proof Of Work Explained

Proof Of Work Explained
https://preview.redd.it/hl80wdx61j451.png?width=1200&format=png&auto=webp&s=c80b21c53ae45c6f7d618f097bc705a1d8aaa88f
A proof-of-work (PoW) system (or protocol, or function) is a consensus mechanism that was first invented by Cynthia Dwork and Moni Naor as presented in a 1993 journal article. In 1999, it was officially adopted in a paper by Markus Jakobsson and Ari Juels and they named it as "proof of work".
It was developed as a way to prevent denial of service attacks and other service abuse (such as spam on a network). This is the most widely used consensus algorithm being used by many cryptocurrencies such as Bitcoin and Ethereum.
How does it work?
In this method, a group of users competes against each other to find the solution to a complex mathematical puzzle. Any user who successfully finds the solution would then broadcast the block to the network for verifications. Once the users verified the solution, the block then moves to confirm the state.
The blockchain network consists of numerous sets of decentralized nodes. These nodes act as admin or miners which are responsible for adding new blocks into the blockchain. The miner instantly and randomly selects a number which is combined with the data present in the block. To find a correct solution, the miners need to select a valid random number so that the newly generated block can be added to the main chain. It pays a reward to the miner node for finding the solution.
The block then passed through a hash function to generate output which matches all input/output criteria. Once the result is found, other nodes in the network verify and validate the outcome. Every new block holds the hash of the preceding block. This forms a chain of blocks. Together, they store information within the network. Changing a block requires a new block containing the same predecessor. It is almost impossible to regenerate all successors and change their data. This protects the blockchain from tampering.
What is Hash Function?
A hash function is a function that is used to map data of any length to some fixed-size values. The result or outcome of a hash function is known as hash values, hash codes, digests, or simply hashes.
https://preview.redd.it/011tfl8c1j451.png?width=851&format=png&auto=webp&s=ca9c2adecbc0b14129a9b2eea3c2f0fd596edd29
The hash method is quite secure, any slight change in input will result in a different output, which further results in discarded by network participants. The hash function generates the same length of output data to that of input data. It is a one-way function i.e the function cannot be reversed to get the original data back. One can only perform checks to validate the output data with the original data.
Implementations
Nowadays, Proof-of-Work is been used in a lot of cryptocurrencies. But it was first implemented in Bitcoin after which it becomes so popular that it was adopted by several other cryptocurrencies. Bitcoin uses the puzzle Hashcash, the complexity of a puzzle is based upon the total power of the network. On average, it took approximately 10 min to block formation. Litecoin, a Bitcoin-based cryptocurrency is having a similar system. Ethereum also implemented this same protocol.
Types of PoW
Proof-of-work protocols can be categorized into two parts:-
· Challenge-response
This protocol creates a direct link between the requester (client) and the provider (server).
In this method, the requester needs to find the solution to a challenge that the server has given. The solution is then validated by the provider for authentication.
The provider chooses the challenge on the spot. Hence, its difficulty can be adapted to its current load. If the challenge-response protocol has a known solution or is known to exist within a bounded search space, then the work on the requester side may be bounded.
https://preview.redd.it/ij967dof1j451.png?width=737&format=png&auto=webp&s=12670c2124fc27b0f988bb4a1daa66baf99b4e27
Source-wiki
· Solution–verification
These protocols do not have any such prior link between the sender and the receiver. The client, self-imposed a problem and solve it. It then sends the solution to the server to check both the problem choice and the outcome. Like Hashcash these schemes are also based on unbounded probabilistic iterative procedures.
https://preview.redd.it/gfobj9xg1j451.png?width=740&format=png&auto=webp&s=2291fd6b87e84395f8a4364267f16f577b5f1832
Source-wiki
These two methods generally based on the following three techniques:-
CPU-bound
This technique depends upon the speed of the processor. The higher the processor power greater will be the computation.
Memory-bound
This technique utilizes the main memory accesses (either latency or bandwidth) in computation speed.
Network-bound
In this technique, the client must perform a few computations and wait to receive some tokens from remote servers.
List of proof-of-work functions
Here is a list of known proof-of-work functions:-
o Integer square root modulo a large prime
o Weaken Fiat–Shamir signatures`2
o Ong–Schnorr–Shamir signature is broken by Pollard
o Partial hash inversion
o Hash sequences
o Puzzles
o Diffie–Hellman–based puzzle
o Moderate
o Mbound
o Hokkaido
o Cuckoo Cycle
o Merkle tree-based
o Guided tour puzzle protocol
A successful attack on a blockchain network requires a lot of computational power and a lot of time to do the calculations. Proof of Work makes hacks inefficient since the cost incurred would be greater than the potential rewards for attacking the network. Miners are also incentivized not to cheat.
It is still considered as one of the most popular methods of reaching consensus in blockchains. Though it may not be the most efficient solution due to high energy extensive usage. But this is why it guarantees the security of the network.
Due to Proof of work, it is quite impossible to alter any aspect of the blockchain, since any such changes would require re-mining all those subsequent blocks. It is also difficult for a user to take control over the network computing power since the process requires high energy thus making these hash functions expensive.
submitted by RumaDas to u/RumaDas [link] [comments]

How to keep the last privacy in the era of network transparency

How to keep the last privacy in the era of network transparency

https://preview.redd.it/ngfkz37opv051.jpg?width=1600&format=pjpg&auto=webp&s=896d8941338bc88da6d1199c3e2048a9aaa77c0e
Before half of 2020, the word "data breach" appears extremely active. All over the world are plagued by data breaches, but also cause major losses.
In today's Internet era, any behavior you have on the Internet is likely to be recorded, and then through big data summary and statistical analysis, you can basically say: everything you know, the network knows. In a centralized system, the system platform operator can get all your data in the background. Based on the drive of business interests, they will use this data to commercialize applications: sell data and sell services.
The world is interconnected. This is the status quo and an irreversible development trend. In this interconnection, there are no boundaries in the future. In this near future where there are no borders and everything is connected, imagine that your alarm clock, electricity meter, mobile phone, mobile detector, and other things that are needed every day are interconnected, so that others can understand your situation. What a terrible thing it is, like being in a completely privacy-free environment, such a future, you,Suffocation? Should we have privacy?
In December 1948, the United Nations promulgated the Basic Law, "Universal Declaration of Human Rights," Article 12 of which stated personal privacy as follows:
No one's private life, family, residence and correspondence must be arbitrarily interfered, and his honor and reputation must not be attacked. Everyone has the right to legal protection against such interference or attacks.
In the electronic age, privacy is essential for an open society. Privacy is different from secret. Privacy is something that someone does not want to make public. The secret is something he doesn’t want anyone to know. Privacy is a power. It gives someone the right to decide what to disclose and what not to disclose.
In a distributed Internet environment, the privacy of individuals from a macro perspective mainly covers four aspects: node privacy, content privacy, link privacy, and tunnel privacy. Let's expand one by one and look at the specific content of the four dimensions of privacy.
1) Node privacy
Node privacy refers to the fact that in an open distributed environment, both parties interacting with each other do not know each other's sensitive information, such as IP address and MAC address, so as to achieve the purpose of not exposing each other. At the same time, it is impossible for other nodes to perceive the location of the sender and the receiver through network sniffing.
The following uses the Bitcoin network topology as an example to illustrate the importance of node encryption.

https://preview.redd.it/7bwl3mqayv051.png?width=2368&format=png&auto=webp&s=b3cd22723c7b275d97754051b6a4c7d8a91be553
As of now, there are about 8,000 nodes in the entire Bitcoin network. Based on current technology, the cost of building a parallel sniffing network is very low. Some researchers have done statistics. When the topology sniffing network starts, after about 10 blocks height, it can basically infer the connection topology of the entire network. Coupled with the fixed time interval of gossip message propagation, it is basically possible to infer the general distribution position of the construction nodes of a transaction information, thereby destroying the privacy of the nodes.
2) Privacy of communication content
The privacy of communication content means that the communication content is only visible to both parties of the interaction. No one can intercept the data from the network, or without the authorization of both parties, no one can see the plain text of the communication.
3) Link privacy
Link privacy refers to the connection established by both parties in communication, which is encrypted; No one has the ability to use the link for data transmission without the relevant key. As shown in the figure below, a-> b, b-> c, c-> d, etc.

