December 2003 - cypherpunks-legacy

Re: rant on the morality of confidentiality
by Blanc 17 Dec '03

17 Dec '03

Dr.Dimitri Vulis KOTM wrote: >Not just the scientific community... everyone. If an art critic declines >to publish something, its a loss probably only to his fellow art critics, >but if a mathematician or a biologist or a physicist doesn't publish, it's >a loss for more than just his colleagues. ......................................................................... There is a sense of loss of valuable information, once you know that it existed before you knew about it. Of course, there are a million and one things that we don't know today that we wish we knew, and which could help everyone who has the need for that special knowledge. 1) But it is also true that the Truth (the facts of nature and principles on what is possible - in mathematics, or any scientific pursuit) does not "go away" simply because one person's discovery is not conveyed to everyone. It remains true and in existence, waiting for anyone else to do the work of discovery, or for mankind itself to evolve into the kind of creature whose mind can grasp the principles involved. It is a loss not to know the achievements of a great scientist's work, but the facts themselves are not lost, they remain available for anyone who can think as well, to find them. 2) Scientists and other very original, competent people like to think they can do as well as any one else, and I imagine sometimes they consider insulting the proposition that they must depend upon the work of another in order to achieve understanding; that without it they would be unable to do as well. Isn't this one of the reasons for some of the conflicts between scientists over originality, and the jealousy over recognition? I went to an exhibit yesterday of Leonardo da Vinci, where I saw the 400 year old Codex Leicester. He was "a keen observer" of Nature, and from his detailed studies he learned much which provided his inventive mind with much material for creative works. The exhibit brings to mind not only his work, but the methods of such a great mind in reaching those heights and breadths. So in relation to this debate on the morality of not sharing: would it not be as good a thing to look toward method - to value and promote the ability to know how to think, how to observe properly, how to understand what is before oneself - than merely to consider ourselves dependent upon the _result_ of the work of certain others, bewailing their insensitivity when they fail to share with us what they obtained for themselves? Because this does go in the direction of thinking in terms of "obligation", which is rather unappreciative of their unique & separate identity. .. Blanc

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Re: rant on the morality of confidentiality (fwd)
by Jim Choate 17 Dec '03

17 Dec '03

Forwarded message: > Date: Sun, 11 Jan 1998 00:17:40 -0800 > From: Blanc <blancw(a)cnw.com> > Subject: Re: rant on the morality of confidentiality > I went to an exhibit yesterday of Leonardo da Vinci, where I saw the 400 > year old Codex Leicester. He was "a keen observer" of Nature, and from > his detailed studies he learned much which provided his inventive mind with > much material for creative works. The exhibit brings to mind not only his > work, but the methods of such a great mind in reaching those heights and > breadths. Which one was it? I had the privilege of working on the IBM Leonardo exhibit when it was in Austin at Discovery Hall about 10 years ago. Part of my duties was to repair two of his models (the 'turtle' tank & his composite ship hull design) and got a real appreciation of his skills. There was a show on one of the cable science shows about Leonardo week before last. You might want to review your schedule and catch it. I found it quite entertaining and educational. ____________________________________________________________________ | | | Those who make peaceful revolution impossible will make | | violent revolution inevitable. | | | | John F. Kennedy | | | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage(a)ssz.com | | 512-451-7087 | |____________________________________________________________________|

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17 Dec '03

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Accounts payable
by Secret Squirrel 17 Dec '03

17 Dec '03

>Timmy C[rook] May is just a poor excuse for an unschooled, retarded thug. > > (_) _____ (_) > /O O\ Timmy C[rook] May > ! I ! > ! \___/ ! > \_____/ Since when is Tim a government official?

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openworld, inc.
by Ryan Lackey 17 Dec '03

17 Dec '03

Has anyone looked at these people? They seem to be selling turnkey systems for offshore digital commerce, among other things, which I believe is fundamentally interesting. However, they seem like they're involved in several traditional weird Government-affiliated international business startup/consulting group/etc. projects, like educational resources, and from what I remember of a Tim May response to them, they seemed to believe money laundering/thoughtcrime/etc. was morally reprehensible and the duty of technical people to prevent (I may be wrong, he may be wrong, they may be wrong...) [ObNonCrypto: I picked the 3-pin Medeco lock on the front of my IBM RS/6000 320 today. I was just kind of sitting here with my new picks and wrench and was bored and poking around, and I got it to go from Secure to Normal. Luckily the lock turns both ways, since I was picking it backwards :( I've been thinking about and off and on trying to pick it for several months now -- it's a pretty impressive lock for the case on a workstation. 3-pin Medecos are a pale comparison to the real ones, though. Guess what locks I will specify from now on...] -- Ryan Lackey rdl(a)mit.edu http://mit.edu/rdl/

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No Subject
by Mix 17 Dec '03

17 Dec '03

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More on the DES II contest.
by Trei Family 17 Dec '03

17 Dec '03

Douglas F. Elznic and Lucky Green have both written saying that www.distributed.net will not be devoting their full effort to the DES II challenge. This is incorrect. www.distributed.net is a highly centralized effort, in which clients are almost completely controlled by the central site, with which they are in frequent communication. Over the past few weeks, the clients have been upgraded to a version containing dual search cores - they can search either rc5-64 or an arbitrary DES key. On the morning of the 13th, as soon as the DES II challenge data becomes available, their servers will stop issuing rc5-64 blocks and start issuing DES II blocks. The clients will all switch over to the DES II contest without any action by the owners of the client machines. I too would like to see a serious effort made at a 512 bit RSA key. However, the infrastructure for this is quite a bit more complex than a simple bruteforce against a symmetric key, and the organizers of d.n don't seem to be ready for it. My greatest fear with DES II is that if d.n finds the key early in the search, they may decide to sit on it until just before the 540 hour deadline. If they are the only group with a credible chance of finding the key (as far as I know, this is the case), then their payback is maximized by by this tactic, since the time limits for the June contest are determined by the speed with which the key is found in January. My personal impression is that d.n seems more motivated by the money, which they want to further their research on distributed computing, than they are by ideology. The above represent my personal, private views, and should neccesarily be attributed to my employer. Peter Trei trei(a)ziplink.net ptrei(a)hotmail.com (more reliable next week)

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Re: rant on the morality of confidentiality (fwd)
by Jim Choate 17 Dec '03

