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How The Media Are Using Encryption Tools To Collect Anonymous Tips – NPR

The Washington Post and other media organizations have launched webpages outlining ways you can leak information to them confidentially. Brendan Smialowski/AFP/Getty Images hide caption

The Washington Post and other media organizations have launched webpages outlining ways you can leak information to them confidentially.

There was a time when a whistleblower had to rely on the Postal Service, or a pay phone, or an underground parking garage to leak to the press.

This is a different time.

A renewed interest in leaks since Donald Trump's surprise election victory last fall, and a growth in the use of end-to-end encryption technology, have led news organizations across the country to highlight the multiple high-tech ways you can now send them anonymous tips.

The Washington Post, The New York Times and ProPublica have launched webpages outlining all the ways you can leak to them. ProPublica highlights three high-tech options on its page (in addition to the Postal Service): the encrypted messaging app Signal, an encrypted email program called PGP (or GPG) and an anonymous file sharing system for desktop computers called SecureDrop. The Washington Post goes even further, highlighting six digital options.

Jeff Larson, a reporter at ProPublica, says of all this, "We're living in almost a golden age for leaks."

Some tools like SecureDrop, created by the Freedom of the Press Foundation, were made just for newsrooms to accept anonymous tips. Others, like Signal, the premier encrypted messaging app on the market right now, were created with a different, and more universal purpose.

Moxie Marlinspike, one of the creators of Signal, says it's for everyone who might not be aware that a lot of their communication might not actually be private.

"What we're really trying to do is bring people's existing reality in line with people's expectations," Marlinspike says. "Most of the time when people send someone a message, their assumption is that that message is only visible to themselves and the intended recipient. It's always disappointing when that turns out not to be true."

SecureDrop, created by the Freedom of the Press Foundation, was designed for newsrooms to accept anonymous tips. SecureDrop/Screenshot by NPR hide caption

Trevor Timm, executive director of the Freedom of the Press Foundation, says newsrooms' and leakers' reliance on these tools also speaks to a new reality.

"We're living in a golden age of leaks but we're also living in a golden age of surveillance," Timm says. "It is very easy for the government, for example, to subpoena a Google, or a Verizon, or an AT&T to get a journalist's phone records, or email records, that tells them who they talked to, when they talked to them, and for how long. Over the past eight or 10 years, the government has been able to prosecute a record number of sources, and the primary way they've been able to do this is because of their increased surveillance capabilities."

That heavier scrutiny of the press and its sources has come from both sides of the aisle. This month, President Trump directed the Justice Department to investigate what he calls "criminal leaks" coming from the federal government, and in a speech Friday at the Conservative Political Action Conference, he said journalists should not be allowed to use unnamed sources.

The Obama administration used the Espionage Act multiple times to prosecute leaks (more than any other administration, according to PolitiFact), as well as secretly seizing Associated Press reporters' phone records.

While many encryption apps are used to bypass such surveillance of communications between leakers and the press, some apps are being used by staffers within the government to communicate with each other. A recent Washington Post article stated that some White House staffers are relying on an encrypted messaging app called Confide to communicate with each other without using official phones or email, out of a fear of leaks.

But using an app like that to make official White House communications private raises red flags for Chris Lu, former deputy labor secretary under President Barack Obama.

"At the White House and at the Department of Labor," Lu says, "we were given very clear training and guidance about the Presidential Records Acts and maintaining documents." The Washington Post story, he says, "instantly raised red flags whether it was in compliance with the Presidential Records Act. And it clearly is not." (That law is meant to ensure that communications in the White House are maintained for historical purposes.)

Confide CEO Jon Brod says his company advises all users to follow the rules of their employers, if they're using Confide to talk to co-workers.

"There are certain industries and sectors where specific people and certain types of conversations are regulated," Brod says, pointing to financial services, health care and parts of the government. "If you are in one of those industries or sectors, it's important that you use Confide in a way that conforms to any of those regulations that may be relevant to you."

Of course, the legality and ethics of such communications between government workers, as well as between the press and government leakers, often depends on whom you ask.

For Moxie Marlinspike of Signal, there is no question on one thing: whether apps such as his are good for society. "I think what we're seeing is things like Signal almost democratizing that ability (to leak)," he says. "So people who are not necessarily at these high-level posts, but just ordinary workers, are able to communicate what's going on to people outside of government. If you're the director of the CIA, you don't need Signal."

