Tag Archives: TradeCoinClub

Users of ‘Btc-e’ cryptocurrency exchange reporting spike in email phishing attempts

Users of 'Btc-e' cryptocurrency exchange reporting spike in email phishing attempts

   Bitcoin exchange 'Btc-e' was previously targeted by hackers in 2014iStock

Users of a popular cryptocurrency exchange called Btc-e are reporting a significant spike in email phishing attempts, a potential harbinger of a fresh spam or malware campaign being launched in an attempt to defraud the bitcoin community. The reports emerged this week (2 May) on the bitcoin sections of Reddit and Twitter, with many recipients posting images of the spam that appears to currently be in circulation.

The attacker is luring victims by asking them to "review attached Btc-e codes" and claiming they only have a matter of hours to redeem them. The emails contain a password and a Microsoft Word document. Sender names vary, with some to date including Pierce Cynthia and Parsons Dillon. One Reddit user wrote: "In the word document it claims to be an encrypted document (really just an image). To decrypt it you have to enter the code from the email. Once you do that it downloads a program that encrypts your whole computer."

Another claimed: "I got the same thing. Seems like btc-e.com has had a breach of their account details. [The attacker] had my email and username, passwords may have been taken too but likely hashed so it may be worth changing your password just to be on the safe side." According to one Twitter user with name "GasGeverij" – a self-described penetration tester – the slew of fraudulent emails may be part of a "well-organised spam campaign leveraging [the] new Office vulnerability bypassing Gmail and Yahoo filters". This is in reference to recent reports from cybersecurity firms McAfee and FireEye, which discovered a bug in Word that hackers could exploit by using attached documents to spread malware and exploit kits. Before a patch was released it put "millions of users" at risk.

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member

TradeCoinClub

TradeCoinClub

I have been laying low a bit lately while searching out and researching the best stuff online today, trying to fully and carefully apply whatever wisdom I’ve gained in some 13 years of working in this minefield.  And… I am SO happy to have MAJOR News for you! THIS may well be the best I have found, perhaps ever….

BITCOINS, YES –

Most knowledgeable online workers now prefer to use Bitcoins in business, for many very good reasons. Among the most knowledgeable, many have been looking for a TRADING PLATFORM for CRYPTOCURRENCIES and using Bitcoin, but there has not been anything genuine to date.  THAT HAS NOW CHANGED. 

WE CAN NOW –

–>> PASSIVELY EARN FROM FULLY AUTOMATED TRADING OF THE TOP TEN CRYPTOCURRENCIES.

–>> LEVERAGE BITCOIN AND EARN DAILY PASSIVE BITCOIN.

–>> DIVERSIFY PASSIVE BTC EARNINGS IN A POWERFUL NEW WAY.

–>> ACTIVELY EARN STILL MORE BTC BY REFERRING TO THE PLATFORM.

TCC: WHAT IT IS –

Trade Coin Club is an offshore registered company offering an automated trading platform for major cryptos.  Management is international and highly qualified. TCC trades in cryptos with licensed software that performs many millions of trades per day in ten of the major cryptocurrencies like Litecoin, Dash, BTC, etc. TCC itself works entirely with Bitcoins.

Globally in the launch and pre-launch in different regions. The company is full-function and earning and paying now.  This Site is sophisticated and well developed already and fully activated. TCC is uniquely well positioned in a high-demand global niche.  It is super-attractive for builders and leaders as well as for those who simply want to remain passive and leverage their Bitcoins into ever larger numbers.   Miners too will find it a highly attractive diversification that will likely earn a lot more strongly for them.

BENEFITS – PASSIVE:
Recent member reports indicate “trading” profits of around 20% monthly – in dynamic rising Bitcoins!  Set it and let it run.  Those returns are substantially better than “mining”.

ACTIVE:
Members who refer receive 10% on both levels one and two, and lesser amounts down to as many as 8 levels.  Plus referrers can earn 8 to 10% daily from a binary structure too.  And there are MORE referral bonuses. It’s rich, but it is also very smart.
Compounding of one’s choice of all or some earnings is available. Withdrawal of earnings is on demand.

