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. In this research paper we hope to explain that the bitcoin currency itself is ‘just’ the next phase in the evolution of money – from dumb to smart money. It’s the underlying platform, the Bitcoin protocol aka Bitcoin 2.0, that holds the real transformative power. That is where the revolution starts. According to our research there are several reasons why this new technology is going to disrupt our economy and society as we have never experienced before:

OPERATION: Fax Big Brother Congress is rushing toward a vote on CISA, the worst spying bill yet. CISA would grant sweeping legal immunity to giant companies like Facebook and Google, allowing them to do almost anything they want with your data. In exchange, they'll share even more of your personal information with the government, all in the name of "cybersecurity." CISA won't stop hackers — Congress is stuck in 1984 and doesn't understand modern technology. So this week we're sending them thousands of faxes — technology that is hopefully old enough for them to understand. Stop CISA. Send a fax now!

(Any tweet w/ #faxbigbrother will get faxed too!) Your email is only shown in your fax to Congress. We won't add you to any mailing lists.

CISA: the dirty deal between government and corporate giants. It's the dirty deal that lets much of government from the NSA to local police get your private data from your favorite websites and lets them use it without due process. The government is proposing a massive bribe—they will give corporations immunity for breaking virtually any law if they do so while providing the NSA, DHS, DEA, and local police surveillance access to everyone's data in exchange for getting away with crimes, like fraud, money laundering, or illegal wiretapping. Specifically it incentivizes companies to automatically and simultaneously transfer your data to the DHS, NSA, FBI, and local police with all of your personally-indentifying information by giving companies legal immunity (notwithstanding any law), and on top of that, you can't use the Freedom of Information Act to find out what has been shared.

Criminals in 2017 managed to get an advanced backdoor preinstalled on Android devices before they left the factories of manufacturers, Google researchers confirmed on Thursday. Triada first came to light in 2016 in articles published by Kaspersky here and here, the first of which said the malware was "one of the most advanced mobile Trojans" the security firm's analysts had ever encountered. Once installed, Triada's chief purpose was to install apps that could be used to send spam and display ads. It employed an impressive kit of tools, including rooting exploits that bypassed security protections built into Android and the means to modify the Android OS' all-powerful Zygote process. That meant the malware could directly tamper with every installed app. Triada also connected to no fewer than 17 command and control servers. In July 2017, security firm Dr. Web reported that its researchers had found Triada built into the firmware of several Android devices, including the Leagoo M5 Plus, Leagoo M8, Nomu S10, and Nomu S20. The attackers used the backdoor to surreptitiously download and install modules. Because the backdoor was embedded into one of the OS libraries and located in the system section, it couldn't be deleted using standard methods, the report said. On Thursday, Google confirmed the Dr. Web report, although it stopped short of naming the manufacturers. Thursday's report also said the supply chain attack was pulled off by one or more partners the manufacturers used in preparing the final firmware image used in the affected devices.

The White House on Wednesday made public for the first time the rules by which the government decides to disclose or keep secret software flaws that can be turned into cyberweapons — whether by U.S. agencies hacking for foreign intelligence, money-hungry criminals or foreign spies seeking to penetrate American computers. The move to publish an un­classified charter responds to years of criticism that the process was unnecessarily opaque, fueling suspicion that it cloaked a stockpile of software flaws that the National Security Agency was hoarding to go after foreign targets but that put Americans’ cyber­security at risk.