17 Dec '03

Forwarded message: > Subject: Re: rant on the morality of confidentiality (fwd) > From: dlv(a)bwalk.dm.com (Dr.Dimitri Vulis KOTM) > Date: Sun, 11 Jan 98 10:08:56 EST > David, you need to learn to read. > > "Art critic" != art, just like "lit crit" != literature. And you need to pay more attention as well. Being an art critic does not exclude the art in the act of critical review. The expression of emotional and intellectual consequence of the piece under review requires a creative act just as valid as the creation of the piece under review. ____________________________________________________________________ | | | Those who make peaceful revolution impossible will make | | violent revolution inevitable. | | | | John F. Kennedy | | | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage(a)ssz.com | | 512-451-7087 | |____________________________________________________________________|

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Re: rant on the morality of confidentiality (fwd)
by Jim Choate 17 Dec '03

17 Dec '03

Forwarded message: > Subject: Re: rant on the morality of confidentiality (fwd) > From: dlv(a)bwalk.dm.com (Dr.Dimitri Vulis KOTM) > Date: Sun, 11 Jan 98 09:51:22 EST > You don't seem to realize that the likelyhood of someone independently > rediscovering a "lost" math result is much less than the likelyhood of > two people independently creating substantially similar works of art. Malarky, the history of science (and of human civilizations) is replete with example after example of idividuals discovering the same basic theme and its proof. Just the three examples we have been using (Newton, Gauss, Fermat) are filled with comments about contemporaries discovering the same result. Review Darwin for a moment, he chose to share the fame for evolutionary theory with Wallace because he had reached the same conclusion. Had either Darwin or Wallace not chose to publish the result would still have been found and shared. > For example, all of T.S.Elliot's poetry is substantially similar to > Walt Whitman's poetry. They are, for most intents and purposes, mutually > interchangeable. (Emily "lick my bud" Dickinson is almost interchangeable.) Only in the context that they are both poets who write poetry. ____________________________________________________________________ | | | Those who make peaceful revolution impossible will make | | violent revolution inevitable. | | | | John F. Kennedy | | | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage(a)ssz.com | | 512-451-7087 | |____________________________________________________________________|

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Eternity Services (fwd)
by Jim Choate 17 Dec '03

17 Dec '03

Forwarded message: > Date: Sun, 11 Jan 1998 09:39:00 -0800 > From: Tim May <tcmay(a)got.net> > Subject: Eternity Services > under privacy laws, the ECPA, etc. We have not seen any major court orders > directed at remailers, but I expect them soon. Tell that to Julf. ____________________________________________________________________ | | | Those who make peaceful revolution impossible will make | | violent revolution inevitable. | | | | John F. Kennedy | | | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage(a)ssz.com | | 512-451-7087 | |____________________________________________________________________|

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by steve＠playgal.com 17 Dec '03

17 Dec '03

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17 Dec '03

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Re: Congratulations!
by Anonymous 17 Dec '03

17 Dec '03

In a message dated 02:06 01/11/98 -0800, WebSoft Associates, wrote: > We at WebSoft Associates (http://www.websoftassoc.com) would like to > congratulate you on your recent selection by Inc. Magazine as > one of the 500 fastest growing private companies in the United States. Wow! The cypherpunks are a fucking business? Am I a stock holder? Ha-fucking-ha! Is this line supposed to convince us that this was a targeted e-mail and *not* spam! <LOL> Normally I just trash this stuff, but I really got a kick out of that. I hope we can get to top 100 by the fall '98 <bg>

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Dimitry Vulis need attention again
by Information Security 17 Dec '03

17 Dec '03

> Received: by uu.psi.com (5.65b/4.0.061193-PSI/PSINet) via UUCP; > id AA29722 for ; Sat, 10 Jan 98 10:24:07 -0500 > Received: by bwalk.dm.com (1.65/waf) > via UUCP; Sat, 10 Jan 98 10:03:36 EST > for cypherpunks(a)toad.com > To: cypherpunks(a)toad.com > Subject: Re: your mail > From: dlv(a)bwalk.dm.com (Dr.Dimitri Vulis KOTM) > > Anonymous <nobody(a)REPLAY.COM> writes: > > > >On Thu, 8 Jan 1998 13:54:41 -0700 (MST) Graham-John Bullers > > ><real(a)freenet.edmonton.ab.ca> writes: > > >>On Thu, 8 Jan 1998, Mix wrote: > > >> > > >>I think Vulis needs each of us to send ten copies of this back to him. > > > > > >I think so too what's his email address????? > > > > > > > > > > > >Anonymous304 > > > > Uh, you subscribe to the list but you can't find Vulis' address? Just how > > stupid are you? > > Guy Polis is indeed very stupid. His former colleagues at J.P.Morgan > and Salomon bros, where he used to be a consultant, remember him as > a very stupid guy. "Polis" is an arcane Scandanavian (sic) word for "Police". That's as creative as Ukranian-Romainian-Gypsie Vulis can do. Vulis couldn't even hack it in Manhatten, and had to leave. His brother, Michael, said the family disowns Dimitry as the asshole of the family line. ---- Regarding emailing Vulis to show him some appreciation: as you can see from the headers, he is so disliked that he needs to connect to the Net using UUCP! HA HA HA HA HA HA HA HA And so, he has to download his mail before filtering/reading it, and domain 'dm.com' is MX wild-carded to accept all references. So, wouldn't it be funny if people started signed _him_ up for Eureka, Russian Jewish Singles dating, etc? Also, simply sending him largish missives will tie up his poor UUCP link. So, if it doesn't violate your local TOS, I think all of us should let Dr. Dim hear about it until he cleans up his act. ---guy fool(a)dm.com fool(a)bwalk.dm.com gypsie(a)bwalk.dm.com MaysRevenge(a)bwalk.dm.com

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17 Dec '03

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Re: Adding SSL to things
by Bill Stewart 17 Dec '03

17 Dec '03

At 06:11 AM 1/11/98 -0500, Ryan Lackey wrote: >Does anyone know of a way I can take a web server, say AOLserver, which >does not support useful SSL, and also does not distribute source, and >retrofit a useful 128-bit SSL implementation to it? It has a C API, but >I haven't looked at the API enough to see if I could do it within the API. >Are there any proxies which could be stuck between the insecure server >and the user (preferably with an ssh link between the servers) which could >provide SSL proxy service? It seems like this should be trivial to do, >but I haven't tried yet, and I want to have some reedeming value for this >post.] Why not just get a server that _does_ have useful SSL support, like Apache-SSL (for non-US freeware) or Stronghold (for US commercial use)? There are workarounds out there for undersecure clients, like SafePassage and some German Java applet, but that's the easy side. Thanks! Bill Bill Stewart, bill.stewart(a)pobox.com PGP Fingerprint D454 E202 CBC8 40BF 3C85 B884 0ABE 4639