Ride the BTC Rise: 
We are working 100% in Bitcoin, so as BTC rises we enjoy the full benefits of its rise – to who knows what heights!  This is in contrast to some online options that actually work in dollars and only use BTC for pay in’s and out’s.  In this as BTC rises your dollar based payout in BTC falls.

GUIDANCE –

It is scant on the site at the moment, as it is so early in the life of TCC, so the guidance to signing up, getting set up and earnings, etc., is currently best obtained in Youtube videos and not so much in the back office… as yet

Learn more:
TCC Details and OVERVIEW Videos and PDF –

TCC Presentation and background by boss, Joff Fortune, short, 20 min:  https://youtu.be/NiI7Joi_kag

TCC office in Belize: https://youtu.be/JHEDZ3PXx5Y

TCC PDF manual:  http://dreameagles.info/TCC/TCC_Manual_2-23-17.pdf

My personal advice is to dig in and enjoy these resources.  But do not get bogged down and too delayed in your explorations.  There can be good benefits to making your move quickly.  Be sure to have some Bitcoins, and a wallet to use for business.  I am personally using Coinbase and Blockchain as my bitcoin processors.  There are several choices.

How to Proceed –
Let’s keep this smooth and simple and let the videos take care of the heavy lifting.  Use them to ease your way and to avoid simple errors.

Cost Notes:
Joining is free, so you can do that immediately. Minimum to participate actively is 0.30 BTC (0.25 plus a one time 0.05)  Other entry levels are at 1 BTC and the highest at 5 BTC from which one will earn the most the fastest.

Referring?  Edit this info page if you wish with your reg link.  Duplicate the process of sharing these resources if you decide to build teams, pass these instructions on.  (Note: You need to be upgraded to at least the lowest Apprentice level package to refer.)

REGISTRATION LINK -> https://office.tradecoinclub.com/register/chuck 
Be sure your sponsor is listed as: Chuck

INSTRUCTIONS VIDEOS, use these as detailed guides, follow these.

1. SIGN UP PAGE:
https://www.youtube.com/watch?v=p8dFkcWlEF4&feature=youtu.be&hd=1

2. BUY YOUR PACKAGE:
https://www.youtube.com/watch?v=LPnZaKO4mnA&t=633s

3. HOW TO ACTIVATE YOUR WEEKLY AUTOMATIC TRADE:
 https://youtu.be/sneX_yRH8Og

BECAUSE OF LEGAL DEPARTMENT RECOMMENDATIONS, WE MUST NOW SET OUR TRADES EVERY WEEK. PLEASE MAKE SURE TO LOGIN EACH WEEK BETWEEN SUNDAY 4PM PST AND MONDAY 3:59PM PST TO RESET YOUR TRADES ACTIVATION.

4. SUBMITTING DOCS CORRECTLY:

 (AT YOUR CONVENIENCE)  documents can be submitted later but before requesting withdrawals.
https://youtu.be/zVAM7jDlwOk

5.  Refer if you wish. 
Edit this email to make it your own, with care to the signup link, and share it with your favorite contacts and friends.

6.  WHY IS THE EXCHANGE RATE WALLET ONLY SHOWING HALF OF YOUR DEPOSITS?
https://youtu.be/E8D4MhTmowA

7.  HOW TO COMPOUND YOUR EARNINGS.
https://www.youtube.com/watch?v=4mHr6jcHIfw&t=370s

8.  More info:
 http://www.tradecoinclub.info

9.  ENJOY A BETTER LIFE IN A RICHER WORLD. 

Once again…

REGISTRATION LINK -> https://office.tradecoinclub.com/register/chuck
Be sure your sponsor is listed as:  chuck

P.S. keep this page for future reference and edit it to suit your needs.  Thank you. 

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member

TRADE COIN CLUB (TCC) : A Platform for Trading and Earning Bitcoins Easily

TRADE COIN CLUB (TCC) :
A Platform for Trading and Earning Bitcoins Easily

Trade Coin Club (TCC)

is the world’s first licensed top 10 auto-trading cryptocurrency platforms. It is a membership trading platform to earn bitcoin with a high automated security system. It’s a membership club, created to revolutionize the trading market of digital coins. As it today 23rd, February, 1 Bitcoin = $1,146 and 1Bitcoin is predicted to be up $2000 by December 2017

Why Should You Invest in TCC?