But with the growth of apps like Signal and encryption technology, there might not ever be a way to tell just how ubiquitous all this high-tech leaking becomes. Often the data is so secret that there are few metrics to read, if there are any at all. "We don't have any information about our users," Marlinspike says. "That's how end-to-end encryption works: Even us, we don't have that kind of information."

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How Encryption Makes Your Sensitive Cloud-Based Data an Asset, Not a Liability – Security Intelligence (blog)

Organizations are adopting encryption at a rapid and increasingly urgent pace. Why? Because encryption helps organizations support dynamic industry regulations while also protecting sensitive data thats placed in the cloud.

The trend of adopting public cloud solutions continues to grow, but protecting critical data in the cloud is still a major concern. Its critical to protect data against external breaches and unauthorized access by cloud service providers. Collectively, organizations are diligently working with consultants and suppliers to implement solutions to keep their data safe.

In many specific instances, companies want to prevent their data from being accessible to cloud service providers (CSPs). However, organizations are now facing a new dilemma: What are they supposed to do when they want to permanently delete their data in the cloud?

Regulatory compliance and cloud data protection are two driving reasons for establishing encryption and encryption key management strategies. Furthermore, in the new world of cloud data security, the old concept of a castle has become ineffective; the concept of a curated museum is much more applicable to cloud data security. In this new world, organizations want to share data appropriately with many users and platforms without running the risk that it will be taken, changed, hijacked, destroyed or accessed by unauthorized users.

Learn more about Multi-Cloud Data Encryption

To complicate matters, the value of data can change quickly. As we know, information such as quarterly financial data has high value prior to its disclosure, but the necessity to keep it private significantly declines once the announcement of financial performance is released to the market. However, other data, such as pharmaceutical trial data, HR information from divested organizations and historical notes on litigation proceedings, can quickly become a liability if it is unintentionally disclosed to the wrong party after the collective work on these efforts has been completed.

When you combine the need for privacy, the desire to collaborate using shared data and the trend of leveraging cloud applications and storage, you can see the need to not only protect cloud-based data, but also to manage it throughout its entire life cycle, from creation to destruction. Furthermore, in the case of cloud deployments, this process needs to be managed and controlled in an environment that is not physically under your control. This last requirement raises the following questions:

Encryption has historically been used to protect data against unauthorized use. However, encryption can effectively erase data as well. This is called cryptographic erasure.

The National Institute of Science and Technology (NIST) released Special Publication 800-88, Revision 1: Guidelines for Media Sanitization, which detailed how encryption is part of media and data sanitation.

If strong cryptography is used, the publication stated, sanitization of the target data is reduced to sanitization of the encryption key(s) used to encrypt the target data. In laymens terms, this means that if the data is encrypted and you destroy the keys, the data is erased.

Of course, there are some qualifiers to claiming sanitization by cryptographic erasure. First, you must ensure that you have encrypted the data from the moment it was originally stored. Next, verify that you have exclusive access to all data encryption keys and ensure that all keys are wrapped under one or more wrapping keys. Finally, delete the wrapping keys to render the data encryption keys and data itself unrecoverable. Fortunately, these steps are not difficult to follow if you have the right tools.

For example, if you have a petabyte of data that has been encrypted from the moment it was placed in the cloud and control over the wrapping keys that protect the data encryption keys, then when you delete the wrapping keys, you render data encryption keys and the petabyte of data useless. This happens regardless of where the data is stored or whether you can even access the storage environment. In other words, you can effectively erase a petabyte of data by deleting just a few kilobytes of keys. Thats cryptographic erasure, and its powerful.

Naturally, you may want to recover the petabytes of bits associated with your now-useless data. Why pay to store petabytes of random bits? However, that is secondary to the erasure of the data itself.

The logistics of implementing cryptographic erasure fundamentally requires the system that stores and encrypts the data to be separate from that of encryption key management. Leveraging key life cycle management software packages helps maintain separation of these duties and functions.