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GPS Jamming [FWD]
by Steve Schear 17 Dec '03

17 Dec '03

I think this might have been mentioned in a CP thread sometime back. At least it should have ;-) --------------- Date: Fri, 9 Jan 1998 22:29:14 +0000 From: "Marcus L. Rowland" <mrowland(a)ffutures.demon.co.uk> Subject: GPS Jamming *New Scientist* (8 Jan 1998, http://www.newscientist.com) included an article saying that a Russian company called Aviaconversia was offering a 4-watt GPS/Glonass jammer for less than $4000 at the September Moscow Air Show. It says that it could stop civilian aircraft locking onto GPS signals over a 200 Km radius; military aircraft would be harder to jam, but a more powerful unit could be built. The risks (terrorism etc.) are fairly obvious, and it's mentioned that it would probably be easy to build one even if this company's product is somehow removed from the market. Marcus L. Rowland http://www.ffutures.demon.co.uk/ ------------- GPS uses a wideband Direct Sequence Spread Rectum technology. DSSS, as implemented in GSP, is excellent for distance an direction finding due to its inherent, very accurate, time base. In order to conserve satellite power and provide a reasonable signal level at small (e.g., handheld) receivers, it spreads a low data rate signal over wide band, achieving a 63dB 'process gain' (equivalent to about a 2 million fold increase in receive signal level). DSSS signals (in general) can be jammed by very narrow (e.g., CW or continuous wave) carriers, especially pulsed, with relatively modest power. GPS includes significant provisions for anti-jam and although I haven't done a detailed analysis, I'd be surprised if a 4-watt transmitter would render a 200 km radius unfit for GPS navigation. See "Spread Spectrum Communications Handbook," ISBN 0-07-057629-7. --Steve PGP mail preferred, see http://www.pgp.com and http://web.mit.edu/network/pgp.html RSA fingerprint: FE90 1A95 9DEA 8D61 812E CCA9 A44A FBA9 RSA key: http://keys.pgp.com:11371/pks/lookup?op=index&search=0x55C78B0D --------------------------------------------------------------------- Steve Schear | tel: (702) 658-2654 CEO | fax: (702) 658-2673 Lammar Laboratories | 7075 West Gowan Road | Suite 2148 | Las Vegas, NV 89129 | Internet: schear(a)lvdi.net ---------------------------------------------------------------------

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Re: (eternity) mailing list and activity
by Adam Back 17 Dec '03

17 Dec '03

[I've Cc'ed this to cypherpunks from discussion on eternity(a)internexus.net] Jeff Knox <trax(a)ix.netcom.com> writes: > I do have a few questions. I am curios as to how i would go about > creating a domain service. If i wanted to start a domain service to > server a domain i create like test.dom, how would i run a server to > processes the request, and how would all the other servers around > the world cooperate? Firstly note that there are 3 (three) systems going by the name of eternity service at present. Ross Anderson coined the term, and his paper which describes his eternity service, you should be able to find somewhere on: http://www.cl.cam.ac.uk/users/rja14/ Next, my eternity prototype which I put a bit of time into hammering out last year in perl, borrows Ross's name of "eternity service", but differs in design, simplifying the design by using USENET as the distributed database / distribution mechanism rather than constructing one with purpose designed protocols: http://www.dcs.ex.ac.uk/~aba/eternity/ And there is Ryan Lackey's Eternity DDS (where DDS stands for I presume Distributed Data Store?). I am not sure of the details of his design beyond that he is building a market for CPU and disk space, and building on top of a an existing database to create a distributed data base accessible as a virtual web space (amongst other `views'). He gave this URL in his post earlier today: http://sof.mit.edu/eternity/ To answer your question as applied to my eternity design, I will describe how virtual domains are handled in my eternity server design which is based on USENET as a distributed distribution medium. A proto-type implementation, and several operational servers are pointed to at: http://www.dcs.ex.ac.uk/~aba/eternity/ In this design the virtual eternity domains are not based on DNS. They are based on hash functions. Really because it is a new mechanism for accessing information URLs should perhaps have the form: eternity://test.dom/ Where a separate distributed domain name lookup database is defined, and a distributed service is utilised to host the document space. However because it is more difficult to update browsers to cope with new services (as far as I know, if anyone knows otherwise, I'd like pointers on how to do this), I have represented URLs of this form with: http://test.dom.eternity/ This would enable you to implement a local, or remote proxy which fetched eternity web pages, because you can (with netscape at least) direct proxying on a per domain basis. Using the non-existant top level domain .eternity, you can therefore redirect all traffic for that `domain' to a local (or remote) proxy which implements the distributed database lookup based on URL, and have normal web access continue to function. My current implementation is based on CGI binaries, so does not work directly as an eternity proxy. Rather lookups are of the form: http://foo.com/cgi-bin/eternity.cgi?url=http://test.dom.eternity/ The virtual eternity URLs (URLs of the form http://*.eternity/*) are converted into database index values internally by computing the SHA1 hash the URL, for example: SHA1( http://test.dom.eternity/ ) = d7fa999054ba70e1ed28665938299061b519a4f7 The database is USENET news, and a distributed archive of it; the database index is stored in the Subject field of the news post. The implementation optionally keeps a cache of news articles indexed by this value on eternity servers. If the required article is not in the cache it is searched for in the news spool. Currently this is where it stops, so articles would have to be reposted periodically to remain available if articles are either not being cached, or are flushed from the cache. However the cache is never flushed, because the cache replacement policy is not currently implemented. An improvement over this would be to add a random cache flushing policy and have servers serve the contents of their cache to each other forming a distributed USENET news article cache. Another option would be to search public access USENET archives such as dejanews.com for the requested article. The problem is really that we would prefer not to keep archives of articles directly on an open access server, because the server's disks could be seized, and the operator could be held liable for the presence of controversial materials. Wei Dai suggested that documents should be secret split in a redundant fashion so that say 2 of 5 shares are required to reconstruct the document. If the shares are distributed across different servers, this ensures that one server does not directly hold the information. Ross describes ideas on how to ensure that a server would not know what shares it is holding in his paper which can be found on his web pages, the url being linked from: http://www.cl.cam.ac.uk/users/rja14/ Adam

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Re: In God We Antitrust, from the Netly News
by Ryan Lackey 17 Dec '03