1) You earn daily in bitcoins which can be withdrawn and converted to cash immediately or left to compound for a month.

2) You earn daily without needing to refer anybody; but if you do refer, your earnings become magical.

3) Bitcoin has been approved as a Legal Tender in Japan & Philippines with more countries gearing up to do same; these announcements is causing and will yet cause the value of bitcoin to appreciate tremendously.

With all of this information coupled with the fact that bitcoin is highly liquid, that is, easily converted to cash, I strongly advise all who can afford it to get onboard TCC investment without delay and don’t miss this golden opportunity. In case you don’t understand what TCC Investment really is, not to worry as I have attached in this email 2 videos that will help you if you would take the time to watch them to the end. Remember, what you don’t know, you don’t know and what You don’t know, You can’t benefit from.

Steps to Register for TCC

1) Click Here to Register

2) Call us on 07059546314 to get the current rate of Bitcoin and buy to sign up for a plan in TCC then you can be a part of the trading.

(3) You will need a minimum of 0.3Bitcoin to sign up for a plan in TCC

(4) After making payment, send your TCC Username & Password to cryptoprenuers@gmail.com for funding; but if you have a bitcoin wallet and can handle the funding yourself, then watch the videos in your back office and go ahead and fund.

Chuck Reynolds
Contributor
559-474-4614

 

Alan Zibluk Market Hive Founding Member

Trade Coin Club Is Officially Live And Trading Crypto Currencies!

Trade Coin Club Is Officially Live And Trading Crypto Currencies!

                                 

Trade Coin Club,

the first cryptocurrency exchange that is licensed and insured. It uses automated trading software is now up and running and generating massive profits for those who are depositing their bitcoins. Trade Coin Club is free to join. It does require a deposit of at least.30 bitcoins to start trading. Trade Coin Club is based in Belize and now has members in over 150 countries. It was started by Joff Paradise, a Germany born entrepreneur based in Las Vegas, Nevada. Paradise has run and owned several businesses including restaurants, casinos, health club chains, clothing lines and satellite networks in the Caribbean.

Trade Coin Club entered its official pre-launch in late January 2017. Thousands of traders have already been using the platform at the time. As the membership base continues to grow, Trade Coin Club etches out a unique niche in the crypto currency space with its revolutionary trading software.

Joining Trade Coin Club

The platform has an easy to use back office where you can deposit and withdraw your bitcoin, move coin within the exchange, set your trading levels, sign up new members and much more. There are three different levels of joining: Apprentice, Trader, and Senior Trader. Each has its own level of benefits and thresholds. The Apprentice level requires a bitcoin deposit of .30 to .99 to get started. The Trader level requires a 1 to 4.99 bitcoin deposit. And the Senior Trader requires at least a 5 bitcoin deposit to get started.

For those who want to refer others to the exchange, there is a very generous referral program attached. Although it is not required, you can refer others to the exchange for a generous referral commission that goes directly into your account. Adding these commissions to the exchange account can really increase your profits exponentially. This is how the exchange leverages the concept of compound interest with both interest and additional deposits.

Chuck Reynolds
Contributor
559-474-4614

Alan Zibluk Market Hive Founding Member

A New Crypto Coin Exchange Launches With Hands-Free, Automatic Trading!

A New Crypto Coin Exchange Launches With Hands-Free, Automatic Trading!

   The-Crypto-Coin-Exchange

A brand new crypto coin exchange named Trade Coin Club (TCC)

is up and running and generating massive profits for those who are depositing their bitcoin! This is the very first fully licensed, insured, brick-and-mortar crypto coin exchange and trades the top 10 crypto currencies of the day. The program uses high volume automated bot trading with proprietary algorithms so depositors don’t have to do ANYTHING other than sit back and watch their bitcoin account increase every day.

This new crypto coin exchange is revolutionizing the cryptocurrency space and people are flocking to it in droves to deposit their bitcoin. TCC already has members in over 150 countries at the start of the pre-launch in late January 2017! You can create a FREE account in Trade Coin Club. But it is a private club, where you have to be invited by a current member. (This allows Trade Coin Club to pay huge amounts of referral commissions to members, thereby exploding their crypto coin exchange trading profits.) Joining is completely free. You can create your free account and browse the back office by following the instructions here: How To Join Trade Coin Club. I can help you 559-474-4614

Could This Brand New Crypto Coin Exchange Be Your Ticket To Financial Freedom?

