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Cryptocurrency investment scams are on the rise. Here’s how to avoid them. | Opinion – Commercial Appeal

Randy Hutchinson| Columnist

You can hardly pick up the financial section of the newspaper or visit a financial website without seeing a headline about Bitcoin or another cryptocurrency.

As I write this column, these articles are on one website:

Hear more Tennessee Voices: Get the weekly opinion newsletter for insightful and thought provoking columns.

The FTC says theres a Wild West vibe to the crypto culture, and an element of mystery too. Investopedia says some people compare cryptocurrencies to the fad for Beanie Babies in the 1980s. It says others draw analogies to Tulipmania, a 17th century speculative bubble in which the average price of a single tulip exceeded the annual income of a skilled worker.

Crooks exploit the headlines to make their scams more believable. According to a new FTC report titled Cryptocurrency buzz drives investment scam losses, nearly 7,000 people reported losses of more than $80 million to the FTC in cryptocurrency scams from October 2020 to May 2021. That was about 12 times the number of reports and almost 1,000% more in losses compared to the same time period a year earlier. Only a small percentage of scam victims report their experience, so the actual numbers are much higher.

Some victims were lured to bogus websites offering the opportunity to invest in cryptocurrencies or in mining them. The websites used fake testimonials and cryptocurrency jargon to appear legitimate. Some even made it seem like the persons investment was growing, but when they tried to withdraw their money, they couldnt.

In giveaway scams supposedly sponsored by celebrities, people sent in cryptocurrency based on the promise that the celebrity would multiply it. Elon Musk, the CEO of Tesla, has been tweeting about Bitcoin and other cryptocurrencies a lot lately, causing their values to go up or down depending on whether his comments were favorable or unfavorable. People reported losing over $2 million to crooks impersonating Musk.

Romance scams in which crooks establish a relationship with a victim online and then request money for some reason have taken on a cryptocurrency twist. Many people reported to the FTC that their new love started chatting about a hot cryptocurrency investment opportunity in which the victim ended up being defrauded.

The FTC report found that people ages 20 to 49 were five times more likely than older age groups to report losing money in a cryptocurrency scam; those in their 20s and 30s were the most vulnerable. But when people older than 50 lost money, the median loss was much higher$3,250 vs. $1,900 for all victims.

The FTC and BBB offer these tips to avoid becoming the victim of a cryptocurrency investment scam:

Scams of all kinds in which victims are instructed to pay using Bitcoin are also on the rise. If youre asked to pay using Bitcoin to claim a prize, pay back taxes, get a government grant, or for any other strange reason, its a scam.

Randy Hutchinson is the president of the Better Business Bureau of the Mid-South. Reach the BBB at 800-222-8754.

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AQUADOGE- the New Cryptocurrency Listing on PancakeSwap with $15,000 giveaway every 2 Weeks – Yahoo Finance

Los Angeles, California, July 31, 2021 (GLOBE NEWSWIRE) -- The DeFi altcoin space has absolutely exploded in recent months following the exponential growth of DOGECOIN. In fact, some investors still seem to be kicking themselves for missing out on what may have been the financial play of the year. However, returns like those experienced by DOGECOIN holders are commonplace in the Decentralized Finance industry, and AquaDoge has definitely risen to the top of retail investors watchlists.

AquaDoge is proud to announce its listing on PancakeSwap on August 11th, and will also host its first treasure chest giveaway shortly after. And details can be found on official telegram.

Reasons why AquaDoge has set itself in best possible manner.

1. Meme, Utility, and Charity Its safe to say the power of memes or meme coins for that matter cannot be underestimated since the rise of Doge. AquaDoge brings features to the table that other Coins lacked, like utility and function.

AquaDoge rewards its holders with 3% redistribution, and rewards the environment with 3% Charity taxes. This means for every transaction, AquaDoge gives a percentage to its holders, and another percentage to Ocean charities.

2. $15,000 Given Away Every 2 Weeks (or sooner) With most crypto currencies, investors can only make a return if the price increases, meaning there consistently has to be more buyers than sellers at all times. AquaDoge, however, features a unique and never seen before Treasure Chest function in its contract code. The Treasure Chest sets aside 5% of every transaction into a separate wallet. Upon reaching its capacity of 100 BNB, 50% is verifiably donated to a charity and 50% will be given away to lucky token holder.

Being a community propelled token, AquaDoge will utilize voting polls to decide how many winners there will be, as well as requirements to enter the giveaways. That being said, the developers have stated that 2 weeks is a generous time frame as to when the 5% transactions would amount to 50 BNB. It could be more or less, but based on the aggressive marketing plans they have in place, they expect the treasure chest to fill up every few days. That means roughly $15,000 given away every few days!

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3. Safety and Security In recent months, rug pulls and pump and dumps have tainted the name of the cryptocurrency DeFi space. While incredible returns are paramount to any investors decision to invest in any crypto-asset, safety and security are always the forefront of making any sort of return at all. AquaDoge will have its LP locked for 10 years, is in the process of receiving a verified TechRate audit, and the developers will not hold any tokens, aside from a 3% Dev wallet.

While Dev wallets are often the subject of heavy scrutiny, the developers of AquaDoge have mentioned that they incentivize the developers to keep working and growing the hype and awareness around the community. Usually, the tokens that rug seem to be the ones that promise no dev wallets or involvement. All in all, this token puts the safety and security of its holding investors first, as is necessary to provide ease of mind and buyer confidence for any tradable currency.

How To Invest

While AquaDoge has not officially launched yet, its presale will be open soon for investors to get in early, and they expect it to fill up fast! Updates will be posted on the AquaDoge website, https://www.aquadoge.net as well as in their community Telegram, https://t.me/aquadogecommunity for investors to easily stay up to date.

Social links

Twitter: https://twitter.com/AquaDoge1

Telegram Group: https://t.me/aquadogecommunity

Media contact

Company: AquaDoge

Contact Name: Kenny Johnson

E-mail: aquadogecoin@gmail.com

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If you own any cryptocurrency, theres a secret tax loophole that can save you thousands – Yahoo Entertainment

Recent weeks have seen a flurry of cryptocurrency news, from Tesla announcing just a few days ago that its still holding $1.3 billion worth of bitcoin and that its also planning to accept bitcoin as payment soon. The city of Miami is also continuing to talk up MiamiCoin, its own cryptocurrency token that would be used to fund development projects in the Magic City.

Meantime, some crypto market investors are celebrating the recent 46% dip from the markets all-time high in May. Thats because of a tax loophole which has been garnering headlines in recent weeks. This particular loophole treats crypto losses differently than losses associated with an asset like a stock. And more awareness of it comes at a time when Democratic lawmakers in Congress want to squeeze crypto investors for more money.

The loophole, which may sound a little esoteric for the average American, works like this. Crypto investors can sell their assets at a loss. Then, they can use that loss to whittle down or wipe out capital gains tax on other investments that are doing well. And they can buy back the crypto asset they sold at a loss to make sure theyre ready when a price rebound happens for it. Whereas, normally, they have to wait essentially a month to do that same thing with a stock.

One thing savvy investors do is sell at a loss and buy back bitcoin at a lower price, CPA Shehan Chandrasekera told CNBC. You want to look as poor as possible.

Chandrasekera went on to explain that he sees people doing this every month, week, and quarter. Depending, of course, on their level of investment sophistication. Investors can rack up so many of these losses, he said. Losses that they can just put toward offsetting any future gains.

We should add that this comes against the backdrop of other major cryptocurrency news. Specifically, a major development associated with the infrastructure bill that the Biden administration desperately wants Congress to pass.

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Basically, new crypto reporting requirements are part of this bills mix of policy goals. Dont ask us what the relation is to roads and bridges you know, infrastructure. It seems that the idea is for the new crypto reporting requirements to help raise billions of dollars. For what else? To help pay for other infrastructure-y aspects of the legislation.