17 Dec '03

> [people disparaging the AMD/Cyrix Processors, as well as defending them] I have used a K6-200 overclocked to a K6-300 (83mhz bus speed) for some time now, mostly accomplishing the cooling issue by leaving it in my bedroom with the window open all winter. It's a great value -- for $200+$100 I got a processor and motherboard capable of PII-level performance in things like code compiles, etc. I've even hand-optimized some code for the K6 -- it's a great chip. If I find investors/customers/etc. by March-July 98 for Eternity DDS, though, I'm planning to buy 8 DEC AlphaPC motherboards with dual 21264 processors. Some pieces of Eternity DDS are now being implemented in Oracle for speed of implementation reasons, and other pieces are being prototyped in Scheme (maybe), so even my K6 is getting hammered. Plus, I'm now testing some kernel modifications, and having to reboot the only functional server, bring Oracle back up, initialize the world, bring up a web server and an encrypted filesystem, etc. all without disrupting service too much whenever I make a minor change, then do it every time I need to change one character in the kernel, is really annoying. Running the different services on different machines would be far more realistic and practical. [*Obcrypto*: I have gotten incredibly backed up with work of various kinds, and email. However, I still have time for silly web service questions. Here goes: Does anyone know of a way I can take a web server, say AOLserver, which does not support useful SSL, and also does not distribute source, and retrofit a useful 128-bit SSL implementation to it? It has a C API, but I haven't looked at the API enough to see if I could do it within the API. Are there any proxies which could be stuck between the insecure server and the user (preferably with an ssh link between the servers) which could provide SSL proxy service? It seems like this should be trivial to do, but I haven't tried yet, and I want to have some reedeming value for this post.] -- Ryan Lackey rdl(a)mit.edu http://mit.edu/rdl/

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Re: A further thought on free markets & anarchy... (fwd)
by Jim Choate 17 Dec '03

17 Dec '03

Forwarded message: > Date: Sun, 11 Jan 1998 11:40:33 -0800 > From: Bill Stewart <bill.stewart(a)pobox.com> > Subject: Re: A further thought on free markets & anarchy... > If you begin by assuming that a free market will automagically acquire > someone with monopoly control who can prevent all competitors from acting, > you've got a rather different view of free markets than I do, First, it isn't magic. It is the realization that any market is limited by several factors (eg number of customers, limited raw resources, startup costs) and that even a small superiority in one businesses ability to produce their service or product over time will provide them with an increased share of those limited resources and the share in profits that acrue as a result. As their share, and hence their control over, those resources increases the competitors are faced with the prospect of having to go to the competitor to get what they need in order to compete. It is *not* a part of any free market theory that I am aware of that pre-supposes that a given business entity will, for whatever reason, of its own free will guarantee the continued existance of competition. If anything the long term goal of any business is to reduce competition. If we accept the commen view of free markets and the one you seem to be saying is the reality, we shouldn't worry about Microsoft. One morning they'll all wake and realize that if they don't keep HP, Sun, IBM, Apple in business they won't have competition. As a consequence of that realization they will in fact provide contracts or other forms of renumeration to their competitors to keep them in business and hence able to take potential sales away from Microsoft. What I am saying is given the environment and goals of operating a for-profit firm the supposition that a free market will somehow prevent monopolization is incorrect. I am saying that a free market economy when operating without outside 3rd party guidance or some form of economic bill of rights will by its very nature monopolize and reduce competition due to nothing more than minute superiorities of individual business models and the efficiency those businesses acrue over time as a result. > and you're basically assuming that anarchy is unmaintainable in economies, > from which the obvious conclusion is "so don't even try." But the free market model as currently understood is an anarchy, at least at the beginning. The reason that it falls into this category is that there is no governing body or bill of rights. Each business is left to its own ends and the consequences thereof. There are no externaly enforced limitations on business practices in this model. Further, regulation of unfair (whatever that means in a free market - personaly I thinks its a spin doctorism equivalent to saying you can have an anarchy without inherent use of violence) practices is completely abandoned other than the assumption that eventualy competitors and consumers will learn of those practicies and quite dealing with that business. The problem with that assumption is that by the time such practices become known there may be no competitors and the consumers only option might be to simply have to do without the item completely. In the case of a life sustaining resource this is no option at all. > There are people who believe the same about political anarchy. The point I am making is that the arguments that support political models of social activity are not mappable to the economic ones in a simple one-to-one method as the free market model (and many others) assume in a axiomatic manner. That in fact, because of the inherent limitations of a market which is not one-to-one mappable to the range of human expression (the field of social systems) which has no inherent limitations in resources or means such comparisons are flawed by this axiomatic assumption. > However, I don't see you presenting any reasoning for the belief > that a free market will become non-free and acquire a head. The history of economics is filled with examples of markets without regulation becoming monopolized. There was the example yesterday or the day before regarding some rail baron and how they cornered the oil market because they realized the efficiency advantage of using rail based oil carriers. Look at Microsoft, the airlines prior to federal regulation. The the long-haul trucking industry, the teamsters, etc., etc. > Rather the opposite appears to have been the case in most environments > where the economic actors don't have political actors supporting > their bids for monopoly. Microsoft certainly didn't have political supperiorty? And how can you in good faith sneak in this concept of 'political superiority' into a discussion of free markets which a priori and in an axiomatic manner require that such regulation and their inherent regulatory bodies do *not* exist and most certainly do not inhibit or otherwise limit the options available to a commerical enterprise in that market. Smacks of changing the rules in the middle of the game. ____________________________________________________________________ | | | Those who make peaceful revolution impossible will make | | violent revolution inevitable. | | | | John F. Kennedy | | | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage(a)ssz.com | | 512-451-7087 | |____________________________________________________________________|

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Re: Trust through anonymity; time vaults
by Antonomasia 17 Dec '03

17 Dec '03

The time vault suggestion resembles one from Tim May in 1993. Rivest Shamir and Wagner also addressed time vaults by requiring a computation (resistant to parallel calculation and of reasonably well-defined length) to decrypt the message. under http://theory.lcs.mit.edu/~rivest/ -- ############################################################## # Antonomasia ant(a)notatla.demon.co.uk # # See http://www.notatla.demon.co.uk/ # ##############################################################

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Description of the RC2(r) Encryption Algorithm
by Anonymous 17 Dec '03