The rules are part of the “Vulnerabilities Equities Process,” which the Obama administration revamped in 2014 as a multi­agency forum to debate whether and when to inform companies such as Microsoft and Juniper that the government has discovered or bought a software flaw that, if weaponized, could affect the security of their product. The Trump administration has mostly not altered the rules under which the government reaches a decision but is disclosing its process. Under the VEP, an “equities review board” of at least a dozen national security and civilian agencies will meet monthly — or more often, if a need arises — to discuss newly discovered vulnerabilities. Besides the NSA, the CIA and the FBI, the list includes the Treasury, Commerce and State departments, and the Office of Management and Budget. The priority is on disclosure, the policy states, to protect core Internet systems, the U.S. economy and critical infrastructure, unless there is “a demonstrable, overriding interest” in using the flaw for intelligence or law enforcement purposes. The government has long said that it discloses the vast majority — more than 90 percent — of the vulnerabilities it discovers or buys in products from defense contractors or other sellers. In recent years, that has amounted to more than 100 a year, according to people familiar with the process. But because the process was classified, the National Security Council, which runs the discussion, was never able to reveal any numbers. Now, Joyce said, the number of flaws disclosed and the number retained will be made public in an annual report. A classified version will be sent to Congress, he said.

Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.Perhaps the most important recognition at the outset is that the secretive deals that have been reported, whether those with a handful of device manufacturers or with 150 large technology companies, are just the tip of the iceberg. Those secretive deals handing over user data in exchange for gobs of cash were merely part and parcel of a much broader illegal scheme that begins with Facebook’s transition to mobile in 2012 and continues to this very day. We believe this illegal scheme amounts to a clear RICO violation. The United Kingdom Parliament agrees. Here’s how criminal investigators can overcome Facebook’s incredibly effective concealment campaign and bring a viable RICO case.Facebook’s pattern of racketeering activity is a play in three acts from at least 2012 to present. The first act is all about the desperation resulting from the collapse of Facebook’s desktop advertising business right around its IPO and the various securities violations that resulted. The second act is about covering up those securities violations by illegally building its mobile advertising business via extortion and wire fraud in order to close the gap in Facebook’s revenue projections before the world took notice, which likely resulted in additional securities violations. The third act is about covering up the extortion and wire fraud by lying to government officials investigating Facebook while continuing to effectuate the scheme. We are still in the third act.For almost a decade now Facebook has been covering up one illegal act with another in order to hide how it managed to ramp up its mobile advertising business faster than any other business in the history of capitalism. The abuses of Facebook’s data, from Russian interference in the 2016 election to Cambridge Analytica and Brexit, all stem in substantial part from the decisions Facebook knowingly, willfully and maliciously made to facilitate this criminal conspiracy. Put simply, Facebook’s transition to mobile destabilized the world.

Microsoft has joined forces with Taser to combine the Azure cloud platform with law enforcement management tools.

Taser’s Axon body camera data management software on Evidence.com will run on Azure and Windows 10 devices to integrate evidence collection, analysis, and archival features as set forth by the Federal Bureau of Investigation Criminal Justice Information Services (CJIS) Security Policy. As per the partnership, Taser will utilize Azure’s machine learning and computing technologies to store police data on Microsoft’s government cloud. In addition, redaction capabilities of Taser will be improved which will assist police departments that are subject to bulk data requests. Currently, Taser is operating on Amazon Web Services; however this deal may entice police departments to upgrade their technology, which in turn would drive up sales of Windows 10. This partnership comes after Taser was given a lucrative deal with the Los Angeles Police Department (LAPD) last year, who ordered 7,000 body cameras equipped with 800 Axom body cameras for their officers in response to the recent deaths of several African Americans at the hands of police.

In order to ensure Taser maintains a monopoly on police body cameras, the corporation acquired contracts with police departments all across the nation for the purchase of body cameras through dubious ties to certain chiefs of police. The corporation announced in 2014 that “orders for body cameras [has] soared to $24.6 million from October to December” which represents a 5-fold increase in profits from 2013. Currently, Taser is in 13 cities with negotiations for new contracts being discussed in 28 more. Taser, according to records and interviews, allegedly has “financial ties to police chiefs whose departments have bought the recording devices.” In fact, Taser has been shown to provide airfare and luxury hotels for chiefs of police when traveling for speaking engagements in Australia and the United Arab Emirates (UAE); and hired them as consultants – among other perks and deals. Since 2013, Taser has been contractually bound with “consulting agreements with two such chiefs’ weeks after they retired” as well as is allegedly “in talks with a third who also backed the purchase of its products.”