https://preview.redd.it/h0jg5ivfyv051.png?width=1576&format=png&auto=webp&s=32303d8b296da0cee4e6a4b3a744eb984aa70385
4) Tunnel privacy
In some cases, the communication between the nodes will be completed by one or more relay nodes. In this way, based on the transceiver node and the relay node, a communication tunnel is formed; tunnel privacy means that only the sending node has the right to send data from the sending node to the receiving node via the relay node. Under the premise of authorization, there is no way to complete the transmission of data. As shown above, a-> d, e-> h logical communication tunnel.
For the four privacy dimensions mentioned above, there is a general solution that can effectively protect the security. Although the communication efficiency needs to be improved, functionally speaking, it can already take into account the four dimensions. And in the following, for this general security idea, gives the possible dimensions for further optimization.
1. Description of General Encryption Network Solution
Firstly, each relay routing node in the encrypted network creates a routing descriptor, which contains some contact information, mainly IP addresses, ports, public keys, and other broadband capabilities. After the creation is complete, send this information to the directory server of the whole network (usually also become the Bootstrap node). Based on this information, the directory server generates a unique descriptor for the routing node for the entire network, which is stored on the directory server along with the descriptor information. In the following, we will describe in detail how the privacy of the encrypted network is protected from three aspects: networking topology, message structure and link transmission construction.
1) Network topology
As shown in the following figure, in an encrypted network, we recommend that clients, relay agents, relay routing nodes, directory servers, and possibly bridge nodes together form the entire network topology. When the client builds a communication link, the steps are as follows:
A. The client initiates a node request to the directory server;
B. The directory server generally recommends three nodes to the client from the directory table based on the weight selection algorithm. Logically, they are called entrance node, intermediate node and exit node.
C. After receiving effective feedback from the directory server, the client builds a complete tunnel link step by step according to the Response message.

https://preview.redd.it/dhkgbsfnyv051.png?width=2382&format=png&auto=webp&s=150cfecf95246dccca10ea8a75c904938731a2d0
2) Link establishment
Based on the above description, we know that a client can obtain three nodes of a link through the directory server: entrance node, intermediate node, and exit node.
A. The client uses the DH handshake protocol (Diffie-Hellman) to shake hands with the ingress node to generate a shared session key. Based on the shared key, the client sends a CREATE message to the entrance node;
B. After receiving the CREATE message, the entrance node will establish a link with the intermediate node based on the address of the intermediate node in the message and complete the key exchange;
C. Based on the segmented encrypted link and DH handshake protocol completed above, the client completes key negotiation with the intermediate node;
D. Similarly, based on the two-level encrypted tunnel established above, the client sends a CREATE message to the intermediate node to complete the establishment of the encrypted link between the intermediate node and the exit node;
E. Finally, the client completes the key negotiation between the client and the egress node based on the above three-level segmented encrypted link, and then completes the establishment of the entire onion tunnel link;

https://preview.redd.it/e8mmnz3syv051.png?width=911&format=png&auto=webp&s=de5f22a8c8b3a33ab5ff9274e2145a392b83ca04
3) Message structure and transmission
Before the message is sent from the client, it will use the shared key negotiated with the exit node, intermediate node, and entrance node to encrypt from the inside out. The innermost message is encrypted using the shared key of the exit node, then the intermediate node, and finally the entrance node.

https://preview.redd.it/aiondkuuyv051.png?width=865&format=png&auto=webp&s=a1d3a6877fbee82f668ca3fbea477b86b8b14c8a
A. After the above message is sent from the client, the entrance node will judge the validity of the message based on the shared key negotiated and remove the outer encryption, and then send it to the intermediate node;
B. After receiving the message from the entrance node, the intermediate node will judge the validity of this message based on the shared key negotiated with the client and remove the encryption of this layer, and then send it to the exit node;
C. The exit node uses the shared key negotiated with the client and repeats the above steps. Eventually send the client's message to the real destination address.
2. Optimization for the above program
In the description of the above scheme, we can easily see that there are two obvious flaws, that is, the startup node is too centralized, which can easily lead to a single point of failure or suffer from a network hijacking attack. At the same time, because the data exchange is based on link exchange, when the network congestion is severe, it is easy to cause network service delay. Due to the single structure of the message, it also restricts the data in the link transmission process to a certain extent, and optimizes the transmission performance. Below we will give specific optimization ideas based on the above two points:
1) No central server
The aforementioned encrypted network node knows the existence of all relay and entry / exit nodes by connecting to the directory server. The optimized project node will know the existence of other nodes through the local network database (tentatively called NetDB). NetDB learns the existence of more nodes when connecting other nodes through the DHT algorithm. It is a distributed network database. It mainly provides router contact information and target contact information. Each piece of data is signed by the appropriate party and verified by anyone who uses or stores it.
2) Optimization of data exchange mode
The first point to note is that in the optimized encrypted network, there are two different links for the communication link of the two parties, that is, the entrance link and the exit link are different;

https://preview.redd.it/b7es3d2yyv051.png?width=888&format=png&auto=webp&s=28da350509807d6b5a1ba60f5fb348ff5fe41ea6
In the optimized encrypted network, the connection is broken up into data packets by the message mechanism (Message), after being cross-transmitted through different TCP or UDP tunnels, the receiver reassembles into a data stream, that is, the optimized encrypted network is based on Packet switching, packet switching can drive some implicit load balancing and help avoid congestion and service interruption.
Undoubtedly, open data sharing is the source of power for the development of data-related industries, but the existing data storage methods and network protocols have many shortcomings. Solving such problems has become a very important step on the road to the next generation of the Internet world. DSP Labs has always kept thinking and exploring the next generation Internet infrastructure. I believe that in the near future, DSP Labs can bring a new choice to the Internet world.
Find us:
Facebook: https://www.facebook.com/DSP-Labs-110430797334480
Twitter: https://twitter.com/DSP_Labs
Telegram: t.me/DSP_Official
Wechat: DSPLabs
submitted by DSP-Lab to u/DSP-Lab [link] [comments]

Words from the founders of ABCardO

The family of public-key cryptosystems, a fundamental breakthrough in modern cryptography in the late 1970s, has increasingly become a part of our communication networks over the last three decades. The Internet and other communication systems rely principally on the Diffie-Hellman key exchange, RSA encryption, and digital signatures using DSA, ECDSA, or related algorithms. The security of these cryptosystems depends on the difficulty of number theory problems such as Integer Factorization and the Discrete Log Problem. In 1994, Peter Shor showed that quantum computers could solve each of these problems in polynomial time, thus rendering the security of all cryptosystems based on such assumptions impotent. In the academic world, this new science bears the moniker Post-Quantum Cryptography (PQC).
In August 2015, the National Security Agency (NSA) published an online announcement stating a plans to transition to quantum-resistant algorithms. In December 2016, the National Institute of Standards and Technology (NIST) announced a call for proposals of quantum resistant algorithms with a deadline of November 30th 2017.
In light of the threat that quantum computers pose to cryptosystems such as RSA and ECC, the once-distant need to develop and deploy quantum-resistant technologies is quickly becoming a reality. Cryptocurrencies like Bitcoin are new financial instruments which are created to make financial transactions more efficient, cheaper, and decentralized. Their fundamental building blocks are cryptographic algorithms such as ECC digital signatures which are used to perform various functions to ensure the integrity and security of the whole system. However, the use of ECC signatures and other similar cryptographic algorithms means that quantum computing could pose a fatal threat to the security of existing cryptocurrencies, which deploy number theory-based public key cryptosystems extensively.
The mission of the ABCMint Foundation is to successfully develop quantum-resistant blockchain technology. We also look to promote and support fundamental research for quantum computing technology and post-quantum algorithms.
submitted by prelude406 to ABCardO_PQC [link] [comments]

CryptoTools.net - A simple client-side cryptographic tool suite

Hey everyone! My apologies in advance from the plug, but I just wanted to show off my project, CryptoTools.net. It has no ads, no trackers, and does not ask for money.

Backstory

I got sick of bouncing around from site to sketchy site while trying to perform the simplest of cryptographic operations: things like hashing a string, converting base64, or encrypting a string. Each site had their own way of doing things as well, with a large portion of them POSTing all of the data to the server for it to do the calculations (a major no-no for those unfamiliar). Even some of the good sites were single-purpose with clunky UIs and forgettable URLs. I have yet to meet anyone who has memorized every OpenSSL command, myself included.
There's no shortage of crypto implementations in Javascript, but they're usually implemented in the background of a larger application, not presented in plain form for users to take advantage of as they please.
For these reasons, I decided to make my own collection of tools. All client side, easy to use, mobile friendly, and compatible with OpenSSL! Most tools also include DIY instructions for self-serve. All source code is on GitHub and all libraries are attributed to their authors. Rule #1 of crypto is to never roll your own crypto, so only outside libraries were used for that.

Tools

I hope at least some of you find these tools as useful as I do! I'm always open to suggestions for improvement. Thanks for reading!
submitted by rotorcowboy to privacytoolsIO [link] [comments]

CryptoTools.net - A simple client-side cryptographic tool suite

Hey everyone! My apologies in advance from the plug, but I just wanted to show off my project, CryptoTools.net. It has no ads, no trackers, and does not ask for money.

