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File-Based Encryption Vulnerability Reported by DeesTroy is Fixed in May’s Security Update – XDA Developers (blog)


XDA Developers (blog)
File-Based Encryption Vulnerability Reported by DeesTroy is Fixed in May's Security Update
XDA Developers (blog)
With the introduction of Android 7.0 Nougat, Google switched to a file-based encryption method instead of the full disk encryption that we were using in Marshmallow. There are benefits and drawbacks to each of these methods, but Google's security team ...

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End-to-end encryption could be key to securing future elections – The Hill (blog)

Whatever your preference of candidates might have been, one thing was clear from the 2016 U.S. presidential election: the Russian government targeted American political organizations of both parties with an aggressive wave of cyber intrusions. Bothprivate sector analystsand theU.S. Intelligence Communityagree on this point.

Furthermore, FBI Director James Comey recently told a congressional committee that theyll be back in 2020they may be back in 2018. The head of the NSA, Admiral Mike Rogers, concurred, saying that he fully expect[s] they will maintain this level of activity.

Faced with a potential onslaught from persistent and technically advanced adversaries, political organizations should use end-to-end encrypted email and file-sharing applications that are easy to use. These applications must have three characteristics:

First, they must encrypt every message and file end-to-end. This means that even if an adversary successfully breaches an organizations server, as in the case of the Democratic National Committee (DNC), doing so will not reveal any information.

Second, these applications should not allow privileged super-users. By exploiting the vulnerability of super-user accounts in the DNC network, hackers were able to steal and leak thousands of internal communications.

Third, these applications must not use passwords, which are themselves major security vulnerabilities. People often create passwords that are easy to guess, and they divulge them too readily.

How end-to-end encryption protects user data even if a server is hacked

When messages areencrypted end-to-end, the information stored on the server is secure even if the server is hacked. Each message should beautomaticallyencrypted with auniquekey before it leaves the users deviceand onlydecrypted when it reaches its recipient.

If attackers breach the walls protecting the server such as traditional password portals and firewalls all they will find is encrypted, useless gibberish. This was not the case at the DNC,nor is it standard practicefor most major communications providers, which store their customers information on their servers unencrypted.

The DNC Breach and The Risk of Super Users

In lead up to the 2016 elections, two independent and advanced cyber actors targeted the DNCs computer servers. The first one to strike, known asAdvanced Persistent Threat (APT) 29orCOZY BEAR, was an unidentified Russian grouppossibly affiliatedwith the countrys internal security service.

The second one, known asFANCY BEARorAPT 28in cybersecurity circles, was probably a component of Russias military. The former groupsent a stringofspear phishingemails to people working at American government and nonprofit organizations in the summer of 2015, likely including someone with legitimate access to the DNC network.

The latter one waged a massive campaign in parallel; from October 2015 to May 2016, itsent almost 9,000spear phishing emails with malicious links to nearly 4,000 similar targets. As the two attackers didnot appear to be working together, one or more people at the DNC clicked on embedded links from each group, giving the Russiansaccessto the network.

One of the attackers eventually gained control of aprivileged administrator account, and was able to steal tens of thousands of sensitive emails. Instead of giving administrators super-user privileges to access vast amounts of information, new encrypted email applications use the concept of Approval Groups. With this paradigm, only a predetermined combination of trusted individuals can retrieve the decryption keys for messages on the server.Instead of giving administrators super user privileges to view vast amounts of information one of the reasons the DNC attackers were able to steal so much material a model that allows only a predetermined combination of trusted individuals to recreate the decryption keys of other users should be used.

This restriction, which gives cryptographic shards of keys to certain individuals, prevents a single hijacked administrator from wreaking havoc on an organizations information technology systems. It would also require attackers to gain control of the individual devices of approval group members, which is far more difficult.

Furthermore, messages that areencrypted end-to-endare secure even if the server they are sitting on is hacked. If attackers breach the walls protecting the server such as traditional password portals and firewalls all they will find is encrypted, useless gibberish. This is because with end-to-end encryption, you are the sole owner of the keys needed to decrypt the information.

