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Bitcoin Faces More Scrutiny After Global Hack – Wall Street Journal (subscription)


Wall Street Journal (subscription)
Bitcoin Faces More Scrutiny After Global Hack
Wall Street Journal (subscription)
In the wake of a global wave of cyberattacks that demanded payment in bitcoin, new attention is being focused once again on the digital currency's role in hacking and illegal money movements. More than 200,000 victims in at least 150 countries were hit ...

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A look at the digital currency bitcoin used by hackers in ransomware attacks – NEWS.com.au

Bitcoin pioneered the cryptocurrency movement, but after eight years, the virtual currency is still struggling to find mainstream acceptance. Author and WSJ Moneybeat reporter Paul Vigna joins Lunch Break's Tanya Rivero to discuss why many people talk about bitcoin but many use it. Photo: Bloomberg

What exactly is Bitcoin and how does it work?

ITS worth more than an ounce of gold right now, its completely digital and its the currency of choice for the cyber attackers who crippled computer networks around the world in recent days.

When the attackers ransomware sprang into action, it held victims hostage by encrypting their data and demanding they send payments in bitcoins to regain access to their computers.

Heres a look at bitcoin:

HOW BITCOINS WORK

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who mine them by lending computing power to verify other users transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with US dollars and other currencies.

HOW MUCH IS IT WORTH?

One bitcoin recently traded for $US1734.65 ($A2346.29), according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $US1230.

The value of bitcoins can swing sharply, though. A year ago, one was worth $US457.04, which means that its nearly quadrupled in the past 12 months. But its price doesnt always go up. A bitcoins value plunged by 23 per cent against the US dollar in just a week in January. It fell by the same amount again in 10 days during March.

WHY BITCOINS ARE POPULAR

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators and criminals.

WHOS USING BITCOIN?

Some businesses have jumped on the bitcoin bandwagon amid a flurry of media coverage.

The currency has become popular enough that more than 300,000 daily transactions have been occurring recently, according to bitcoin wallet site blockchain.info. A year ago, activity was closer to 230,000 transactions per day.

Businesses from Yellow Taxis in New York to a pub in Sydney have decided to accept payment in bitcoins.

Still, its popularity is low compared with cash and cards, and many individuals and businesses wont accept bitcoins for payments.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals greed for the collective good. A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldnt be an issue.

HOW BITCOIN CAME TO BE

Its a mystery. Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a small clutch of enthusiasts.

Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesnt matter: The currency obeys its own internal logic.

Australian entrepreneur Craig Wright last year stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not have the courage to publish proof that he is.

How did a currency invented out of thin air gain millions of adherents so quickly?

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Crypto currency offerings spur speculation frenzy – Financial Times


Financial Times
Crypto currency offerings spur speculation frenzy
Financial Times
This is virtual money, one of the many variants on bitcoin the original crypto currency that has been around for more than eight years. But there is a speculative frenzy for a new line of investment in the crypto market through initial coin ...
Cryptocurrency Market Broke $50 Billion, What Have We Learned So Far?CryptoCoinsNews
Top 5 Cryptocurrencies in JapanThe Merkle
5 Things to Watch Next Week: NASDAQ, Cryptocurrencies, China ...Hacked
The Australian Financial Review -Quartz -The Siasat Daily
all 14 news articles »

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Cryptocurrency Ethereum soars by 900 per cent as stellar performer gets Chinese boost – Express.co.uk

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Ethereum, which uses apps that run on a custom built blockchain, an enormously powerful shared global infrastructure, is attracting serious investor interest over its incrediblefinancial returns.

The blockchain app, which claims it allows developers to create markets, store registries of debts or promises and move funds all without a middle man or counterparty risk, was launched in August 2014.

It was developed by a Swiss nonprofit and crowdfunding campaign which has in turn catapulted it to huge success.

Since no single person, government, or institution controls that majority it is close to impossible to hack a transaction

Martin Froehler

With a current market capitalisation of more than 7billion, the digital currency is outperforming its main rival Bitcoin, according to market data.

