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DTCC to move more applications to the cloud as technology reaches tipping point – Finextra (press release)

May 15, 2017 | Author: admin

The US Depository Trust and Clearing Corporation is to extend its use of cloud computing after deciding that off-premise hosting has surpassed the achievements available via inhouse data centres.

As a result, the post-trade processing giant says it will evaluate opportunities to strategically expand the use of the cloud more broadly across its external services and applications "to reduce risk and cost and improve the resiliency and security of DTCCs systems".

The organisation says that the cost and value of cloud computing technologies is challenging long-standing justifications for provisioning and/or sustaining individually owned and managed data centers.

DTCC has been leveraging cloud services for almost five years and believes the cloud represents a viable alternative to corporate data centers, says Robert Garrison, DTCC CIO. We believe cloud computing has moved past a tipping point and that the security, scalability, resiliency, recoverability and cost of applications in the cloud are better than many private enterprises could achieve on their own. As a result, we will pursue a strategy of building a cloud ecosystem that supports best practices and standards."

He says the group will consult with regulators and stakeholders as it pushes forward: "Due to the critical nature of the services provided by DTCC, we will execute our cloud strategy in collaboration with key stakeholders, including clients and supervisors.

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DTCC to move more applications to the cloud as technology reaches tipping point - Finextra (press release)

Molecular magnets closer to application in quantum computing – Next Big Future

May 15, 2017 | Author: admin

In a Nature Communications publication, the results of the collaboration between scientists of the Institut Laue-Langevin (ILL), the University of Parma, ISIS and the University of Manchester, the (Cr7Ni)2 dimer has been used as a benchmark system to demonstrate the capability of four-dimensional inelastic neutron scattering to investigate entanglement between molecular qubits. By utilising high-quality single crystals and the full capabilities of the time-of-flight spectrometer IN5, the team was able to demonstrate and quantify the entanglement through the huge amount of data they were able to extract from the 4D phase space (Qx,Qy,Qz,E), where Q is the momentum-transfer vector and E the energy transfer. Indeed, the neutron cross-section directly reflects dynamical correlations between individual atomic spins in the molecule. Hence, the corresponding pattern of maxima and minima in the measured neutron scattering intensity as a function of Q is a sort of portrayal of the entanglement between the molecular qubits. Furthermore, the team has also developed a method to quantify entanglement from INS data.

Such a measurement opens up remarkable perspectives in understanding entanglement in complex spin systems. The research on molecular nanomagnets has been an attractive topic on the IN5 time-of-flight spectrometer since many years. In this recent work the top class chemistry and theoretical work meet the advanced neutron scattering methods to highlight the intricate physics of quantum entanglement, guiding further research towards a better understanding of the practical challenges in quantum information technology, said Dr Hannu Mutka and Dr Jacques Ollivier, ILL scientists.

With this benchmark measurement it looks as though neutrons will continue to be an essential tool in helping molecular nanomagnets realise their potential for quantum technologies of the future.

Nextbigfuture interviewed the researchers.

1. What are the next steps in this research? By exploiting the (Cr7Ni)2 supramolecular dimer as a benchmark, we have shown that the four-dimensional inelastic neutron scattering technique (4D-INS) enables one to portray and quantify entanglement between weakly coupled molecular nanomagnets, which provide ideal test beds for investigating entanglement in spin systems. The next steps will be the application of 4D-INS to dimers of more complex molecular qubits, like those containing 4f or 5f magnetic ions or to supramolecular compounds with more than two qubits.

2. Can the timing be seen for possible commercialization? The use of molecular nanomagnets for quantum information processing (QIP) is a relatively unexplored field. Therefore, as in other approaches to implement qubits, commercialisation is certainly not immediate. However, molecular magnetism constitutes an alternative route to QIP that uses low-cost, yet powerful, chemical methods to fabricate basic components and integrate them in future devices.

3. Is there an effort to enable qubits via this approach? Neutron scattering is a very powerful technique and enables one to achieve a sound characterisation of both molecular qubits and their supramolecular assemblies. Therefore, we plan to apply it to new interesting systems in the near future. In addition, we believe that our work will stimulate similar studies by other research groups. In this way, promising molecules with improved characteristics for QIP will be identified.

4. How does this work fit into a larger area of research? I.e. broad advances are happening and this is just a part.

This work provides an important tool for molecular qubits, which in turn fit the broad quest for quantum information technologies. The latter constitutes one of the most important current research areas. Indeed, some of the most important private companies and international institutions are investing a huge amount of money on this subject. For instance, the European Commission will launch a 1 billion quantum technologies flagship in 2018.