This was not the case at the DNC,nor is it standard practicefor most major communications providers, which store their customers information on their servers unencrypted.

Finally, in the DNC hack, FANCY BEAR/APT 28 tookadvanced counter-forensic measuressuch as corrupting and deleting internal server logs to obscure its presence. Logs of all communications should be encrypted to prevent exactly this from happening.

Whether Democrat, Republican, or Independent, everyone should understand that systems that leave sensitive data unencrypted while at rest, as well as those that allow for super users, are vulnerable to advanced cyber intrusions like the one the DNC suffered.

Why passwords make systems vulnerable

While they were attacking the DNCs servers, members of FANCY BEAR/APT 28 were also busy at work attempting to breach other systems, namely the personal email accounts of Democratic Party officials and staff members.

Perhaps the most attractive target was then-candidate Hillary ClintonHillary Rodham ClintonOvernight Cybersecurity: Comey testifies on Clinton probe, surveillance | Officials grilled over financial aid breach | Massive phishing attack hits Gmail users Budowsky: A fascist-friendly POTUS When will Hillary Clinton grow up and take responsibility? MOREs campaign manager John Podesta. Like many busy and important people, he did not have time to remember a slew of different passwords for every web site he used. He occasionally asked his aides toremind himof his passwords via email and probablyre-used themamong multiple different applications.

Passwords can be a security liability as well as a hassle for users, which is why politicians, candidates and their political aids should use strong cryptographic keys instead. These keys, which are dozens of digits long, can be automatically created and stored on users computers and phones. The keys are so complex that it would take all the supercomputers on earth billions of years to guess.

Unfortunately, Podestas Gmail account used passwords to decrypt his emails instead of cryptographic keys stored locally.Receiving anemail alert probably from the Russians warning him that an unauthorized user was trying to access his Gmail account, he or one of his staff members reached out to the campaigns information technology support team. After getting someconfusing advice, either Podesta or one of his assistantsclicked on an embedded malicious linkto a fake password reset portal. He fell for the ruse and entered his credentials, giving them to the attackers.

The FANCY BEAR/APT 28 actors were then able to access and download nearlyten years worth of private communications. The Russians later used the stolen materials to create another October Surprise for the campaign by againproviding the information to WikiLeaks.

It is unfortunate that, in retrospect, using end-to-end encryption with strong cryptographic keys could have prevented all of this. By keeping encryption keys only on a users device, there is no need for passwords to access ones communications. Not having to remember and type them in all the time makes it impossible toaccidentally give them to hackerstoo.

Get ready for 2018 by securing your systems today

Although the 2016 election is in the books, the cybersecurity lessons we can learn from it are critical for future cycles. We know that at least one foreign country will take active measures, like hacking political organizations and campaigns, to support itspreferred candidate. Regardless of whom you support, every American should be able to agree that sensitive internal communications like campaign emails must remain private and secure. With an end-to-end encrypted messaging protocol, political organizations of every stripe can do just that.

Walter Haydock works forPreVeil, a Boston based cybersecurity companywhere he interfaces with political campaigns, think tanks, and other government-facing clients.Previously, he served as a staff member for the House of Representatives as well as an officer in the Marine Corps. The views expressed in this article do not necessarily reflect the official policy or position of the United States government.

The views expressed by contributors are their own and are not the views of The Hill.

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Will crowdfunding get a synthetic biology win? – PLoS Blogs (blog)

From 2008 to 2014 the United States investedaround $820 million in synthetic biology research. About 0.07% as much money went to synthetic biology projects through crowdfunding sites like Kickstarter, Indiegogo, or Experiment.com. Of those crowdfunded projects, the Kickstarter campaign called Glowing Plants was by far the most well-funded. Glowing Plants, like its name suggests, aimed to genetically engineer plants that could light up using the genes from fireflies. After a tenuous four years of alternative funding and backup plans, the goal of making a brightly glowing plant is officially shelved.The question is whether Glowing Plants will continue to be the high mark for crowding funding of synthetic biology or whether there are future successes out there.

