Slashdot Mirror

SpuriousLogic writes in with a link to a story about some Canadian consumers who thought they were getting an iPad 2 but instead got the makings of the world's oldest tablets. "As many as 10 fake iPad 2s, all made of slabs of modeling clay, were recently sold at electronic stores in Vancouver, British Columbia. Best Buy and Future Shop have launched investigations into how the scam was pulled off. The tablet computers, like most Apple products, are known for their sleek and simple designs. But there's no mistaking the iPad for one of the world's oldest 'tablet devices.' Still, most electronic products cannot be returned to stores. For the the stores and customers to be fooled by the clay replacements, the thieves must have successfully weighed out the clay portions and resealed the original Apple packaging. Future Shop spokesman Elliott Chun told CTV that individuals bought the iPads with cash, replaced them with the model clay, then returned the packages to the stores. The returned fakes were restocked on the shelve and sold to new, unwitting customers."

New submitter forkfail writes "If further proof were needed that copyright law was out of control in the U.S., it can be found in the fact that it costs 10 dollars to view Martin Luther King's famous Dream Speech. You might think you could find it on YouTube or other public venues, given its importance in American history. But no — the rights are firmly locked away until 2038."

daveschroeder writes "In the wake of previous coverage alleging that Apple, Nokia, RIM, and others have provided Indian government with backdoors into their mobile handsets — which itself spawned a US investigation and questions about handset security — it turns out the memo which ignited the controversy is probably a fake designed to draw attention to the "Lords of Dharmaraja." According to Reuters, "Military and cyber-security experts in India say the hackers may have created the purported military intelligence memo simply to draw attention to their work, or to taint relations between close allies India and the United States." Apple has already denied providing access to the Indian government."

First time accepted submitter nzyank writes "The other day I bravely (foolishly?) volunteered to conduct a video game development workshop at my boys' HS. This in Smallsville, Vermont with an average graduating class size of about 20. The idea is to meet once a week and actually create a game, start to finish. It will be open to would-be programmers, designers, artists, etc. I worked on a bunch of AAA titles back in the '90s, but I'm pretty much out of touch nowadays and I'm trying to figure out the best approach. The requirements are that it has to be one of either Windows/XBox or Android, since those are the platforms that I am current on. It has to be relatively simple for the kids to get up and running quickly, and it needs to be as close to free as possible. Teaching them to use stuff like Blender, C#, C++, Java, XNA, OpenGL and the Android SDK is probably a bit much. I was thinking of something like the Torque Engine, but they want $1000 for an academic license, which is never going to happen. I simply don't know what's out there nowadays and could really use some suggestions."

cswilly writes with the news that China's satellite navigation system, called Beidou, has been successfully activated. "With ten satellites now, 16 in 2012, and 35 in 2020, China is making damn sure they are independent of the U.S. military's lock on GPS. According to the article, 'Beidou, or 'Big Dipper,' would cover most parts of the Asia Pacific by next year and then the world by 2020.'" The BBC also has slightly more detailed coverage.

K7DAN writes "The AP reports that Mexico's drug cartels have built their own sophisticated two-way radio communications system using computer-controlled linked and local repeaters on mountain tops, walkie-talkies, mobile transceivers and and base stations. The solar powered system covers vast areas of Mexico that are unserved by cellular phone network and has the advantage of being more difficult to trace." This article adds much more substance about the technology than was included in the report several weeks ago of the seizure of thousands of this network's components; from the description in this article, the earlier headline overstated the case by saying that the network had therefore been "shut down."

As new submitter kulnor writes, "Hexagon, a cold war secret project around spy satellites to monitor USSR was declassified last September." kulnor excerpts from the AP story as carried by Yahoo, outlining how more than 1,000 people in and around Danbury, CT kept mum about the nature of their employment: "'For more than a decade they toiled in the strange, boxy-looking building on the hill above the municipal airport, the building with no windows (except in the cafeteria), the building filled with secrets. They wore protective white jumpsuits, and had to walk through air-shower chambers before entering the sanitized 'cleanroom' where the equipment was stored. They spoke in code.' As more and more WWII and cold war secrets are declassified, we learn about amazing technological feats involving hundreds of people working in secrecy. I wonder what will emerge in a few decades around modern IT, the Internet, hacks, and the like." Every time I visit Oak Ridge, TN, I am amazed by the same phenomenon of successful large-scale secrecy.

walterbyrd writes with a quote from an article at Techrights: "Given the latest actions from Apple we cannot help recommending that people buy nothing from Apple. Boycott the company for being a threat to the IT landscape and also to common sense." More from the article: "...Apple has been working hard to embargo — not just sue — the competition. Apple disregards the notion of fair competition..."

bs0d3 writes "The U.S. Government has classified some of the largest websites on the Internet as examples of sites which sustain global piracy. The list released by the United States Trade Representative draws exclusively on input from rightsholders. It includes popular torrent sites such as The Pirate Bay, file-hosting service Megaupload, and Russia's leading social network VKontakte. VKontakte says that company's copyright problems are in the past after a deal was made with the USTR. Also, for the first time in many years, China's leading search engine Baidu has been removed from the list. However, China's widely used online consumer and business-oriented online shopping service Taobao remains listed. The full report can be viewed here. It has no legal implications whatsoever, but may be referred to by policy makers regarding future legislation (e.g. SOPA)."

walterbyrd writes "Google announced today that it will donate $11.5M to groups dedicated to ending modern day slavery. 'In what is believed to be the largest-ever corporate grant devoted to the advocacy, intervention and rescue of people being held, forced to work or provide sex against their will, Google said it chose organizations with proven records in combating slavery.'"

jd writes "There has been research for some time showing that London cab driver brains differ from other people's, with considerable enlargement of those areas dealing with spacial relationships and navigation. Follow-up work showed it wasn't simply a product of driving a lot (PDF). However, up until now it has been disputed as to whether the brain structure led people to become London cabbies or whether the brain structure changed as a result of their intensive training (which requires rote memorization of essentially the entire street map of one of the largest and least-organized cities in the world). Well, this latest study answers that. MRI scans before and after the training show that the regions of the brain substantially grow as a result of the training, and they're quite normal beforehand. The practical upshot of this research is that — even for adult brains, which aren't supposed to change much — what you learn structurally changes your brain. Significantly."