Many members who are getting in early are earning dozens of bitcoin totaling an equivalent of tens of thousands of dollars! If you have ever thought about what it would have been like to invest a couple hundred dollars into bitcoin when it was around a dollar a coin, then perhaps that missed boat has come back around. For more information and tutorials on how to earn bitcoin with Trade Coin Club, see my Trade Coin Club Tutorials page. And feel free to contact me with any questions about the program.

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member

Malta is Embracing Bitcoin and Blockchain in Sweeping National Strategy

Malta is Embracing Bitcoin
and
Blockchain in Sweeping National Strategy

Malta’s government is reportedly developing a broad national strategy

that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology. According to a report by Malta Today, the island nation’s Cabinet has approved the first draft of a national strategy to promote blockchain. The revelation was made by Malta’s Prime Minister Joseph Muscat, speaking at an official financial conference. “We must be on the frontline in embracing blockchain and Bitcoin…we must be the ones that others copy,” the prime minister reportedly stated.

The prime minister bullishly added that Malta would become one of the first countries in the world to embrace blockchain technology on a national level. The national strategy, which is still in its draft stages, will be put up for public consultation soon, Muscat added. While keeping most details under wraps, Muscat hinted a few applications of blockchain technology, particularly for record-keeping in registries.

The prime minister stated:

This is not just about Bitcoin, and I also look forward to seeing blockchain technology implemented in the Lands Registry and the national health registries. Malta can be a global trail-blazer in this regard.

The ‘Bitcoin continent of Europe’

Muscat’s comments are notable for the significant endorsement of blockchain technology by the prime minister, who is the country’s highest official as the head of the government. Malta’s Prime Minister Joseph Muscat is championing the use of cryptocurrencies like bitcoin and blockchain technology. The prime minister called on other European Union leaders to embrace and harness the potential of cryptocurrencies in order to become the “Bitcoin continent of Europe”, according to a notable quote reported by Malta Today.

He stated:

I understand that regulators are wary of this technology but the fact is that it’s coming. We must be on the frontline in embracing this crucial innovation, and we cannot just wait for others to take action and copy them. We must be the ones the others copy.

Muscat is making a pointed attempt at pushing the agenda for blockchain technology in a post-Brexit reality, hoping to lure any part of the FinTech industry from the UK, widely regarded as the world’s hub for financial technology. Bringing over even a measly 1% of the UK’s FinTech industry to Malta’s shores would bring in €200 million to the local economy, the prime minister revealed. Meanwhile, Malta’s Stock Exchange has already set to path the development of its strategy to research blockchain technology in late 2016.

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member

Blockchain Lets This Startup Trade Gold That’s Still in the Ground

Blockchain Lets This Startup Trade Gold That's Still in the Ground

  

A number of Blockchain Projects have focused on Trading Bullion

During the past year, a number of blockchain projects have focused on trading bullion, but what about gold that's still in the ground? That seemingly unlikely business model is precisely the aim of a new partnership announced last month between Orebits, a startup providing asset-digitization for precious metal reserves, and blockchain product provider Symbiont. The deal would see the creation of so-called smart certificates, or smart contract investment instruments, tied to proven gold reserves (supplies of the metal known to be in the ground, but that haven't yet been processed). Despite the physical restrictions of the gold itself, the smart certificates, known as 'orebits', can now be freely traded and exchanged as tokens on a blockchain platform provided by Symbiont. Michael Zimits, Orebits’ president, and COO, told CoinDesk that each of the certificates will be backed by five ounces of proven gold reserves.

He said:

"Orebits derive their value from the price of traded gold, providing exposure to the price movement of the precious metal without having to deal with the physical properties and logistical concerns of holding the asset in tangible form."

As for how someone might confirm the gold reserves are real, Zimits explained that the smart contracts house this information directly. "This documentation is made available on the distributed ledger as part of the smart contract and includes geological surveys and findings, geologist verification, registered chain of custody, corporate documentation and owner background verification," he said.