Last month, we wrote about Bruce Schneier's warning that certain unknown parties were carefully testing ways to take down the internet. They were doing carefully configured DDoS attacks, testing core internet infrastructure, focusing on key DNS servers. And, of course, we've also been talking about the rise of truly massive DDoS attacks, thanks to poorly secured Internet of Things (IoT) devices, and ancient, unpatched bugs. That all came to a head this morning when large chunks of the internet went down for about two hours, thanks to a massive DDoS attack targeting managed DNS provider Dyn. Most of the down sites are back (I'm still having trouble reaching Twitter), but it was pretty widespread, and lots of big name sites all went down. Just check out this screenshot from Downdetector showing the outages on a bunch of sites:

You'll see not all of them have downtime (and the big ISPs, as always, show lots of complaints about downtimes), but a ton of those sites show a giant spike in downtime for a few hours. So, once again, we'd like to point out that this is as problem that the internet community needs to start solving now. There's been a theoretical threat for a while, but it's no longer so theoretical. Yes, some people point out that this is a difficult thing to deal with. If you're pointing people to websites, even if we were to move to a more distributed system, there are almost always some kinds of chokepoints, and those with malicious intent will always, eventually, target those chokepoints. But there has to be a better way -- because if there isn't, this kind of thing is going to become a lot worse.

1. U.S. and European antitrust cases put lawyers and non-technologists in charge of important final product decisions.

The company long resisted releasing pertinent interoperability information in the United States. On the European Continent, this resistance led to huge fines. Meanwhile, Microsoft steered away from exclusive contracts and from pushing into adjacent markets.

Net neutrality has won at the FCC. In a 3-to-2 vote, the Federal Communications Commission today established a new Open Internet Order that implements strict net neutrality rules, including prohibitions on site and app blocking, speed throttling, and paid fast lanes.

Critically, the order also reclassifies internet providers' offerings as telecommunications services under Title II of the Communications Act. Though this is likely to provoke a challenge in court, Title II gives the commission the tools it needs to enforce these strict rules. This is also the first time that net neutrality rules will apply, in full, to mobile internet service. Additionally, the commission uses the new order to assert its ability to investigate and address complaints about "interconnect" agreements — deals made between internet providers like Comcast and content companies like Netflix, which has regularly complained that these deals are unfair. The FCC's new order establishes a standard that requires internet providers to take no actions that unreasonably interfere with or disadvantage consumers or the companies whose sites and apps they're trying to access. At most, internet providers may slow down service only for the purpose of "reasonable network management" — not a business purpose.

How much extra will you have to pay for the privilege of being spied on?

UK ISPs have warned MPs that the costs of implementing the Investigatory Powers Bill (aka the Snooper's Charter) will be much greater than the £175 million the UK government has allotted for the task, and that broadband bills will need to rise as a result. Representatives from ISPs and software companies told the House of Commons Science and Technology Committee that the legislation greatly underestimates the "sheer quantity" of data generated by Internet users these days. They also pointed out that distinguishing content from metadata is a far harder task than the government seems to assume. Matthew Hare, the chief executive of ISP Gigaclear, said with "a typical 1 gigabit connection to someone's home, over 50 terabytes of data per year [are] passing over it. If you say that a proportion of that is going to be the communications data—the record of who you communicate with, when you communicate or what you communicate—there would be the most massive and enormous amount of data that in future an access provider would be expected to keep. The indiscriminate collection of mass data across effectively every user of the Internet in this country is going to have a massive cost."

Moreover, the larger the cache of stored data, the more worthwhile it will be for criminals and state-backed actors to gain access and download that highly-revealing personal information for fraud and blackmail. John Shaw, the vice president of product management at British security firm Sophos, told the MPs: "There would be a huge amount of very sensitive personal data that could be used by bad guys.