First time accepted submitter BabaChazz writes "Microsoft Corp. co-founder Bill Gates says he is in discussions with China to jointly develop a new kind of nuclear reactor. During a talk at China's Ministry of Science & Technology Wednesday, the billionaire said: 'The idea is to be very low cost, very safe and generate very little waste.' Gates backs Washington-based TerraPower, which is developing a nuclear reactor that can run on depleted uranium."

An anonymous reader writes "If you used Ticketmaster's website to buy tickets between October 21, 1999 and October 19, 2011, you're in for a windfall. Well, a $1.50 per ticket order windfall. Because of a proposed class action settlement, Ticketmaster is being forced to credit $1.50 per ticket order (up to 17 orders) to customers because they profited from 'processing fees' without declaring as much. And despite the reparations, Ticketmaster can continue to profit off transactions — they just have to say they're doing so on their website."

New submitter cstacy writes "The United States Postal Service will be closing half of its processing centers this spring. Currently, 42% of first-class mail is delivered the following day for nearby residential and business customers. But that overnight mail will be a thing of the past, with delivery guaranteed only for 2-3 days. About 51% will be delivered in two days. Periodicals may take up to nine days. (Additional delays beyond this may come into play when Congress also authorizes USPS to close operations for some days each week.)"

New submitter abesottedphoenix writes "The rural library responsible for the first open source library catalogue is under attack from defence contractor PTFS. More than a decade after rolling out Koha (which we've discussed in the past), they now find themselves in a battle to keep a generic Maori term within the public domain. The story is also covered at Radio NZ. "

MarkWhittington writes "Andrew Chaikin, the author of A Man on the Moon: The Voyages of the Apollo Astronauts, believes that the spirit of Apollo no longer resides at NASA, but rather in the nascent commercial space companies such as SpaceX. This assessment is disputed by many, who see in the Obama administration program of government subsidies for commercial space the spirit of Solyndra."

Brad1138 writes "You see complaints about the 'next gen' GUI's all over the place, but do we really all hate them? Personally, I don't like them — I tried very hard to like Unity in Ubuntu 11.04/11.10 before giving up and switching to Mint (I am very happy there currently). But is it the vocal minority doing all the complaining, or is it the majority? Are we just too set in our ways?"

the simurgh writes "The DMCA is just not providing the kind of protection against online piracy that Congress intended, RIAA lawyer Jennifer Pariser says. The judge in Universal Music Group's copyright suit against Veoh as well as the judge in EMI vs. MP3tunes.com issued similar findings. The courts have now determined the burden of policing the web for infringing materials is on the content owner and not the service provider. Content companies think it is unfair for them to be required to spend resources on scouring the Web when their pirated work helps service providers make money. What they complain about almost as much is that after they notify a service provider of an infringing song or movie clip and they're removed, new copies appear almost immediately. Basically they are complaining the the DMCA makes them responsible for policing their own content at their expense."

jd writes "There are many pieces of software out there, such as seL4 (kindly brought to my attention by another reader), where the vendor has indeed engineered something that they're entitled to Close Source, but where their closed-source license includes the modifications to GPLed software such as the Linux kernel. Then there's a second type of behavior. Code Sourcery produced two versions of their VSIPL++ image processing library — one closed-source, one GPLed. It was extremely decent of them. When Mentor Graphics bought Code Sourcery, they continued developing the closed-course one and discontinued, then deleted, the GPL variant. It's unclear to me if that's kosher, as the closed variant must contain code that had been GPLed at one point. Here's the problem: complaining too much will mean we get code now that maybe four or five people, tops, will actually care about. It will also make corporations leery of any other such work in future, where that work will be of greater value to a greater number of people. So, the question I want to ask is this: When is it a good time to complain? By what rule-of-thumb might you decide that one violation is worth cracking down on, and another should be let go to help encourage work we're never going to do ourselves?"

bsquizzato writes "The Associated Press is running a story about the CIA's Open Source Center: 'a team known affectionately as the "vengeful librarians,"' who work out of 'an anonymous industrial park in Virginia, in an unassuming brick building' scouring social networks and other online media to keep up with the world's current events and opinions on American actions. This should come as no surprise, but it's quite interesting that President Obama is briefed daily on the latest hot topic tweets and Facebook posts."

dutchwhizzman writes "Uturuncu is a Bolivian supervolcano. Research suggests that it has an eruption frequency of roughly 300,000 years and the last eruption was, give or take a few years, 300,000 years ago. Research suggests that it started rising in a 70 km diameter by 1 to 2 centimeters per year, making it the fastest-growing volcano on the planet. Break out the tin foil hats, and store plenty of canned beans, because it may just erupt before Yellowstone pops its cork."