5. What do the researchers see as highlights for how this work advances the state of the art?

Experimentally measuring entanglement in complex systems is generally very difficult. In this work, we have put forward a method to demonstrate and quantify entanglement between molecular qubits, by measuring the dependence of the neutron cross-section on the three components of the momentum transfer Q. Such measurements are challenging, but we have demonstrated this with the spectrometer IN5 at the Institut Laue-Langevin, indicating that they can now be performed exploiting state-of-the-art neutron spectrometers.

6. Do the researchers have a context or vision they can share? Quantum computers will be powerful devices able to solve problems that are impossible even on the best traditional computers. Molecular nanomagnets might provide a relatively cheap route to reach this extremely ambitious goal and 4D-INS can be an important tool in the understanding and engineering of molecules with the right characteristics for efficiently encoding and processing quantum information.

7. Anything else that the researchers think is relevant in understanding this work and its importance? In our opinion, this work represents a very good example of how the interplay between theory, experiments and chemical synthesis can be very fruitful and can enable us to make a significant step toward an ambitious objective.

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Molecular magnets closer to application in quantum computing - Next Big Future

Cyberattack Aftershock Feared as US Warns of Its Complexity – New York Times

May 15, 2017 | Author: admin

New York Times

Cyberattack Aftershock Feared as US Warns of Its Complexity
New York Times
Five businesses in South Korea reported ransomware attacks over the weekend, according to the government's internet security agency, and a Korean theater chain said late-night moviegoers on Sunday alerted them when computer ransom notes appeared ...
Log in, look out: Cyber chaos spreads with workweek's startWCBI
Don't WannaCry? Protect yourself from ransomwareThe Star Online
Live updates: Latest on international cyber attackITV News
Telegraph.co.uk
all 413 news articles »

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Cyberattack Aftershock Feared as US Warns of Its Complexity - New York Times

The Latest: 29000 Chinese institutions hit by cyberattack – ABC News

May 15, 2017 | Author: admin

The latest on the global extortion cyberattack that hit dozens of countries on Friday (all times local):

4:50 a.m.

Chinese state media say more than 29,000 institutions across China have been infected by the global "ransomware" cyberattack.

Xinhua News Agency reports that by Saturday evening, 29,372 institutions had been infected along with hundreds of thousands of devices. It cited the Threat Intelligence Center of Qihoo 360, a Chinese internet security services company.

It says universities and educational institutions were among the hardest hit, numbering 4,341, or about 15 percent of internet protocol addresses attacked. Also affected were railway stations, mail delivery, gas stations, hospitals, office buildings, shopping malls and government services.

Xinhua says the system used by PetroChina's gas stations was attacked, meaning customers could not use their cards to pay. Most stations had recovered.

4:45 a.m.

Japanese companies say they are working to overcome the problems caused by a global "ransomware" cyberattack.

Nissan Motor Co. confirmed Monday some units had been targeted, but it had responded and there has been no major impact on its business.

Hitachi spokeswoman Yuko Tainiuchi said it was experiencing email delays and file delivery failures and suspected the cyberattack was at fault, even though no ransom was being demanded. Programs were being installed to fix the problem.

Broadcaster NTV reported 600 companies and 2,000 computers in Japan had been affected. Overall the attack has created chaos in 150 countries

The initial attack, known as "WannaCry," paralyzed computers that run Britain's hospital network, Germany's national railway and other companies and government agencies worldwide in what's believed to be the biggest online extortion scheme ever.

2:30 a.m.

The Indonesian government is urging businesses to update computer security after two hospitals were affected by a "ransomware" cyberattack that has hit dozens of countries.

The director-general of Indonesia's Communication and Information Ministry says in a statement that the malware locked patient files on computers at the affected hospitals, both in the capital Jakarta.

Local media reported Monday that patients arriving at Dharmais Cancer Hospital on the weekend were unable to get queue numbers and had to wait several hours while staff worked with paper records.

The ministry has announced specific measures that organizations can take to counter the "WannaCry" attack including a specific update to Microsoft operating systems.

12:20 a.m.

Microsoft's top lawyer is laying some of the blame for Friday's massive cyberattack at the feet of the U.S. government.