Backstory

I got sick of bouncing around from site to sketchy site while trying to perform the simplest of cryptographic operations: things like hashing a string, converting base64, or encrypting a string. Each site had their own way of doing things as well, with a large portion of them POSTing all of the data to the server for it to do the calculations (a major no-no for those unfamiliar). Even some of the good sites were single-purpose with clunky UIs and forgettable URLs. I have yet to meet anyone who has memorized every OpenSSL command, myself included.
There's no shortage of crypto implementations in Javascript, but they're usually implemented in the background of a larger application, not presented in plain form for users to take advantage of as they please.
For these reasons, I decided to make my own collection of tools. All client side, easy to use, mobile friendly, and compatible with OpenSSL! Most tools also include DIY instructions for self-serve. All source code is on GitHub and all libraries are attributed to their authors. Rule #1 of crypto is to never roll your own crypto, so only outside libraries were used for that.

Tools

I hope at least some of you find these tools as useful as I do! I'm always open to suggestions for improvement. Thanks for reading!
submitted by rotorcowboy to cryptography [link] [comments]

Who invented blockchain?

Who invented blockchain?
Strange it may seem, but the concept of blockchain was invented long before Satoshi Nakamoto created Bitcoin as A Peer to Peer Electronic Cash System.
Let’s take a look at the events preceding Bitcoin’s blockchain appearance.
https://preview.redd.it/0o9jv2k9wz441.png?width=1920&format=png&auto=webp&s=df62d5226931e4022255913a69f4a4b9ad8e93d9
  • The idea takes its roots from coding and deciphering. Early in the 1940s, a British mathematician Alan Turing, who was the first known cryptographer, deciphered the Enigma Machine. At the same time, the Americans decoded the Purple Code, a Japanese ciphering machine.

https://preview.redd.it/k9cigmbewz441.png?width=602&format=png&auto=webp&s=5ed0de1db6296a9922c8526853a456cfa8b99642
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  • In the 1970s, Martin Hellman and Whitfield Diffie invented a special algorithm which split the encrypted keys into a pair — a private and a public key.

https://preview.redd.it/tfuc8cniwz441.png?width=602&format=png&auto=webp&s=7018bf7b163f249775aae6f8161668b4725cfb30
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  • Then, in 1992, W. Scott Stornetta, Stuart Haber added Merkle Tree to the cryptography concept, boosting security, performance, and efficiency.

https://preview.redd.it/q96c8dbmwz441.png?width=602&format=png&auto=webp&s=16a3ce56e0e0ea5601ae4c976abe49cea0008653
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  • However, this technology was not used, and the patent ended in 2004, four years before Bitcoin appeared.

https://preview.redd.it/h2dt1ugqwz441.png?width=92&format=png&auto=webp&s=f3526f2f704bfe10a54800bbc114466ccff9e0de
  • In 2004, a scientist and cryptographer Hal Finney introduced a system called RPoW, which was Reusable Proof Of Work. The system operated by getting a non-exchangeable Hashcash based PoW token and in return created an RSA-signed token that could then be transacted from person to person.
  • RPoW solved the double-spending problem by keeping the ownership of tokens registered on a trusted server. It also allowed users worldwide to verify its correctness and integrity in real-time.

https://preview.redd.it/mgqdaastwz441.png?width=602&format=png&auto=webp&s=fb8e43b46d63cd4e58f452a469a244b29a6bc2fa
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  • In 2009, Satoshi Nakamoto introduced his white paper Bitcoin: A Peer to Peer Electronic Cash System. The technology that underpinned the Bitcoin was called blockchain. It solved the problem of trust because each time a transaction was made, it was bundled together with other transactions and stored in a block. The block was then placed on the chain, which couldn’t be changed.
  • Based on the Hashcash PoW algorithm, but rather than using tools trusted computing function like the RPoW. The double-spending protection was provided by a decentralized peer-to-peer protocol for verifying and tracking the transactions. In simple words, Bitcoins are “mined” for a reward using the proof-of-work mechanism by miners and after verified by the decentralized nodes in the network.
submitted by y0ujin to NovemGold [link] [comments]

Tachyon Protocol Technical Guide #2 Tachyon Security Protocol

In our last article, we explored the fundamentals of TBU (or Tachyon Booster UDP). TBU is the core of Tachyon’s architecture which will replace the Application, Transport and Internet layers of the conventional TCP/IP protocol.
What Is TBU? How Does TBU Work?
The core of Tachyon Protocol includes four parts — TBU(Tachyon Booster UDP), TSP(Tachyon Security Protocol)…
medium.com
Today we will take a look at TSP, or Tachyon Security Protocol. As the name suggests, TSP is that part of Tachyon which ensures that the ecosystem remains safe from hackers and user data remains hidden from the outside world. The two main weapons in TSP’s arsenal are Asymmetric end-to-end Encryption and Protocol Simulation Scheme.
ECDHE-ECDSA Asymmetric end-to-end Encryption
The data that you send over the Internet passes through a host of servers, routers, and devices. There’s simply no way of knowing how secure any of these data gateways are. For all you know, your data might be intercepted by hackers at multiple points.
The most reliable safeguard against this problem is end-to-end encryption, which scrambles user data such that only the recipient can make any sense out of it. Even if a hacker intercepts this data, it would seem all gibberish. It’s only when the data reaches its correct destination that it is unscrambled and the original message is revealed.
Let’s say at a birthday party, Jim wants to send a secret message to his friend Rob; but the party is teeming with other kids, and he can’t risk the secret being let out. Luckily for Jim, both he and Rob have been taking French classes outside their school hours. Jim jots down the message in French on a piece of paper, and asks the other kids to relay it over to Rob. Now even if any of his friends open the chit, he won’t be able to make any meaning out of it. Smart move, Jim!
Ordinary point-to-point networking suffers from 2 major threats:
1.Network Sniffing

Hackers can use Network Sniffing tools to intercept and analyze the data flowing over computer network links. Most of these Sniffers work mainly with TCP/IP packets, but more sophisticated tools can work lower in the network hierarchy and even intercept Ethernet frames.
To counter such data hacking techniques, TSP creates encryption keys in insecure channels (where data points are unfamiliar with the credentials of each other) by implementing ECDH — ECDSA and Ephemeral Key. ECDH — ECDSA are a class of cryptographic algorithms which come under what is known as Elliptic Curve Cryptography.
TSP also uses AES (Advanced Encryption Standard) to ensure that even if the message is intercepted, the attacker wouldn’t be able to read it. In addition to this, a set of hash algorithms, such as HMAC, SHA2 and Keccak, are deployed so that in case the attacker is able to alter the data, the message would be automatically ignored.
In some instances, although the attacker is unable to decode the message, he might still be able to acquire some statistical feature information from it. TSP safeguards against this through a combination of different techniques, such as using a public symmetric encryption key, adding random data to the transmitted message, and encrypting the information part (such as the frame byte of the data packet).
Moreover, the likelihood of an encryption key being deciphered increases with multiple usages. TSP avoids any such risks by automatically renegotiating the encryption key after the connection transmits a certain length of data.
  1. Man-in-the-middle Attack (MITM)
In MITM, the attacker actually pretends to be one of the communicating parties and intercepts the communication. In 2018, well known hardware wallet manufacturer Ledger became the victim of MITM attacks. A piece of malware that made its way into the user’s computer would simply modify the “Bitcoin receive address” as displayed on the Ledger Wallet app. The satoshis that were supposed to make their way to the user’s wallet ended up being directed to the attacker’s public address instead.
TSP protects against MITM attacks by using ECDH (or Elliptic-Curve Diffie–Hellman), a key agreement protocol that allows two parties to establish a shared secret communication over an insecure channel. This makes it possible for the identities of both parties to be verified before any data is transmitted. Through ECDH, each of these parties generates an elliptic-curve public-private key pair. As long as this private key is not exposed, MITM attacks can be prevented.
Protocol Simulation Scheme
A distinct feature of TSP is the Protocol Simulation Scheme, which allows Tachyon to simulate well known communication protocols, such as UDP, TCP, HTTP, HTTPS, FTP and SMTP. So while Tachyon encrypts data packets using its own TBU protocol stack (discussed in our last article), anyone who intercepts this data would assume that the data belongs to the communication protocol being simulated.
Though Protocol Simulation, TSP guarantees that the real content of the communication is concealed, in order to avoid information unwarranted interception and exposure. It also fools firewalls and other third party applications into letting Tachyon data flow unhindered — a feature that is really useful in Tachyon’s VPN application.
Today, HTTP/HTTPS is the most commonly used communication protocol in the World Wide Web. However, in most cases, the data that is transmitted is completely unencrypted, which makes it vulnerable to hacking. Moreover, HTTP-based communication checks neither the identity of the node with which communicating is being established, nor the integrity of the message being transmitted.
In case of Tachyon, not only is the data encrypted in multiple levels, but the nature of the data packet is concealed as well. For example, in case of SMTP simulation, the data will resemble an ordinary e-mail; while in case of HTTPS simulation, the data traffic will appear like the user is visiting a website such as Google or BBC News.
submitted by Rlindras to Crypto_General [link] [comments]

Has anyone here ever actually read CSW's patents? I just did and had a good LOL.