SpuriousLogic sends this excerpt from an AP report: "The last of the nation's most powerful nuclear bombs — a weapon hundreds of times stronger than the bomb dropped on Hiroshima — is being disassembled nearly half a century after it was put into service at the height of the Cold War. The final components of the B53 bomb will be broken down Tuesday at the Pantex Plant near Amarillo, the nation's only nuclear weapons assembly and disassembly facility. ... The weapon is considered dismantled when the roughly 300 pounds of high explosives inside are separated from the special nuclear material, known as the pit. The uranium pits from bombs dismantled at Pantex will be stored on an interim basis at the plant, Cunningham said. The material and components are then processed, which includes sanitizing, recycling and disposal, the National Nuclear Security Administration said last fall when it announced the Texas plant's role in the B53 dismantling."

The Jones brothers may be criminals but they are not scam artists. When they try to sell you a bridge they're willing to deliver. The pair are accused of dismantling a western Pennsylvania bridge and selling the 15 1/2 tons of scrap metal for more than $5,000. From the article: "Police say 24-year-old Benjamin Arthur Jones and 25-year-old Alexander Williams Jones of New Castle used a blowtorch to break up the bridge in late September or early October. They face felony charges of criminal mischief, theft, receiving stolen property and conspiracy. Authorities say Alexander Jones told a recycling company employee that he had permission to carve the bridge for scrap and showed the employee cellphone photos of the bridge. The recycling company called police."

walterbyrd writes "A company called Smartphone Technologies filed the suit last Friday in Texas Eastern District Court accusing the Kindle Fire tablet of violating four of its patents. Smartphone Technologies is owned by Acacia Research, a firm that buys and licenses patents and is seen by many as a patent troll. 'One patent cited in the suit, U.S. Patent No. 6,956,562, simply refers to a method for using a touch screen to enter commands on a handheld computer. Another patent in question relates to a method for storing calendars on a PDA and was initially issued to Palm in 2002.'"

karthikmns writes with word of an amazing demo presented last week at Adobe's annual MAX convention. You'll have to watch the video, but the enthusiastic crowd reaction seems genuine (or at least justified), even in an audience full of Photoshop enthusiasts, as photographs are algorithmically deblurred. (Maybe in the future, cameras will keep records of their own motion in metadata to assist such software efforts, rather than relying on in-built anti-shake software.) No word about when this will turn up for consumers in anything besides demo form, but I suspect similar software's already in use at Ft. Meade and Langley.

MarkWhittington writes "NASA and the space agencies of a variety of countries, including members of the European Union, Canada, Japan, Russia, India, the Ukraine, and South Korea, have rolled out the latest version of a space exploration roadmap (PDF). NASA and its partners have created two scenarios, called 'Asteroid Next' and 'Moon Next.' This represents the continuing argument over which destination astronaut explorers should go to first. Should it be an Earth approaching asteroid, as President Obama insists? Or should it be the moon, as many people in Congress, NASA, and NASA's partner agencies suggest? In any event, all roads lead to Mars in the current plan. Both visits to an asteroid and to the moon are considered practice runs for what will be needed to go to Mars."

head_dunce writes "Red Hat is doing very well in this economy. Total revenue and subscription revenue for this quarter is up 28% year-over-year. Jim Whitehurst, President and Chief Executive Officer of Red Hat said, 'Based on the strong first half results, we believe Red Hat remains well positioned to finish fiscal 2012 as the first billion dollar open source software vendor.'"

jfruhlinger writes "You may have already forgotten the iPhone location-tracking furor, but 27,000 South Koreans haven't! They (or the lawyers recruiting them) have launched a class action suit against Apple due to the 'emotional distress' suffered. The litigants are seeking around $1,000 apiece in damages. From the article: 'Apple has faced complaints and criticisms since it said in April that its iPhones were storing locations of nearby cellphone towers and Wi-Fi hot spots for up to a year. Such data can be used to create a rough map of the device owner's movements.'"

MadMartigan2001 writes with a pretty crazy article on a project involving floating libertarian paradises. From the article: "PayPal founder and early Facebook investor Peter Thiel has given $1.25 million to an initiative to create floating libertarian countries in international waters. Thiel has been a big backer of the Seasteading Institute, which seeks to build sovereign nations on oil rig-like platforms to occupy waters beyond the reach of law-of-the-sea treaties."

Dog's_Breakfast writes "In a declining economy, software licenses become a luxury. Linux and the BSDs offer free alternatives. As the USA toys with the possibility of defaulting on its national debt (and thus risking economic collapse), the author wonders if this might not, at last, lead to 'The Year of the Linux Desktop.'"

Are you in the market for a German priest but want to make sure you're not getting second rate religious guidance? If so, Hirtenbarometer (shepherds' barometer) is the website for you. There priests are rated on performance at services, good works, credibility, and ability to keep their subject matter current and relevant. From the article: "Ratings for priests on the site are represented by sheep, whose woolly coats range from white to black to visually express a priest's rating. The pope and other prominent German priests so far sport light to middle grey wool."

bonch writes "Satellite data from NASA covering 2000 through 2011 cast doubt on current computer models predicting global warming, according to a new study. The data shows that much less heat is retained by carbon dioxide in the earth's atmosphere than is assumed in current models. 'There is a huge discrepancy between the data and the forecasts that is especially big over the oceans,' said Dr. Roy Spencer, a co-author of the study and research scientist at the University of Alabama." Note: the press release about the study is somewhat less over the top.