Brad Smith criticized U.S. intelligence agencies, including the CIA and National Security Agency, for "stockpiling" software code that can be used by hackers. Cybersecurity experts say the unknown hackers who launched this weekend's "ransomware" attacks used a vulnerability that was exposed in NSA documents leaked online.

In a post on Microsoft's blog, Smith says: "An equivalent scenario with conventional weapons would be the U.S. military having some of its Tomahawk missiles stolen."

Microsoft's lawyer says governments should "report vulnerabilities" that they discover to software companies, "rather than stockpile, sell, or exploit them."

10:30 p.m.

Britain's National Cyber Security Center has joined others in warning that more cases of "ransomware" attacks may come to light as a new work week starts Monday.

The organization predicts that the problem could be "at a significant scale" because some infected machines haven't yet been detected, and existing infections can spread within networks.

It said Sunday that a similar cyberattack could also recur, though it did not have "specific evidence" of this.

The warning echoed that from Europe's policing agency earlier Sunday. Europol that said the malware has claimed some 200,000 victims across 150 countries and that the numbers are still going up. Officials urged organizations and companies to immediately update their security software.

8:45 p.m.

An executive at a cybersecurity firm that helped block a global ransomware attack says new variations of the malicious worm are circulating and researchers expect one to develop that can't be stopped.

Ryan Kalember, senior vice president at Proofpoint Inc., says that millions of devices could be vulnerable if they haven't applied security patches over the weekend.

He says if a new variant without a so-called kill switch pops up, then organizations will be on their own to prevent it from taking over their computers.

Proofpoint and a British cybersecurity researcher teamed up Friday to derail the attack that was said to strike at least 100,000 organizations in 150 countries.

It is believed to be the biggest online extortion ever, hitting British hospitals, German rail and companies and government agencies.

6 p.m.

The former U.S. national intelligence director says the global "ransomware" attack could grow much larger when people return to work.

James Clapper told ABC's "This Week" on Sunday that he expects similar attacks to become a growing problem in the future.

Europe's police agency says the attack has hit at least 100,000 organizations in 150 countries.

It is believed to be the biggest online extortion recorded. It spread cyber chaos worldwide, hitting Britain's hospital network, Germany's railway and scores of companies and government agencies.

Clapper and Europol say the scope of the problem may become bigger Monday when people switch on their computers.

Clapper, who served as intelligence director under President Barack Obama, calls it a "very serious, serious problem."

Attackers have demanded $300 to $600 to unlock encrypted files.

11:40 a.m.

Europol, the European Union's police agency, says the international "ransomware" cyberattack has so far hit more than 100,000 organizations in at least 150 countries.

Spokesman Jan Op Gen Oorth said Sunday that the number of individuals who have fallen victim to the cyberextortion attack could be much higher.

He said it was too early to say who is behind the onslaught and what their motivation was. He said the main challenge was the fast-spreading capabilities of the malware, but added that, so far, not many people have paid the ransoms that the virus demands.

He warned that more people may be hit by the virus Monday when they return to work and switch on their computers.

The attack that began Friday is believed to be the biggest online extortion attack ever recorded, with victims including Britain's hospital network and Germany's national railway.

10:40 a.m.

Chinese media are reporting that the global "ransomware" virus attacked many university networks in China.

The Beijing News said Sunday that students at several universities around the country reported being hit by the virus, which blocked access to their thesis papers and dissertation presentations.

In each case, a pop-up window demanded payments of $300, or about 2,000 yuan, in order to free the files.

The attack that began Friday is believed to be the biggest online extortion attack ever recorded, disrupting computers that run factories, banks, government agencies and transport systems. It crippled the British health care system for a day, infecting nearly 20 percent of its health care groups, forcing medical treatments to be canceled or postponed for thousands of people.

A young British cybersecurity researcher discovered a so-called "kill switch" for the attack, limiting the damage.

6 a.m.

As terrifying as the unprecedented global "ransomware" attack was, cybersecurity experts say it's nothing compared to what might be coming especially if companies and governments don't make major fixes.

Had it not been for a young cybersecurity researcher's accidental discovery of a so-called "kill switch," the malicious software likely would have spread much farther and faster that it did Friday.

This is already believed to be the biggest online extortion attack ever recorded, disrupting computers that run factories, banks, government agencies and transport systems in nations as diverse as Russia, Ukraine, Brazil, Spain, India and the U.S.

Security experts tempered the alarm bells by saying that widespread attacks are tough to pull off. This one worked because of a "perfect storm" of conditions, including a known and highly dangerous security hole in Microsoft Windows, tardy users who didn't apply Microsoft's March software fix, and malware designed to spread quickly once inside university, business or government networks.