Keeping your encryption engine separate from the encryption keys, as well as keeping the keys well-managed, is not just a best practice, but also keeps you on the right side of regulations and helps protect your most precious assets your encryption keys and encrypted data from threat actors. Remember that storage is inexpensive, but data is becoming infinitely more valuable, both as an asset and a liability. Control your data, protect it and ensure that it has a clear life cycle that you control.

The future architecture of data protection is clearly modular. We need to:

Following these practices ensures that your data, protected through encryption, will provide value through its lifetime and can be securely deleted when no longer valuable.

To protect data in a multicloud environment, organizations should still focus on implementing centralized policy management as well as centralized key management.

Guardium for Multi-Cloud Data Encryption offers the ability to encrypt cloud data across multiple clouds. It also integrates with IBM Security Key Lifecycle Manager. This combination of local but highly redundant key management, and the ability to concurrently manage tens of thousands of encrypted file systems or volumes in multiple clouds, gives organization the tools they need to protect and manage the entire life cycle of data regardless of where it resides.

Learn more about Multi-Cloud Data Encryption

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Set up VMware VM Encryption for hypervisor-level security – TechTarget

The new VM Encryption tool in vSphere 6.5 goes beyond standard VM-level security by performing the encryption at...

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the hypervisor level.

Doing the encryption at the hypervisor level instead of in the virtual machine makes encryption agnostic, as well as policy-driven -- VMware VM Encryption is managed via storage policy. While the main purpose of the tool is to enhance security, it means encryption is no longer an all-or-nothing proposal; encryption of the storage area network or underlying storage are no longer the only options.

There is a small overhead for VM Encryption, though this is to be expected in any encryption system. For what it's worth, I hardly noticed the overhead during my experimentation with ESXi encryption.

Implementing VM Encryption is quite simple. You can easily set up a basic proof of concept (POC) implementation for the encryption infrastructure, as VMware has designed the underlying cryptographic system to use third-party plugins. VMware's current list of approved vendors includes RSA and Symantec, as well as several others. There is currently no VMware implementation.

Before implementing the encryption system, it's important to understand how VM Encryption works. Put simply, the encryption is handed from the encryption VM to its client, the vCenter.

Setting up the cryptographic back end is straightforward. Most vendors will ship a VM appliance that can be installed, powered on and configured. Since configuring the cryptography for each of the vendor plugins is beyond the scope of this guide, I simply used the modified POC encryption manager that VMware released to beta testers.

This test version only keeps encryption keys for the duration of the machine's uptime. This is just a demonstration system and the encryption key will be lost upon reboot, so don't encrypt any machines you actually use. The best way to avoid running into trouble is to create a couple of test VMs.

Before implementing the encryption system, it's important to understand how VM Encryption works. Put simply, the encryption is handed from the encryption VM to its client, the vCenter. The vCenter then provides keys as needed to the ESXi hosts. These are stored in a secure manner to enable you to unlock the VM. The keys are never written to the disk on the ESXi host. However, the intermediate keys for locking and unlocking the VMs are stored in a secure encryption enclave.

To set up the encryption server, you need to set up a Linux host with Docker. Once you've done this, pull down the Docker image and run the instance with the following command:

sudo docker pull lamw/vmwkmip

sudo docker run --rm -it -p 5696:5696 lamw/vmwkmip

At this point the Docker image should be running on port 5696.

Now that we've covered how encryption is applied, let's look at how to set up the infrastructure. First, add the Key Management Service (KMS) server to the vCenter by going to the top level of the vCenter configuration menu and selecting Key Management Servers from the hyperlink on the left.

This will bring up a dialog box that allows you to enter KMS server details. The exact details will vary, and some KMS server configurations may require a username and password. We don't need to use one in this instance. The server address should be that of the Ubuntu server. The port used for this example is 5696.

Once you've submitted the KMS details, you'll be prompted to accept a certificate; accept this, and KMS will be set to the default.

At this point, the cryptographic configuration is complete. However, a single KMS is a single point of failure, therefore, I recommend configuring a minimum of two. Do not encrypt the vCenter or it will prevent vCenter from booting. You need to avoid this because vCenter is a key component of the cryptographic infrastructure.

The next step is to create an encryption storage policy. If you navigate to VM Storage Policies, you'll see a new storage policy titled VM Encryption Policy. There are several options that you can modify if necessary.

At this point, you can encrypt the VM. It's best practice to only encrypt the disks; it's possible to encrypt other items, but it's unadvisable unless you have an overriding reason to do so.