In 2013, Antony Evans got well overseven times his $65,000crowdfunding goal to engineer plants that light up. The pitchlaid out an ambitious plan for howthis fun glowing plant fit into the promise of synthetic biology. It was nothing like a technical grant proposal that a synthetic biology researcher usually submits for funding. It was selling the idea of a synthetic biology product that you could put on your desk. A fun novelty item thats more play than work. Unfortunately, technical hurdles exist even for playful ideas.

If you go back through Glowing Plants updates you can track the arc of theirambitions.

April 23, 2013: Glow Plants project launches on Kickstarter

April 30, 2013: How bright can we make our plants grow?

August 13, 2014: accepted by Y combinator! They got to present at the tech accelerators Demo Day and pitch investors.

April 10, 2015: Should we switch plant species

May 20, 2016: Help us build momentum on WeFunder! This platformed helped to raise another $250,000 for the project with donors buying small shares

August 3, 1016: 5 out of 6 genes successfully integrated into a plant

April 18, 2017: Stopping work on the Glowing Plant Contamination in the fragrant moss strains caused the team to downsize to still afford to get the planned shipments out. With the financial hit, their plan to put revenue toward the glowing plant research wasultimately halted. They conclude that that despite that failure the project can still leave a positive legacy in inspiring people to learn more about synthetic biology and its benefits and hopefully one day someone does finally make a Glowing Plant.

There has been plenty of media attention for both the initial hype of Glowing Plants and the eventual decline into unrealized ideas, but that doesnt mean there wont be other high profile uses of crowdfunding for synthetic biology.

Synthetic biology still makes it way onto a lot of the popular crowdfunding sites that have science:Kickstarter,Indiegogo,WeFunder andexperiment.com. Yet none of these campaigns have reacher the financial backing that Glowing Plants got. Typical synthetic biology crowdfunding is raising a few thousand dollars and is primarily supporting educational activities.

The most common kind of crowdfunding success involves the International Genetically Engineered Machine (iGEM) competition that gives student the chance to work on and present their own synthetic biology projects.Some successfullyfunded research projects include $3001 forDNA memory,$2500 fordetecting tuberculosis,$2189 for paper based pathogen detection, $1572 for detection of expired oxytocin medication,and $2120 for a high-school team studying crosstalk between neighboringgenes. Typical federal grants for synthetic biology research on the orders of hundreds of thousands to millions of dollars over a few years.

Synthetic biology research is still expensive. For asynthetic biology product to be fundedand hit the market takes an enormous amount of money. While iGEM teams can count student learning itself as a victory, any crowdfunding that promises a deliverable product will be in trouble. For instance, experiment.com has a collection of iGEM projects being funded.

Glowing Plants creator, Antony Evans, wrote a piece on equity crowdfunding and explained why the inherent tension between promising rewards and the challenges and uncertainties of biological research makes Kickstarter a bad model for scientific research. He seesequity crowdfunding as a more powerful tool in the biotech space. This newly legal mechanism called title III equity crowdfunding allows early stage startups to raise money from any ordinary person in return for shares in the company.

But no crowdfunding mechanism brings along the advisory input one would expect from a traditionalinvestor. Good investors usually bring some expertise, guidance, or connections. Distributed funding is unlikely to bring that human capital. Even if some of your investors have those capabilities, none will have enough influence in the company to make an impact.

Synthetic biology will continue to get cheaper as DNA synthesis costs drop and the DIYBio community matures. That said, there are still many research projects that seem poorly suited for crowdfunding.

Ultimately, I think synthetic biology will get some victories in the crowdfunding arena. Its unlikely to be a cure for cancer or global warming, but hopefully theres a fun idea out there that can be made possible with small dollar backers and the power of biology.

See the appendix to the U.S. Trends in Synthetic Biology Research from the Wilson Center to calculate synthetic biology funding from 2008-2014.