Sorry craig, but your patent for using a diffie hellman key exchange to send a private key isn't any more enforceable than a patent on using SSL to send emails.
You can't just take someone else's invention, get a patent for using that invention on bitcoin, and expect it to be an enforceable patent. That is every single one of Craig's patents right there.
submitted by autisticchadlite to btc [link] [comments]

Exclusive: Introducing Shared Memos

Exclusive: Introducing Shared Memos
https://preview.redd.it/zo9udhpzd7k21.png?width=2048&format=png&auto=webp&s=9125d8d2ecd2311a74985a159fe44ed5e2c3a4c7

DropBit Wallet Exclusive: Introducing Shared Memos

Hey All!
In continuing with the mission to make using and sending Bitcoin more user friendly, the DropBit app has released its feature to Securely Send Memos. This is a unique to our wallet feature that significantly enhances the user experience for those users who send or receive multiple Bitcoin transactions in their wallet.
Many wallets offer the ability to add local memos to a wallet transaction, but no other wallet solution offers the capability to securely share memos between sender and recipient. The DropBit user has the ability to decide at each transaction if they want to share the memo with the recipient or if they just want to keep the memo private, on their own wallet. Not only does DropBit allow this powerful capability, it does so while keeping the messages encrypted and secure.
The shared memo feature works for both Android and iOS, allowing users to decide with each transaction if they want to add a memo and keep it to themselves, or securely share the memo with the recipient. This brings Bitcoin closer to the standard and ease of use of some FIAT wallets, like Cash App and Venmo, in which the memo is an important part of the transaction experience. Gone are the days where recipients and senders are left guessing which transaction was sent or received for which reason while looking at their transaction history.
For power users, or even merchants, this becomes even more important as memos give an ability to catalog activity between the user and recipient. In the comparison graphic below, you can see the image on the right is much more helpful when looking at transaction history.
Left: Transactions listed from BRD Wallet. Right: Transactions with Secure Shared Memos from DropBit

Transactions with Securely Shared Memos
Some other wallets allow you to add a memo to a transaction, but it only shows up on the memo creator’s wallet. DropBit allows for this capability as well, but there is a lot of power in being able to share this memo with the Bitcoin recipient.

https://preview.redd.it/93qxmf0yw5k21.png?width=2267&format=png&auto=webp&s=8c73f7a01420a138eb761d9a474fb00f48dc3f97
Safe and Secure
As important to us as enhancing the utility and user experience of Bitcoin transactions are to us, ensuring that privacy remains unaffected by the features we implement is most important.
Shared memos are encrypted by using the Elliptic-curve Diffie-Hellman Ephemeral (ECDHE) key agreement protocol and AES-256-CBC. ECDHE requires two keys in order to work: our API stores a receiver’s address and corresponding public key, the sender generates an ephemeral key pair. The ECDHE shared secret is used to encrypt the memo which is then temporarily stored by our API. When the receiver sees a new transaction for that address it checks for any memos and the process is performed in reverse using the ephemeral public key and the corresponding private key for that address.
International Accessibility + Open Source Transparency coming soon…
In the coming weeks, DropBit will be made available in almost every country globally. We have heard from countless people who want to use DropBit around the world and soon that restriction is lifted. Additionally, we’ll be working on localizing languages and native currency to a handful of countries in the coming months.
Finally, we have also heard the requests for open source and we are in the final testing phase to open source the DropBit Wallet. Verification is essential in the Bitcoin space, and we are happy to open our solution up to the world so they can have the confidence to make DropBit one of their primary Bitcoin wallet solutions.
submitted by coin_ninja_com to Bitcoin [link] [comments]

The Diffie-Hellman key exchange, and how it's used in many different privacy-oriented Cryptocurrencies.

Let's talk about Paint.
Everyone can see you have the color Yellow, and I want to create a secret paint color that only we know the recipe to; but since everyone is listening, we can't talk about it.
So I'm going to take your Yellow, and I'm going to add my secret Blue. The result is a special Green paint; I give you this Green paint, and tell you it's really important.
You do the same thing; you take your Yellow, and you add your secret - Red. The result is a special Orange paint; you give this to me.
Here's the magic: I add my secret Blue to your special Orange, and you add your secret Red to my special Green. The result is we end up with the same color - and nobody who intercepted our messages knows how it was made.
.
This is the concept behind the Diffie-Hellman key exchange, and the underlying nature of Stealth Addressing.
.
A Stealth Address, or sometimes an SA for short, uses a public "color" and two private "colors". In the case of Monero:
(small note: we don't actually have any gremlins mixing paint in Monero. We use something called Elliptic Curve Cryptography instead.)
.
Okay wait, but what are you talking about?
We just made a transaction, that you, as a receiver, can prove happened - and nobody else even knows! We just had a super secret transaction!
Oh okay! But if all we need are Stealth Addresses, why do we use Monero?
Stealth addresses only work in entirety if you don't know any inside information. Unfortunately, you still know who I am - and what's worse, is I can actually still tell when you next spend your Monero. That's why we need things such as Ring Signatures, RingCT, and Kovri.
Oh okay. But what about Quantum Computers?
Two things. First, Quantum computers are just buzzwords. They really don't do too many world ending things, and we have much bigger problems than /Doomero. But, even if it's the end of Monero as a currency, your previous transactions are still safe, because Monero uses something called zero-knowledge proofs in some of its methods that make it mathematically and cryptographically entirely impossible to verify with certainty certain parts about a transaction.
What about Bitcoin Private?
I will stab you.
submitted by OsrsNeedsF2P to Monero [link] [comments]

Implementing full Internet IPv6 end-to-end encryption based on Cryptographically Generated Address

# Foreword

Encryption based on shared secrets

Symmetric encryption is based on shared keys, asymmetric encryption is based on shared public keys, and HTTPS is based on the browser's built-in CA root certificate.

There have been rumors that IPv6 can implement end-to-end encryption of all the Internet based on IPsec, but this is impossible.

IPsec is also based on passwords or certificates, and also requires shared secrets.

The problem is that there is no shared secret between us and strangers. Without the secret of sharing, we can't authenticate each other. If this problem is not solved, Internet end-to-end encryption is impossible.

But Cryptographically Generated Address (CGA) solves this problem because CGA turns the IPv6 address itself into a "shared secret."

# Cryptographically Generated Address

Detailed CGA information can be found in RFC 3972, I will briefly explain here.

CGA is used to implement Secure Neighbor Discovery, which resolves authentication without CA.

The CGA divides the IPv6 address into three parts, the first 64-bit subnet prefix, the middle 3 bits of computational difficulty, and the last 59 bits of the hash address generated based on the public key.

+-+-+-+-+-+-+-+-+-
| |
| modifier |
| |
+-+-+-+-+-+-+-+-+-
| |
| subnet prefix |
| |
+-+-+-+-+-+-+-+-+-
|collision count |
| |
| public key |
| |
+-+-+-+-+-+-+-+-+-
| |
| Extension Fields |
| |
+-+-+-+-+-+-+-+-+-

  1. Generate a 128-bit random value and fill in the modifier, set the network prefix and collision count to 0, and fill in the public key and extension field.

  1. Perform the hash on the above CGA data structure, and get the hash value of the first 112 bits as HASH2.

  1. If the first 16 * sec bit of HASH2 is 0, continue, otherwise the modifier increments by 1 and repeats the second step. This is a proof of workload, increasing the difficulty of hash collision.

  1. Fill in the actual network prefix, perform a hash on the CGA data structure, and record the first 64 bits of the hash value as HASH1.

  1. Cover the first 3 bits of HASH1 with sec. Now we get the CGA address. Combining the 64-bit network prefix with the CGA address is the complete IPv6 address.

  1. If an IPv6 address conflict occurs and someone has used this address, increase the collision count and return to step 4.

The above is the process of CGA generating IPv6 address. We successfully associate the public key with the IPv6 address. No CA is needed. The IPv6 address contains the shared secret.

Now we can send the public key to the stranger and sign it with the private key. MITM cannot replace the public key. Because there is a hash of the public key in the IPv6 address, the public key cannot be forged.

In Secure Neighbor Discovery, CGA is used to prevent impersonation of NA messages, similar to ARP spoofing attacks, to prevent contamination of MAC addresses in cache tables.

The private key signs the MAC address, and the NA message of the signature and the public key is sent to the other party. The other party verifies the public key according to the hash in IPv6, and verifies the signature, so that the person who forges the NA message has no way to start.