Also, on an unrelated note, we mentioned in a post a few days ago that Amazon is seeking an experienced individual to lead its digital currency and blockchain department. The finding led to speculation that Amazon will eventually support bitcoin payments and might even, eventually, launch its own cryptocurrency. Amazon has an official position on the matter, we reported earlier this week. The companys position is that the swirl of reports claiming that bitcoin payments are coming soon are unfounded. However, it ended up sounding more like a non-denial denial, truth be told. The company certainly seems to be interested in the blockchain landscape.

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Out of control and rising: why bitcoin has Nigerias government in a panic – The Guardian

When the Nigerian government suddenly banned access to foreign exchange for textile import companies in March 2019, Moses Awa* felt stuck. His business importing woven shoes from Guangzhou, China, to sell in the northern city of Kano and his home state of Abia, further south had been suffering along with the countrys economy. The ban threatened to tip it over the edge. It was a serious crisis: I had to act fast, Awa says.

He turned to his younger brother, Osy, who had begun trading bitcoins. He was just accumulating, accumulating crypto, saying that at some point years down the line it could be a great investment. When the forex ban happened, he showed me how much I needed it, too. I could pay my suppliers in bitcoins if they accepted and they did.

According to bitcoin trading platform Paxful, Nigeria is now second only to the US for bitcoin trading. The dollar volume of crypto received by users in Nigeria in May was $2.4bn, up from $684m last December, according to blockchain research firm Chainalysis. And the true scale of crypto flows through Africas largest economy is likely to be much larger, with many trades untraceable by analysts.

An array of factors, from political repression to currency controls and rampant inflation, have fuelled the stunning rise of cryptocurrencies in Nigeria. In February, the government took fright and banned cryptocurrency transactions through licensed banks. In late July, it announced a pilot scheme for a new government-controlled digital currency hoping to reduce incentives for those wanting to use unregulated crypto.

But these measures have done little to dampen trading, with exchanges reporting a continued rise in transactions this year.

Nigerias experience holds lessons for governments around the world, many of which are now thinking hard about how to regulate digital currencies. Britains chancellor, Rishi Sunak, is looking at creating a central-bank-controlled version, already being called Britcoin. EU regulators have set out plans to make digital currencies more traceable, in order to combat money laundering. In rural China, rows of computers used to create bitcoin in a computational process known as mining are being switched off after a clampdown by the authorities. The ruling party imposed a ban on transactions in May.

Elsewhere, Egypt, Turkey and Ghana have sought to clamp down on crypto trading, wary of potentially vast movements of digital funds beyond their regulatory controls.

Nigeria has one of the youngest populations in the world and is ripe for digital finance. With many people looking for ways to escape widespread poverty, pyramid schemes are proliferating.

Trading in foreign currencies is an everyday activity for many. Remittances into Nigeria from those working abroad, which were worth more than $17bn in 2020, have played a role, as has the way digital currencies can provide insurance against exchange rate fluctuations. The value of the Nigerian naira has plummeted almost 30% against the dollar in the past five years.

There are political factors too. Some see cryptocurrencies as vital protection from government repression.

Last October, Nigeria was rocked by the largest protests in decades, as many thousands marched against police brutality, and the infamous Sars police unit. The EndSars protests saw abuses by security forces, who beat demonstrators, and used water cannon and teargas on them. More than 50 protesters were killed, at least 12 of them shot dead at the Lekki tollgate in Lagos on 20 October

The clampdown was financial too. Civil society organisations, protest groups and individuals in favour of the demonstrations who were raising funds to free protesters or supply demonstrators with first aid and food had their bank accounts suddenly suspended.

Feminist Coalition, a collective of 13 young women founded during the demonstrations, came to national attention as they raised funds for protest groups and supported demonstration efforts. When the womens accounts were also suspended, the group began taking bitcoin donations, eventually raising $150,000 for its fighting fund through cryptocurrency.

Jack Dorsey, the founder of Twitter and a prominent advocate of cryptocurrencies, reshared the FemCo bitcoin donation page, further drawing the ire of Nigerias government, which last month suspended Twitter in Nigeria.

The sight of young people openly critical of government figures easily manoeuvring around restrictions shocked the countrys political class, according to Adewunmi Emoruwa, founder of Gatefield, a public policy organisation which gave grants to journalists covering the protests.

I think that EndSars is like the key catalyst for some of these decisions the government is making, he said. It caused fear. They saw, for example, that people could decide to bypass government structures and institutions to mobilise. It sent shockwaves and those shockwaves have continued.

During the protests, Gatefields bank accounts were suspended, until a court found the suspension unmerited and ordered that they be reopened earlier this year.

The episode reinforced the need many Nigerians felt to insure themselves against sudden moves by the authorities. Many organisations now keep some of their finances in cryptocurrencies.

Speaking anonymously to avoid reprisals from the authorities, a leading figure in one civil society organisation, whose accounts were also briefly suspended last October, said digital currencies were now a key insurance against hostile interventions.

We keep some securities in crypto not too much but enough, sort of as an insurance policy, they said. When the ban happened we were, thankfully, able to pay salaries. This way, in a situation like that, well have a way to keep paying our staff.

In February, the Central Bank of Nigeria responded by telling banks to close the accounts of all customers using cryptocurrencies. Financial institutions would have to identify persons and/or entities making transactions in crypto or face sanctions.

The ban was at first a blow to an emerging industry of cryptocurrency brokers who relied on commercial banks to facilitate transactions between sellers and buyers. However, many customers found workarounds, said Marius Reitz, Africa general manager at Luno, a cryptocurrency trading platform.

A lot of trading activity has now been pushed underground, which means many Nigerians are now depending on less secure, less transparent over-the-counter channels, as well as Telegram and WhatsApp groups, where people trade directly with each other, Reitz said. The ban has made cryptocurrency trading harder to monitor and less safe. This also means regulators now have a reduced level of visibility and control of the market, and unfortunately this can expose consumers to a higher risk of being defrauded.

Platforms have also adjusted, by continuing to facilitate transactions as long as the currency being traded is not declared as a cryptocurrency.

While some platforms experienced a hit in trades, for others, the clampdown has increased demand for cryptocurrencies, not dampened it. In the first five months of 2021, according to Helsinki-based platform LocalBitcoins, Nigerians traded 50% more than in the same period last year.

The Nigerian governments response to cryptocurrencies has in fact been inconsistent. Announcing the February curbs, the governor of the central bank, Godwin Emefiele, told a senate committee that cryptocurrency was not legitimate money.

At the same time, Vice-President Yemi Osinbajo publicly rebuked the move. Rather than adopt a policy that prohibits cryptocurrency operations in the Nigerian banking sector, we must act with knowledge and not fear, he said, calling for a robust regulatory regime that is thoughtful and knowledge-based.

Another Nigerian government agency, the Securities and Exchange Commission, has been more open to creating a more regulated environment for cryptocurrency transactions.

The reality that cryptocurrencies cannot effectively be stopped had gradually dawned on the government, said the operator of one Nigerian crypto trading platform, speaking anonymously after having been targeted by the authorities. They know they cant really stop it. Its out of their control, and what scares them is they are not used to being in this position.

* Not his real surname

Bitcoin was the first cryptocurrency, created in 2009, and remains the most widely known and valuable. Its a digital or virtual asset, operating outside of the traditional banking system, and its influence has soared, with a growing number of companies now accepting it for payments.

Each bitcoin is essentially a digital token containing a secret key that proves to anyone in the network who it belongs to. Effectively, each bitcoin is a collective agreement of every other computer on the bitcoin network that the token is real, created by a bitcoin miner, and then acquired through a series of legitimate transactions.

Each time bitcoins are spent, it becomes known to the entire network that their ownership has been transferred. Every transaction is stored in a lasting public record called a blockchain, which underpins the entire system, making it possible to trace a coins history and preventing people from spending coins they do not own.

For bitcoins many advocates, there are several advantages to the virtual system from the way the blockchain can be used to track things other than simple money, to support for smart contracts, which execute automatically when certain conditions are met.