Now analysts say it has been of particular interest to the Chinese market which is embracing the explosion in digital currency with gusto.

Blogger Andrew Keys said: "I was fortunate enough to be invited to the city of Hangzhou for the Global Blockchain Financial Summit.

GETTY

"During this trip to China, I learned about the burgeoning Ethereum communities in Beijing, Shanghai, Nanjing and Hangzhou. Every night we hosted an Ethereum meetup and it was standing room only in each city.

"Peking University is creating an Ethereum Laboratory to work on protocol improvements and application use cases that effect China, specifically in supply chain and energy markets.

"The Royal Chinese Mint is experimenting with the ERC 20 token standard and Ethereum smart contracts to digitise the RMB".

GETTY

Meanwhile Silicon Valley based Martin Frohler, who runs Quantiacs, told Express.co.uk that the cryptocurrency is set to revolutionise the way the world trades thanks to the advent of blockchain infrastructure following the news that Bitcoin surpassed $1,800 to a fresh record high today.

It rose more than $100 in just two days, driven by comments from policy makers and positive noises around the future of the cryptocurrency.

He said: "You can think of a Blockchain as an identical database of transactions (or other information) stored on hundreds of computers around the world.

"Every new transaction that's entered into the system has to be verified by the majority of the computers. Since no single person, government, or institution controls that majority it is close to impossible to hack a transaction.

GETTY

"The process of verifying transactions through computing power is called 'mining'.

"The miner receives the right to create a very small new unit of that currency as reward.

"Depending on how much Bitcoin already exist that new unit becomes smaller and smaller over time.

PH

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"There is an absolute limit of the number of Bitcoin that will ever exist: 21 million. Bitcoin is by construction a deflationary currency, which makes it an attractive store for value.

"Anybody with internet access can buy or sell bitcoin at a bitcoin exchange or with a digital wallet".

The digital currency is trading at $91.20 (3.11%) today.

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Cryptopia launches first NZD-tethered cryptocurrency – bizEDGE NZ

Cryptocurrencies like the Bitcoin are starting to reach a broad mainstream audience andtheyre here to stay.

There are now more than 400 cryptocurrencies in circulation, worth more than $75billion.

Some businesses in New Zealand already accept Bitcoin as payment, although cryptocurrencies can be very volatile so its a pain as a buyer or seller continuously adjusting prices in Bitcoinrather than just setting prices in New Zealand dollars.

This problem has highlighted the need for an NZD cryptocurrency token, which can be traded with all the benefits of Bitcoin, but has the same value as a New Zealand dollar.

New Zealand cryptocurrency exchange Cryptopia recently launched the 'NZed' (Code NZDT), the first cryptocurrency token tethered to the New Zealand dollar.

The move came after several speakers atThe Blockchain NZconference, including Xero's Grant Anderson, raised the need for Kiwis to have a crypto-based New Zealand dollar that could be traded with most of the benefits of cryptocurrencies like Bitcoin.

The Cryptopia developer team created the new currency then, and within eight hours had orders on the exchange for more than $40,000 NZDT.

Currently, total tokens available are limited to $100,000 NZDT, an amount Cryptopia can easily back from retained funds.

Cryptopia CEO Rob Dawson says while that's not enough liquidity to allow widespread adoption, it gets the ball rolling with a challenge to government, and to the broader industry that blockchain technologies and cryptocurrencies are here to stay.

Right now, we can only accept cash deposits for tokens from overseas clients, although pending regulatory confirmation we expect to be able to offer the full service to Kiwis shortly.

We need to get moving if we want to establish New Zealand as a global leader in this space, says Dawson.

Australia is starting to eye the industry, recently announcing the removal of a salestax in the 2017 Federal Budget that has hindered the cryptocurrency trade there until now.

Historically, New Zealand has led the world in financial innovation, for instance with the world-first introduction of eftpos in the 90s,adds Dawson.

We think Kiwis are great at adopting new technologies so New Zealand makes a great test market.