As such, the partnership represents the latest effort to bridge the worlds of gold and blockchain. So far this year, companies like Euroclear and long-standing institutions like the UK Royal Mint have revealed plans to launch marketplaces enabling gold exchange via the technology. In this light, Orebits is the latest entry in what is proving to be an attractive use case for blockchain, and further fits into the broader trend of enterprises seeking to leverage blockchain tech to open new revenue streams.

Chuck Reynolds
Contributor

 

Alan Zibluk Market Hive Founding Member

Tencent Joins China Blockchain Race With New TrustSQL Platform

Tencent Joins China Blockchain Race With New TrustSQL Platform

  

The Chinese Internet giant Tencent

is building its own Blockchain for enterprise-level services. Its platform, TrustSQL, aims to provide all the tools necessary for developing Blockchain applications for businesses. “It is found that the meaning of the Blockchain is that it can build a more reliable Internet system, fundamentally solve the value exchange and transfer in the existence of fraud and rent-seeking phenomenon,” a translated portion of Tencent’s whitepaper by Investopedia reads.

“More and more people believe that with the popularity of Blockchain technology, the digital economy will be more authentic and credible and the economy and society will become more fair and transparent.” Composed of three layers – core chain, product service, and applications – TrustSQL will include support for all manner of Blockchain-enabled tasks, including “digital assets, shared books, proof certificates, stock swaps and proprietary transactions,” the publication quotes the whitepaper.

Tencent has been somewhat off the radar in terms of Blockchain innovation until now. While fellow Asian tech giants such as Baidu and Samsung have been active in the research field, the company was identified as a potential loser in the ever-evolving regulatory setup in China. Tencent, as part of the so-called BAT group along with Baidu and Alibaba, is known for its tenacity in disruptive financial technologies, with all three outfits working at breakneck speed to update the Chinese domestic market before traditional banks.

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member

Considerations when Pursuing Patent Rights in the Blockchain Technology Space

Considerations when Pursuing
Patent Rights in the Blockchain Technology Space

  

A blockchain is a subtype

of distributed ledger data structure, in which transactions are grouped into “blocks” that reference each other in cryptographic hashes.  Technologies are developing that implement blockchains to solve all sorts of problems related to transactions: privacy, security, data integrity, double-spending, dynamic/smart contracting, payments, interoperability, etc.  I started in this space at a time when there was very little published literature on blockchain technologies, including published patent applications. Times have changed; now patent applications for blockchain technologies are readily available, with many patents granted.  Blockchain technologies are a red-hot investment and development space right now and will be for at least the next couple of years. Many blockchain technology innovators begin with the same concerns. These concerns inspire the following five points of considerations for innovators in blockchain technologies who are interested in securing intellectual property rights.

Time is of the essence.  In 2011, the United States passed the America Invents Act, which was legislation that changed the patenting regime such that between two competing inventors filing an application for patent rights in the same or similar invention, generally the first inventor to file with the United States Patent and Trademark Office (USPTO) is the one who gets to claim patent rights on the invention.  Development in the blockchain technology space is moving at break-neck speed; a  compilation shows that since 2014, there are at least 275 patent applications in the blockchain technology space (and this list is missing quite a few groundbreaking publications).  Notice that blockchain-technology patents granted in the US tie the inventions to the physical computer processors. 

That’s yet another Alice-inspired patent application drafting adaptation.Strongly consider filing a provisional patent application as soon as feasible.  A provisional patent application does not need to be as detailed as a nonprovisional patent application, thus they are drafted quicker than are non-provisional patent applications.  The earlier a proper patent application is filed, the smaller the body of “prior art” from which the USPTO can pluck references to use against the invention’s patent application. Because time is of the essence, inventors will want to be organized enough to so that their patent attorneys can directly get to the meat of the innovative features of the invention. Patent attorneys benefit greatly from white papers and commented code. The attorney will be more efficient if s/he is able to reference well-drafted technical specifications. Great organization is a leg up in the race to file to the USPTO.