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The Latest: 29000 Chinese institutions hit by cyberattack - ABC News

Mobile-encryption markets booming as law enforcement sees world … – CyberScoop

May 15, 2017 | Author: admin

The growth of ubiquitous global mobile encryption may be a bane for U.S. law enforcement but it is a boom market that will almost quadruple in size over the next five years, according to a new projection.

Currently worth $761.4 million, the mobile encryption marketworldwide is set to grow at a compounded annual rate of just over 30 percent to reach $2.92 billion by 2022, according to figures fromMarketsandMarkets, a research outfitin Pune, India, which provides quantified B2B research.

MarketsandMarkets found that the key forces driving growing demand for mobile encryption include the proliferation of smartphones and tablets across enterprises, the [need to meet]stringent compliance and regulatory requirements, and increased concerns for data security and privacy issues. Growing adoption of cloud-based mobile encryption solutions will also contribute to growth.

The research divides the market into four applications full-disk encryption, file/folder encryption, communications encryption, and cloud encryption.

Full-disk encryption orprotecting all of the information that resides on a device is expected to have the largest market share in 2017. Its also expected to dominate the market until 2022, due to growing demands for hardware-based encryption that ensures data security, the report said.

It was exactly this trend that James Comey highlightedduring lengthy Senate testimony last week while he was still FBI director. His comments reprised the tendentious idea that federal law enforcement is going dark because of the growing use of communications security techniques like encryption.

Ubiquitous default full-disk encryption on devices is affecting now about half of our work, he said, explaining that in the six months October-March, FBI examiners were presented with over 6,000 devices for which we have a lawful authority search warrant or court order to open and [in] 46 percent of those cases we could not open those devices with any technique.

The shadow created by the problem we call going dark continues to fall across more of our work, he concluded.

Despite his concerns, MarketsandMarkets expect that North America home to mobile crypto players like BlackBerry, MobileIron, Open Whisper Systems andProofpoint will remain the largest marketplace owing to the early adoption of new and emerging technologies. But the company expects theAsia Pacificmarket to grow the fastest owing increased adoption by small and medium sized businesses looking to prevent unauthorized access to critical business data and unethical use of confidential information.

The company says the telecom and healthcare enterprise verticals will likely grow fastest, driven by consumer demand and regulatory requirements respectively.

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Mobile-encryption markets booming as law enforcement sees world ... - CyberScoop

Should you invest in Bitcoins, crowd funding, P2P lending? – Economic Times

May 15, 2017 | Author: admin

After dabbling in traditional investment avenues like stocks, fixed deposits, gold, mutual funds and real estate, some investors are venturing into more adventurous territorydigital currency, crowdfunding and P2P fundingto make their wealth grow.

While the returns have been satisfactory in many cases, others have lost money too. We look at the pros and cons of some alternative investing avenues.

Bit by bit There are a little over 15 million bitcoins in circulation today and no more than 21 million will be mined ever, making the virtual currency attractive to investors. The rising demand for and lack of supply of have pushed up the price of bitcoins from $16 per coin in 2013 to $1,700 today.

Sensing the potential of bitcoins as an investment, Bengaluru-based Ashrith Govind, 23, started investing Rs 5,000 a month in the cryptocurrency three years ago. Encouraged by the returns30% annually he is now investing Rs 30,000 a month.

Ashrith Govind, 23, Bengaluru His alternative investment: Started investing Rs 5,000 a month in bitcoins in 2014. Now invests up to Rs 30,000 a month.

However, an investor in bitcoins has to be ready to face extreme volatility. In 2015, Govind lost Rs 1.5 lakh when price of bitcoins dropped significantly. One bad trading day can mean a loss of Rs 12,000 for him.

Sathvik Vishwanath, CEO and Co-Founder of online platform Unocoin says, There is a financial risk in investing in bitcoins. Like in equity markets, investors tend to buy when prices are up and sell at lows. Then there is a technology risk too which can render bitcoins virtually worthless in future.

More importantly, the legality of bitcoins is in question in India. Warning against the use of bitcoins, Minister of State for Finance Arjun Ram Meghwal stated in Parliament that, The absence of counter parties in usage of virtual currencies including bitcoins, for illicit and illegal activities in anonymous/pseudonymous systems could subject users to unintentional breaches of anti-money laundering and combating financing of terrorism laws.