Brad1138 writes "Humans living at high latitude have bigger eyes and bigger brains to cope with poor light during long winters and cloudy days, UK scientists have said. from the article: 'The scientists measured the eye sockets and brain volumes of 55 skulls from 12 populations across the world, and plotted the results against latitude. Lead author Eiluned Pearce told BBC News: "We found a positive relationship between absolute latitude and both eye socket size and cranial capacity."'"

techtribune writes "Tomorrow will be a bittersweet day for the crew aboard the NASA Space Shuttle Atlantis as they begin their return home to Earth. This will be the last space shuttle re-entry, the last landing, and the very last crew to pilot the shuttle in U.S. history. The Atlantis Space Shuttle undocked from the International Space Station (ISS) yesterday after delivering a lot of supplies, batteries, and other hardware to the station. They are bringing a lot of trash and everything else that needs to be brought back to Earth, as it's the very last opportunity for NASA to do so on its own." In a related topic, MarkWhittington wrote in with a story about why we stopped going to the moon and why there are no plans to go back.

nk497 writes "Amazon has unveiled a new digital textbook rental service, allowing students to choose how long they'd like access to an eBook-version of a textbook via their Kindle or app — with the retailer claiming savings as high as 80%. Kindle Textbook Rental will let students use a text for between 30 and 360 days, adding extra days as they need to. Any notes or highlighted text will be saved via the Amazon Cloud for students to reference after the book is 'returned.' Amazon said tens of thousands of books would be available to rent for the next school year."

mcgrew writes with this quote from an AP report: "After four years sailing through space, the Dawn spacecraft was expected to slip into orbit late Friday around a giant asteroid to begin a yearlong investigation into the origins of the solar system. It is the first of two scheduled tour stops for the NASA probe that almost never made it to the launch pad. Because of its stunted growth, Vesta holds 'a record of the earliest history of the solar system,' said the mission's lead scientist Christopher Russell of the University of California, Los Angeles." Dawn's mission homepage has all the information and pictures collected so far. On July 9th, it snapped our best look to date at the ~530-kilometer-wide Vesta, from 40,000 kilometers away. When it arrives, it will take observations from successively lower orbits, the final one being only 460km above Vesta's surface. Next May, Dawn will break orbit and head to Ceres. (mcgrew adds, "The submission's title is a nod to Isaac Asimov. Lets hope Dawn doesn't get marooned!")

According to an Associated Press report, a "strip of fabric shorn from the flag planted on the moon by the Apollo 11 astronauts pulled in a top bid of $60000 at a Los Angeles auction, but didn't meet a minimum price so it won't be sold." Another $35,000 would have nabbed it, but — caveat emptor — the strip of fabric under discussion is one that never went to the moon itself, but rather was snipped off before the rest of the flag was stuffed into a tube for the mission.

jd writes "I've been monitoring the progress of Bloodhound SSC (the car aiming for the 1,000 MPH record) and it looks like they're opting for some interesting tactics. In April, the car itself went partially open source, with a complete set of schematics and specifications and an invite for engineering bugfixes. According to them, it's the first time a racing team has done this. Sounds likely enough. The latest patches to be released were a tripling in fin size and a switch to steel brakes because carbon fibre would explode."

timothy writes "'Police say five people have been arrested and two more are sought in connection with a prostitution website operated by a New Jersey professor.' Yeah, and one of them used to head a major state university. Jeesh! I wonder if this will affect the Newsweek ratings for schools by forcing them to include a whole new column listing the best crimes committed by the university president."

Attila Dimedici writes "Tesla has announced that their business model has failed. Their basic idea was to sell a boutique electric car to fund the development of a regular consumer electric car. With this announcement they are saying that they did not sell enough of the Roadster to make producing it profitable. If that is the case, it is only a matter of time until Tesla closes its doors. I thought their approach was the most likely to create a successful fully electric car. Although it is possible that the technology they have developed will allow the existing car companies to develop successful fully electric cars, it is a shame that Tesla has failed to become a successful car manufacturer." CT: As a huge number of you pointed out, the linked article is not nearly as doom and gloom as the submitter: Tesla isn't locking the doors and throwing away the keys, they plan on selling a $80k sedan in 2012 with a 300 mile range.

Last week, you asked questions (many rather pointed!) of Amir Taaki, co-founder of Bitcoin Consultancy, which develops Bitcoin related services, exchanges and Bitcoin itself. (They also own Britcoin.co.uk.) Says Taaki: "When creating video games I spent much time imagining tools to make artists lives easier, and how we could keep funding developers to write free software. One contribution of mine to the community was a site where developers could get funded for developing features and I'd love nothing more than to pay people to write free software." With regard to Bitcoin, similarly, "We need fulltime developers thinking about the problems and solutions needed to keep this system running. We aim to get all the creative thinkers from the community and provide a mechanism for enabling their work." Below find his answers to the questions readers raised.

Is the gold rush over?
by curunir

With BitCoin limited to a pre-determined amount and the difficulty of mining new BitCoins, it seems that this gives a huge advantage to people who got into BitCoin early and have already amassed a considerable amount of BitCoins. Is this true and, if so, do you think this disincentive will undermine BitCoin's ability to become more popular since the majority of the population will have to work so much harder to obtain the currency?

Amir Taaki: It is certainly true that early adopters have been rewarded. I do not think these inequities will be more shocking than those in the real world. Any guesses as to how this will play out is pontification. However, I don't think anyone has proposed a working model for a decentralized secure digital currency where such a thing would not happen. Overall, I believe the properties of this currency will significantly add to the wealth of all peoples, especially those less well off.

Crypto-Anarchism?
by conner_bw

I argue that bitcoin is interesting because it's a locked currency, with a known maximum, and a timeline for that maximum based on contemporary crypto math and radical ideas. There is clearly well thought out timeline for adoption and disruption. It's not just "Cool, new money!" Are you a crypto anarchist, or similar?