Find an appropriate patent attorney.  Not just any patent attorney– one with a technical background in computing applications.  The laws surrounding software-implemented inventions are quite convoluted and complex since the Supreme Court case Alice (2014) took us all down the rabbit hole.  So much so that many patent attorneys, who do not understand software applications well enough to understand the highly nuanced evolution of case law in this area, will say bizarre and wholly misleading things like “software can’t be patented.”  The intended meaning of the statement is absolutely false; software-related patent applications are granted nearly every Tuesday by the USPTO.  Likewise, if a candidate patent attorney gives the aura of being a master in this patent space, s/he does not have the mindset serve any blockchain technology client.  This space is developing so fast– no one understands or can hope to understand all of it anytime soon.  For now, all attorneys (even those with highly relevant computational technology backgrounds) must lean heavily on their inventors to understand the relevant aspects of blockchain technologies–things are moving rapidly for blockchain technologies.  That being said, though, an attorney who has worked with some clients in this space likely will have some foundation upon which to build an understanding of the invention.  When interviewing attorneys, ask about their relevant technical backgrounds.

If the patent application is simple, it’s stupid. Inventors and their patent attorneys should study granted patents in this space (most of which are well post-Alice!).  Not a single granted patent application in this space is written such that a layperson can easily understand the invention. This is absolutely appropriate because these applications are judged by the examiner under these criteria: they must be written so that a ‘person having ordinary skill in the art’ (PHOSITA) would be able to replicate and innovate off of the allowed patent application after the original invention’s patent term runs out.  Even with a software development background in network science, parallel computing, and trade-settlement technologies, and experience with blockchain technology patents, there are many concepts in the blockchain technology space that are still challenging for me.  I take care to probe my inventors as a PHOSITA.  Be careful about how much the attorney simplifies a patent application in the software-related arts space; it’s this dumbing down that’s led to the rejection of patent applications for truly innovative and nonobvious inventions (and began a progeny of absurd case law interpretation, a la Alice).

But do keep it neatly comprehensible. Remember that examiners and judges at the USPTO that will be reading the patent application, and that an assigned examiner might not know much about blockchain technologies yet.  Good patent applications for cutting-edge technologies set definitions early and conspicuously in the patent application. Define blockchain!  Blockchain networks and distributed ledger systems are not synonymous.  There is even disagreement as to the whether or not ‘blockchain’ is a concrete noun.  If consensus protocols are integral to the invention, patent application drafters should take care to define and describe them.  Many rejections of patent applications are as result of indefiniteness in the language of the application.  Drafters should not assume a USPTO examiner is just going to do an internet search and learn about these fundamental definitions on some widely-used wiki.  Have consistency between the language of the claims and the specification part of the application.  Claims inherit meaning from the relevant sections of the specification.  Patent prosecutors can and remind examiners of that when the examiner strays from proper claim interpretation.

Many inventors will pursue patent protection on the down low as they try to figure out what exactly they’re going to do with the invention.  Maybe the inventors are ultimately going to altruistically share the rights of to the technology for the greater good (altruism is a central cultural ideal and consideration in the original blockchain technology space or to get the network effects of a robust network of nodes.  No one yet knows for sure, however, what the future of blockchain technologies will look like. This is why inventors and their investors may want to bundle the rights in their IP now so that their choices for disposition are not foreclosed at the outset. As examples, opportunities may be foreclosed by another entity claiming the invention or the inventor’s own public disclosure.  Many inventors pursue patents for “defensive” purposes.  In any case, attorneys are bound by the highest level of confidentiality and may not act in ways that are averse to their client’s interests and wishes.  Patent attorneys in this space should seek to understand the culture of inventors and inventions in this space.

Blockchain technology innovators, in my experience, have great foresight and can understand many advanced concepts in patent law, perhaps because one must understand the economics of incentivization/gamification to implement true blockchain technologies.Raina Haque is the founder and lead patent attorney of Erdos Intellectual Property Law. Her technical background is in software engineering and bioinformatics. Prior to joining the legal profession, she was a business analyst and software engineer at a major Wall Street financial firm for global portfolio trading technologies. She was a research fellow at the National Institutes of Environmental Health Sciences in the Neurotoxicology and Nuclear Magnetic Resonance labs. At Wellesley College, her alma mater, she majored in bioinformatics. She serves the intellectual property needs of high tech and design clients. For more information, or to contact Raina, please visit her firm profile page.