Atlantic: Whatever Happened to the Glowing Plant Kickstarter?

MIT Tech Review: Why Kickstarters Glowing Plant Left Backers in the Dark

Synbiobeta: Review of RevBios Crowd Funding Campaign

Top Sites for Crowdfunding Scientific Research

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Coinbase adds support for Litecoin – TechCrunch


TechCrunch
Coinbase adds support for Litecoin
TechCrunch
At the time, the reasoning was that Coinbase saw Ethereum's focus on smart contracts as a tangible improvement over Bitcoin, and not just another alt-coin that doesn't serve any real function. So why Litecoin? Interestingly, Litecoin's creator, Charlie ...

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BrandPost: Cryptocurrency: Top 5 Things You Should Know About Digital Cash – PCWorld

News and information on how todays payments technology empowers you to make cash flow fasterwhile saving time and money.

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If youve had your ear to the fintech streets over the last few years, youve probably heard the term Bitcoin tossed around as cashs digital counterpart. What you may not know is how Bitcoins emergence in 2009 has spawned a race across the globe to be part of the emerging trend.

What exactly is Bitcoin? Will it replace cash? What does it mean for your small business? Heres a quick rundown to get you up to speed.

What is it?

Bitcoin is a type of cryptocurrency, or a digital currency that uses encryption techniques to create units and secure the transaction. Whats unique about this invention is it decentralizes currency away from traditional banks, meaning people can complete financial transactions without any bank involvement or regulation. Bitcoin is the first form of cryptocurrency invented, and is still by far the largest within the market.

How do you use it?

To simplify it further, its basically a peer-to-peer sharing network. Members can initiate transactions through the network, however, no actual currency is created or transacted until both parties agree on the amount. Heres how it works:

1. Someone requests a transaction.

2. The request is broadcast to the P2P network composed of computers or nodes.

3. The network initiates a validation process to verify both users and the transaction amount.

4. Once the transaction is validated, the cryptocurrency is created in the amount that was agreed upon in the validation process. If the amounts or the network credentials dont add up, the transaction request is denied.

The cryptocurrency has no physical form and only exists within the network. Value is only assigned once the agreed terms are validated. Holders can then withdraw the value from a cryptocurrency ATM in exchange for the currency theyd like to use.

Is it legal?

The legality of cryptocurrency varies by country. Some have explicitly allowed it for trade, and others have totally banned it. For us, the United States Internal Revenue Service (IRS) ruled that bitcoin will be treated as property for tax purposes as opposed to currency. So, its legal to own and use for trade internationally, however it will be subject to capital gains tax.

Are US shoppers using it?

Sure. Knowledge about Bitcoin has increased so significantly since 2014 that there are now 554 Bitcoin ATMs in the U.S. These are stations that Bitcoin owners can use to exchange for U.S. currency.

How will this impact my business?

While Bitcoin is gaining steam in the US and across the globe, it will likely be a few years before this impacts the small business sector. Since the IRS hasnt identified cryptocurrency as a legal tender, it likely wont surface as a mainstream payment option for another decade or so.

However, cryptocurrency has the legs to gain popularity within contract-based subsectors. If adopted at full-scale, organizations like banks and insurance companies could be replaced. Access, validation and other major functions can be performed by the technology itself, so bank and insurance underwriting would no longer be a limitation for people who are typically denied credit. Rules, contracts and processes can be programmed within the peer-to-peer network and therefore transformed into automated processes.

Insurance policies for flight delays will pay out immediately if an airlines flight data reports a delayed plane. For example, musicians royalties can be automatically paid via the blockchain when people listen to their songs, without a record company being involved. People will no longer have to waste time claiming compensation. The amount of self-generated solar power can be calculated without checks by a utility company and credited to the users account

Our advice

Stay informed about the trend. This has the potential to vastly change the financial industry, but it will take more time and validation to become mainstream. Dont invest in cryptocurrency acceptance just yet, but dont be surprised if you have more options to do so in the future.