17 Dec '03

Ron Rivest MIT Laboratory for Computer Science and RSA Data Security, Inc. November 1997 Request for Comments: Category: Informational A Description of the RC2(r) Encryption Algorithm Status of this Memo This memo provides information for the Internet community. This memo does not specify an Internet standard of any kind. Distribution of this memo is unlimited. This document is an Internet-Draft. Internet-Drafts are working documents of the Internet Engineering Task Force (IETF), its areas, and its working groups. Note that other groups may also distribute working documents as Internet-Drafts. Internet-Drafts are draft documents valid for a maximum of six months and may be updated, replaced, or obsoleted by other documents at any time. It is inappropriate to use Internet-Drafts as reference material or to cite them other than as "work in progress." To learn the current status of any Internet-Draft, please check the "1id-abstracts.txt" listing contained in the Internet-Drafts Shadow Directories on ftp.is.co.za (Africa), nic.nordu.net (Europe), munnari.oz.au (Pacific Rim), ds.internic.net (US East Coast), or ftp.isi.edu (US West Coast). 1. Introduction This draft is an RSA Laboratories Technical Note. It is meant for informational use by the Internet community. This memo describes a conventional (secret-key) block encryption algorithm, called RC2, which may be considered as a proposal for a DES replacement. The input and output block sizes are 64 bits each. The key size is variable, from one byte up to 128 bytes, although the current implementation uses eight bytes. The algorithm is designed to be easy to implement on 16-bit microprocessors. On an IBM AT, the encryption runs about twice as fast as DES (assuming that key expansion has been done). 1.1 Algorithm description We use the term "word" to denote a 16-bit quantity. The symbol + will denote twos-complement addition. The symbol & will denote the bitwise "and" operation. The term XOR will denote the bitwise "exclusive-or" operation. The symbol ~ will denote bitwise complement. The symbol ^ will denote the exponentiation operation. The term MOD will denote the modulo operation. There are three separate algorithms involved: Key expansion. This takes a (variable-length) input key and produces an expanded key consisting of 64 words K[0],...,K[63]. Encryption. This takes a 64-bit input quantity stored in words R[0], ..., R[3] and encrypts it "in place" (the result is left in R[0], ..., R[3]). Decryption. The inverse operation to encryption. 2. Key expansion Since we will be dealing with eight-bit byte operations as well as 16-bit word operations, we will use two alternative notations for referring to the key buffer: For word operations, we will refer to the positions of the buffer as K[0], ..., K[63]; each K[i] is a 16-bit word. For byte operations, we will refer to the key buffer as L[0], ..., L[127]; each L[i] is an eight-bit byte. These are alternative views of the same data buffer. At all times it will be true that K[i] = L[2*i] + 256*L[2*i+1]. (Note that the low-order byte of each K word is given before the high-order byte.) We will assume that exactly T bytes of key are supplied, for some T in the range 1 <= T <= 128. (Our current implementation uses T = 8.) However, regardless of T, the algorithm has a maximum effective key length in bits, denoted T1. That is, the search space is 2^(8*T), or 2^T1, whichever is smaller. The purpose of the key-expansion algorithm is to modify the key buffer so that each bit of the expanded key depends in a complicated way on every bit of the supplied input key. The key expansion algorithm begins by placing the supplied T-byte key into bytes L[0], ..., L[T-1] of the key buffer. The key expansion algorithm then computes the effective key length in bytes T8 and a mask TM based on the effective key length in bits T1. It uses the following operations: T8 = (T1+7)/8; TM = 255 MOD 2^(8 + T1 - 8*T8); Thus TM has its 8 - (8*T8 - T1) least significant bits set. For example, with an effective key length of 64 bits, T1 = 64, T8 = 8 and TM = 0xff. With an effective key length of 63 bits, T1 = 63, T8 = 8 and TM = 0x7f. Here PITABLE[0], ..., PITABLE[255] is an array of "random" bytes based on the digits of PI = 3.14159... . More precisely, the array PITABLE is a random permutation of the values 0, ..., 255. Here is the PITABLE in hexadecimal notation: 0 1 2 3 4 5 6 7 8 9 a b c d e f 00: d9 78 f9 c4 19 dd b5 ed 28 e9 fd 79 4a a0 d8 9d 10: c6 7e 37 83 2b 76 53 8e 62 4c 64 88 44 8b fb a2 20: 17 9a 59 f5 87 b3 4f 13 61 45 6d 8d 09 81 7d 32 30: bd 8f 40 eb 86 b7 7b 0b f0 95 21 22 5c 6b 4e 82 40: 54 d6 65 93 ce 60 b2 1c 73 56 c0 14 a7 8c f1 dc 50: 12 75 ca 1f 3b be e4 d1 42 3d d4 30 a3 3c b6 26 60: 6f bf 0e da 46 69 07 57 27 f2 1d 9b bc 94 43 03 70: f8 11 c7 f6 90 ef 3e e7 06 c3 d5 2f c8 66 1e d7 80: 08 e8 ea de 80 52 ee f7 84 aa 72 ac 35 4d 6a 2a 90: 96 1a d2 71 5a 15 49 74 4b 9f d0 5e 04 18 a4 ec a0: c2 e0 41 6e 0f 51 cb cc 24 91 af 50 a1 f4 70 39 b0: 99 7c 3a 85 23 b8 b4 7a fc 02 36 5b 25 55 97 31 c0: 2d 5d fa 98 e3 8a 92 ae 05 df 29 10 67 6c ba c9 d0: d3 00 e6 cf e1 9e a8 2c 63 16 01 3f 58 e2 89 a9 e0: 0d 38 34 1b ab 33 ff b0 bb 48 0c 5f b9 b1 cd 2e f0: c5 f3 db 47 e5 a5 9c 77 0a a6 20 68 fe 7f c1 ad The key expansion operation consists of the following two loops and intermediate step: for i = T, T+1, ..., 127 do L[i] = PITABLE[L[i-1] + L[i-T]]; L[128-T8] = PITABLE[L[128-T8] & TM]; for i = 127-T8, ..., 0 do L[i] = PITABLE[L[i+1] XOR L[i+T8]]; (In the first loop, the addition of L[i-1] and L[i-T] is performed modulo 256.) The "effective key" consists of the values L[128-T8],..., L[127]. The intermediate step's bitwise "and" operation reduces the search space for L[128-T8] so that the effective number of key bits is T1. The expanded key depends only on the effective key bits, regardless of the supplied key K. Since the expanded key is not itself modified during encryption or decryption, as a pragmatic matter one can expand the key just once when encrypting or decrypting a large block of data. 3. Encryption algorithm The encryption operation is defined in terms of primitive "mix" and "mash" operations. Here the expression "x rol k" denotes the 16-bit word x rotated left by k bits, with the bits shifted out the top end entering the bottom end. 3.1 Mix up R[i] The primitive "Mix up R[i]" operation is defined as follows, where s[0] is 1, s[1] is 2, s[2] is 3, and s[3] is 5, and where the indices of the array R are always to be considered "modulo 4," so that R[i-1] refers to R[3] if i is 0 (these values are "wrapped around" so that R always has a subscript in the range 0 to 3 inclusive): R[i] = R[i] + K[j] + (R[i-1] & R[i-2]) + ((~R[i-1]) & R[i-3]); j = j + 1; R[i] = R[i] rol s[i]; In words: The next key word K[j] is added to R[i], and j is advanced. Then R[i-1] is used to create a "composite" word which is added to R[i]. The composite word is identical with R[i-2] in those positions where R[i-1] is one, and identical to R[i-3] in those positions where R[i-1] is zero. Then R[i] is rotated left by s[i] bits (bits rotated out the left end of R[i] are brought back in at the right). Here j is a "global" variable so that K[j] is always the first key word in the expanded key which has not yet been used in a "mix" operation. 