But bitcoins biggest advantage is that it is decentralised and so extremely resistant to censorship or regulatory control by a single entity. Its possible to observe a bitcoin payment in process, but no one can stop it. This has made governments wary: in a conventional financial system, banks can freeze accounts, vet payments for money laundering or enforce regulations.

Thanks to the decentralised nature of cryptocurrency networks, people have been able to make international payments from closed or tightly restricted economies, but this has also made them a haven for illegal activities, from cybercrime to money laundering and drug trading.

Another concern about bitcoins is that they damage the environment. Bitcoin mining the process in which a bitcoin is awarded to a computer that solves a complex series of algorithms consumes vast amounts of energy. Miners set up large computer rigs to maximise the chances of being awarded bitcoins. The carbon footprint of this mining is now similar to Chiles, according to the Cambridge Bitcoin Electricity Consumption Index, a tool from Cambridge University that measures the currencys energy usage.

Advocates of bitcoin say the mining is increasingly being done with electricity from renewable sources. And while the amount of energy consumed by bitcoin has dropped significantly this year, concerns remain. Environmentalists argue that miners tend to set up wherever electricity is cheapest, which may be in places with coal-generated power.

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Cryptocurrency Mining Operation Uncovered at Polish Police Headquarters: Report – Gadgets 360

Polish police on Friday said they had uncovered a bitcoin mining operation in their own headquarters in Warsaw.

"A civilian employee, not a police officer... attempted to steal electricity to mine bitcoin," police spokesman Mariusz Ciarka told the TVN24 news channel.

"Unfortunately this happened at a police site," Ciarka said, emphasising that at no stage did the suspect have access to police databases.

Ciarka added that the alleged crime had been discovered "quite quickly" but did not give a precise timeline.

TVN24 said the employee had been fired and prosecutors were investigating.

The report said a second person was also about to be fired over the investigation.

Crypto-mining -- the process by which computers mint new virtual currency and validate transactions -- requires vast amounts of energy and processing power.

The process typically involves large numbers of sophisticated computers that form a specially designed "rig" that runs the complex calculations required to maintain a cryptocurrency network.

While energy-hungry, the process can be lucrative with each bitcoin currently worth more than 32,600 euros ($38,800).

As of July 31 (10:47am IST), Bitcoin price in Indiastood at Rs. 31.1 lakhs.

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Top 10 Cryptocurrency Prices on July 30, 2021 – Analytics Insight

Analytics Insight brings the top 10 current cryptocurrency prices on July 30, 2021

The cryptocurrency market varies every now and then, it is a highly volatile market. Hence it becomes difficult to figure out things for the investors before investing in the cryptocurrency.

But Analytics Insight is here listing the top 10 cryptocurrency prices on July 30, 2021. Here they are.

Bitcoin ( BTC)- US$39,922.30 (down by 0.18%)

Ethereum (ETH)- US$2,425.40 (up by 6.03%)

Tether (USDT)- US$1.00 (down by 0.05%)

Binance Coin (BNB)- US$321.50 (up by 3.04%)

Cardano (ADA)- US$1.31 (up by 3.32%)

XRP (XRP)- US$0.7547 (up by 7.24%)

USD Coin (USDC)- US$0.9999 (down by 0.04%)

Dogecoin (DOGE)- US$0.2073 (up by 1.34%)

Polkadot (DOT)- US$15.47 (up by 5.80%)

Binance USD (BUSD)- US$0.9998 (down by 0.04%)

According to CoinMarketCap, the global crypto-market cap is US$1.58T with a volume of US$76,507,815,887billion over the last 24hours with a 2.49% over the last day.

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The history of hacking ransoms and cryptocurrency – CNET

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Earlier this month, hundreds of companies from the US to Sweden were entangled in theransomware attack through Kaseya, a company that offers network infrastructure to businesses around the world.

The Kaseya hack comes on the heels of other headline-grabbing cyberattacks like theColonial Pipeline hijackingand theJBS meat supplier hack. In each instance, criminals had the opportunity to make off with millions -- and much of the ransoms were paid in Bitcoin.

"We have to remember the primary reason for creating Bitcoin in the first place was to provide anonymity and secure, trustless and borderless transaction capabilities," says Keatron Evans,principal security researcher at Infosec Institute.

As Bitcoin grows more prominent in markets around the world, cybercrooks have found a vital tool to help them move illegal assets quickly and pseudonymously. And by all accounts, the attacks are only becoming more common.

Ransomware is a cybercrime that involves ransoming personal and business data back to the owner of that data.

First, a criminal hacks into a private network. The hack is accomplished through various tactics, including phishing, social engineering and preying upon users' weak passwords.

Once network access is gained, the criminal locks important files within the network using encryption. The owner can't access the files unless they pay a ransom. Nowadays, cybercriminals tend to request their ransoms in cryptocurrencies.

The FBIestimatesransomware attacks accounted for at least $144.35 million in Bitcoin ransoms from 2013 to 2019.

These attacks are scalable and can be highly targeted or broad, ensnaring anyone who happens to click a link or install a particular software program.

This allows a small team of cybercrooks to ransom data back to organizations of all sizes -- and the tools needed to hack into a small business or multinational cooperation are largely the same.

Private citizens, businesses, and state and national governments have all fallen victim -- and many decided to pay ransoms.

Today's business world depends on computer networks to keep track of administrative and financial data. When that data disappears, it can be impossible for the organization to function properly. This provides a large incentive to pay up.

Although victims of ransomware attacks are encouraged to report the crime to federal authorities, there's no US law that says you have to report attacks (unless personal data is exposed). Given this, there's little authoritative data about the number of attacks or ransom payments.

However, a recent study from Threatpostfound thatonly 20% of victims pay up. Whatever the actual number is, the FBIrecommendsagainst paying ransoms because there's no guarantee that you'll get the data back, and paying ransoms creates further incentive for ransomware attacks.

Cryptocurrency provides a helpful ransom tool for cybercrooks. Rather than being an aberration or misuse, the ability to make anonymous (or pseudonymous) transfers is acentral value propositionof cryptocurrency.

"Bitcoin can be acquired fairly easily. It's decentralized and readily

available in almost any country," says Koen Maris, a cybersecurity expert and advisory board member at IOTA Foundation.

Different cryptocurrencies feature different levels of anonymity. Some cryptocurrencies, like Monero and Zcash, specialize in confidentiality and may even provide a higher level of security than Bitcoin for cybercriminals.

That's because Bitcoin isn't truly anonymous -- it's pseudonymous. Through careful detective work and analysis, it appears possible to trace and recoup Bitcoin used for ransoms, as the FBIrecently demonstratedafter the Colonial Pipeline hack. So Bitcoin isn't necessarily used by ransomers simply because of security features. Bitcoin transfers are also fast, irreversible and easily verifiable. Once a ransomware victim has agreed to pay, the criminal can watch the transfer go through on the public blockchain.

After the ransom is sent, it's usually gone forever. Then crooks can either exchange the Bitcoin for another currency -- crypto or fiat -- or transfer the Bitcoin to another wallet for safekeeping.

While it's not clear exactly when or how Bitcoin became associated with ransomware, hackers, cybercrooks, and crypto-enthusiasts are all computer-savvy subcultures with a natural affinity for new tech, and Bitcoin was adopted for illicit activities online soon after its creation. One of Bitcoin's first popular uses was currency for transactions on the dark web. Theinfamous Silk Roadwas among the early marketplaces that accepted Bitcoin.

Ransomware is big business. Cybercriminals made off just under $350 million worth of cryptocurrency in ransomware attacks last year,according to Chainanalysis. That's an increase of over 300% in the amount of ransom payments from the year before.

The COVID-19 pandemic set the stage for a surge in ransomware attacks. With vast tracts of the global workforce moving out of well-fortified corporate IT environments into home offices, cybercriminals had more surface area to attack than ever.

According toresearch from cyberinsurer Coalition, the organizational changes needed to accommodate remote work opened up more businesses for cybercrime exploits, with Coalition's policyholders reporting a 35% increase in funds transfer fraud and social engineering claims since the beginning of the pandemic.