A.T.: Yes, I myself am a crypto anarchist. However, not everyone on my team has the same political ideologies and we do not try to push our ideologies on each other. In fact, we have all seen our ideologies change over time with the awareness of new knowledge and information. Ideologies should not be a point of contention, especially when we all see the immense prolific value of a more efficient means of commerce.

If not, then is this another Tulip craze [wikipedia.org] and all these news stories and bitcoin currency exchange services being hyped heavily the last month machinations for profiteering?

A.T.: I do not advocate that people speculate on bitcoins. In fact I actively advocate against that because those who are new to bitcoin might see it as just that, a 'craze.' I do however think that the properties of bitcoin are clearly advantageous over the current means of commerce. Although bitcoin is still underdeveloped, everything visible in the modern world can be adapted using bitcoins as a backbone. This will result in all the services of today's world (clearing houses, security, fraud protection, interest bearing accounts...) continuing to be offered, but with far less overhead.

Austrian Acceptance
by MyFirstNameIsPaul

I have found that the Austrians have a hard time accepting the idea of a digital currency. The core of their argument seems to be that digital currencies are not made up of something that had value before being a medium of exchange, such as gold and silver. When I counter to them that BitCoin is made up of code and people pay money for things like video games, they argue that the video game would have to be the thing valued, not the computer code. How do you deal with these kinds of objections?

A.T.: Gold is not a currency in my mind. It is a store of value. I would not want to go to buy bread from my local store and shave off some gold from a bullion and take out a scale and wait for an acid test to be performed. Gold is backed by real world properties.

Bitcoin is backed by the fact that is has unique properties as well:

• Decentralized
• No bank holidays
• International
• No concept of borders
• Divisible
• True micro-transactions possible (new markets feasible)
• New privacy model
• Private identity yet transparent
• Secure
• You do not have to trust merchant sites (Sony - Playstation) to protect your data
• Fast Transactions
• No Charge backs

Useful Calculations?
by Bodhammer

Is there any way to make the calculations more useful (i.e. Boinc) and still maintain the same level of difficulty in the computations? It just seems so wasteful to run Bitcoin at this time.

A.T.: Our world's current infrastructure depends on paying employees, building large buildings, paying for heat, electricity, transportation, lawyers, courts, judges, policemen, government bureaucracies, armies and much more. Doesn't it seem wasteful to rely on tedious and sometimes ambiguous real world laws with a lot of overhead instead of mathematical laws?

When merchants started accepting bitcoins, verifiers (because miners is a misnomer) started to see that their generated coins were worth something. They became competitive and found ways to do the same calculations cheaper which provided security for the network and verified the transactions. Verifiers found out that running these hashing algorithms on one's GPU was far more energy efficient than running them on one's CPU. Specialized software was later constructed for these purposes. Some keep their machines under dry ice. In the not so distant future, hardware FPGAs will be specially designed for this verification process.

The advantages of bitcoin exist because it is an inherently more efficient and less wasteful system. The reward for minting a block, provides a healthy competition that causes the energy cost to be driven down.

Additional privacy layers and smartphones?
by DriedClexler

Is there any serious development underway to make the privacy more robust? There has been talk of "Bitcoin laundry," where large pools swap their coins around between each other to make it harder to connect a coin/address with an owner. But for this to seriously work, it needs a lot more people to be involved in it, and it has to be integrated in a way that's secure (against someone just keeping coins in the middle of a shuffle) and transparent to the user (so they don't have to think about the new addresses they generate, or which coins are optimal to send where for the maximum shuffle). How soon can we expect something like this? Also, how soon will smartphones be able to handle this with the same ease as desktops and notebooks?

A.T.: A bitcoin laundry already exists. The volume on it is very low, but if demand increases in the future then such a service is trivial to setup. A mixing service (as they're called) requires a large volume and therefore a persistent demand.

Smartphones can already use bitcoin :) An Android version of the command line Bitcoin was compiled. Additionally one can use an online wallet service (or a bitcoin exchange) to store their bitcoins.

Lost/forgotten bitcoins?
by algorimancer

One thing that concerns me is the fixed maximum number of bitcoins. Lets say people acquire bitcoins, but the amount isn't enough to worry about, so they never use them, or perhaps their computer crashes and they don't have a backup. My understanding is that these bitcoins are permanently lost from the economy of bitcoins. Over time, the total supply would begin to dwindle, presumably pushing up the value of those that remain, until people become frustrated at the small supply and are motivated to move to a new system, then bitcoin is abandoned. In the real world this happens with dollar bills, but the government can compensate for this by creating more. Is this issue addressed in some fashion?

A.T.: The supply of bitcoins is 21 million. The supply of money is infinite. A bitcoin can currently be divided to 8 decimal places. The loss of bitcoins in the future may lead to some deflation however I expect it to be insignificant. In the very long term, even if there was only 1 bitcoin theoretically in circulation, running the world economy would not be a problem. There exists only 6 MBTC in circulation at this moment.

Extreme instability of Bitcoin vs. USD
by Limerent Oil

Why would any merchant IN THEIR RIGHT MIND want to deal with Bitcoin? With the insane USD-to-Bitcoin exchange-rate gyrations happening lately, why would any serious retailer even bother, when the value of Bitcoin vs. USD could change by 50% or more in just a few hours?

A.T.: As liquidity increases transaction costs decrease. If there was already an appropriate clearing house in place, a merchant would be able to automatically accept bitcoins and liquidate them to dollars. In the same way that people who use the internet are not all cognizant of the communication protocols they are using, I foresee the possibility of merchants offering their products in USD, EUR, GBP, and customers purchasing those products in their local currency. And the underlying mechanism which facilitates this transfer is the bitcoin. Bitcoin would provide these same services that payment services, credit cards or banks do but with much less cost to the merchant and customer.