# IPv6 Secure Encryption Protocol

I think CGA is too wasteful if it is only used in Secure Neighbor Discovery.

CGA can be used on the entire Internet!

CGA solves the problem of shared secrets, we can use CGA to achieve end-to-end encryption of the entire Internet.

When we connect to the Internet, the router will send us RA messages, the RA contains the subnet prefix, we can use CGA to generate its own public key, private key, IPv6 address.

When we communicate with strangers, we can use the following handshaking protocol.

Public key, the Diffie-Hellman key, and the signature of the DH-Key can be stored in the extended header of IPv6

pub-A dh-A sign-A
  1. Alice --------------------- Bob

pub-B dh-B sign-B
  1. Alice <----------------------- Bob

encrypt data
  1. Alice --------------------- Bob

encrypt data
  1. Alice <----------------------- Bob

  1. Alice sends the public key, the Diffie-Hellman key, and the signature of the DH-Key with the private key. When Bob receives the message, the public key is verified by CGA. The public key verifies the signature, and DH-Key can be used to generate its own AES password.

  1. Bob replies to the same message from Alice, and Alice also generates her own AES key.

  1. and 4. Now both parties have the same AES key and can encrypt the IPv6 payload.

# Frequently Asked Questions:

  1. Why not use TLS?

Because TLS requires CA, or share the public key in advance.TLS is an application layer protocol that requires developers to configure itself, not a general solution.

I think the Internet needs network layer encryption. Network layer encryption can hide port information. You can't listen to web, dns, ftp at 443 at the same time. Governments and hackers can view the services you are using based on port information.

And encryption at the network layer can protect many plaintext protocols. After all, we can't let everyone use TLS to protect themselves. There should be a way to protect those old servers and those who don't know how to use TLS.

  1. Is the 59-bit hash enough to resist a collision attack?

Network layer encryption is mainly used to provide basic security mechanisms, similar to social insurance. If a higher level of security is required, other protocols can be used at the application layer. The 59-bit hash has proof of workload when calculating hashes, which I think is sufficient to defend against ordinary attackers.

  1. Are there other programs that use CGA-like functions?

Tox (encrypted instant communication), generating the address of the DHT network based on the public key

Bitcoin, generating a wallet address based on the public key

  1. What if the encrypted IPv6 packet is lost?

The network layer is not responsible for the integrity of the data, and the retransmission is the responsibility of the transport layer.

  1. What if lose packets when handshaking?

If Alice's handshake packet is lost, Alice is responsible for retransmission.

pub-A dh-A sign-A
  1. Alice --------------------- Bob lost

pub-A dh-A sign-A
  1. Alice --------------------- Bob retransmission

If Bob's handshake packet is lost, Alice will retransmit his handshake packet, and Bob will send his handshake packet again after receiving it.

If Bob sends its own encrypted message before retransmission, it is ignored because the network layer is not responsible for data integrity and waits for the transport layer to retransmit.

Network layer encryption does not use a three-dimensional handshake like TCP.

pub-A dh-A sign-A
  1. Alice --------------------- Bob

pub-B dh-B sign-B
  1. Alice <----------------------- Bob

encrypt data
  1. Alice <----------------------- Bob

pub-A dh-A sign-A
  1. Alice --------------------- Bob retransmission

pub-B dh-B sign-B
  1. Alice <----------------------- Bob retransmission

encrypt data
  1. Alice <----------------------- Bob


# idea

If we can encrypt at the network layer, I think traffic identification can be a thing of the past, and the Internet is ushered in a new era.

What do you think of this idea?
submitted by ttttabcd to ipv6 [link] [comments]

Cryptographer's Panel at RSA Conference 2015: Extensive Discussion of Bitcoin Throughout

Cryptographer's Panel at RSA Conference 2015: Extensive Discussion of Bitcoin Throughout submitted by luftderfreiheit to Bitcoin [link] [comments]