3.2 Mixing round A "mixing round" consists of the following operations: Mix up R[0] Mix up R[1] Mix up R[2] Mix up R[3] 3.3 Mash R[i] The primitive "Mash R[i]" operation is defined as follows (using the previous conventions regarding subscripts for R): R[i] = R[i] + K[R[i-1] & 63]; In words: R[i] is "mashed" by adding to it one of the words of the expanded key. The key word to be used is determined by looking at the low-order six bits of R[i-1], and using that as an index into the key array K. 3.4 Mashing round A "mashing round" consists of: Mash R[0] Mash R[1] Mash R[2] Mash R[3] 3.5 Encryption operation The entire encryption operation can now be described as follows. Here j is a global integer variable which is affected by the mixing operations. 1. Initialize words R[0], ..., R[3] to contain the 64-bit input value. 2. Expand the key, so that words K[0], ..., K[63] become defined. 3. Initialize j to zero. 4. Perform five mixing rounds. 5. Perform one mashing round. 6. Perform six mixing rounds. 7. Perform one mashing round. 8. Perform five mixing rounds. Note that each mixing round uses four key words, and that there are 16 mixing rounds altogether, so that each key word is used exactly once in a mixing round. The mashing rounds will refer to up to eight of the key words in a data-dependent manner. (There may be repetitions, and the actual set of words referred to will vary from encryption to encryption.) 4. Decryption algorithm The decryption operation is defined in terms of primitive operations that undo the "mix" and "mash" operations of the encryption algorithm. They are named "r-mix" and "r-mash" (r- denotes the reverse operation). Here the expression "x ror k" denotes the 16-bit word x rotated right by k bits, with the bits shifted out the bottom end entering the top end. 4.1 R-Mix up R[i] The primitive "R-Mix up R[i]" operation is defined as follows, where s[0] is 1, s[1] is 2, s[2] is 3, and s[3] is 5, and where the indices of the array R are always to be considered "modulo 4," so that R[i-1] refers to R[3] if i is 0 (these values are "wrapped around" so that R always has a subscript in the range 0 to 3 inclusive): R[i] = R[i] ror s[i]; R[i] = R[i] - K[j] - (R[i-1] & R[i-2]) - ((~R[i-1]) & R[i-3]); j = j - 1; In words: R[i] is rotated right by s[i] bits (bits rotated out the right end of R[i] are brought back in at the left). Here j is a "global" variable so that K[j] is always the key word with greatest index in the expanded key which has not yet been used in a "r-mix" operation. The key word K[j] is subtracted from R[i], and j is decremented. R[i-1] is used to create a "composite" word which is subtracted from R[i]. The composite word is identical with R[i-2] in those positions where R[i-1] is one, and identical to R[i-3] in those positions where R[i-1] is zero. 4.2 R-Mixing round An "r-mixing round" consists of the following operations: R-Mix up R[3] R-Mix up R[2] R-Mix up R[1] R-Mix up R[0] 4.3 R-Mash R[i] The primitive "R-Mash R[i]" operation is defined as follows (using the previous conventions regarding subscripts for R): R[i] = R[i] - K[R[i-1] & 63]; In words: R[i] is "r-mashed" by subtracting from it one of the words of the expanded key. The key word to be used is determined by looking at the low-order six bits of R[i-1], and using that as an index into the key array K. 4.4 R-Mashing round An "r-mashing round" consists of: R-Mash R[3] R-Mash R[2] R-Mash R[1] R-Mash R[0] 4.5 Decryption operation The entire decryption operation can now be described as follows. Here j is a global integer variable which is affected by the mixing operations. 1. Initialize words R[0], ..., R[3] to contain the 64-bit ciphertext value. 2. Expand the key, so that words K[0], ..., K[63] become defined. 3. Initialize j to 63. 4. Perform five r-mixing rounds. 5. Perform one r-mashing round. 6. Perform six r-mixing rounds. 7. Perform one r-mashing round. 8. Perform five r-mixing rounds. 5. Test vectors Test vectors for encryption with RC2 are provided below. All quantities are given in hexadecimal notation. Key length (bytes) = 8 Effective key length (bits) = 63 Key = 00000000 00000000 Plaintext = 00000000 00000000 Ciphertext = ebb773f9 93278eff Key length (bytes) = 8 Effective key length (bits) = 64 Key = ffffffff ffffffff Plaintext = ffffffff ffffffff Ciphertext = 278b27e4 2e2f0d49 Key length (bytes) = 8 Effective key length (bits) = 64 Key = 30000000 00000000 Plaintext = 10000000 00000001 Ciphertext = 30649edf 9be7d2c2 Key length (bytes) = 1 Effective key length (bits) = 64 Key = 88 Plaintext = 00000000 00000000 Ciphertext = 61a8a244 adacccf0 Key length (bytes) = 7 Effective key length (bits) = 64 Key = 88bca90e 90875a Plaintext = 00000000 00000000 Ciphertext = 6ccf4308 974c267f Key length (bytes) = 16 Effective key length (bits) = 64 Key = 88bca90e 90875a7f 0f79c384 627bafb2 Plaintext = 00000000 00000000 Ciphertext = 1a807d27 2bbe5db1 Key length (bytes) = 16 Effective key length (bits) = 128 Key = 88bca90e 90875a7f 0f79c384 627bafb2 Plaintext = 00000000 00000000 Ciphertext = 2269552a b0f85ca6 Key length (bytes) = 33 Effective key length (bits) = 129 Key = 88bca90e 90875a7f 0f79c384 627bafb2 16f80a6f 85920584 c42fceb0 be255daf 1e Plaintext = 00000000 00000000 Ciphertext = 5b78d3a4 3dfff1f1 6. RC2 Algorithm Object Identifier The Object Identifier for RC2 in cipher block chaining mode is rc2CBC OBJECT IDENTIFIER ::= {iso(1) member-body(2) US(840) rsadsi(113549) encryptionAlgorithm(3) 2} RC2-CBC takes parameters RC2-CBCParameter ::= CHOICE { iv IV, params SEQUENCE { version RC2Version, iv IV } } where IV ::= OCTET STRING -- 8 octets RC2Version ::= INTEGER -- 1-1024 RC2 in CBC mode has two parameters: an 8-byte initialization vector (IV) and a version number in the range 1-1024 which specifies in a roundabout manner the number of effective key bits to be used for the RC2 encryption/decryption. The correspondence between effective key bits and version number is as follows: 1. If the number EKB of effective key bits is in the range 1-255, then the version number is given by Table[EKB], where the 256-byte translation table Table[] is specified below. Table[] specifies a permutation on the numbers 0-255; note that it is not the same table that appears in the key expansion phase of RC2. 2. If the number EKB of effective key bits is in the range 256-1024, then the version number is simply EKB. The default number of effective key bits for RC2 is 32. If RC2-CBC is being performed with 32 effective key bits, the parameters should be supplied as a simple IV, rather than as a SEQUENCE containing a version and an IV. 0 1 2 3 4 5 6 7 8 9 a b c d e f 00: bd 56 ea f2 a2 f1 ac 2a b0 93 d1 9c 1b 33 fd d0 10: 30 04 b6 dc 7d df 32 4b f7 cb 45 9b 31 bb 21 5a 20: 41 9f e1 d9 4a 4d 9e da a0 68 2c c3 27 5f 80 36 30: 3e ee fb 95 1a fe ce a8 34 a9 13 f0 a6 3f d8 0c 40: 78 24 af 23 52 c1 67 17 f5 66 90 e7 e8 07 b8 60 50: 48 e6 1e 53 f3 92 a4 72 8c 08 15 6e 86 00 84 fa 60: f4 7f 8a 42 19 f6 db cd 14 8d 50 12 ba 3c 06 4e 70: ec b3 35 11 a1 88 8e 2b 94 99 b7 71 74 d3 e4 bf 80: 3a de 96 0e bc 0a ed 77 fc 37 6b 03 79 89 62 c6 90: d7 c0 d2 7c 6a 8b 22 a3 5b 05 5d 02 75 d5 61 e3 a0: 18 8f 55 51 ad 1f 0b 5e 85 e5 c2 57 63 ca 3d 6c b0: b4 c5 cc 70 b2 91 59 0d 47 20 c8 4f 58 e0 01 e2 c0: 16 38 c4 6f 3b 0f 65 46 be 7e 2d 7b 82 f9 40 b5 d0: 1d 73 f8 eb 26 c7 87 97 25 54 b1 28 aa 98 9d a5 e0: 64 6d 7a d4 10 81 44 ef 49 d6 ae 2e dd 76 5c 2f f0: a7 1c c9 09 69 9a 83 cf 29 39 b9 e9 4c ff 43 ab A. Intellectual Property Notice RC2 is a registered trademark of RSA Data Security, Inc. RSA's copyrighted RC2 software is available under license from RSA Data Security, Inc. B. Author's Address Ron Rivest RSA Laboratories 100 Marine Parkway, #500 Redwood City, CA 94065 USA (650) 595-7703 rsa-labs(a)rsa.com