What about the lack of inflation?
by Cyberax

It's long known that economic growth is severely stunted without some measure of inflation. Adopting bitcoins for the global economy would mean that policymakers lose control on money supply, and while there are advantages in this, disadvantages far outweigh them. Additionally, adopting a global currency standard will deny governments ability to influence currency rates robbing them of yet another way to control the economy. Is there any plan to solve this? Maybe a system of independent bitcoin 'roots' operated by governments would help?

A.T.: Ben Friedman has released a lot of work on E money and how it will affect the future and how governments will adapt. The truth is that the government will still have monopolies on much of the operations of the economy such as fractional reserve banking and the issuing of licenses which allow banks to lend money.

Aspirations
by slim

What are your aspirations for the currency? Do you hope for it to be near-ubiquitous — used by corner shops and mainstream merchants like Amazon? Or are you happy to see a parallel economy grow, as a niche thing? Or something else?

A.T.: I have lofty dreams of a world where people can send money abroad without having to pay 20+% in many cases to rip offs like western union. Where people can raise funds through services like paypal but not have their accounts arbitrarily frozen. Where citizens in developing nations who already oppose their government do not have to pay for wars of genocide out of their own pockets as was the case in ex-Yugoslavia where authoritarian control over the money supply helped finance a terrible war and bring about the worst hyper-inflation in Europe since WWII.

Bitcoin in some form is going to be adopted whether it is used as a unique currency, a payment system or as a clearing house. Our aspiration for bitcoin is to provide competition to the current system making everything cheaper for all. It's about cutting the middleman, democratising money and handing back power to people.

Will governments let it survive?
by merdaccia

We live in a world where the supply and movement of money are controlled by governments, central banks, money laundering laws, and financial institutions. How can BitCoin survive in this world? Middle men like banks stand to lose a fortune in fees and exchange rates, governments stand to lose a fortune in taxes if they can't track money movement, and the black market stands to gain a silent way to move value. For BitCoin to gain adoption, some major retailers need to start supporting it, but given the above risks, what stops a government from telling companies in its jurisdiction that they can't accept it?

A.T.: The US is not the world. If their government forces everyone to continue to use typewriters in lieu of computers and pay through the nose, they can. New and better technology, especially when it is revolutionary, does threaten archaic models and practices. Hopefully there will not be contention. My team is already in contact with SWIFT which has operated for 30 years and is the backbone of international money transfer for over 9000 banks. Many forward thinkers see the advantages of bitcoins but it is easy to understand how those perhaps well-intentioned but not well-versed in what bitcoin is can promote FUD.

Regulatory compliance?
by molo

For those of us interested in developing financial services using bitcoin, how have you dealt with regulatory issues? It seems like the SEC and FINRA in the US would not be keen on unregistered broker-dealers and agents and owners not having the legally required Series 7 and Series 24 certifications. Have you sought the UK equivalent certifications? The requirements of lawyers, accountants, certifications etc. seem to put a very high capital cost on starting a legitimate business offering services in this space.

A.T.: As well as being a developer, I own and operate www.Britcoin.co.uk (the UK exchange site). My team has been in negotiations for a long time now with lawyers and regulators. There is no regulatory process or restrictions now on the running of such services. Non-regulated sectors rarely seek out regulation. However, when it comes to bitcoins, I believe the sooner they are regulated the better. If their regulation is pushed by those who understand what bitcoins are then we may be able to regulate them in the best way possible and show the world they were not created for illegal practices. The sooner they are regulated, the sooner users can have legal assurances that merchants are liable for their operations. The negligence seen at MTGox would never have happened in a regulated market.

Although the FSA have not made any official statement about bitcoins. We at www.britcoin.co.uk are hoping that we can show to the proper authorities that indeed we have recorded our history of transactions. That all the money in our users accounts is accounted for. This process would dispel the FUD surrounding bitcoins and allow the people of the world to enjoy the freedoms and wealth of bitcoins that much sooner.

Tax avoidance and illicit trading
by slim

Some "benefits" of Bitcoin, from one perspective, appear to be that its cash-like properties lend themselves to tax avoidance (making transactions without declaring them), illicit trading (e.g. drugs or prostitution) and money laundering. Do you view this as a positive, a negative, or neutral? If you view it as a problem, how can the problem be mitigated?

A.T.: Most new technologies can be used for good and bad. Of course I do not condone or agree with the use of Bitcoins for illegal purposes.

However, I really want people to understand one thing. The criminalization of Bitcoin would not stop the illegal activity that surrounds it. In fact, it would help those who use it as a means of engaging in illegal activity by not regulating the purchasing and selling of bitcoins. Criminalization would only stop people from enjoying the tremendous and fruitful benefits of such a system, it would hinder the social good. Regulation would allow the proper authorities to find and charge those who use bitcoins for illegal activities.

Britcoin.co.uk has kept a clear record of the exchanges which have gone on. Every single transaction is recorded and we are happy to open our books to the proper authorities. We are aggressively advocating and promoting the legalization and regulation of the exchanges.

Bitcoins offer massive potential for positive social change. It would be a sad thing to see Bitcoins outlawed due to ignorance or reactionary feelings. If you outlaw Bitcoin then the illicit trades will still continue, perhaps even proliferate, but the good would disappear.

Kings used to raise capital in order to wage wars. They required popular support before they were able to fund their wars. A common tool in modern day authoritarian regimes is currency manipulation in order to fund their wars of genocide (e.g Milosevic in the 90s). Bitcoin democratises governments.