VisitSage Payment Solutionssite to learn more.

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Top 4 Japanese Cryptocurrency Exchanges – The Merkle

Japan is one these countries where Bitcoin and other cryptocurrencies are quickly taking off, by the look of things. It is not entirely surprising to learn there are quite a few cryptocurrency exchanges available in the region. Some of the names on the list below will be well known to bitcoin users, although there are some surprising names on there as well.

This is perhaps one of those exchange platforms very few people have heard of. That would not be entirely surprising either as SBI Virtual Currencies has not been around for all that long. What makes this particular exchange so remarkable is how it is Japans first bank-backed exchange, which goes to show there is quite a growing demand for access to Bitcoin, Ethereum, and other currencies. The launch of this exchange was first announced in October of 2016.

Zaif is one of the oldest Japanese Bitcoin exchanges in existence right now. The company has made quite a name for itself in recent years, even when the regulatory landscape was not overly kind to Bitcoin and cryptocurrency in the country. Then again, Zaif stuck with their business model and slowly started to gain more traction in the country.

Among the supported currencies on the Zaif exchange are Bitcoin and Monacoin, as well as BitCrystals, Counterparty, and NEM. It is interesting to note this exchange does not support Ethereum trading at this stage, even though that market may be added to the platform in the future. Zaif also provides an opportunity to buy cryptocurrency with a credit card.

Everyone in the cryptocurrency world will have heard of the bitFlyer exchange by now, as it is one of the largest cryptocurrency platforms in the country. Not only does bitFlyer provide exchange services, but they were also the first to support cryptocurrency-related auctions through their built-in marketplace. The company mainly focuses on providing fiat-to-Bitcoin services to residents in Japan and other countries.

Another major exchange in Japan goes by the name of Coincheck. This particular platform has the largest offering of available cryptocurrencies as of right now. In fact, the list of supported coins includes some of the usual suspects, including Bitcoin, Ethereum, Monero, Dash, and Ripple. However, the platform also supports Ethereum Classic, Lisk, Factom, Augur, ZCash, NEM, Litecoin, and Dash. All things considered, this is a very solid list of supported currencies.

The primary purpose of Coincheck is to provide a gateway between these cryptocurrencies and the Japanese Yen. Moreover, there is an option for leveraged trading, as well as spot trading. It is good to see Japanese exchanges warm up to the cryptocurrency ecosystem as a whole, especially now that the new regulation has gone into effect a few weeks ago.

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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Dash partners with Coinapult for cryptocurrency to fiat gateway – CryptoNinjas

Dash, a top 5 cryptocurrency asset by market capitalization has announced today its now live the on the Panamanian-based broker and wallet Coinapult, allowing individuals and businesses to easily and instantly buy and sell the digital asset against 20 national currencies. Coinapults organic partnership with Crypto Capital, owners of an international money transmitter license, provides a seamless bridge for regulated crypto to fiat conversion for millions of people around the world wanting to buy or sell the popular altcoin, even New Yorkers.

Dash VP of Business Development Daniel Diaz said:

We have been interested in Coinapult and Crypto Capital for a long time and were just waiting for the right time. This integration is massive for current and future Dash users because they really solve the question on how to buy and sell Dash in an easy and safe way using fiat. You get a digital currency on/off ramp that is directly connected with a fully functioning money-transmitting platform similar to online banking.

You get your own segregated account with Crypto Capital, which is fully integrated with Coinapult, and you wire funds from your current bank to your Crypto Capital account. Rather than wiring funds to a third-party exchange directly, you are in control of all the accounts involved in the wire transfer process. With less risk and less friction holding and storing value on Dash becomes safer if you add to this the fact that Dash has fast and inexpensive transactions, you get a great overall user experience.

Coinapult and Crypto Capitals support extends to bitcoin users too, and its accepted fiat currencies which include USD, EUR, GBP, CAD, AUD, JPY, CNY, HKD, TRY, CZK, and the PLN.