It's not just the number of attacks that is increasing, but the stakes, too. A2021 reportfrom Palo Alto Networks estimates that the average ransom paid in 2020 was over $300,000 -- a year-over-year increase of more than 170%.

When an organization falls prey to cybercrime, the ransom is only one component of the financial cost. There are also remediation expenses -- including lost orders, business downtime, consulting fees, and other unplanned expenses.

TheState of Ransomware 2021report from Sophos found that the total cost of remediating a ransomware attack for a business averaged $1.85 million in 2021, up from $761,000 in 2020.

Many companies now buy cyber insurance for financial protection. But as ransomware insurance claims increase, the insurance industry is also dealing with the fallout.

Globally, the price of cyber insurance hasincreased 32%, according to a new report from Howden, an international insurance broker. The increase is likely due to the growing cost these attacks cause for insurance providers.

A cyber insurance policy generally covers a business's liability from a data breach, such as expenses (i.e., ransom payments) and legal fees. Some policies may also help with contacting the businesses customers who were affected by the breach and repairing damaged computer systems.

Cyber insurance payouts now account formore than 70%of all premiums collected, which is the break-even point for the providers.

"We noticed cyber insurers are paying ransom on behalf of their customers. That looks like a bad idea to me, as it will only lead to more ransom attacks," says Maris. "Having said that, I fully understand the argument: the company either pays or it goes out of business. Only time will tell whether investing in ransom payments rather than in appropriate cybersecurity is a viable survival strategy."

The AIDS Trojan, or PC Cyborg Trojan, is the first known ransomware attack.

The attack began in 1989 when an AIDS researcher distributed thousands of copies of a floppy disk containing malware. When people used the floppy disk, it encrypted the computer's files with a message that demanded a payment sent to a PO Box in Panama.

Bitcoin wouldn't come along until almost two decades later.

In 2009, Bitcoin's mysterious founder, Satoshi Nakamoto, created the blockchain network by mining the first block in the chain -- the genesis block.

Bitcoin was quickly adopted as the go-to currency for the dark web. While it's unclear exactly when Bitcoin became popular in ransomware attacks, the 2013 CryptoLocker attack definitely put Bitcoin in the spotlight.

CryptoLocker infected more than 250,000 computers over a few months. The criminals made off with about $3 million in Bitcoin and pre-paid vouchers. It took an internationally coordinated operation to take the ransomware offline in 2014.

Since then, Bitcoin has moved closer to the mainstream, and ransomware attacks have become much easier to carry out.

Early ransomware attackers generally had to develop malware programs themselves. Nowadays, ransomware can be bought as a service, just like other software.

Ransomware-as-a-service allows criminals with little technical know-how to "rent" ransomware from a provider, which can be quickly employed against victims. Then if the job succeeds, the ransomware provider gets a cut.

In light of the recent high-profile ransomware attacks, calls for new legislation are growing louder in Washington.

President Joe Biden issued anexecutive orderin May "on improving the nation's cybersecurity." The order is geared toward strengthening the federal government's response to cybercrime, and it looks like more legislation is on the way.

TheInternational Cybercrime Prevention Actwas recently introduced by a bipartisan group of senators. The bill aims to ramp up penalties for cyberattacks that impact critical infrastructure, so the Justice Department would have an easier time charging criminals in foreign countries under the new act.

States are also taking their own stands against cybercrime:Four stateshave proposed legislation to outlaw ransomware payments. North Carolina, Pennsylvania, and Texas are all considering new laws that would outlaw taxpayer money from being used in ransom payments. New York's law goes a step further and could outright ban private businesses from paying cybercrime ransoms.

"I think the concept of what cryptocurrency is and how it works is something that most legislative bodies worldwide struggle with understanding," says Evans. "It's difficult to legislate what we don't really understand."

A direct deposit of news and advice to help you make the smartest decisions with your money.

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To Trade or Not to Trade? The Future of Cryptocurrency in India – Analytics Insight

Despite the lack of regulations, Indians are embracing cryptocurrency. Since 2018, Indian officials are in shambles about cryptocurrency. On May 31, the Reserve Bank of India asked banks to not reject banking services for people who dealt in cryptocurrencies, citing its 2018 order. However, the central bank asked other banks to continue other due diligence procedures on crypto traders under the rules that connect to anti-money laundering and the prevention of terrorism.

In April 2018, the RBI sent out circular instructing banks to ensure customers who deal with cryptocurrencies do not access banking services. This rule came as a result of speculation among RBI officials regarding the legitimacy of virtual currencies issued by private parties, without government interference. The central bank has warned people about the risks that are associated with private currencies and the wrong impact they can have on the financial system. The intent of the 2018 circular was to discourage citizens from trading cryptocurrencies, but that did not happen.

In March 2021, the Supreme Court of India overturned the 2018 RBI circular. The court noted that in the absence of any legislative ban on buying or selling crypto coins, the RBI cannot impose any restrictions on crypto trading. The logic behind this move was the fact that imposing such a ban would interfere with the fundamental right of citizens to carry out any legal trade.

According to the Supreme Court of India, there is no legal, substantial basis to impose strict restrictions on cryptocurrencies, at the moment. But once the law is passed in the parliament, the Supreme Court will not have a say in this matter. Due to this uncertainty, banks are advising the citizens to not trade cryptocurrencies. The Centre is considering a proposal to ban or limit the reach and accessibility of cryptocurrencies and launching their own digital tokens to support the secure, digital payment movement. Called Govcoins, this might imply that the Indian government will only encourage trading of this digital coin, and none other.

Not just India, cryptocurrency skeptics believe that there are high chances that governments around the world will slowly but surely ban all cryptocurrencies as they are decentralized. They argue that governments and the main financial authorities will lose power over monetary functions and dilute the monopolistic power over money.

India still has no definitive stance on cryptocurrencies. Finance Minister Nirmala Sitharaman in March said that there wont be a total ban of cryptocurrencies in the country. But the Centre plans on introducing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which will have the provisions that will define the state of crypto tokens in India.

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What is quantum computing? Everything you need to know about the strange world of quantum computers – ZDNet

While researchers don't understand everything about the quantum world, what they do know is that quantum particles hold immense potential, in particular to hold and process large amounts of information.

Quantum computing exploits the puzzling behavior that scientists have been observing for decades in nature's smallest particles think atoms, photons or electrons. At this scale, the classical laws of physics ceases to apply, and instead we shift to quantum rules.

While researchers don't understand everything about the quantum world, what they do know is that quantum particles hold immense potential, in particular to hold and process large amounts of information. Successfully bringing those particles under control in a quantum computer could trigger an explosion of compute power that would phenomenally advance innovation in many fields that require complex calculations, like drug discovery, climate modelling, financial optimization or logistics.

As Bob Sutor, chief quantum exponent at IBM, puts it: "Quantum computing is our way of emulating nature to solve extraordinarily difficult problems and make them tractable," he tells ZDNet.

Quantum computers come in various shapes and forms, but they are all built on the same principle: they host a quantum processor where quantum particles can be isolated for engineers to manipulate.

The nature of those quantum particles, as well as the method employed to control them, varies from one quantum computing approach to another. Some methods require the processor to be cooled down to freezing temperatures, others to play with quantum particles using lasers but share the goal of finding out how to best exploit the value of quantum physics.

The systems we have been using since the 1940s in various shapes and forms laptops, smartphones, cloud servers, supercomputers are known as classical computers. Those are based on bits, a unit of information that powers every computation that happens in the device.

In a classical computer, each bit can take on either a value of one or zero to represent and transmit the information that is used to carry out computations. Using bits, developers can write programs, which are sets of instructions that are read and executed by the computer.

Classical computers have been indispensable tools in the last few decades, but the inflexibility of bits is limiting. As an analogy, if tasked with looking for a needle in a haystack, a classical computer would have to be programmed to look through every single piece of hay straw until it reached the needle.