From here on out, encrypting the VM is clear-cut. Before encrypting a device, you must first power it off. Navigate to the VM you plan on encrypting and right-click to edit its setting and expand the disks to encrypt. Select the VM Encryption Policy from the VM storage policy drop-down menu.

Disabling VM Encryption is as easy as changing the policy to the default data store policy. Again, you must power off the VM to perform the necessary actions.

There are a few caveats to using VM Encryption. For one, it does not support exporting encrypted VMs to open virtualization format. The use of cryptography on a per VM basis is dependent on the business and security requirements of the company in question. Exercise caution when implementing the encryption and make sure you fully understand and recognize the ramifications and functionality of encryption.

NSX leads the pack for VMware security

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How the Politics of Encryption Affects Government Adoption – Freedom to Tinker

I wrote yesterday about reports thatpeople in the White House are using encrypted communication apps more often, and why that might be. Today I want to follow up by talking about how the politics of encryption might affect government agencies choices about how to secure their information. Ill do this by telling the stories of the CIOs of three hypothetical Federal agencies.

Alice is CIO of Agency A. Her agencys leader has said in speechesthat encryption is a tool of criminals andterrorists, andthat encryption is used mostly to hide bad or embarrassing acts. Alice knows that if she adopts encryption for the agency, her boss could face criticism for hypocrisy, for using the very technology that he criticizes. Even if there is evidence thatencryption will make Agency Amore secure, there is a natural tendency for Alice tolook for other places to try to improve security instead.

Bob is CIO of Agency B. His agencysleader has taken a more balanced view, painting encryption as a tool with broad value forhonest people, and which happens to be used by bad people as well. Bob willbe in a better position than Alice to adopt encryption if hethinks it will improve his agencys security. But he might hesitate a bit to do so if Agencies A and B need to work together on other issues, or if the two agency heads are friendsespecially if encryption seems more important to the head of Agency A than it does to the head of Bobs own agency.

Charlie is CIO of Agency C. His agencys leader hasnt taken a public position on encryption, but the leader is known to be impulsive, thin-skinned, and resistant to advice from domain experts. Charlie worries that if he starts deploying encryption in his agency, and then the leader impulsivelytakes a strong position against encryption without consulting his team, the resulting accusationsof hypocrisy could anger the leader. That might cost Charlie his job, or seriously undermine the authority he needsto properly manageagency IT. The safe thing for Charlie to do is to avoid deploying encryptionnot only to preserve his job but also to protect the rest of the agencys IT agenda. If Charlie doesnt change the agencys practice, then criticism of the practice can be deflected onto the previous leaderand of course well be upgradingto the better practicesoon. Here the uncertainty created by the leaders management style deters Charlie from changing encryption practice.

Lets recap. Alice, Bob, and Charlie are operating in different environments, but in all three cases, the politics of encryption are deterring them, at least a little, from deploying encryption. Their decision to deploy it or not will depend not only on their best judgment as to whether it will improve the agencys security, but also on political factors that raise the cost of adopting encryption. And so their agencies may not make enough use of encryption.

This is yet another reason we need a serious and specific discussion about encryption policy.

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Decipher your Encryption Challenges – Infosecurity Magazine

Every company I speak with is throwing the kitchen sink at protecting their network from external attackers, data breaches and mobile device loss. At the heart is the fundamental point that we all must accept: that where once corporate data sat ring-fenced on a server, it is now dispersed geographically, across many different devices, and moving all the time.

As IT and security professionals we keep battling with the need to keep the drawbridge down, but stop the baddies getting in, and ensure soldiers (data) outside the castle walls are safe.

Encryption has played a key role in protecting data for a long time. Thousands of years before the computer appeared there were Hebrew mono-alphabetic substitutions, and of course the use by the Romans of ciphers, being just a couple of examples. Yet despite its clear benefits in protecting against prying eyes, for a long time it fell out of favor.

Certainly, in early computing it was a complete pain to work with, and some might use stronger language than that! Whilst vendors eventually got their heads around making it more usable, the world moved on, and the problem is no longer simply about protecting data at point A.