CEO of Coinapult, Gabe Sukenik said:

Giving the Dash economy access to Crypto Capital via Coinapult could be a significant step forward for the liquidity of Dash for bank-settled fiat currency. Even in the midst of significant banking difficulties for bitcoin companies broadly, Crypto Capital has continued to service individuals and businesses that need access to bitcoin-friendly international wire settlement. Dash users now can directly buy or sell Dash in fiat, using Crypto Capital and Coinapult.

Diaz added:

The way it works is you need to open an account with Coinapult, you immediately get a working Dash wallet you can deposit Dash too. On the other hand, you also need to open an account with Crypto Capital, being a money transmitter you go through a straightforward KYC process and when you are done you officially get your own account with online access.

Then you just link your Coinapult user with your account and can start depositing money to your Crypto Capital account and transfer it instantly to Coinapult to buy Dash. The money in your Crypto Capital account is always available to you to wire out using your online platform. They service users in the US and even in places like New York so we are very excited for users that will now have a great option to buy and sell Dash in a friendly way.

Dashs integration onto Coinapult comes at the same time the team makes several key hires. Dash has hired six more C++ developers, each with incredible backgrounds, who earned full-time positions against a talent pool of over 50 applicants, several interview rounds and multiple code reviews. This brings the development team to over 20.

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Do AI and Cryptocurrency Work Well Together? | Finance Magnates – Finance Magnates (blog)

This article was written byMarcie Terman, founding director of XBT Corp Sarl.

Just because Grindelwald and Dumbledore had a deadly brawl during their quest to revolutionise magic doesnt mean that two great powers cannot be used in concert to change the world.

This could be the worst way to start an important conversation about financial technology, but stick with me, it gets more interesting. We are speaking about the world-altering technology of artificial intelligence as the first superpower coupled with the financial system-disruptive technology of cryptocurrency a decentralised payment system that circumvents government manipulation of currency and is forcing us to redefine the concept of money.

The question is: can these two technologies be used together to change the way ordinary people like you and me invest our money without expiring in a shower of blue sparks? Avada Kedavra!

But first, lets take a step back and look into them as individual concepts, with respect to their relationships to investment and trading.

Artificial intelligence (AI) means software that after its initial programming continues to improve its performance based on experience of the environment it has been set to learn. Unlike in movies, where AI is characteristically portrayed as menacing, human-destroying droids, AI software has actually bettered our lives in fields as diverse as healthcare, education, safety, transportation and entertainment. In the field of financial trading, AI has been clandestinely used for two decades to generate profits for hedge funds, banks and other large trading companies.

In its early days, AI trading systems relied on human intervention to provide trade execution but since the rise of electronic exchanges, AI trading has probably changed the character of the worlds markets without the general publics knowledge.

Today, it is the hedge funds, banks and major international corporations like Goldman Sachs that are reaping the benefits from AI-based trading of forex and stock markets. These companies harness deep learning evolving mathematical and statistical models of prediction and probability to forecast the short-and-long term outcomes of various financial markets.

These models, because of their nature, should be able to track the changes in market condition and therefore continue to improve their performance over time. Deep learning models arent concerned with the fundamentals of the underlying market. They work through pattern recognition, and like their human quantitative analyst counterparts, they seek the relationships between chart patterns and expected outcomes to generate a return.

However, even the most disciplined human trader can be influenced by the fear of loss or greed which may change their trading behaviour. AI bots, however, execute trades consistently without emotion at lightning speed directly onto the exchange, placing and closing trades on behalf of their clients. They stick faithfully to limits, never lose discipline or waver from their assigned course based on the idiosyncrasies of emotion.

Digital currency trading, which until recently has been mostly centred on bitcoin, has gained momentum in recent years. Since Feb 2011, when bitcoin stood at parity with the US dollar, bitcoin has risen to where it is trading now some six years later at prices between $1,200 and $1,425.