There are still many large problems, therefore, that classical devices can't solve. "There are calculations that could be done on a classical system, but they might take millions of years or use more computer memory that exists in total on Earth," says Sutor. "These problems are intractable today."

At the heart of any quantum computer are qubits, also known as quantum bits, and which can loosely be compared to the bits that process information in classical computers.

Qubits, however, have very different properties to bits, because they are made of the quantum particles found in nature those same particles that have been obsessing scientists for many years.

One of the properties of quantum particles that is most useful for quantum computing is known as superposition, which allows quantum particles to exist in several states at the same time. The best way to imagine superposition is to compare it to tossing a coin: instead of being heads or tails, quantum particles are the coin while it is still spinning.

By controlling quantum particles, researchers can load them with data to create qubits and thanks to superposition, a single qubit doesn't have to be either a one or a zero, but can be both at the same time. In other words, while a classical bit can only be heads or tails, a qubit can be, at once, heads and tails.

This means that, when asked to solve a problem, a quantum computer can use qubits to run several calculations at once to find an answer, exploring many different avenues in parallel.

So in the needle-in-a-haystack scenario about, unlike a classical machine, a quantum computer could in principle browse through all hay straws at the same time, finding the needle in a matter of seconds rather than looking for years even centuries before it found what it was searching for.

What's more: qubits can be physically linked together thanks to another quantum property called entanglement, meaning that with every qubit that is added to a system, the device's capabilities increase exponentially where adding more bits only generates linear improvement.

Every time we use another qubit in a quantum computer, we double the amount of information and processing ability available for solving problems. So by the time we get to 275 qubits, we can compute with more pieces of information than there are atoms in the observable universe. And the compression of computing time that this could generate could have big implications in many use cases.

Quantum computers are all built on the same principle: they host a quantum processor where quantum particles can be isolated for engineers to manipulate.

"There are a number of cases where time is money. Being able to do things more quickly will have a material impact in business," Scott Buchholz, managing director at Deloitte Consulting, tells ZDNet.

The gains in time that researchers are anticipating as a result of quantum computing are not of the order of hours or even days. We're rather talking about potentially being capable of calculating, in just a few minutes, the answer to problems that today's most powerful supercomputers couldn't resolve in thousands of years, ranging from modelling hurricanes all the way to cracking the cryptography keys protecting the most sensitive government secrets.

And businesses have a lot to gain, too. According to recent research by Boston Consulting Group (BCG),the advances that quantum computing will enable could create value of up to $850 billion in the next 15 to 30 years, $5 to $10 billion of which will be generated in the next five years if key vendors deliver on the technology as they have promised.

Programmers write problems in the form of algorithms for classical computers to resolve and similarly, quantum computers will carry out calculations based on quantum algorithms. Researchers have already identified that some quantum algorithms would be particularly suited to the enhanced capabilities of quantum computers.

For example, quantum systems could tackle optimization algorithms, which help identify the best solution among many feasible options, and could be applied in a wide range of scenarios ranging from supply chain administration to traffic management. ExxonMobil and IBM, for instance, are working together to find quantum algorithmsthat could one day manage the 50,000 merchant ships crossing the oceans each day to deliver goods, to reduce the distance and time traveled by fleets.

Quantum simulation algorithms are also expected to deliver unprecedented results, as qubits enable researchers to handle the simulation and prediction of complex interactions between molecules in larger systems, which could lead to faster breakthroughs in fields like materials science and drug discovery.

With quantum computers capable of handling and processing much larger datasets,AI and machine learning applications are set to benefit hugely, with faster training times and more capable algorithms. And researchers have also demonstrated that quantum algorithmshave the potential to crack traditional cryptography keys, which for now are too mathematically difficult for classical computers to break.

To create qubits, which are the building blocks of quantum computers, scientists have to find and manipulate the smallest particles of nature tiny parts of the universe that can be found thanks to different mediums. This is why there are currently many types of quantum processors being developed by a range of companies.

One of the most advanced approaches consists of using superconducting qubits, which are made of electrons, and come in the form of the familiar chandelier-like quantum computers. Both IBM and Google have developed superconducting processors.

Another approach that is gaining momentum is trapped ions, which Honeywell and IonQ are leading the way on, and in which qubits are housed in arrays of ions that are trapped in electric fields and then controlled with lasers.

Major companies like Xanadu and PsiQuantum, for their part, are investing in yet another method that relies on quantum particles of light, called photons, to encode data and create qubits. Qubits can also be created out of silicon spin qubits which Intel is focusing on but also cold atoms or even diamonds.

Quantum annealing, an approach that was chosen by D-Wave, is a different category of computing altogether. It doesn't rely on the same paradigm as other quantum processors, known as the gate model. Quantum annealing processors are much easier to control and operate, which is why D-Wave has already developed devices that can manipulate thousands of qubits, where virtually every other quantum hardware company is working with about 100 qubits or less. On the other hand, the annealing approach is only suitable for a specific set of optimization problems, which limits its capabilities.

What can you do with a quantum computer today?

Right now, with a mere 100 qubits the state of the art, there is very little that can actually be done with quantum computers. For qubits to start carrying out meaningful calculations, they will have to be counted in the thousands, and even millions.

Both IBM and Google have developed superconducting processors.

Right now, with a mere 100 qubits the state of the art, there is very little that can actually be done with quantum computers. For qubits to start carrying out meaningful calculations, they will have to be counted in the thousands, and even millions.

"While there is a tremendous amount of promise and excitement about what quantum computers can do one day, I think what they can do today is relatively underwhelming," says Buchholz.

Increasing the qubit count in gate-model processors, however, is incredibly challenging. This is because keeping the particles that make up qubits in their quantum state is difficult a little bit like trying to keep a coin spinning without falling on one side or the other, except much harder.

Keeping qubits spinning requires isolating them from any environmental disturbance that might cause them to lose their quantum state. Google and IBM, for example, do this by placing their superconducting processors in temperatures that are colder than outer space, which in turn require sophisticated cryogenic technologies that are currently near-impossible to scale up.

In addition, the instability of qubits means that they are unreliable, and still likely to cause computation errors. This hasgiven rise to a branch of quantum computing dedicated to developing error-correction methods.

Although research is advancing at pace, therefore, quantum computers are for now stuck in what is known as the NISQ era: noisy, intermediate-scale quantum computing but the end-goal is to build a fault-tolerant, universal quantum computer.

As Buchholz explains, it is hard to tell when this is likely to happen. "I would guess we are a handful of years from production use cases, but the real challenge is that this is a little like trying to predict research breakthroughs," he says. "It's hard to put a timeline on genius."

In 2019, Googleclaimed that its 54-qubit superconducting processor called Sycamore had achieved quantum supremacy the point at which a quantum computer can solve a computational task that is impossible to run on a classical device in any realistic amount of time.

Google said that Sycamore has calculated, in only 200 seconds, the answer to a problem that would have taken the world's biggest supercomputers 10,000 years to complete.

More recently,researchers from the University of Science and Technology of China claimed a similar breakthrough, saying that their quantum processor had taken 200 seconds to achieve a task that would have taken 600 million years to complete with classical devices.

This is far from saying that either of those quantum computers are now capable of outstripping any classical computer at any task. In both cases, the devices were programmed to run very specific problems, with little usefulness aside from proving that they could compute the task significantly faster than classical systems.

Without a higher qubit count and better error correction, proving quantum supremacy for useful problems is still some way off.

Organizations that are investing in quantum resources see this as the preparation stage: their scientists are doing the groundwork to be ready for the day that a universal and fault-tolerant quantum computer is ready.

In practice, this means that they are trying to discover the quantum algorithms that are most likely to show an advantage over classical algorithms once they can be run on large-scale quantum systems. To do so, researchers typically try to prove that quantum algorithms perform comparably to classical ones on very small use cases, and theorize that as quantum hardware improves, and the size of the problem can be grown, the quantum approach will inevitably show some significant speed-ups.