World History Timeline of Events Leading up to Bitcoin - In the Making

A (live/editable) timeline of historical events directly or indirectly related to the creation of Bitcoin and Cryptocurrencies
*still workin' on this so check back later and more will be added, if you have any suggested dates/events feel free to lemme know...
This timeline includes dates pertaining to:
Ancient Bartering – first recorded in Egypt (resources, services...) – doesn’t scale
Tally sticks were used, making notches in bones or wood, as a form of money of account
9000-6000 BC Livestock considered the first form of currency
c3200 BC Clay tablets used in Uruk (Iraq) for accounting (believed to be the earliest form of writing)
3000 BC Grain is used as a currency, measured out in Shekels
3000 BC Banking developed in Mesopotamia
3000 BC? Punches used to stamp symbols on coins were a precursor to the printing press and modern coins
? BC Since ancient Persia and all the way up until the invention and expansion of the telegraph Homing Pigeons were used to carry messages
2000 BC Merchants in Assyria, India and Sumeria lent grain to farmers and traders as a precursor to banks
1700 BC In Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans made by the priests of the temple.
1200 BC Shell money first used in China
1000-600 BC Crude metal coins first appear in China
640 BC Precious metal coins – Gold & Silver first used in ancient Lydia and coastal Greek cities featuring face to face heads of a bull and a lion – first official minted currency made from electrum, a mixture of gold and silver
600-500 BC Atbash Cipher
A substitution Cipher used by ancient Hebrew scholars mapping the alphabet in reverse, for example, in English an A would be a Z, B a Y etc.
400 BC Skytale used by Sparta
474 BC Hundreds of gold coins from this era were discovered in Rome in 2018
350 BC Greek hydraulic semaphore system, an optical communication system developed by Aeneas Tacticus.
c200 BC Polybius Square
??? Wealthy stored coins in temples, where priests also lent them out
??? Rome was the first to create banking institutions apart from temples
118 BC First banknote in the form of 1 foot sq pieces of white deerskin
100-1 AD Caesar Cipher
193 Aureus, a gold coin of ancient Rome, minted by Septimius Severus
324 Solidus, pure gold coin, minted under Constantine’s rule, lasted until the late 8th century
600s Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty, 960–1279
c757–796 Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa
806 First paper banknotes used in China but isn’t widely accepted in China until 960
1024 The first series of standard government notes were issued in 1024 with denominations like 1 guàn (貫, or 700 wén), 1 mín (緡, or 1000 wén), up to 10 guàn. In 1039 only banknotes of 5 guàn and 10 guàn were issued, and in 1068 a denomination of 1 guàn was introduced which became forty percent of all circulating Jiaozi banknotes.
1040 The first movable type printer was invented in China and made of porcelain
? Some of the earliest forms of long distance communication were drums used by Native Africans and smoke signals used by Native Americans and Chinese
1088 Movable type in Song Dynasty China
1120 By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing)
1150 The Knights Templar issued bank notes to pilgrims. Pilgrims deposited their valuables with a local Templar preceptory before embarking, received a document indicating the value of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of equal value.
1200s-1300s During the 13th century bankers from north Italy, collectively known as Lombards, gradually replace the Jews in their traditional role as money-lenders to the rich and powerful. – Florence, Venice and Genoa - The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many other parts of Europe
1200 By the time Marco Polo visited China they’d move from coins to paper money, who introduced the concept to Europe. An inscription warned, "All counterfeiters will be decapitated." Before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle. Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. Marco Polo's account of paper money during the Yuan Dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."
1252 Florin minted in Florence, becomes the hard currency of its day helping Florence thrive economically
1340 Double-entry bookkeeping - The clerk keeping the accounts for the Genoese firm of Massari painstakingly fills in the ledger for the year 1340.
1397 Medici Bank established
1450 Johannes Gutenberg builds the printing press – printed words no longer just for the rich
1455 Paper money disappears from China
1466 Polyalphabetic Cipher
1466 Rotating cipher disks – Vatican – greatest crypto invention in 1000 yrs – the first system to challenge frequency analysis
1466 First known mechanical cipher machine
1472 The oldest bank still in existence founded, Banca Monte dei Paschi di Siena, headquartered in Siena, Italy
1494 Double-entry bookkeeping system codified by Luca Pacioli
1535 Wampum, a form of currency used by Native Americans, a string of beads made from clamshells, is first document.
1553 Vigenere Cipher
1557 Phillip II of Spain managed to burden his kingdom with so much debt (as the result of several pointless wars) that he caused the world's first national bankruptcy — as well as the world's second, third and fourth, in rapid succession.
1577 Newspaper in Korea
1586 The Babington Plot
1590 Cabinet Noir was established in France. Its mission was to open, read and reseal letters, and great expertise was developed in the restoration of broken seals. In the knowledge that mail was being opened, correspondents began to develop systems to encrypt and decrypt their letters. The breaking of these codes gave birth to modern systematic scientific code breaking.
1600s Promissory banknotes began in London
1600s By the early 17th century banking begins also to exist in its modern sense - as a commercial service for customers rather than kings. – Late 17th century we see cheques slowly gains acceptance
The total of the money left on deposit by a bank's customers is a large sum, only a fraction of which is usually required for withdrawals. A proportion of the rest can be lent out at interest, bringing profit to the bank. When the customers later come to realize this hidden value of their unused funds, the bank's profit becomes the difference between the rates of interest paid to depositors and demanded from debtors.
The transformation from moneylenders into private banks is a gradual one during the 17th and 18th centuries. In England it is achieved by various families of goldsmiths who early in the period accept money on deposit purely for safe-keeping. Then they begin to lend some of it out. Finally, by the 18th century, they make banking their business in place of their original craft as goldsmiths.
1605 Newspaper in Straussburg
c1627 Great Cipher
1637 Wampum is declared as legal tender in the U.S. (where we got the slang word “clams” for money)
1656 Johan Palmstruch establishes the Stockholm Banco
1661 Paper Currency reappears in Europe, soon became common - The goldsmith-bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor
1661 Palmstruch issues credit notes which can be exchanged, on presentation to his bank, for a stated number of silver coins
1666 Stockholms Banco, the predecessor to the Central Bank of Sweden issues the first paper money in Europe. Soon went bankrupt for printing too much money.
1667 He issues more notes than his bank can afford to redeem with silver and winds up in disgrace, facing a death penalty (commuted to imprisonment) for fraud.
1668 Bank of Sweden – today the 2nd oldest surviving bank
1694 First Central Bank established in the UK was the first bank to initiate the permanent issue of banknotes
Served as model for most modern central banks.
The modern banknote rests on the assumption that money is determined by a social and legal consensus. A gold coin's value is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes.
1700s Throughout the commercially energetic 18th century there are frequent further experiments with bank notes - deriving from a recognized need to expand the currency supply beyond the availability of precious metals.
1710 Physiocracy
1712 First commercial steam engine
1717 Master of the Royal Mint Sir Isaac Newton established a new mint ratio between silver and gold that had the effect of driving silver out of circulation (bimetalism) and putting Britain on a gold standard.
1735 Classical Economics – markets regulate themselves when free of intervention
1744 Mayer Amschel Rothschild, Founder of the Rothschild Banking Empire, is Born in Frankfurt, Germany
Mayer Amschel Rothschild extended his banking empire across Europe by carefully placing his five sons in key positions. They set up banks in Frankfurt, Vienna, London, Naples, and Paris. By the mid 1800’s they dominated the banking industry, lending to governments around the world and people such as the Vanderbilts, Carnegies, and Cecil Rhodes.
1745 There was a gradual move toward the issuance of fixed denomination notes in England standardized printed notes ranging from £20 to £1,000 were being printed.
1748 First recorded use of the word buck for a dollar, stemming from the Colonial period in America when buck skins were commonly traded
1757 Colonial Scrip Issued in US
1760s Mayer Amschel Rothschild establishes his banking business
1769 First steam powered car
1775-1938 US Diplomatic Codes & Ciphers by Ralph E Weber used – problems were security and distribution
1776 American Independence
1776 Adam Smith’s Invisible Hand theory helped bankers and money-lenders limit government interference in the banking sector
1781 The Bank of North America was a private bank first adopted created the US Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It lasted less than ten years.
1783 First steamboat
1791 Congress Creates the First US Bank – A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government. First Bank of the United States, a National bank, chartered for a term of twenty years, it was not renewed in 1811.
Previously, the 13 states had their own banks, currencies and financial institutions, which had an average lifespan of about 5 years.
1792 First optical telegraph invented where towers with telescopes were dispersed across France 12-25 km apart, relaying signals according to positions of arms extended from the top of the towers.
1795 Thomas Jefferson invents the Jefferson Disk Cipher or Wheel Cipher
1797 to 1821 Restriction Period by England of trading banknotes for silver during Napoleonic Wars
1797 Currency Crisis
Although the Bank was originally a private institution, by the end of the 18th century it was increasingly being regarded as a public authority with civic responsibility toward the upkeep of a healthy financial system.
1799 First paper machine
1800 Banque de France – France’s central bank opens to try to improve financing of the war
1800 Invention of the battery
1801 Rotchschild Dynasty begins in Frankfurt, Holy Roman Empire – established international banking family through his 5 sons who established themselves in London, Paris, Frankfurt, Vienna, and Naples
1804 Steam locomotive
1807 Internal combustion engine and automobile
1807 Robert Fulton expands water transportation and trade with the workable steamboat.
1809 Telegraphy
1811 First powered printing press, also first to use a cylinder
1816 The Privately Owned Second Bank of the US was Chartered – It Served as the Main Depository for Government Revenue, Making it a Highly Profitable Bank – charter not renewed in 1836
1816 The first working telegraph was built using static electricity
1816 Gold becomes the official standard of value in England
1820 Industrial Revolution
c1820 Neoclassical Economics
1821 British gov introduces the gold standard - With governments issuing the bank notes, the inherent danger is no longer bankruptcy but inflation.
1822 Charles Babbage, considered the "father of the computer", begins building the first programmable mechanical computer.
1832 Andrew Jackson Campaigns Against the 2nd Bank of the US and Vetoes Bank Charter Renewal
Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836.
1833 President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US
By September 1833, government funds were being deposited into state chartered banks.
1833-1837 Manufactured “boom” created by central bankers – money supply Increases 84%, Spurred by the 2nd Bank of the US
The total money supply rose from $150 million to $267 million
1835 Jackson Escapes Assassination. Assassin misfired twice.
1837-1862 The “Free Banking Era” there was no formal central bank in the US, and banks issued their own notes again
1838 First Telegram sent using Morse Code across 3 km, in 1844 he sent a message across 71 km from Washington DC to Baltimore.
1843 Ada Lovelace published the first algorithm for computing
1844 Modern central bank of England established - meaning only the central bank of England could issue banknotes – prior to that commercial banks could issue their own and were the primary form of currency throughout England
the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt.
1848 Communist Manifesto
1850 The first undersea telegraphic communications cable connected France in England after latex produced from the sap of the Palaquium gutta tree in 1845 was proposed as insulation for the underwater cables.
1852 Many countries in Europe build telegram networks, however post remained the primary means of communication to distant countries.
1855 In England fully printed notes that did not require the name of the payee and the cashier's signature first appeared
1855 The printing telegraph made it possible for a machine with 26 alphabetic keys to print the messages automatically and was soon adopted worldwide.
1856 Belgian engineer Charles Bourseul proposed telephony
1856 The Atlantic Telegraph company was formed in London to stretch a commercial telegraph cable across the Atlantic Ocean, completed in 1866.
1860 The Pony Express was founded, able to deliver mail of wealthy individuals or government officials from coast to coast in 10 days.
1861 The East coast was connected to the West when Western Union completed the transcontinental telegraph line, putting an end to unprofitable The Pony Express.
1862-1863 First US banknotes - Lincoln Over Rules Debt-Based Money and Issues Greenbacks to Fund Civil War
Bankers would only lend the government money under certain conditions and at high interest rates, so Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them legal tender. His soldiers went on to win the war, followed by great economic expansion.
1863 to 1932 “National Banking Era” Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932
1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. By the time of Raiffeisen's death in 1888, credit unions had spread to Italy, France, the Netherlands, England, Austria, and other nations
1870 Long-distance telegraph lines connected Britain and India.
c1871 Marginalism - The doctrines of marginalism and the Marginal Revolution are often interpreted as a response to the rise of the worker's movement, Marxian economics and the earlier (Ricardian) socialist theories of the exploitation of labour.
1871 Carl Menger’s Principles of Economics – Austrian School
1872 Marx’s Das Capital
1872 Australia becomes the first nation to be connected to the rest of the world via submarine telegraph cables.
1876 Alexander Graham Bell patented the telephone, first called the electric speech machine – revolutionized communication
1877 Thomas Edison – Phonograph
1878 Western Union, the leading telegraph provider of the U.S., begins to lose out to the telephone technology of the National Bell Telephone Company.
1881 President James Garfield, Staunch Proponent of “Honest Money” Backed by Gold and Silver, was Assassinated
Garfield opposed fiat currency (money that was not backed by any physical object). He had the second shortest Presidency in history.
1882 First description of the one-time pad
1886 First gas powered car
1888 Ballpoint pen
1892 Cinematograph
1895 System of wireless communication using radio waves
1896 First successful intercontinental telegram
1898 Polyethylene
1899 Nickel-cadmium battery
1907 Banking Panic of 1907
The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. The founders of the Federal Reserve pretended like the bankers were opposed to the idea of its formation in order to mislead the public into believing that the Federal Reserve would help to regulate bankers when in fact it really gave even more power to private bankers, but in a less transparent way.
1908 St Mary’s Bank – first credit union in US
1908 JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission
Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller.
1910 Bankers Meet Secretly on Jekyll Island to Draft Federal Reserve Banking Legislation
Over the course of a week, some of the nation’s most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system.