The reasons behind bitcoins success are many. Coupled with its decentralised nature which protects it from all good and bad government policies, bitcoin is beginning to be seen as a viable alternative in certain countries where hyper-inflation or lack of confidence in government has rendered the local currency a less attractive alternative. Bitcoin is also becoming easier to manage, simpler to use, safer than carrying paper money and cheap enough to transact and carry, without needing an intermediary.

Despite the last 6 months remarkable price increase, bitcoin as an asset class has its share of ills, including periods of extreme market volatility. For example bitcoins limited supply coupled with the inability of governments to intervene to counteract market forces means that bitcoin reacts quickly to market bias.

Take for example the very recent bitcoin ETF buzz: bitcoins price trended northward comfortably ahead of the SECs ETF ruling amid growing optimism, hitting a peak of $1,327 a coin. But after the SEC shot down both the Gemini and SolidX bitcoin ETF projects, the price nosedived 20% before rallying within the month back to similar levels.

In addition, shorter term fluctuations can be seen if one looks at intraday bitcoin charts. On an average BTC/USD chart, bitcoins value fluctuates between 10 and 15 USD every 4 hours and sometimes quite a bit higher. For many investors, such fluctuations make bitcoin an uncomfortable investment choice. However, there are day traders who use this volatility to take tidy profits out of the market on a daily basis. These are the traders who are fixed, glued to their computer monitors and mobile screens all day long, tracking the market to enter and exit positions.

So we return to the original question: can a market as young and volatile as cryptocurrency be successfully partnered with artificial intelligence to produce a profitable outcome?

With market capitalisations in the low millions up to the low billions, cryptocurrency markets present too small an opportunity to interest most trading banks and hedge funds. They use the power of their deep pockets coupled with AI to generate massive profits from high frequency trading where an advantage of a few milliseconds over competitors can generate big returns.

This means that there is room while cryptocurrency markets are still in their infancy for AI developers to create systems that learn to identify profit opportunities in these young, highly volatile markets. And while a Goldman Sachs may snort at a market cap of 20 billion dollars, investors like you or me would be delighted with this kind of profit.

We are starting to see young talent, like the people running the Our AI Bot blog [http://ouraibot.org/] out of the UK. These types of cryptocurrency enthusiasts are coupling their Deep Learning System knowledge with innovation, imagination and an understanding of the inputs that are relevant to predicting digital currency market movement to yield what look like fairly outstanding results.

But many within the cryptocurrency space feel that the markets are moving towards the mainstream and already there are players like Pantera Capital and banks like Santander and Citibank that are looking at how to generate profits from the cryptocurrency markets.

So the window of opportunity for individuals to benefit from what AI can do in digital currency trading is probably limited. The time to look at this opportunity is now Expecto Patronum!

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Russia Is Close to Legalization of Cryptocurrencies – Crypto Insider (press release) (blog)

Last month Russia held two important events dedicated to cryptocurrencies and related technologies: A national forum organized by the government, and the biggest cryptocurrency conference in the country Blockchain & Bitcoin Conference Russia. I attended both events.

The conference attracted a record-breaking number of visitors (around 1000 guests and speakers altogether). In the course of these events numerous governmental officials shared their views on the possibility of regulation and legalization of cryptocurrencies on the national level. According to the numerous statements of the speakers in charge, Russia should expect a federal law, regulating the role of cryptocurrencies in national economics, by the end of the year and it certainly wont be prohibitive.

Last December, the president of the country Vladimir Putin decreed to develop a digital economy in the country and initiated the creation of a cross-disciplinary group to study the blockchain technologies and possible risks of their implementation.

The head of cross-disciplinary governmental group Elina Sidorenko, in the course of the plenary forum of the Bitcoin&Blockchain conference, said that the group is going to suggest a draft of the law, regulating the cryptocurrencies, by July. That wont be the first draft of a cryptocurrency law in the country, but according to the speaker, the general rhetorics of the government has drastically changed. During the previous years, the country saw some restrictive initiatives from the authorities: in 2014 the General Prosecutors office suggested to introduce criminal sanctions for those responsible for emission and exchange of cryptocurrencies.