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Re: Spam
by Secret Squirrel 17 Dec '03

17 Dec '03

Matthew L Bennett <lord_buttmonkey(a)juno.com> wrote: >>I'm hoping you guys would know where I could find out >>more about this individual -- I'm hoping that he does >>in fact buy his service from someone else, and if so, >>I'm not sure how to find that out. If he doesn't, is >>there anything I can do? > ^^^^^^^^^^^^^^^^^^^^^^^^^ > >Yeah, there is. > >Delete the friggin e-mail like a sensible person. > >I get a lot of spam every day, but I just delete it and go on with my >life. Since even many of the major sites these days seem to be run by a bunch of idiots who don't care that they destroy the network so long as they make a buck. 1) Trash mail from throwaway account providers like Juno (which I notice you're using), Hotmail, AOL, Prodigy, MSN, and anybody who offers something like a "fifty hours free spamming" policy. 2) Trash mail from chronic problem sites like AGIS, Earthlink, Worldnet, and their ilk. 3) If you get a flame for a civilized spam complaint (zippo.com did this to me) trash the mail from the site on the grounds that they're idiots. 4) If you get an incredibly stupid set of responses like I got from IBM today kill mail from them on the grounds that they have no idea what they're doing. 5) If it comes in with an obviously forged address then trash it. This has the possibly beneficial side effect of killing mail from "legitimate" users who purposefully use invalid addresses. 6) If it uses a relay site in one domain but comes from another trash it. A good example would be spam mail which is relayed off of someplace.com.au but has a "From" header which points to someplace.edu.tw, and has some other received lines which point to a dialup at MCI. 7) If it overuses punctuation in the subject line such as "!!!!!" then trash it. 8) If it comes in with a bunch of bogus IP addresses in the header then trash it. 9) If it's in HTML then trash it. 10) If it has lines over 80 characters nuke it. 11) If it comes in more than twice nuke it.

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unit1.html
by Jim Choate 17 Dec '03