Financial advisers feel bitcoins as an asset class should ideally be avoided. Shree Parthasarathy, Partner, Deloitte Touche Tohmatsu India warns, The money invested in bitcoins, if at all, should form an insignificant part of your portfolio and you should be able to afford to lose all that money.

Lend and earn P2P platforms have brought lenders and borrowers closer. Technology allows easy credit to borrowers, while lenders earn high returns on idle funds. Chennai-based Jose Joseph, 45, has been lending on P2P platforms since 2015. On the Rs 1 lakh he has put in so far, he has earned an average return of 20%.

Jose Joseph, 45, Chennai His alternative investment: Started lending money on P2P platforms in 2015. Has invested Rs 1 lakh so far.

However, before lending you should study the borrowers profile carefully to compute the risks before making a lending decision. Rajat Gandhi, CEO and Founder of P2P lending firm, Faircent, says, Most P2P platforms provide details about borrowers. They are classified across risk buckets from low to very high and selection should depend on your expectations.

The biggest risk is that of defaults and P2P platforms not helping in collections. So, before you lend money ask about the platforms collection assistance policy.

As Bhavin Patel, CEO of P2P lending firm LenDen-Club says, P2P lending is still at its nascent stage. Its unclear what will happen to a P2P loan during a major downturn. Lenders need to be careful when the economy is slowing down.

Going with the crowd Crowdfunding has also found favour among those looking to invest in the startup space. Gurgaon-based Sandeep Aggarwal has invested in nine startups till now this way. Aggarwal says, I make it a point to understand the market and longevity of products and services the company is going to offer. I prefer to interact with the founders and core management team for better insights.

This mode of investing works best for those with a long time horizon of at least 5 years as probability of losses is high in the initial 2-3 years.

Sandeep Aggarwal, 44, Gurgaon His alternative investment: Has been investing in startups through crowdfunding since 2015. Has invested in nine startups so far.

Chaitanya V. Cotha, serial entrepreneur and investor cautions, Such investment comes with a lot of terms and investors own a very small stake. There are no rights for the investor and you dont really have a voice in decision making made by management.

According to Apoorv Ranjan Sharma, Cofounder and President, Venture Catalysts, the common risk in investing through crowdfunding is the herd mentality among investors. The other risk is the product not seeing the light of the day because of operational challenges. Chances of fraud are also high. As Cotha says, Many so-called start-ups are in the market looking for a quick buck.

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Should you invest in Bitcoins, crowd funding, P2P lending? - Economic Times

CryptoPing Altcoin Intelligence Bot Announces ICO – The Merkle

May 15, 2017 | Author: admin

CryptoPing, new project for cryptocurrency traders, announces ICO launch on May 25, 2017 at 12.00 AM CET to fund further project development. The crowdsale will continue until June 25 12.00 PM CET.

CryptoPing is an alternative cryptocurrency intelligence bot. It constantly monitors altcoin markets, generates trading signals and notifies subscribers in Telegram. The project has been in public beta-testing phase since March 2017 and has already attracted more than 700 active users.

CryptoPing team is aiming to create a platform where experienced traders would be able to share nuanced trading signals publicly or anonymously and create a learning environment for their followers. Developers can be reached easily, are open to feedback and keep active chats where they share details about the project, update on latest news and communicate with users.

Behind the project is a group of successful cryptocurrency traders with 5+ years of experience who prefer to remain anonymous. No additional information about team members is available yet. Meanwhile, CryptoPing is one of the few projects on ICO market that already has a working beta version, active user base and is ready for public launch in a few days after the crowdsale is finished.

9,000,000 tokens based on Waves platform are to be issued for ICO with total worth of 1000 BTC. Additional 1,000,000 tokens will be reserved for one-level 10% referral program. Investments of 100 BTC and more receive 15% discount on tokens. Any undistributed tokens left after crowdsale will be burned.

CryptoPing tokens will be used to access project services, but payments with Bitcoin or altcoins will be enabled in the future. Tokens will be distributed in a week after ICO ends. There are plans to add them to several exchanges, while token price will be constantly increasing due to limited supply and user base expansion. Developers want to ensure that token price remains high, and there are plans to burn 75% of subscription fees paid in tokens. Moreover, if subscription is paid in Bitcoin/altcoins, 50% of subscription fees will be directed to buy tokens back off exchanges and burn them too for the first 6 months after token is added to any exchange, and 10% of fees to do that for a year after that.