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Cloud Computing, Term of Art Complete Preakness Works – BloodHorse.com (press release) (registration) (blog)

Klaravich Stables and William Lawrence's Cloud Computing tuned up for his expected run in the May 20 Preakness Stakes (G1) with a half-mile breeze in :48.85 over the Belmont Park training track May 13.

Under exercise rider Peter Roman, Cloud Computing beat the worst of the rain by coming out just after thetraining track opened at 5:30 a.m. The son of Maclean's Music posted the second fastest drill of 32 moves at the distance.

"He breezed very well, galloped out super, and came back good so far," said trainer Chad Brown. "That's his last piece of work and if he comes out of it well he'll be on to Baltimore on Tuesday."

Unraced as a juvenile, Cloud Computing has made three starts this season, with his most recent outing being a third-place finish in the April 8 Wood Memorial presented by NYRA Bets (G2). The dark bay colt previously ran second to J Boys Echo in the March 4 Gotham Stakes (G3) after he broke his maiden at first asking going six furlongs at Aqueduct Racetrack Feb. 11.

On the opposite coast, fellow Preakness hopeful Term of Art also completed his last serious work before shipping to Baltimore. He worked six furlongs in 1:13 4/5 at Santa Anita Park Saturday.

Calumet Farm's Term of Art is slated to leave Santa Anita May 16 for the middle leg of the Triple Crown. The Doug O'Neill-trained son of Tiznow was most recently seventh in the Santa Anita Derby (G1) but captured the Cecil B. DeMille Stakes (G3) at Del Mar last November.

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Oracle Bets On India To Grow Cloud Business – CXOToday.com

Technology major Oracle has chosen India as one of its key markets to take on rivals Amazon, Microsoft and Google and hence, it has taken the cloud route seriously. The California-based IT giant that already accounts for 40,000 of the companys global employee strength of 130,000 in the country, is aiming at the enterprises and government for its initiatives like Digital India.

At its flagship event Oracle OpenWorld in New Delhi, held for the first time in the country, the company announced a slew of cloud-based initiatives for the Indian market. Oracle has announced it willexpand its cloud services in Indiaover the next six to nine months. This can be achieved with the opening of a new Oracle data center in India. The $37 billion company [2016] has also announced the availability of Oracle Enterprise Resource Planning (ERP) Cloud in India to help local and multinational firms operating in India prepare for the countrys transformational tax reforms - GST.

The justification for the expansion is the explosion of growth in demand within Indian businesses and government, Dr. Andrew Sutherland, Senior Vice President, Technology and Systems, Oracle Europe, Middle East, and Africa told CXOToday.

We are in fact hoping to get a bigger slice of government spending in India on cloud, he added, stating that Gartner believes that theIndian government would spendat least US$ 7 billion on IT products in 2017, which means a lot more opportunity for players like us in the country.

Oracle CEO Safra Catz who has made a second visit to India in less than a year, also calledIndia as one of their fastest growing markets in quarterly financial results announcements in recent times.

Governments at the national and state levels are rapidly moving into the future. Digital India is the only way to empower citizens and make governments accountable - a reason why we are investing so much here, she said.

The worldwidepublic cloud servicesmarket would grow 17.2 percent to total $208.6 billion, with the highest growth come frominfrastructurecloud services. India is mirroring this trend. A recentGartnerreport indicated that Indian businesses and government are adopting cloud in greater numbers, with the public cloud computing market in the country is expected to touch a total of $1.8 billion in 2017. Of that the Infrastructure-as-a-Service (IaaS) segment is expected to see the highest growth (49.2%).

With its next generation cloud platform, Oracle is gunning for aggressive growth in the IaaS segment.

IaaS continues to be the strongest-growing segment as it has become more mainstream and enterprises move away from data center build-outs and move their infrastructure needs to the public cloud. It allows customers to go to market faster. Being able to access a secure and scalable infrastructure will help customers to run any workload in the cloud for instant added value and productivity for their business, saidSutherland.