1913 Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today, originally with gold backed Federal Reserve Notes. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing (and loan it out at interest), make decisions without government approval, and control the amount of money in circulation.
1913 Income tax established -16th Amendment Ratified
Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
1914 November, Federal Reserve Banks Open
JP Morgan and Co. Profits from Financing both sides of War and Purchasing Weapons
J.P. Morgan and Co. made a deal with the Bank of England to give them a monopoly on underwriting war bonds for the UK and France. They also invested in the suppliers of war equipment to Britain and France.
1914 WWI
1917 Teletype cipher
1917 The one-time pad
1917 Zimmerman Telegram intercepted and decoded by Room 40, the cryptanalysis department of the British Military during WWI.
1918 GB returns to gold standard post-war but it didn’t work out
1919 First rotor machine, an electro-mechanical stream ciphering and decrypting machine.
1919 Founding of The Cipher Bureau, Poland’s intelligence and cryptography agency.
1919-1929 The Black Chamber, a forerunner of the NSA, was the first U.S. cryptanalytic organization. Worked with the telegraph company Western Union to illegally acquire foreign communications of foreign embassies and representatives. It was shut down in 1929 as funding was removed after it was deemed unethical to intercept private domestic radio signals.
1920s Department stores, hotel chains and service staions begin offering customers charge cards
1921-1929 The “Roaring 20’s” – The Federal Reserve Floods the Economy with Cash and Credit
From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period.[3] This artificially created another “boom”.
1927 Quartz clock
1928 First experimental Television broadcast in the US.
1929 Federal Reserve Contracts the Money Supply
In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression.
1929 October 24, “Black Thursday”, Stock Market Crash
The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else.
1930s The Great Depression marked the end of the gold standard
1931 German Enigma machines attained and reconstructed.
1932 Turbo jet engine patented
1933 SEC founded - passed the Glass–Steagall Act, which separated investment banking and commercial banking. This was to avoid more risky investment banking activities from ever again causing commercial bank failures.
1933 FM Radio
1933 Germany begins Telex, a network of teleprinters sending and receiving text based messages. Post WWII Telex networks began to spread around the world.
1936 Austrian engineer Paul Eisler invented Printed circuit board
1936 Beginning of the Keynesian Revolution
1937 Typex, British encryption machines which were upgraded versions of Enigma machines.
1906 Teletypewriters
1927 Founding of highly secret and unofficial Signal Intelligence Service, SIS, the U.S. Army’s codebreaking division.
1937 Made illegal for Americans to own gold
1938 Z1 built by Konrad Zuse is the first freely programmable computer in the world.
1939 WWII – decline of the gold standard which greatly restricted policy making
1939-45 Codetalkers - The Navajo code is the only spoken military code never to have been deciphered - "Were it not for the Navajos, the Marines would never have taken Iwo Jima."—Howard Connor
1940 Modems
1942 Deciphering Japanese coded messages leads to a turning point victory for the U.S. in WWII.
1943 At Bletchley Park, Alan Turing and team build a specialized cipher-breaking machine called Heath Robinson.
1943 Colossus computer built in London to crack the German Lorenz cipher.
1944 Bretton Woods – convenient after the US had most of the gold
1945 Manhattan Project – Atom Bomb
1945 Transatlantic telephone cable
1945 Claude E. Shannon published "A mathematical theory of cryptography", commonly accepted as the starting point for development of modern cryptography.
C1946 Crypto Wars begin and last to this day
1946 Charg-it card created by John C Biggins
1948 Atomic clock
1948 Claude Shannon writes a paper that establishes the mathematical basis of information theory
1949 Info theorist Claude Shannon asks “What does an ideal cipher look like?” – one time pad – what if the keys are not truly random
1950 First credit card released by the Diners Club, able to be used in 20 restaurants in NYC
1951 NSA, National Security Agency founded and creates the KL-7, an off-line rotor encryption machine
1952 First thermonuclear weapon
1953 First videotape recorder
1953 Term “Hash” first used meaning to “chop” or “make a mess” out of something
1954 Atomic Energy Act (no mention of crypto)
1957 The NSA begins producing ROMOLUS encryption machines, soon to be used by NATO
1957 First PC – IBM
1957 First Satellite – Sputnik 1
1958 Western Union begins building a nationwide Telex network in the U.S.
1960s Machine readable codes were added to the bottom of cheques in MICR format, which speeded up the clearing and sorting process
1960s Financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer.
1961 Electronic clock
1963 June 4, Kennedy Issued an Executive Order (11110) that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money
This government issued currency would bypass the governments need to borrow from bankers at interest.
1963 Electronic calculator
1963 Nov. 22, Kennedy Assassinated
1963 Johnson Reverses Kennedy’s Banking Rule and Restores Power to the Federal Reserve
1964 8-Track
1964 LAN, Local Area Networks adapters
1965 Moore’s Law by CEO of Intel Gordon Moore observes that the number of components per integrated circuit doubles every year, and projected this rate of growth would continue for at least another decade. In 1975 he revised it to every two years.
1967 First ATM installed at Barclay’s Bank in London
1968 Cassette Player introduced
1969 First connections of ARPANET, predecessor of the internet, are made. started – SF, SB, UCLA, Utah (now Darpa) – made to stay ahead of the Soviets – there were other networks being built around the world but it was very hard to connect them – CERN in Europe
1970s Stagflation – unemployment + inflation, which Keynesian theory could not explain
1970s Business/commercial applications for Crypto emerge – prior to this time it was militarily used – ATMs 1st got people thinking about commercial applications of cryptography – data being sent over telephone lines
1970s The public developments of the 1970s broke the near monopoly on high quality cryptography held by government organizations.
Use of checks increased in 70s – bringing about ACH
One way functions...
A few companies began selling access to private networks – but weren’t allowed to connect to the internet – business and universities using Arpanet had no commercial traffic – internet was used for research, not for commerce or advertising
1970 Railroads threatened by the growing popularity of air travel. Penn Central Railroad declares bankruptcy resulting in a $3.2 billion bailout
1970 Conjugate coding used in an attempt to design “money physically impossible to counterfeit”
1971 The US officially removes the gold standard
1971 Email invented
1971 Email
1971 First microcomputer on a chip
1971 Lockheed Bailout - $1.4 billion – Lockheed was a major government defense contractor
1972 First programmable word processor
1972 First video game console
1973 SWIFT established
1973 Ethernet invented, standardized in ‘83
1973 Mobile phone
1973 First commercial GUI – Xerox Alto
1973 First touchscreen
1973 Emails made up more than ¾ of ARPANET’s packets – people had to keep a map of the network by their desk – so DNS was created
1974 A protocol for packet network intercommunication – TCP/IP – Cerf and Kahn
1974 Franklin National Bank Bailout - $1.5 billion (valued at that time) - At the time, it was the largest bank failure in US history
1975 New York City Bailout - $9.4 billion – NYC was overextended
1975 W DES - meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise.
1975 DES, Data Encryption Standard developed at IBM, seeking to develop secure electronic communications for banks and large financial organizations. DES was the first publicly accessible cipher to be 'blessed' by a national agency such as the NSA. Its release stimulated an explosion of public and academic interest in cryptography.
1975 Digital camera
1975 Altair 8800 sparks the microprocessor revolution
1976 Bretton Woods ratified (lasted 30 years) – by 80’s all nations were using floating currencies
1976 New Directions in Cryptography published by Diffie & Hellman – this terrified Fort Meade – previously this technique was classified, now it’s public
1976 Apple I Computer – Steve Wozniak
1976 Asymmetric key cryptosystem published by Whitfield Diffie and Martin Hellman.
1976 Hellman and Diffie publish New Directions in Cryptography, introducing a radically new method of distributing cryptographic keys, contributing much to solving key distribution one of the fundamental problems of cryptography. It brought about the almost immediate public development of asymmetric key algorithms. - where people can have 2 sets of keys, public and private
1977 Diffie & Hellman receive letter from NSA employee JA Meyer that they’re violating Federal Laws comparable to arms export – this raises the question, “Can the gov prevent academics from publishing on crypto?
1977 DES considered insecure
1977 First handheld electronic game
1977 RSA public key encryption invented
1978 McEliece Cryptosystem invented, first asymmetric encryption algorithm to use randomization in the encryption process
1980s Large data centers began being built to store files and give users a better faster experience – companies rented space from them - Data centers would not only store data but scour it to show people what they might want to see and in some cases, sell data
1980s Reaganomics and Thatcherism
1980 A decade of intense bank failures begins; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994
1980 Chrysler Bailout – lost over $1 billion due to major hubris on the part of its executives - $1.5 billion one of the largest payouts ever made to a single corporation.
1980 Protocols for public key cryptosystems – Ralph Merkle
1980 Flash memory invented – public in ‘84
1981 “Untraceable Electronic Mail, Return Addresses and Digital Pseudonumns” – Chaum
1981 EFTPOS, Electronic funds transfer at point of sale is created
1981 IBM Personal Computer
1982 “The Ethics of Liberty” Murray Rothbard
1982 Commodore 64
1982 CD
1983 Satellite TV
1983 First built in hard drive
1983 C++
1983 Stereolithography
1983 Blind signatures for untraceable payments
Mid 1980s Use of ATMs becomes more widespread
1984 Continental Illinois National Bank and Trust bailed out due to overly aggressive lending styles and - the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers - $9.5 billion in 2008 money
1984 Macintosh Computer - the first mass-market personal computer that featured a graphical user interface, built-in screen and mouse
1984 CD Rom
1985 Zero-Knowledge Proofs first proposed
1985 300,000 simultaneous telephone conversations over single optical fiber
1985 Elliptic Curve Cryptography
1987 ARPANET had connected over 20k guarded computers by this time
1988 First private networks email servers connected to NSFNET
1988 The Crypto Anarchists Manifesto – Timothy C May
1988 ISDN, Integrated Services Digital Network
1989 Savings & Loan Bailout - After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act - This was a taxpayer bailout of about $200 billion
1989 First commercial emails sent
1989 Digicash - Chaum
1989 Tim Berners-Lee and Robert Cailliau built the prototype system which became the World Wide Web, WWW
1989 First ISPs – companies with no network of their own which connected people to a local network and to the internet - To connect to a network your computer placed a phone call through a modem which translated analog signals to digital signals – dial-up was used to connect computers as phone lines already had an extensive network across the U.S. – but phone lines weren’t designed for high pitched sounds that could change fast to transmit large amounts of data
1990s Cryptowars really heat up...
1990s Some countries started to change their laws to allow "truncation"
1990s Encryption export controls became a matter of public concern with the introduction of the personal computer. Phil Zimmermann's PGP cryptosystem and its distribution on the Internet in 1991 was the first major 'individual level' challenge to controls on export of cryptography. The growth of electronic commerce in the 1990s created additional pressure for reduced restrictions.[3] Shortly afterward, Netscape's SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography.
1990 NSFNET replaced Arpanet as backbone of the internet with more than 500k users
Early 90s Dial up provided through AOL and Compuserve
People were leery to use credit cards on the internet
1991 How to time-stamp a digital doc - Stornetta
1991 Phil Zimmermann releases the public key encryption program Pretty Good Privacy (PGP) along with its source code, which quickly appears on the Internet. He distributed a freeware version of PGP when he felt threatened by legislation then under consideration by the US Government that would require backdoors to be included in all cryptographic products developed within the US. Expanded the market to include anyone wanting to use cryptography on a personal computer (before only military, governments, large corporations)
1991 WWW (Tim Berners Lee) – made public in ‘93 – flatten the “tree” structure of the internet using hypertext – reason for HTTP//:WWW – LATER HTTPS for more security
1992 Erwise – first Internet Browser w a graphical Interface
1992 Congress passed a law allowing for commercial traffic on NSFNET
1992 Cpherpunks, Eric Hughes, Tim C May and John Gilmore – online privacy and safety from gov – cypherpunks write code so it can be spread and not shut down (in my earlier chapter)
1993 Mosaic – popularized surfing the web ‘til Netscape Navigator in ’94 – whose code was later used in Firefox
1993 A Cypherpunks Manifesto – Eric Hughes
1994 World’s first online cyberbank, First Virtual, opened for business
1994 Bluetooth
1994 First DVD player
1994 Stanford Federal Credit Union becomes the first financial institution to offer online internet banking services to all of its members in October 1994
1994 Internet only used by a few
1994 Cybercash
1994 Secure Sockets Layer (SSL) encryption protocol released by Netscape. Making financial transactions possible.
1994 One of the first online purchases was made, a Pizza Hut pepperoni pizza with mushrooms and extra cheese
1994 Cyphernomicon published – social implication where gov can’t do anything about it
1994-1999 Social Networking – GeoCities (combining creators and users) – had 19M users by ’99 – 3rd most popular after AOL and Yahoo – GeoCities purchased by Yahoo for $3.6B but took a hit after dotcom bubble popped and never recovered – GC shut down in ‘99
1995-2000 Dotcom bubble – Google, Amazon, Facebook: get over 600M visitors/year
1995 DVD
1995 MP3 term coined for MP3 files, the earlier development of which stretches back into the ‘70s, where MP files themselves where developed throughout the ‘90s
1995 NSFNET shut down and handed everything over to the ISPs
1995 NSA publishes the SHA1 hash algorithm as part of its Digital Signature Standard.
1996, 2000 President Bill Clinton signing the Executive order 13026 transferring the commercial encryption from the Munition List to the Commerce Control List. This order permitted the United States Department of Commerce to implement rules that greatly simplified the export of proprietary and open source software containing cryptography, which they did in 2000 - The successful cracking of DES likely helped gather both political and technical support for more advanced encryption in the hands of ordinary citizens - NSA considers AES strong enough to protect information classified at the Top Secret level
1996 e-gold
1997 WAP, Wireless Access Point
1997 NSA researchers published how to mint e cash
1997 Adam Back – HashCash – used PoW – coins could only be used once
1997 Nick Szabo – smart contracts “Formalizing and Securing Relationships on Public Networks”
1998 OSS, Open-source software Initiative Founded
1998 Wei Dai – B-money – decentralized database to record txs
1998 Bitgold
1998 First backdoor created by hackers from Cult of the Dead Cow
1998 Musk and Thiel founded PayPal
1998 Nick Szabo says crypto can protect land titles even if thugs take it by force – said it could be done with a timestamped database
1999 Much of the Glass-Steagal Act repealed - this saw US retail banks embark on big rounds of mergers and acquisitions and also engage in investment banking activities.
1999 Milton Friedman says, “I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.”
1999 European banks began offering mobile banking with the first smartphones
1999 The Financial Services Modernization Act Allows Banks to Grow Even Larger
Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007.
1999-2001 Napster, P2P file sharing – was one of the fastest growing businesses in history – bankrupt for paying musicians for copyright infringement