Precisely because of the problems we laid out earlier the need to manage encryption across devices, locations and users have become an IT imperative. Any security professional knows that complexity leads to risk, and that spells danger for the enterprise. Not just from invaders, but risks of regulatory non-compliance, accidental data breaches, or simply the loss of a smartphone.

The challenge therefore has become to simplify the security landscape in the organization, without compromising on protection. In the case of encryption, this means being able to manage encryption across on-premise, cloud, hybrid-cloud and a myriad of devices, as well when it is with users who may not belong to your company.

Centralized encryption management solves the problem by ensuring keys are controlled from one point, and more importantly the keys themselves are stored outside the organization: after all there is no point locking your data in a box, but leaving the key in the lock!

This alone is not enough in the modern enterprise, you need to be able to manage that same encryption across cloud services, virtual machines and resources that you do not own. Its important to ensure that when you look at choosing an encryption provider that you consider this reality, otherwise you leave yourself greatly exposed.

Encryption is here to stay, it is the last line of defense when a breach occurs, whatever action caused it, invader or accident. With so much at stake for a business in terms of reputation damage, regulatory fines, and ultimately the bottom line, centralized encryption management is the route to bringing clarity to effective encryption. Remember, nobody ever got fired for implementing encryption, but they probably did for mismanaging it.

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Opinion: What’s the Difference Between a Bitcoin Hard Fork and an Altcoin? – CoinJournal (blog)

The general way in which rule changes have been made to Bitcoin so far is through the use of soft forks, specifically the process outlined in BIP 9 (at least these days). Soft forks are backward compatible users are not required to upgrade their software clients in order to stay on the network with the new rules.

In recent years, there have also been multiple attempts at building support for hard forking changes to the Bitcoin network, mainly for the purpose of increasing the block size limit. A hard fork requires that everyone abandons the current Bitcoin consensus rules and moves over to a new network with a different set of rules; a process not too dissimilar from the creation of an altcoin.

So what is the difference between a hard fork and an altcoin?

Before getting into the explicit differences between these two terms, both of them should be clearly defined.

Bitcoin.org defines a hard fork as follows:

A permanent divergence in the block chain, commonly occurs when non-upgraded nodes cant validate blocks created by upgraded nodes that follow newer consensus rules.

Its a bit more difficult to find anything close to an acceptable definition for altcoins. Investopedia describes them as alternative cryptocurrencies launched after the success of Bitcoin.

Although there are similarities between Bitcoin hard forks and altcoins, there is also at least one major difference that is common, although not a requirement.

A hard fork of Bitcoin will preserve the distribution of bitcoins from the point at which the fork takes place. This means that anyone who had 10 bitcoins on the original network will also have 10 coins on the new network.

While new altcoins can also be created in this manner, there is almost always a new, initial distribution of tokens via a crowdsale, mining, or some other mechanism.

In the past, Bitcoin Unlimited Chief Scientist Peter Rizun, the Augur team, and others have also promoted the concept of launching new altcoins with the initial distribution based on the distribution of bitcoins at a certain block height. This is kind of a way to help bootstrap the network effect of a new token by piggybacking on top of bitcoins network effect. Having said that, there is much more to a cryptocurrencys network effect than its token distribution perhaps most notably, how users value those tokens.

If everyone moves from the original Bitcoin network to a new, hard-forked network, then it is fair to call the new network Bitcoin and dismiss the original network completely. If everyone does not move over to the new network, then the altcoin moniker may be more accurate.

Some would say that the difference between an altcoin and a hard fork is simple because the true version of Bitcoin will have the most SHA-256 hashing power behind it. However, an attempted hard forking change to Bitcoins proof-of-work algorithm (currently SHA-256) could potentially lead to the existence of two blockchains people are calling Bitcoin for a long period of time. The version of Bitcoin with an alternative proof-of-work could be much more popular than the chain that uses SHA-256.

The differences between altcoins and hard forks get a bit blurry when a contentious hard fork takes place. If Bitcoin is hard forked and only half of the network moves over, then what has really happened? Is the hard fork an altcoin? Which network deserves to be called Bitcoin? Are either of them really Bitcoin?

A less severe version of this issue occured with Ethereum. When Ethereum hard forked to allow those who lost funds due to buggy code in The DAOs smart contract to get their ether back, some 85 to 90 percent of the users moved to the new chain. This left roughly 10 to 15 percent of the users on the old chain, now referred to as Ethereum Classic.