Quantum Computing?
by SanityInAnarchy

Are there plans to deal with quantum computing, or with any of the algorithms used being compromised?

A.T.: If SHA256 or ECDSA was ever cracked, we'd have far bigger problems to worry about than bitcoin being destroyed. I suspect that there won't be any overnight switch, giving everybody enough time in order to adjust the current system to any changes.

The internet wasn't built perfect. But years of reshaping/patching/incremental design have shaped it into a workable network. Bitcoin will too undergo this transformation with time as it ages.

(More from the call for questions:)

is there ever going to be a bitcoin bank? ... The idea that if you lose or destroy or whatever your computer and lose all your money isn't going to make the general public accept this.

A.T.: Bitcoin now stands at its early stages. It's the kernel of the software stack that will eventually exist for this financial system. Other services and software utilising Bitcoin will exist. A common view is where Bitcoin acts as an automated clearing house between all these user facing services in the future.

Bitcoin's protocol itself will need to be extended in order for it to grow. As the network expands, block sizes could become impossible large once it rivals the transaction volume of a comparable service like VISA or Paypal. To have lightweight clients that don't need to process these large GB sized blocks new protocol commands like a txmatch regex would need to be introduced in order that clients don't need to process the entire block data.

The point to Bitcoin is that you can choose your own level of trust in an external service. One of our group's members, Patrick Strateman, came up with a scheme whereby a wallet could be recovered algorithmically using an email and a password. In the future I expect savings accounts where retrieving the money is an arduous proccess. Then we can go further to where a person has all their funds in a trusted service like with email today- how many people run their own mail servers?

What markets do you think will be the first to most aggressively adopt bitcoins as their currency?

What insights can you offer as to why the US government is having a hostile reaction to bitcoins?"

What kinds of competing P2P currencies are in development, and how will their deployment affect the valuation of bitcoins?

A.T.: Immediately as liquidity improves in exchanges, the best use for Bitcoins will be individuals transferring funds between countries without fees. Our group has a lot of interest from mobile sectors because of the potential as a micropayment system. Currently now in Africa, people use mobile credit as a form of currency to transfer funds across borders, but that's usually less than ideal.

The US government isn't a homogenous entity, and one senator (possibly funded by bankers) made a false claim on Bitcoin- calling it a scheme for drug trafficking networks. It may simply be due to reactionary misunderstanding like the people in Yahoo Finance calling Bitcoin a Ponzi scheme invented by bankers. That's why our group is aggressively pursuing press in order to dispel these myths.

Terminology

If we eventually use Bitcoin in everyday life, say, in the supermarket, how will we deal with prices in fractions of a Bitcoin? What terminology might we use for something priced at 0.00000005 Bitcoins?

A.T.: The accepted 'standard' is to use SI prefixes. 0.005 BC would be 5 mBC.

Here come the regulators ...

How will your business change when countries regulate exchanges? How do you ensure your exchange isn't being used for illicit purposes (to avoid being shut down by government authorities)?

A.T.: It is our goal (and has been for months) to get legal legitimisation. Our organisation has been aggressively seeking FSA regulation here in the UK for Britcoin. Our hope is that when governments do come to look at Bitcoin, they will see a long running, honest, legal exchange with open books. By having something in the law books about Bitcoin, it sets a positive legal precedent in the future and puts us as the policy makers rather than a bunch of old 60 year banker types.

Our exchange complies with the UK Know Your Customer laws which ensures it's not being used for illicit activity. We keep detailed transaction records and run regular audit logs to look for missing funds.

But eventually, one would want to use BitCoins to pay for legal services. My question is; how do you get to that point? Why would a legitimate business accept a currency that is used almost exclusively for illegal means? What is the strategy to convince mainstream businesses that BitCoins have a purpose in the main web, as well?

A.T.: The illicit markets are a very small part of Bitcoin yet the most sensationalist. I can see how one would think Bitcoin is purely for illegal trade if I didn't know better.

Check out the list of merchants.

Full and open disclosure: how many bitcoins do you currently own?

A.T.: 32 BC. At one point I had 6000, but I'm a bad hoarder. Everytime Bitcoins would double (and I'd have $2k), I'd donate half my wealth to other free software developers. Then recently I was going to wait until I had $4k, but the price went down and I'm very bad at holding onto cash :)

But that doesn't bother me at all. We have our group of free software developers developing Bitcoin itself and other related projects. Funds are coming in and we're growing. The goal is to this as a sustainable operation paying developers working on Bitcoin fulltime.

What are the advantages of bitcoin?

One problem I see with bitcoin is it offers very little over what we currently have. If I want to perform an online transaction using my computer, unless I am buying something illegal, then there are already companies which offer products for me to use. If I want to make an anonymous purchase in person, I would easily use cash.

Bitcoin seems to suffer from a lack of portability, which makes me wonder, what "need" is bitcoin catering to? What do I do in my day-to-day life that bitcoin will help me do such that as some point, bitcoin becomes irreplaceable and achieves de facto permanency?

A.T.: Sending funds abroad is time consuming, expensive and difficult. Recently I tried sending funds to a Polish bank from the UK- the bank was closed and I waited until Monday. Requiring me to be in person at the bank, the woman was unable to enter the Polish L looking character into her terminal. I had to aquire an internet banking code to do it online. Waited 3 days, logged in and the internet banking form didn't work. In the end, I ended using a friend to aquire Bitcoins and use the Polish exchange bitomat (we never use Britcoin ourself).

I wanted to donate funds to the excellent Symphony of Science musician. I went to fill in the Paypal form, spent 10 mins signing up to an account, entering all my very personal details and my card was rejected. In the end I got him to accept Bitcoins and donated directly without paying fees to Paypal.