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Applied Cryptography Diffie–Hellman Key Exchange - Part 4 ⚠️ BITCOIN FAKEOUT OR BREAKOUT ⚠️ Has mining difficulty pumped Bitcoin? Warning: The US Economy in 2020 Has CHANGED! What is the Best Investment in June 2020? Diffi Teases Zcash w/ BitcoinZ Name @ Consensus2018 Diff Eq 3.2

secp256k1 was almost never used before Bitcoin became popular, but it is now gaining in popularity due to its several nice properties. Most commonly-used curves have a random structure, but secp256k1 was constructed in a special non-random way which allows for especially efficient computation. As a result, it is often more than 30% faster than Bitcoin vs. Ethereum: An Overview Ether (ETH), the cryptocurrency of the Ethereum network, is arguably the second most popular digital token after bitcoin (BTC). Indeed, as the second-largest FUN FACT: Due to a longstanding bug in the Bitcoin source code, the time spent mining the first block in each difficulty epoch actually has no effect on the next difficulty calculation.Even if this block somehow took an entire year to mine, it would not cause the next difficulty to drop, believe it or not! The calculations on this site take this bug into account to help produce the most The Diffie-Hellman key exchange was one of the most important developments in public-key cryptography and it is still frequently implemented in a range of today’s different security protocols.. It allows two parties who have not previously met to securely establish a key which they can use to secure their communications. The Bitcoin difficulty chart provides the current Bitcoin difficulty (BTC diff) target as well as a historical data graph visualizing Bitcoin mining difficulty chart values with BTC difficulty adjustments (both increases and decreases) defaulted to today with timeline options of 1 day, 1 week, 1 month, 3 months, 6 months, 1 year, 3 years, and all time

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Applied Cryptography Diffie–Hellman Key Exchange - Part 4

Investing in bitcoin, cryptocurrency or any other products recommended on this channel is risky AF and you’ll most likely get REKT. If that happens, you’re on your own pal, don’t so I didn ... This video is unavailable. Watch Queue Queue. Watch Queue Queue Bitcoin Sin Fronteras 5,315 views 28:58 IMPUESTOS, HACIENDA y BITCOIN (₿) 2020 💰💰 con el experto José Antonio Bravo ( en Español ) - Duration: 1:27:11. The Bitcoin blockchain underwent it's third halving event about a week ago on May 11th, and while the highly anticipated event was hyped as either the spring board that will take us to new all ... The history behind public key cryptography & the Diffie-Hellman key exchange algorithm. We also have a video on RSA here: https://www.youtube.com/watch?v=wXB...

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