So which Ethereum is the real Ethereum and which is an altcoin?

Right now, the general social consensus is that the hard-forked version of Ethereum is Ethereum. Many of the most prominent Ethereum figures, including the platforms creator, have thrown their support behind the new network, and nearly everyone refers to the new chain as the true version of Ethereum.

Of course, it begs the question: What would happen if Ethereum Classic gained a larger market cap and general level of activity than what is currently referred to as Ethereum? Would everyone then start referring to Ethereum Classic as Ethereum or would everyone keep calling it Ethereum Classic?

One caveat to the above scenario is that the Ethereum Foundation owns the trademark to Ethereum in the United States and the European Union. Its unclear what action the Ethereum Foundation would take (or could take) if everyone started to refer to Ethereum Classic as Ethereum again. Having said that, this issue does not exist in Bitcoin.

This issue may be about to play out in the real world as Grayscale Investments, who is behind the Bitcoin Investment Trust, plan to release an Ethereum Classic investment vehicle and call it the Ethereum (ETC) Investment Trust.

Things can get rather confusing as sometimes you cant be sure if youre hard-forking the network, creating an altcoin, or both. What looked like a hard fork at first could turn into an altcoin a year later under the right (or perhaps wrong) circumstances even if it appears that the hard fork has the vast majority of support before it happens.

From the examples provided by the Ethereum community up to this point, it would appear that hard forks that fix an issue at the protocol level that is negatively affecting everyone on the network generally do not lead to the creation of an altcoin. Anything else can get weird.

Thank you to Aaron van Wirdum for providing feedback for this article.

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New Guidelines Give Bitcoin Startups In The Philippines ‘A Fighting Chance’ – Forbes


Forbes
New Guidelines Give Bitcoin Startups In The Philippines 'A Fighting Chance'
Forbes
Earlier this month, the Filipino government issued regulatory guidelines concerning Bitcoin use in the country. The guidelines were welcomed by startups in the country, as official clarity and endorsement of the cryptocurrency are expected to help ...
Latest Regulatory Changes Give Bitcoin Startups in the Philippines A Chance to SurvivenewsBTC

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BTCC CEO Lee Pegs Bitcoin Price Between $5000 and $11000 by 2020 – CryptoCoinsNews

Bobby Lee, BTCCs co-founder and CEO recently tweeted a bitcoin price prediction, which is between $5,000 and $11,000 by 2020, after the block reward halving. The entrepreneur, who regularly makes predictions, also stated the daily inflow would scale accordingly from the current $2 million a day level, up to $5-$10 million a day.

Bobby Lee also reminded his 5,600 Twitter followers his medium-term price target for bitcoin is of, well, $5,600. There was, however, no mention of how long it will take bitcoin to reach that value. Later on, Lee also said that a $5-$10 million daily inflow isnt a lot. He compared it to golds inflow of $340 million a day.

The CEOs enthusiastic bitcoin price prediction comes after BTCC, one of Chinas biggest bitcoin exchanges, suspended bitcoin and litecoin withdrawals until March 15, in order to introduce new security requirements and comply with requests from the Peoples Bank of China (PBOC). Recently, Chinas big 3 bitcoin exchanges enforced a suspension of cryptocurrency withdrawals, and in response, traders turned to peer-to-peer marketplace LocalBitcoins.

As reported by CryptoCoinsNews, LocalBitcoins recently recorded a global all-time high, as Chinas trading volume surged in response to the exchanges decision. Its worth mentioning LocalBitcoins is blocked in China, as it uses Googles reCAPTCHA system, so users need to use a VPN to access the platform.

In the past,the CEO has addressed bitcoinsfuture in a positive way, by urging to community to scale responsibly and to be patient, so as to focus on maintaining bitcoin as a reliable digital asset. His upbeat attitude hasnt changed with time, as tough times for bitcoin in China never seem to have bothered him that much. He also sees bitcoins low volatility as a sign of maturity, just alike a few other experts, as bitcoin needs low volatility in order to maintain its growth and stability

Positivity is always welcomed in the bitcoin community. PBOCs interference with bitcoin has taken a toll on the cryptocurrencys value in the past, as it even forced HaoBTC, a prominent bitcoin company, to shut down its exchange. Nevertheless, bitcoin recently bounced back and managed to go beyond its new all-time high.