For example, scientists at Japanese steel manufacturer Nippon Steelrecently came up with a quantum optimization algorithm that could compete against its classical counterpartfor a small problem that was run on a 10-qubit quantum computer. In principle, this means that the same algorithm equipped with thousands or millions of error-corrected qubits could eventually optimize the company's entire supply chain, complete with the management of dozens of raw materials, processes and tight deadlines, generating huge cost savings.

The work that quantum scientists are carrying out for businesses is therefore highly experimental, and so far there are fewer than 100 quantum algorithms that have been shown to compete against their classical equivalents which only points to how emergent the field still is.

With most use cases requiring a fully error-corrected quantum computer, just who will deliver one first is the question on everyone's lips in the quantum industry, and it is impossible to know the exact answer.

All quantum hardware companies are keen to stress that their approach will be the first one to crack the quantum revolution, making it even harder to discern noise from reality. "The challenge at the moment is that it's like looking at a group of toddlers in a playground and trying to figure out which one of them is going to win the Nobel Prize," says Buchholz.

"I have seen the smartest people in the field say they're not really sure which one of these is the right answer. There are more than half a dozen different competing technologies and it's still not clear which one will wind up being the best, or if there will be a best one," he continues.

In general, experts agree that the technology will not reach its full potential until after 2030. The next five years, however, may start bringing some early use cases as error correction improves and qubit counts start reaching numbers that allow for small problems to be programmed.

IBM is one of the rare companies thathas committed to a specific quantum roadmap, which defines the ultimate objective of realizing a million-qubit quantum computer. In the nearer-term, Big Blue anticipates that it will release a 1,121-qubit system in 2023, which might mark the start of the first experimentations with real-world use cases.

In general, experts agree that quantum computers will not reach their full potential until after 2030.

Developing quantum hardware is a huge part of the challenge, and arguably the most significant bottleneck in the ecosystem. But even a universal fault-tolerant quantum computer would be of little use without the matching quantum software.

"Of course, none of these online facilities are much use without knowing how to 'speak' quantum," Andrew Fearnside, senior associate specializing in quantum technologies at intellectual property firm Mewburn Ellis, tells ZDNet.

Creating quantum algorithms is not as easy as taking a classical algorithm and adapting it to the quantum world. Quantum computing, rather, requires a brand-new programming paradigm that can only be ran on a brand-new software stack.

Of course, some hardware providers also develop software tools, the most established of which is IBM's open-source quantum software development kit Qiskit. But on top of that, the quantum ecosystem is expanding to include companies dedicated exclusively to creating quantum software. Familiar names include Zapata, QC Ware or 1QBit, which all specialize in providing businesses with the tools to understand the language of quantum.

And increasingly, promising partnerships are forming to bring together different parts of the ecosystem. For example, therecent alliance between Honeywell, which is building trapped ions quantum computers, and quantum software company Cambridge Quantum Computing (CQC), has got analysts predicting that a new player could be taking a lead in the quantum race.

The complexity of building a quantum computer think ultra-high vacuum chambers, cryogenic control systems and other exotic quantum instruments means that the vast majority of quantum systems are currently firmly sitting in lab environments, rather than being sent out to customers' data centers.

To let users access the devices to start running their experiments, therefore, quantum companies have launched commercial quantum computing cloud services, making the technology accessible to a wider range of customers.

The four largest providers of public cloud computing services currently offer access to quantum computers on their platform. IBM and Google have both put their own quantum processors on the cloud, whileMicrosoft's Azure QuantumandAWS's Braketservice let customers access computers from third-party quantum hardware providers.

The jury remains out on which technology will win the race, if any at all, but one thing is for certain: the quantum computing industry is developing fast, and investors are generously funding the ecosystem. Equity investments in quantum computing nearly tripled in 2020, and according to BCG, they are set to rise even more in 2021 to reach $800 million.

Government investment is even more significant: the US has unlocked $1.2 billion for quantum information science over the next five years, while the EU announced a 1 billion ($1.20 billion) quantum flagship. The UKalso recently reached the 1 billion ($1.37 billion) budget milestonefor quantum technologies, and while official numbers are not known in China,the government has made no secret of its desire to aggressively compete in the quantum race.

This has caused the quantum ecosystem to flourish over the past years, with new start-ups increasing from a handful in 2013 to nearly 200 in 2020. The appeal of quantum computing is also increasing among potential customers: according to analysis firm Gartner,while only 1% of companies were budgeting for quantum in 2018, 20% are expected to do so by 2023.

Although not all businesses need to be preparing themselves to keep up with quantum-ready competitors, there are some industries where quantum algorithms are expected to generate huge value, and where leading companies are already getting ready.

Goldman Sachs and JP Morgan are two examples of financial behemoths investing in quantum computing. That's because in banking,quantum optimization algorithms could give a boost to portfolio optimization, by better picking which stocks to buy and sell for maximum return.

In pharmaceuticals, where the drug discovery process is on average a $2 billion, ten-year-long deal that largely relies on trial and error, quantum simulation algorithms are also expected to make waves. This is also the case in materials science: companies like OTI Lumionics, for example,are exploring the use of quantum computers to design more efficient OLED displays.

Leading automotive companies including Volkswagen and BMW are also keeping a close eye on the technology, which could impact the sector in various ways, ranging from designing more efficient batteries to optimizing the supply chain, through to better management of traffic and mobility. Volkswagen, for example,pioneered the use of a quantum algorithm that optimized bus routes in real time by dodging traffic bottlenecks.

As the technology matures, however, it is unlikely that quantum computing will be limited to a select few. Rather, analysts anticipate that virtually all industries have the potential to benefit from the computational speedup that qubits will unlock.

There are some industries where quantum algorithms are expected to generate huge value, and where leading companies are already getting ready.

Quantum computers are expected to be phenomenal at solving a certain class of problems, but that doesn't mean that they will be a better tool than classical computers for every single application. Particularly, quantum systems aren't a good fit for fundamental computations like arithmetic, or for executing commands.

"Quantum computers are great constraint optimizers, but that's not what you need to run Microsoft Excel or Office," says Buchholz. "That's what classical technology is for: for doing lots of maths, calculations and sequential operations."

In other words, there will always be a place for the way that we compute today. It is unlikely, for example, that you will be streaming a Netflix series on a quantum computer anytime soon. Rather, the two technologies will be used in conjunction, with quantum computers being called for only where they can dramatically accelerate a specific calculation.

Buchholz predicts that, as classical and quantum computing start working alongside each other, access will look like a configuration option. Data scientists currently have a choice of using CPUs or GPUs when running their workloads, and it might be that quantum processing units (QPUs) join the list at some point. It will be up to researchers to decide which configuration to choose, based on the nature of their computation.

Although the precise way that users will access quantum computing in the future remains to be defined, one thing is certain: they are unlikely to be required to understand the fundamental laws of quantum computing in order to use the technology.

"People get confused because the way we lead into quantum computing is by talking about technical details," says Buchholz. "But you don't need to understand how your cellphone works to use it."

"People sometimes forget that when you log into a server somewhere, you have no idea what physical location the server is in or even if it exists physically at all anymore. The important question really becomes what it is going to look like to access it."

And as fascinating as qubits, superposition, entanglement and other quantum phenomena might be, for most of us this will come as welcome news.

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Will the NSA Finally Build Its Superconducting Spy Computer? – IEEE Spectrum

Today, silicon microchips underlie every aspect of digital computing. But their dominance was never a foregone conclusion. Throughout the 1950s, electrical engineers and other researchers explored many alternatives to making digital computers.

One of them seized the imagination of the U.S. National Security Agency (NSA): a superconducting supercomputer. Such a machine would take advantage of superconducting materials that, when chilled to nearly the temperature of deep spacejust a few degrees above absolute zeroexhibit no electrical resistance whatsoever. This extraordinary property held the promise of computers that could crunch numbers and crack codes faster than transistor-based systems while consuming far less power.