Alan Zibluk Market Hive Founding Member

How Blockchain Startups Will Solve The Identity Crisis For The Internet Of Things

How Blockchain Startups Will Solve The Identity Crisis For The Internet Of Things

  

The popularity of technologies

like the self-driving car and Amazon Echo are rising; it’s not hard to imagine a world where your coffee maker knows when to summon your morning Uber to work, and it arrives with groceries and laundry detergent, ordered directly by your refrigerator and washing machine, as they have recognized that they were low on supplies.This future will be powered by a set of inanimate objects connected through an emerging network known as the Internet of Things.  However, just as the security around the transfer of data between humans and companies is required to safeguard humans from identity theft, the same will be required for objects within the Internet of Things.

Identity protection is an emerging area for the Internet of Things. Millions of inexpensive consumer devices ship with a default username and password, but some of them end up in your house. Last winter a piece of software called Mirai herded hundreds of thousands of home routers and cameras into the most potent botnet ever, which then generated the first terabit scale distributed denial of service ever seen. What if there were a solution that permitted companies to reliably identify their customer’s devices without putting them in the position of holding customer data? What if there were a way to ensure IoT devices only accepted configuration from their legitimate owners? I talked to HYPR CEO George Avetisov about their biometrics and UniquID CEO Stefano Pepe about their device identity work to get a better feel for how blockchains will be used to solve these problems.

The service HYPR provides is a framework for passwordless authentication via biometric encryption. They don’t develop biometric devices, the focus of their innovation is creating a distributed, secure system based on existing, tested technology. We've covered the concept of cryptographic fingerprints here previously. Any digital item can be subject to some sort of cryptographic hash, then the hash can be used to check the validity of a digital item without the validator needing to have a copy. As an example, your phone's fingerprint reader does something involving a scan and a company that has access to a hash of your fingerprint's digital representation can validate you, but they don’t have the ability to impersonate you.

Digital fingerprints are just the start. HYPR supports all types of biometric data, from simple authentication algorithms for facial and voice recognition to more complex algorithms such as the way you type on a keyboard, the rhythm when you text on your phone, or how you walk on the street. Your home, your car, and your office all have access requirements and there is probably some degree of smarts already included. HYPR positions IoT vendors to include biometric authentication without a huge investment in expertise, money, or time to implementation.

A big part of HYPR's innovation is complete distrust of the internet for transmitting biometric data itself, which never leaves the user's cell phone. A single phone might get cracked and the biometric data used, but there is no path to hitting millions of victims in a single event. Where does the use of a blockchain fit in all this? It will serve as a distributed, trustless store of biometrics validation data. There are several implications and not all are obvious. A blockchain based system is resistant to denial of service attacks that cripple centralized businesses.  Why?  Because instead of bringing down a single server farm hosting with the authentication data, a DOS attack would have to identify and bring down many blockchain nodes hosted by several parties within the same permissioned blockchain environment.

Equally important to DOS protection is business process interoperability. Avetisov explains, “We are building use cases around associative forms of identity through the blockchain.  Right now you can not authenticate between two different corporate entities, such as a bank and a car insurance company because there is not a shared identity between the two companies.  Each company has a different identity stack that is not interoperable.  By using a blockchain, you can have an interoperable ledger for identity between multiple entities without a complex infrastructure.  An insurance company can prove your identity to a bank or a credit card can prove your identity to a streaming service all through biometric data.”

How does it all work?  While the exact mechanics have not been finalized, it would involve each company acting as a validator of the data within the network running nodes that are constantly accepting biometric data. When a company that is not running a node wants to authentic a user, they would look to the network and the nodes would provide data on the last time stamp that a particular user could have been identified with a particular device accepting biometric data.  If the user can prove they had a device that the network has agreed is associated with their identity within a recent timeframe, the user is then authenticated.

The value here is that different companies can identify users based on their specialized identity stack and provide authentication to others without sharing any of their personal data.  Converting your customers to use biometrics is a complex, expensive project. But if 70% of your customers are already using a system from another company, and that system has been built with an eye on assisting third parties to make the jump to biometrics, the barrier to entry is dramatically lowered. Cost savings begin in quarters rather than years.

What sort of benefits accrue if diverse businesses authenticate their users with the same biometrics system? Here's a scenario Avetisov offered that's a nightmare today, but which would have a happy ending in a biometrics enabled world. Children don't typically have identity information until their later teen years when they start driving, so there is a three to five year window where they are allowed to roam widely without a formal ID. If they're brought to a hospital injured and unresponsive there is a delay while they are identified, wasting some of that golden hour in treating shock and trauma. A biometric solution accelerates that process and a blockchain allows that medical institution to authenticate through the identifying information collected from other companies.