Monthly subscription fee is currently set to 0.01 BTC or its equivalent in tokens or alts. Subscriptions with tokens will get 25% fee discount. A public log of subscription transactions, buybacks and burned tokens will be available to every investor to ensure operational transparency.

Developers are quite confident in their success:

If you check, for example, Google Trends for Poloniex or Bittrex queries, youll notice a swiftly growing interest for exchanges and cryptocurrency trading past year. Forex doesnt cut it anymore. People look for something new and more profitable, something accessible for everyone. Being a part of crypto community, we see increasing interest for trading and the desire to trade freely and anonymously and exchange useful information about trading. Some private trading groups have more than 200 members, and public trading chats often have thousands of users. Open platform for public trading signals is in high demand.

After ICO ends, the beta version of social trading platform will be launched. Any user will be able to become a public trader and keep automated public record of their success (stats on profit from trades made by bot signals). The platform will feature public trader rankings where users will be able to pick up traders they like and receive signals from them. Following a trader is a paid service that brings additional income to public traders, while beginners will receive more reliable and profitable signals.

E-mail: [emailprotected] Visit our website: https://cryptoping.tech/ Our crowdsale page: https://cryptoping.tech/ICO Our dashboard: https://cryptoping.tech/dashboard Our roadmap: https://cryptoping.tech/roadmap Follow us on Twitter: @cryptoping

Disclaimer: This is a paid press release, the product / service mentioned is not endorsedby The Merkle, always do your own independentresearch. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

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CryptoPing Altcoin Intelligence Bot Announces ICO - The Merkle

Bitcoin Faces More Scrutiny After Global Hack – Wall Street Journal (subscription)

May 15, 2017 | Author: admin

Wall Street Journal (subscription)

Bitcoin Faces More Scrutiny After Global Hack
Wall Street Journal (subscription)
In the wake of a global wave of cyberattacks that demanded payment in bitcoin, new attention is being focused once again on the digital currency's role in hacking and illegal money movements. More than 200,000 victims in at least 150 countries were hit ...

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Bitcoin Faces More Scrutiny After Global Hack - Wall Street Journal (subscription)

A look at the digital currency bitcoin used by hackers in ransomware attacks – NEWS.com.au

May 15, 2017 | Author: admin

Bitcoin pioneered the cryptocurrency movement, but after eight years, the virtual currency is still struggling to find mainstream acceptance. Author and WSJ Moneybeat reporter Paul Vigna joins Lunch Break's Tanya Rivero to discuss why many people talk about bitcoin but many use it. Photo: Bloomberg

What exactly is Bitcoin and how does it work?

ITS worth more than an ounce of gold right now, its completely digital and its the currency of choice for the cyber attackers who crippled computer networks around the world in recent days.

When the attackers ransomware sprang into action, it held victims hostage by encrypting their data and demanding they send payments in bitcoins to regain access to their computers.

Heres a look at bitcoin:

HOW BITCOINS WORK

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who mine them by lending computing power to verify other users transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with US dollars and other currencies.

HOW MUCH IS IT WORTH?

One bitcoin recently traded for $US1734.65 ($A2346.29), according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $US1230.

The value of bitcoins can swing sharply, though. A year ago, one was worth $US457.04, which means that its nearly quadrupled in the past 12 months. But its price doesnt always go up. A bitcoins value plunged by 23 per cent against the US dollar in just a week in January. It fell by the same amount again in 10 days during March.

WHY BITCOINS ARE POPULAR

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators and criminals.

WHOS USING BITCOIN?

Some businesses have jumped on the bitcoin bandwagon amid a flurry of media coverage.

The currency has become popular enough that more than 300,000 daily transactions have been occurring recently, according to bitcoin wallet site blockchain.info. A year ago, activity was closer to 230,000 transactions per day.

Businesses from Yellow Taxis in New York to a pub in Sydney have decided to accept payment in bitcoins.

Still, its popularity is low compared with cash and cards, and many individuals and businesses wont accept bitcoins for payments.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals greed for the collective good. A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldnt be an issue.

HOW BITCOIN CAME TO BE

Its a mystery. Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a small clutch of enthusiasts.

Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesnt matter: The currency obeys its own internal logic.

Australian entrepreneur Craig Wright last year stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not have the courage to publish proof that he is.

How did a currency invented out of thin air gain millions of adherents so quickly?

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A look at the digital currency bitcoin used by hackers in ransomware attacks - NEWS.com.au