Asked Sutherland, since there is a strong race in the cloud computing domain, how Oracle differentiates its services from rivals Amazon, Microsoft and Google, among others, he said, Oracle is now the worlds fastest growing scaled cloud company and the only company that can offer a complete portfolio across all three layers of the cloud: SaaS, PaaS and IaaS is betting big on the cloud, specifically in IaaS. What differentiates Oracles IaaS cloud from others is itsenterprise orientation and cost effectiveness.

Earlier, at a select media briefing session, Catz took a dig at cloud rivals, especially Amazon Web Services (AWS), stating, Do they (AWS) provide software as a service? Do they provide Oracle database as a service? They provide raw compute as a service, yes. And this is where we compete, and at the same price, she said.

In other words, while its rivals only have cloud infrastructure, Oracle has everything, clarified the executives, as Sutherland added, Very recently, we announced the broadest array of IaaS offerings in the industry. In a nutshell, Oracles newly announced portfolio of IaaS and PaaS solutions include market leading offerings, such as:Cloud servers that are 11 times faster and 20 % cheaper (IaaS), perform 105 times faster for analytics and 35 times faster for online transaction processing, to mention a few.

With Oracle able to offer the full cloud stack of SaaS, PaaS and IaaS they can definitely in the market. DD Mishra, Research Director at Gartnercommented:As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options. Organizations that adopt hybrid infrastructure will optimize.

In this regard, Oracle has full faith in the countrys stakeholders, asThomas Kurian, the president for product development for Oracle mentioned,Our customers and partners in India have trusted their businesses and mission-critical workloads to the Oracle Cloud for years. Our slew of offerings further support customer choice and strengthen our commitment to the countrys market, he summed up.

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Quantum Computing Demands a Whole New Kind of Programmer – Singularity Hub

Quantum computers finally seem to be coming of age with promises of quantum supremacy by the end of the year. But theres a problemvery few people know how to work them.

The bold claim ofachieving "quantum supremacy"came on the back of Google unveiling a new quantum chip design. The hyperbolic phrase essentially means building a quantum device that can perform a calculation impossible for any conventional computer.

In theory, quantum computers can crush conventional ones at important tasks like factoring large numbers. Thats because unlike normal computers, whose bits can either be represented as 0 or 1, a quantum bitor qubitcan be simultaneously 0 and 1 thanks to a phenomenon known as superposition.

Demonstrating this would require thousands of qubits, though, which is well beyond current capabilities. So instead Google plans to compare the computers ability to simulate the behavior of a random arrangement of quantum circuits. They predict it should take 50 qubits to outdo the most powerful supercomputers, a goal they feel they can reach this year.

Clearly the nature of the experiment tips the balance in favor of their chip, but the result would be impressive nonetheless, and could act as a catalyst to spur commercialization of the technology.

This year should also see the first commercial universal quantum computing service go live, with IBM giving customers access to one of its quantum computers over the cloud for a fee. Canadian company D-Wave already provides cloud access to one of its machines, but its quantum computers are not universal, as they can only solve certain optimization problems.

But despite this apparent impetus, the technology has a major challenge to overcome. Programming these devices is much harder than programming conventional computers.

For a start, building algorithms for these machines requires a certain level of understanding about the quantum physics that gives qubits their special properties. While you dont need an advanced physics degree to get your head around it, it is a big departure from traditional computer programming.

Writing in ReadWrite, Dan Rowinski points out, Writing apps that can be translated into some form of qubit-relatable code may require some very different approaches, since among other things, the underlying logic for digital programs may not translate precisely (or at all) to the quantum-computing realm.

And while there are a number of quantum simulators that can run on a laptop for those who want to dip their toes in the water, real quantum computers are likely to behave quite differently. The real challenge is whether you can make your algorithm work on real hardware that has imperfections, Isaac Chuang, an MIT physicist, told Nature.

Convincing programmers to invest the time necessary to learn these skills is going to be tricky until commercial systems are delivering tangible benefits and securing customers, but thats going to be tough if theres no software to run on them.

The companies building these machines recognize this chicken and egg problem, and it is why there is an increasing drive to broaden access to these machines. Before the announcement of the commercial IBMQ service, the company had already released the free Quantum Experience service last year.