Image from Shutterstock.

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Deletable blockchain might make cryptocurrency more user-friendly – TNW

Thanks to the amount of technical savviness one needs to posses to use them,many cryptocurrencies are rather inaccessible for average users. PascalCoin a new cryptocurrency is ready to change this with deletable blockchains.

The project has made considerable headway since releasing its first beta version in July last year.According to The Merkle, there is a lot of trading activity and buzz aroundthe new altcoin but as of yet there are no merchants or platforms accepting it as a payment option.

PascalCoin is therefore not going to oust bitcoin any time soon, but it does employ interesting new strategies to create a cryptocurrency. Instead of relying on transaction history in blockchains, like most other cryptocurrencies, PascalCoin uses safebox with a safebox hash.

The safebox feature makes it unnecessary for the end user to download a blockchain of historical operations, making PascalCoin the first cryptocurrency to do that. The balance is included in each block of the blockchain so the chain can be deleted without affecting the ability of making transactions.

By saving the balance of the account on each block, thenew altcoin hopes to simplify cryptocurrencies and become moreappealing to the general public. Instead of long hacker-esque series of random numbers and letters, PascalCoin features up to 10-digit account numbers that include the balance and make the experience more similar to regular bank accounts.

The safebox is also meant to avoid the issues that have been detected with bitcoin. One of those issues beingdouble spending, when people attempt to do two transactions with the same funds, which is aknown problem with bitcoins.

When discussing cryptocurrency, the issue of traceability often arises. Many worry that cryptocurrency can aid criminals in their illegal dealing, although that might be changing. Pascal Coin will not be any more untraceable than bitcoin, even though it allows you to delete the blockchain. Deleting the blockchain can make the transaction history more obscure but anybody that possesses the full block chain will be able see it.

Its way too early to tell whether PascalCoins take on cryptocurrency will change anything about the future of cryptocurrency. However, new additions to the world of digital currencies are always interesting, especially if they bring it closer the public.

PascalCoin Is A Cryptocurrency With a Deletable Blockchain on The Merkle

Read next: First Uber, now Tesla: Employee sues over sexism, inappropriate conduct

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China preparing to launch blockchain-based cryptocurrency – Siliconrepublic.com

China is forging ahead to be the first country to offer its own digital cryptocurrency based on blockchain technology, following successful trials.

Despite instances of enormous fluctuation in price, cryptocurrencies such asbitcoin remain incredibly popular, thanks to its detachment from any nation states bank and its ability for users to trade anonymously.

For this reason, traditional banks and governments have been sceptical about its potential for undermining existing currencies.

Yet now, one of the worlds largest economies is throwing caution to the wind by potentially launching the worlds first national cryptocurrency under the Peoples Bank of China.

According to Bloomberg, the Chinese government has been exploring the possibilities of cryptocurrencies for nearly three years, having set up a research team in consultation with digital firms such as Deloitte.

For the end user in China, services such as WeChat or Alipay would remain largely the same but transaction costs would be lower, as a state-run cryptocurrency would mean payments coming directly from the buyer.

This possible launch of a digital currency comes at a time when the number of Chinese people making online payments is continually increasing, from 200m in 2014, to an estimated 630m by 2020.

The core of the digital currency will be based around blockchain, the distributed ledger technology that has made bitcoin what it is today and could possibly revolutionisemodern and future business.

By using blockchain, China will be able to collect vast quantities of data on every transaction in the hope of better predicting monetary forecasts.

Larry Cao, director of content at the CFA Institute in Hong Kong, has described the move as revolutionary.

Cutting costs is an obvious benefit, but the impact of shifting to blockchain-based digital money from the current payment structure goes beyond that, he said.

Theres a potential you can pay anybody in the system, any bank and any merchant directly. Blockchain will change the whole infrastructure.

With plans to launch thiscryptocurrency soon, China will replace a significant amount of its paper tender, with analysts predicting that banks and payment companies will need to radically rethink their business models in the years to come.

Peoples Bank of China tower in Hong Kong. Image: chingyunsong/Shutterstock

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China preparing to launch blockchain-based cryptocurrency - Siliconrepublic.com

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