Speaking at the national forum Pavel Livadny, head of Finance Monitoring Governmental Agency, highlighted that the governmental structure overcame the rejection phase and moved on to the constructive dialog. He added that cryptocurrencies have to be regulated, and only few countries want to ban their circulation.

According to the head of the department of financial technologies of the central bank, the bank never aimed to ban cryptocurrencies, which need legal status and the clarity in the sphere of taxation.

The question of legal status of cryptocurrency in the country is still raising many debates and misunderstandings. The last official document on the matter, an informational letter from the Federal Tax Service issued in the end of 2016, noted that cryptocurrencies are valuable. The very form of the notice was rather inspiring due to its recommendatory nature.

It appears that Russia came a long way from objecting to the new phenomenon to the first trials to understand it. There is also a chance that the government started seeing an opportunity in the ground-breaking crypto technology. The federal deputy Boris Titov, while speaking on the national forum, suggested to establish a crypto valley in Crimea, similar to the crypto valley in Switzerland.

Titov noted the potential of blockchain technology for government services, especially regarding the fight against corruption. The main risk, mentioned by most of the speakers, is the anonymity of transactions.

Despite the possible risks, according to Alexander Ivanov, the founder of the Russian blockchain platform Waves, the whole trend is already too big and now the government can only admit it.

Most speakers expressed the opinion that it is very important to develop an attractive legislative base for cryptotechnologies to welcome investors and businesses communities into the country.

This is just the beginning. Elina Sidorenko, head of the cross-disciplinary group and Professor of Law at Moscow Governmental Institute of International Affairs, said that the university is already developing a special educational program targeted to prepare lawyers for working in the cryptoworld. According to Sidorenko, the legal ecosystem is not ready for the era of smart-contracts. By her suggestion, the country should start with raising professional lawyers who could handle the subject.

Image from Wikimedia Commons.

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Cryptocurrency Analysis of Litecoin, Dash, Monero, and Ethereum Classic – Hacked

Hacked: Hacking Finance Posted by Jim Fredrickson on May 3rd, 2017. Jim Fredrickson

Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.

Litecoin is testing a 3rd arc on the 3 hour chart as we speak. This is hardly a buy signal, but if it gets through the arc, we will likely see a rally over the next week or so to ~ $25. There are 2 energy points due later in the day. It is possible that the coin will break down. But in this era of a seemingly endless supply of money flowing into cryptocoins, it is more likely it will break upwards. Watch it closely.

This is another coin pushing through an arc pair. This is a 2nd arc pair, which is the widest of the pairs, so it could take another day or two to work its way through. When the next rally starts, the next arc is ~ $100. Watch this one too.

This was a sleeper that I missed. I looked at it a week or two back and mentioned/noticed that it had quietly doubled. But I wasnt watching it carefully, so I missed a run that doubled again. However, we cant catch them all, and we should not even try. The dog that tries to catch two rabbits at the same time catches neither of them.

A 5th arc was hit (yellow highlight). It is time for this coin to correct, as it has already begun. I imagine it will correct at least to the 3rd arc of the bear setup. That support is ~ $5.50

Monero has penetrated the 1st arc of a 3rd pair. This is bullish, but a buy signal will not be generated until it exits the pair with a green candle on the other side. That could be several days away, at most.

Many of you traders out there, even the newbies, have made a ton of money these past few weeks, as virtually every coin is in a bull market. My advice is do not think you are a genius. Anyone can make money in a bull market. Look at all the day-traders who made a killing in the 90s trading tech stocks.They drove BMWs right up until March 2000 when they lost their homes to foreclosure and begged for their old jobs back.If we ever start to think the only difference between ourselves and superman is a cape, we are doomed to a heartbreaking loss at some point in the not-distant future. Bull markets come to an end eventually. Was it Warren Buffet who quipped that is at low tide that we see who has been swimming naked? Wise words, whoever said it

Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.

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Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.

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Cryptocurrency Analysis of Litecoin, Dash, Monero, and Ethereum Classic - Hacked

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