Earlier this year, D-Wave open sourced their Qbsolv and Qmasm tools to allow people to start getting to grips with programming its devices, while a pair of Google engineers built a Quantum Computing Playground for people to start investigating the basics of the technology. The company plans to provide access to its devices over the cloud just like IBM.

We dont just want to build these machines, Jerry Chow, the manager of IBMs Experimental Quantum Computing team told Wired. We want to build a framework that allows people to use them.

How easy it will be to translate the skills learned in one of these companies proprietary quantum computing ecosystems to another also remains to be seen, not least because the technology at the heart of them can be dramatically different. This could be a further stumbling block to developing a solid pool of quantum programmers.

Ultimately, the kinds of large-scale quantum computers powerful enough to be usefully put to work on real-world problems are still some years away, so theres no need to panic yet. But as the researchers behind Googles quantum effort note in an article in Nature, this scarcity of programming talent also presents an opportunity for those who move quickly.

If early quantum-computing devices can offer even a modest increase in computing speed or power, early adopters will reap the rewards, they write. Rival companies would face high entry barriers to match the same quality of services and products, because few experts can write quantum algorithms, and businesses need time to tailor new algorithms.

Image Credit: Shutterstock

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Refrigerator for quantum computers discovered – Science Daily


Science Daily
Refrigerator for quantum computers discovered
Science Daily
Just like ordinary processors, a quantum computer also needs a cooling mechanism. In the future, thousands or even millions of logical qubits may be simultaneously used in computation, and in order to obtain the correct result, every qubit has to be ...
Quantum Refrigerator Breakthrough Might Be Crucial For Future Of ComputingIFLScience

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Scientists Invent Nanoscale Refrigerator For Quantum Computers – Wall Street Pit

Centimetre-sized chip with nanoscale refrigeration. Credit: Kuan Yen Tan

Quantum computers have been hailed as the computers of the future because of their potential to solve the most complex of problems within a reasonable time frame. What differentiates a quantum computer from a traditional electronic computer is its use of quantum bits (qubits for short) instead of regular bits. A bit can only represent one of two states, either 0 or 1. In contrast, a qubit can represent more than one state 0, or 1, or both 0 and 1. And this is made possible through the quantum quirks known as superpositioning and entanglement. It is this bizarre ability to be in two states at once that makes a quantum computers computational power exceptional, extraordinary and virtually elusive up to now.

In spite of their differences in terms of functioning capabilities, one thing that a conventional computer and a quantum computer have in common is the need to keep both cool enough so their components do not overheat and malfunction or shut down completely. Traditional computers have their cooling fans. For quantum computers, its not as simple.

For starters, qubits must be protected from any kind of external disturbance because a slight interference will mess up the superpositioning state, resulting in errors and negating what a qubit is supposed to be for in the first place. Also, because qubits heat up while performing calculations, theres a need to reset them to their low temperature state or ground state before the next round of calculations can be done. For a quantum computer to be useful at all, it needs a cooling mechanism that can do this job (referred to as initializing) quickly.

This is where the work of Mikko Mttnen and his colleagues comes in. They are claiming that they have built a cooling device specifically designed for a quantum circuit that is capable of quickly initializing quantum devices, thus minimizing the incidence of errors when doing quantum computing.

The nanoscale refrigerator the team invented involves the use of voltage-controllable electron tunnelling to cool a qubit-like superconducting resonator through a two-nanometer-thick insulator. To make it work, current from an external voltage source is applied to electrons, giving them an amount of energy insufficient for direct tunnelling. This forces the electrons to capture the remaining amount of energy needed for tunnelling from the nearby quantum device, thus making the quantum device lose energy and cool down.

To turn off cooling, the external voltage simply needs to be adjusted to zero. In that condition, the electrons wont have enough energy (even if they capture energy from the quantum device) to move through the insulator.

As Mikko Mttnen aptly describes it their refrigerator keeps quanta in order.

Going forward, the team is planning to cool actual qubits, instead of just resonators. They will also work on lowering the minimum achievable temperature and speeding up the on/off switch.

The research was recently published in the journal Nature Communications.

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