For six decades, from the mid-1950s to the present, the NSA has repeatedly pursued this dream, in partnership with industrial and academic researchers. Time and again, the agency sponsored significant projects to build a superconducting computer. Each time, the effort was abandoned in the face of the unrelenting pace of Moores Law and the astonishing increase in performance and decrease in cost of silicon microchips.

Now Moores Law is stuttering, and the worlds supercomputer builders are confronting an energy crisis. Nuclear weapon simulators, cryptographers, and others want exascale supercomputers, capable of 1,000 petaflops1 million trillion floating-point operations per secondor greater. The worlds fastest known supercomputer today, Chinas 34-petaflop Tianhe-2, consumes some 18 megawatts of power. Thats roughly the amount of electricity drawn instantaneously by 14,000 average U.S. households. Projections vary depending on the type of computer architecture used, but an exascale machine built with todays best silicon microchips could require hundreds of megawatts.

The exascale push may be superconducting computings opening. And the Intelligence Advanced Research Projects Activity, the U.S. intelligence communitys arm for high-risk R&D, is making the most of it. With new forms of superconducting logic and memory in development, IARPA has launched an ambitious program to create the fundamental building blocks of a superconducting supercomputer. In the next few years, the effort could finally show whether the technology really can beat silicon when given the chance.

Cold Calling: In the 1950s, Dudley Buck envisioned speedy, energy-efficient computers. These would be driven by his superconducting switch, thecryotron.Photo:Gjon Mili/The LIFE Picture Collection/Getty Images

The NSAs dream of superconducting supercomputers was first inspired by the electrical engineer Dudley Buck. Buck worked for the agencys immediate predecessor on an early digital computer. When he moved to MIT in 1950, he remained a military consultant, keeping the Armed Forces Security Agency, which quickly became the NSA, abreast of new computing developments in Cambridge.

Buck soon reported on his own worka novel superconducting switch he named the cryotron. The device works by switching a material between its superconducting statewhereelectrons couple up and flow as a supercurrent, with no resistance at alland its normal state, where electrons flow with some resistance. A number of superconducting metallic elements and alloys reach that state when they are cooled below a critical temperature near absolute zero. Once the material becomes superconducting, a sufficiently strong magnetic field can drive the material back to its normal state.

In this, Buck saw a digital switch. He coiled a tiny control wire around a gate wire, and plunged the pair into liquid helium. When current ran through the control, the magnetic field it created pushed the superconducting gate into its normal resistive state. When the control current was turned off, the gate became superconducting again.

Buck thought miniature cryotrons could be used to fashion powerful, fast, and energy-efficient digital computers. The NSA funded work by him and engineer Albert Slade on cryotron memory circuits at the firm A.D. Little, as well as a broader project on digital cryotron circuitry at IBM. Quickly, GE, RCA, and others launched their own cryotron efforts.

Engineers continued developing cryotron circuits into the early 1960s, despite Bucks sudden and premature death in 1959. But liquid-helium temperatures made cryotrons challenging to work with, and the time required for materials to transition from a superconducting to a resistive state limited switching speeds. The NSA eventually pulled back on funding, and many researchers abandoned superconducting electronics for silicon.

Even as these efforts faded, a big change was under way. In 1962 British physicist Brian Josephson made a provocative prediction about quantum tunneling in superconductors. In typical quantum-mechanical tunneling, electrons sneak across an insulating barrier, assisted by a voltage push; the electrons progress occurs with some resistance. But Josephson predicted that if the insulating barrier between two superconductors is thin enough, a supercurrent of paired electrons could flow across with zero resistance, as if the barrier were not there at all. This became known as the Josephson effect, and a switch based on the effect, the Josephson junction, soon followed.

Junction Exploration: 1970s-era Josephson circuitry.Image: IBM

IBM researchers developed a version of this switch in the mid-1960s. The active part of the device was a line of superconducting metal, interrupted by a thin oxide barrier cutting across it. A supercurrent would freely tunnel across the barrier, but only up to a point; if the current rose above a certain threshold, the device would saturate and unpaired electrons would trickle across the junction with some resistance. The threshold could be tuned by a magnetic field, created by running current through a nearby superconducting control line. If the device operated close to the threshold current, a small current in the control could shift the threshold and switch the gate out of its supercurrent-tunneling state. Unlike in Bucks cryotron, the materials in this device always remained superconducting, making it a much faster electronic switch.

As explored by historian Cyrus Mody, by 1973 IBM was working on building a superconducting supercomputer based on Josephson junctions. The basic building block of its circuits was a superconducting loop with Josephson junctions in it, known as a superconducting quantum interference device, or SQUID. The NSA covered a substantial fraction of the costs, and IBM expected the agency to be its first superconducting-supercomputer customer, with other government and industry buyers to follow.

IBMs superconducting supercomputer program ran for more than 10 years, at a cost of about US $250 million in todays dollars. It mainly pursued Josephson junctions made from lead alloy and lead oxide. Late in the project, engineers switched to a niobium oxide barrier, sandwiched between a lead alloy and a niobium film, an arrangement that produced more-reliable devices. But while the project made great strides, company executives were not convinced that an eventual supercomputer based on the technology could compete with the ones expected to emerge with advanced silicon microchips. In 1983, IBM shut down the program without ever finishing a Josephson-junction-based computer, super or otherwise.

Japan persisted where IBM had not. Inspired by IBMs project, Japans industrial ministry, MITI, launched a superconducting computer effort in 1981. The research partnership, which included Fujitsu, Hitachi, and NEC, lasted for eight years and produced an actual working Josephson-junction computerthe ETL-JC1. It was a tiny, 4-bit machine, with just 1,000 bits of RAM, but it could actually run a program. In the end, however, MITI came to share IBMs opinion about the prospect of scaling up the technology, and the project was abandoned.

Critical new developments emerged outside these larger superconducting-computer programs. In 1983, Bell Telephone Laboratories researchers formed Josephson junctions out of niobium separated by thin aluminum oxide layers. The new superconducting switches were extraordinarily reliable and could be fabricated using a simplified patterning process much in the same way silicon microchips were.

On The Move: Magnetic flux ejected from a superconducting loop through a Josephson junction can take the form of tiny voltage pulses. The presence or absence of a pulse in a given period of time can be used to perform computations.Image: Hypres

Then in 1985, researchers at Moscow State University proposed [PDF] a new kind of digital superconducting logic. Originally dubbed resistive, then renamed rapid single-flux-quantum logic, or RSFQ, it took advantage of the fact that a Josephson junction in a loop of superconducting material can emit minuscule voltage pulses. Integrated over time, they take on only a quantized, integer multiple of a tiny value called the flux quantum, measured in microvolt-picoseconds.

By using such ephemeral voltage pulses, each lasting a picosecond or so, RSFQ promised to boost clock speeds to greater than 100 gigahertz. Whats more, a Josephson junction in such a configuration would expend energy in the range of just a millionth of a picojoule, considerably less than consumed by todays silicon transistors.

Together, Bell Labs Josephson junctions and Moscow State Universitys RSFQ rekindled interest in superconducting electronics. By 1997, the U.S. had launched the Hybrid Technology Multi-Threaded (HTMT) project, which was supported by the National Science Foundation, the NSA, and other agencies. HTMTs goal was to beat conventional silicon to petaflop-level supercomputing, using RSFQ integrated circuits among other technologies.

It was an ambitious program that faced a number of challenges. The RSFQ circuits themselves limited potential computing efficiency. To achieve tremendous speed, RSFQ used resistors to provide electrical biases to the Josephson junctions in order to keep them close to the switching threshold. In experimental RSFQ circuitry with several thousand biased Josephson junctions, the static power dissipation was negligible. But in a petaflop-scale supercomputer, with possibly many billions of such devices, it would have added up to significant power consumption.

The HTMT project ended in 2000. Eight years later, a conventional silicon supercomputerIBMs Roadrunnerwas touted as the first to reach petaflop operation. It contained nearly 20,000 silicon microprocessors and consumed 2.3megawatts.