Sony recently was hacked. Millions of accounts were leaked. If they were using Bitcoins then the addresses people donated to would be known to the attacker. Not my private keys which enable said attacker to spend my cash.

With commerce, everything becomes cheaper. Bitcoin vastly reduces the overhead needed for fees. We no longer require staff sitting inside banks pressing numbers on a keyboard since the system is automatically backed by mathematics and cryptography, not laws and people.

thewebblogger writes "In a move that more resembles 'me too' behavior rather than a well planned release, Best Buy has announced their own music cloud service, called simply Best Buy Music Cloud. The functionality is not complete yet; iOS / Android applications are not available at this point, and the only part that works is the Web Player. The premium version will cost $3.99/month and you'll have to upload your own music. iTunes is mandatory."

Raenex writes "An investigation by the Associated Press has found a pattern of safety regulations being relaxed in order to keep aging nuclear power plants running. According to their investigation, when reactor parts fail or systems fall out of compliance with the rules, studies are conducted by the industry and government. The studies conclude that existing standards are 'unnecessarily conservative.' Regulations are loosened, and the reactors are back in compliance. From the article: 'Examples abound. When valves leaked, more leakage was allowed — up to 20 times the original limit. When rampant cracking caused radioactive leaks from steam generator tubing, an easier test of the tubes was devised, so plants could meet standards. Failed cables. Busted seals. Broken nozzles, clogged screens, cracked concrete, dented containers, corroded metals and rusty underground pipes — all of these and thousands of other problems linked to aging were uncovered in the AP's yearlong investigation. And all of them could escalate dangers in the event of an accident.'"

An anonymous reader writes "Sega Corp joins the ranks of video game companies to be hacked in recent time with one small twist, it seems LulzSec was not behind this one. They reached to Sega's official twitter account and offered to destroy the hackers that attacked them. From the article: 'In its offer to assist Sega, the Tweet from Lulz hinted that its leaders might count themselves among a small but highly loyal group of gamers who still play on the aging Dreamcast console. "Sega - contact us," Lulz said in its Tweet to the video game developer. "We want to help you destroy the hackers that attacked you. We love the Dreamcast, these people are going down."'"

jcasman writes "Some entrepreneurs wait a lifetime to experience the thrill of selling their startup companies. Daniil Kulchenko, a Seattle area high school student, accomplished that milestone at the age of 15. Kulchenko today announced that he's sold his startup, a cloud-based computing company known as Phenona, to Vancouver, B.C.-based ActiveState in a deal of undisclosed size."

capedgirardeau writes with a clipping from the AP about engineer Ken Yankelevitz: "[W]ith the retired Bozeman engineer's 70th birthday approaching, disabled gamers say they fear there will be no one to replace Yankelevitz, who has sustained quadriplegic game controllers for 30 years almost entirely by himself. The retired aerospace engineer hand makes the controllers with custom parts in his Montana workshop, offering them at a price just enough to cover parts." Yankelevitz builds interfaces to control an Xbox 360 or PlayStation.

Hugh Pickens writes "Ever been annoyed during that nail-biting darkened hallway scene by someone turning on their phone to send a text? Well, don't mess with Texas or you may end up on the screen in a public service announcement. Alamo Drafthouse, a local chain of dine-and-screen movie theaters in Austin, Texas, has long waged a war against impolite moviegoers booting out customers who talk or text during performances. Phoebe Connelly writes that according to Tim League, the Drafthouse's founder, a woman was recently warned twice about texting during a screening, and then, in accordance with company policy, was escorted out without a refund. 'I don't think people realize that it is distracting,' says League. 'It seems like nothing, but if you spend as much time as I do at the movies, you realize the entire theater sees it and it pulls you out of the movie experience. It's every bit as intrusive as talking.' The irate customer called up the Alamo Drafthouse and left a profanity-laced (and perhaps slightly inebriated) message decrying the theater's policies, but the theater got the last laugh as they took the audio of the woman's voicemail, transcribed it, and turned it into an in-house preview [tl: Note, YouTube video contains some profanity] that warns theatergoers against cell phone use during movies. 'Part of what we're trying to do is have a comedic message about what to us is a very serious issue,' says League, declining to give any more details about the woman at the center of the recent PSA."

kolbe writes "A new study from the Entertainment Software Association suggests that the average age of today's gamers is between the 37 and 41 years old. If true, does this mean that game studios should be adjusting their demographics accordingly? Is Generation X the next 'baby boomer' market for the gaming industry?"

cultiv8 writes with this excerpt from an AP story as carried by Yahoo: "Eye scanners and futuristic security tunnels may be standard in airports soon as the airline industry seeks to maintain safety while reducing the hassles of boarding a plane that deter some people from flying. The International Air Transport Association unveiled a mock-up Tuesday in Singapore of what it dubbed the 'Checkpoint of the Future,' where passengers separated by security risk would walk through one of three high-tech, 20-foot-long (6.1-meters-long) tunnels that can quickly scan shoes and carry-on luggage and check for liquids and explosives. ... In the IATA prototype, passengers would be categorized based on the results of a government risk assessment that is put into a chip in a passenger's passport or other identification. An eye scan would then match the passenger to the passport."

An anonymous reader writes "State lawmakers in Tennessee have passed a groundbreaking measure that would make it a crime to use a friend's login — even with permission — to listen to songs or watch movies from services such as Netflix or Rhapsody. The bill, which has been signed by the governor, was pushed by recording industry officials to try to stop the loss of billions of dollars to illegal music sharing. They hope other states will follow."