These use cases could be implemented using Bitcoin's blockchain, but HYPR has chosen a private solution. While individuals are using biometrics to authenticate, they do so with large entities, and HYPR has focused on serving the needs of banks, health care, and insurance providers.  For these enterprises, regulation around data security is a great concern.  While a public blockchain with hashed or encrypted data provides high levels of data security, it is still unclear how managing data in such a way would fit within the current regulatory framework.  As such, private or permissioned blockchains are the fastest way to market without the need to educate regulators.

While HYPR is focused on how to build an interoperable environment for humans to be authenticated via various IOT devices, UniquID is building technology that identifies the devices themselves while they are offline through a very clever use of blockchain technology and smart contracts.

Pepe offered an interesting example of how an offline smart contract might work, “If you want to rent a Zipcar, what happens if neither your phone or the car cannot connect to the internet.  You can’t unlock the car with your smart phone unless the owner of the car comes with the keys in his pocket, drives the car out, and brings the car to a place to download a certificate. This is the only way for the car to establish a secure connection with your phone.  However, with UniquID there is a very different scenario.  Both the car and the smartphone have a UniquID wallet on the blockchain. Zipcar creates a smart contract on the blockchain that unlocks the car for a specific smartphone when a token is received in the car’s wallet.  The smartphone downloads [all or a portion of] the blockchain with the smart contract already executed.  Then when you go to the car without internet, your smartphone uploads the missing blocks of the blockchain that the car does not have, with the executed smart contract, and the car unlocks for the person with the correct smartphone.”

Through this innovative use of blockchain technology, devices do not have to be connected to the internet in order to communicate, identify and authenticate with each other in a secure way.  This is an important mechanic for devices to be able to capture real-time data and communicate with one another in real time.  

Unlike HYPR, which can be built on either a permissioned or public blockchain, this use case relies on the security provided through the proof of work mechanism of a public blockchain.  A private blockchain environment, particularly a small one, may have vulnerabilities that a motivated attacker could exercise, modifying data in ways an offline node could not detect. A public blockchain’s security mechanism, proof of work consensus, costs the same amount to fraud, whether online or offline. Global bitcoin mining capacity is 3.75 million terrahashes per second. Translating that to something you can visualize, an AntMiner T9 will do 12.5 terrahashes per second, costs $1,140, weighs twelve pounds, and consumes 1576 watts. You’d need 300,000 of those to match current global Bitcoin capacity and theoretical attacks could be done with 10% of the total – a hundred and twelve tons of gear consuming 37 megawatts of power costing $34 million.

If you’ve got a $20,000 vehicle but it would take the purchase price of a 220’ yacht to steal it, such attacks are going to remain at the proof of concept stage. However, it is important to note that a downside to the current layout of this plan may require a device to download an entire blockchain, which would be cumbersome for a small IOT device. UniquID has very ambitious plans on how to improve device identity and communication through a new type of secure network that will act as alternatives to SIM networks and certificate authorities that I call decentralized certificate authorities.  Unfortunately, UniquID has not yet released a white paper describing their service, so we’ll save that for another article.

You can see how these technologies will be required for a future with an Uber ordering coffee maker, a grocery ordering refrigerator, or laundry room that makes sure you’re always ready to do the next load. Humans will be identified by biometrics, devices by unique attributes like MAC addresses, likely in combination with the unique attributes of the human that first uses them, imprinting to their new owners the way some newborn animals do with their mothers.  When a service needs to leave a message for a device that isn’t always on if it’s small it’ll be placed directly on a blockchain, while larger data say a software update, will be left as a URL on the blockchain and a cryptographic fingerprint of the file.

We’ve had robotics on factory floors for two generations, lines of carefully laid out systems assembling goods. That sort of automation is going to spread from within a single organization to across multiple enterprises, reaching out to consumers, and eventually imbuing the entire supply chain with situational awareness, speeding deliveries and reducing the need for human interactions.

Chuck Reynolds
Contributor

Alan Zibluk Market Hive Founding Member