For many researchers working on superconducting electronics, the period around 2000 marked a shift to an entirely different direction: quantum computing. This new direction was inspired by the 1994 work of mathematician Peter Shor, then at Bell Labs, which suggested that a quantum computer could be a powerful cryptanalytical tool, able to rapidly decipher encrypted communications. Soon, projects in superconducting quantum computing and superconducting digital circuitry were being sponsored by the NSA and the U.S. Defense Advanced Research Projects Agency. They were later joined by IARPA, which was created in 2006 by the Office of the Director of National Intelligence to sponsor intelligence-related R&D programs, collaborating across a community that includes the NSA, the Central Intelligence Agency, and the National Geospatial-Intelligence Agency.

Single-Flux Quantum: Current in a superconducting loop containing a Josephson junction a nonsuperconducting barrier generates a magnetic field with atiny, quantized value.

Nobody knew how to build a quantum computer, of course, but lots of people had ideas. At IBM and elsewhere, engineers and scientists turned to the mainstays of superconducting electronicsSQUIDs and Josephson junctionsto craft the building blocks. A SQUID exhibits quantum effects under normal operation, and it was fairly straightforward to configure it to operate as a quantum bit, or qubit.

One of the centers of this work was the NSAs Laboratory for Physical Sciences. Built near the University of Maryland, College Parkoutside the fence of NSA headquarters in Fort Meadethe laboratory is a space where the NSA and outside researchers can collaborate on work relevant to the agencys insatiable thirst for computing power.

In the early 2010s, Marc Manheimer was head of quantum computing at the laboratory. As he recently recalled in an interview, he saw an acute need for conventional digital circuits that could physically surround quantum bits in order to control them and correct errors on very short timescales. The easiest way to do this, he thought, would be with superconducting computer elements, which could operate with voltage and current levels that were similar to those of the qubit circuitry they would be controlling. Optical links could be used to connect this cooled-down, hybrid system to the outside worldand to conventional silicon computers.

At the same time, Manheimer says, he became aware of the growing power problem in high-performance silicon computing, for supercomputers as well as the large banks of servers in commercial data centers. The closer I looked at superconducting logic, he says, the more that it became clear that it had value for supercomputing in its own right.

Manheimer proposed a new direct attack on the superconducting supercomputer. Initially, he encountered skepticism. Theres this history of failure, he says. Past pursuers of superconducting supercomputers had gotten burnedso people were very cautious. But by early 2013, he says, he had convinced IARPA to fund a multisite industrial and academic R&D program, dubbed the Cryogenic Computing Complexity (C3) program. He moved to IARPA to lead it.

The first phase of C3its budget is not publiccalls for the creation and evaluation of superconducting logic circuits and memory systems. These will be fabricated at MIT Lincoln Laboratorythe same lab where Dudley Buck once worked.

Manheimer says one thing that helped sell his C3 idea was recent progress in the field, which is reflected in IARPAs selection of performers, publicly disclosed in December 2014.

One of those teams is led by the defense giant Northrop Grumman Corp. The company participated in the late 1990s HTMT project, which employed fairly-power-hungry RSFQ logic. In 2011, Northrop Grummans Quentin Herr reported an exciting alternative, a different form of single-flux quantum logic called reciprocal quantum logic. RQL replaces RSFQs DC resistors with AC inductors, which bias the circuit without constantly drawing power. An RQL circuit, says Northrop Grumman team leader Marc Sherwin, consumes 1/100,000 the power of the best equivalent CMOS circuit and far less power than the equivalent RSFQ circuit.

A similarly energy-efficient logic called ERSFQ has been developed by superconducting electronics manufacturer Hypres, whose CTO, Oleg Mukhanov, is the coinventor of RSFQ. Hypres is working with IBM, which continued its fundamental superconducting device work even after canceling its Josephson-junction supercomputer project and was also chosen to work on logic for the program.

Hypres is also collaborating with a C3 team led by a Raytheon BBN Technologies laboratory that has been active in quantum computing research for several years. There, physicist Thomas Ohki and colleagues have been working on a cryogenic memory system that uses low-power superconducting logic to control, read, and write to high-density, low-power magnetoresistive RAM. This sort of memory is another change for superconducting computing. RSFQ memory cells were fairly large. Todays more compact nanomagnetic memories, originally developed to help extend Moores Law, can also work well at low temperatures.

The worlds most advanced superconducting circuitry uses devices based on niobium. Although such devices operate at temperatures of about 4 kelvins, or 4degrees above absolute zero, Manheimer says supplying the refrigeration is now a trivial matter. Thats thanks in large part to the multibillion-dollar industry based on magnetic resonance imaging machines, which rely on superconducting electromagnets and high-quality cryogenic refrigerators.

One big question has been how much the energy needed for cooling will increase a superconducting computers energy budget. But advocates suggest it might not be much. The power drawn by commercial cryocoolers leaves considerable room for improvement, Elie Track and Alan Kadin of the IEEEs Rebooting Computing initiative recently wrote. Even so, they say, the power dissipated in a superconducting computer is so small that it remains 100 times more efficient than a comparable silicon computer, even after taking into account the present inefficient cryocooler.

For now, C3s focus is on the fundamental components. This first phase, which will run through 2017, aims to demonstrate core components of a computer system: a set of key 64-bit logic circuits capable of running at a 10-GHz clock rate and cryogenic memory arrays with capacities up to about 250 megabytes. If this effort is successful, a second, two-year phase will integrate these components into a working cryogenic computer of as-yet-unspecified size. If that prototype is deemed promising, Manheimer estimates it should be possible to create a true superconducting supercomputer in another 5 to 10 years.

Go For Power: Performance demands power. Todays most powerful supercomputers consume multiple megawatts (red), not including cooling. Superconducting computers, cryocoolers included, are projected to dramatically drop those power requirements (blue).Source: IEEE Transactions on Applied Superconductivity, vol. 23, #1701610; Marc Manheimer

Such a system would be much smaller than CMOS-based supercomputers and require far less power. Manheimer projects that a superconducting supercomputer produced in a follow-up to C3 could run at 100 petaflops and consume 200 kilowatts, including the cryocooling. It would be 1/20 the size of Titan, currently the fastest supercomputer in the United States, but deliver more than five times the performance for 1/40 of the power.

A supercomputer with those capabilities would obviously represent a big jump. But as before, the fate of superconducting supercomputing strongly depends on what happens with silicon. While an exascale computer made from todays silicon chips may not be practical, great effort and billions of dollars are now being expended on continuing to shrink silicon transistors as well as on developing on-chip optical links and 3-D stacking. Such technologies could make a big difference, says Thomas Theis, who directs nanoelectronics research at the nonprofit Semiconductor Research Corp. In July 2015, President Barack Obama announced the National Strategic Computing Initiative and called for the creation of an exascale supercomputer. IARPAs work on alternatives to silicon is part of this initiative, but so is conventional silicon. The mid-2020s has been targeted for the first silicon-based exascale machine. If that goal is met, the arrival of a superconducting supercomputer would likely be pushed out still further.

But its too early to count out superconducting computing just yet. Compared with the massive, continuous investment in silicon over the decades, superconducting computing has had meager and intermittent support. Yet even with this subsistence diet, physicists and engineers have produced an impressive string of advances. The support of the C3 program, along with the wider attention of the computing community, could push the technology forward significantly. If all goes well, superconducting computers might finally come in from the cold.

This article appears in the March 2016 print issue as The NSAs Frozen Dream.

A historian of science and technology, David C. Brock recently became director of the Center for Software History at the Computer History Museum. A few years back, while looking into the history of microcircuitry, he stumbled across the work of Dudley Buck, a pioneer of speedy cryogenic logic. He wrote about Buck in our April 2014 issue. Here he explores what happened after Buck, including a new effort to build a superconducting computer. This time, he says, the draw is energy efficiency, not performance.

Excerpt from:
Will the NSA Finally Build Its Superconducting Spy Computer? - IEEE Spectrum

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