17 Dec '03

Unit 1: The Scope and Method of Economics [INLINE] UNDER CONSTRUCTION Read "Case and Fair": Chapter 1 - pages 1-20. _________________________________________________________________ A. Definition of Economics Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. The key word in this definition is "choose". Economics is a behavioral science. In large measure it is the study of how people make choices. _________________________________________________________________ B. Why study economics? 1. To learn a way of thinking: This summer we are going to learn to think like economists - to use tools that will help us analyze complex situations in the real world of economics. 2. To understand society: Past and present economic decisions have an influence on the character of life in a society. 3. To understand global affairs: Understanding international relations begins with knowledge of the economic links among countries. 4. To be an informed voter: When you participate in the political process, you are voting on issues that require a basic understanding of economics. _________________________________________________________________ C. The difference between micro and macro economics Microeconomics deals with the functioning of individual industries and the behavior of individual economic decision-making units - business firms and households. It explores the decisions that individual businesses and consumers make - firms' choices about what to produce and how much to charge, and households' choices about what and how much to buy. Macro economics looks at the economy as a whole. Instead of trying to understand what determines the output of a single firm or industry, or the consumption patterns of a single household or group of house holds, it examines the factors that determine national output and income. While micro economics focuses on individual product prices, macro economics looks at the overall price level and its behavior over time. Micro economics questions how many people will be hired or laid off in a particular industry and the factors that determine how much labor a firm or industry will hire. Macro economics deals with aggregate employment and unemployment: how many jobs exist in the economy as a whole, and how many people are willing to work but unable to find jobs.. We are going to be using this word "aggregate" a lot. It refers to the behavior of firms and households taken together. For example, aggregate consumption refers to the consumption of all the households in the economy; aggregate investment refers to the total investment made by all firms in the economy. There are some topics which micro and macro economics share. For example, the study of how government policy affects the economy. However, again micro economics looks at these effects on the level of the individual firm or household, macro economics considers the effects of policy on the economy as a whole.. The micro economic foundations of macro economics. There is also another important relationship between the two branches of economics and this is what is called the micro economic foundations of macro economics. This is a fairly new development and one which is trying to reconcile the assumptions and principles of micro economic analysis with efforts to understand the economy as a whole. For example, in efforts to understand inflation, macro economists are now trying to include micro economic ideas about the way that prices adjust to changes in supply and demand.. _________________________________________________________________ D. The relationship between economics and social philosophy. One of the first economists was an Englishman by the name of Adam Smith. (Some would say he was the first economist.) Born in the early part of the 18th century, Smith developed the idea of the "invisible hand" and was the first to describe the relationship between supply and demand in a free market economy. He described himself as a "social philosopher". Social philosophy is concerned with fairness. It deals with questions such as: Why are some people rich and others poor? Is it fair that 90% of the country's wealth is controlled by 5% of the population? Is the progressive income tax, which taxes a higher proportion of the income of the wealthy, fair? These questions are still relevant and are the subject of economic policy. _________________________________________________________________ E. Economic Policy A policy is a plan that guides action. An example of an economic policy would be the Federal government's plan to keep the economy working at full employment. Anyone can recommend macro economic policies but it is up to governments to implement them. In general we judge the outcomes of any policy according to four criteria: 1. Efficiency: In economics we say that a policy is efficient if it leads to outcomes that help the economy produce what people want at the least possible cost. 2. Equity or fairness: This is obviously hard to define because fairness like beauty depends on who's looking, but in general terms we could say that an economic policy is fair if it leads to outcomes in which the costs and benefits are shared in a way that is proportional to a person's participation. 3. Growth: At the present time economic policies are also judged according to whether or not they lead to increases in output. I say "at present" because some economists are beginning to question the assumption that economic growth is always a good thing. 4. Stability: In economics stability is defined as the condition of the economy in which output is growing at a steady rate, with low inflation and full employment. Currently, the Federal Reserve is defining stability as a growth rate of about 3%, with inflation between 2% and 3% and unemployment between 5% and 6%. _________________________________________________________________ F. What economists do. In addition to making policy recommendations, economists spend a lot of time formulating theories and developing models. These two words have more or less the same meaning in economics that they do in other academic disciplines. A theory is a coherent set of hypotheses which make statements about the way the world works. To illustrate this idea of theory, the text refers to what is known as "the law of demand". This so-called law is really just a well-tested hypothesis which states that when prices fall, people tend to buy more, and vice versa. A theory is said to be "good" if its hypotheses turn out to valid statements about the real world and if it has predictive power. I should say at this point that very few economic theories, particularly in macro economics, have predictive power. A model is just a formal statement of the theory, usually a mathematical statement. Several institutions have built huge models of the US economy and how it works that have hundreds of equations linked together. These big models usually run on computers. When we visit the Federal Reserve in San Francisco we will see one of these models in action. We will also be working with a number of smaller models and a large number of pictures of models. The text points out two common errors that are made when people develop theories or build models. These are: 1. The post hoc fallacy: This mistake is made when someone mistakes an association between two variables for a cause and effect relationship. My favorite example of this is taken from a study done in Holland at the end of WWII which showed a positive relationship between the number of storks inhabiting a certain city and the number of babies born. 2. The fallacy of composition: This has to do with the belief that what is true for the part is also true for the whole. There are many examples of this kind of thinking in economics. For example, we have seen over a very long period of time the benefits of free markets - the efficiencies in individual markets that are created whenever people are free to pursue their own self-interest. However, it might be a mistake to assume that pursuit of one's own self interest was the best thing for society as a whole. You cannot prove a theory. It is important to note that neither theories nor models can ever be proved beyond the shadow of a doubt. The best we can say of a theory is that it is consistent with the facts as currently observed and that it is seems to have predictive power. Another fact about theories is that they are always based on certain assumptions which have to be accepted for the theory to work. For example, in economic theory two of the most important assumptions are (1) that people make rational choices based on analyzing costs and benefits and (2) that people try to maximize utility. Another important assumption that is rarely discussed is that the world of economics can be understood by understanding the behavior of discrete variables. All of these assumptions are now under attack. _________________________________________________________________ G. Other Important Concepts Introduced in Chapter 1 1. Opportunity Cost: This can be understood as the cost of lost opportunities. An example would be the opportunity cost of coming to Skyline this summer. This cost is measured by the wages I could have been earning if I had decided to work instead. The reason that opportunity costs exist is because resources are scarce; it is an especially important concept in economics where we are often trying to measure the costs and benefits of different economic choices, policies, etc. 2. Marginal: This refers to the "last unit" and is also an important factor in making economic choices. For example, suppose the publisher of our textbook is trying to calculate the costs of producing more books. In making this calculation, Prentice Hall would only consider the marginal or additional costs of just these new books. The money they have already spent would be irrelevant. These are the sunk costs and even though they would be included in a calculation of average costs, they wouldn't influence the decision to produce additional books. 3. Markets - free and regulated, efficient and inefficient: Markets can be free or regulated, efficient or inefficient. Most markets in the real economy represent some combination of these qualities. A market is said to be free if buyers and sellers are free to come together and make deals without government interference. A regulated market is one where the government sets at least some of the rules. For example, the stock market is relatively free - people can buy and sell shares of stock without much interference from the government. However, the Securities and Exchange Commission establishes many rules in this market, particularly for companies who wish to sell their stock. An efficient market is one in which there is a very rapid circulation of information and in which profit opportunities are grabbed up almost as soon as they appear. Inefficiencies arise wherever the flow of information is restricted and where people are not free to take advantage of profit opportunities. 4. Ceteris Paribus: This is a Latin phrase which mean "all else equal" and refers to the difficulty of analyzing more than two variables at a time. It is trotted out by economists when they want to emphasize the fact that they are looking at a single relationship, holding everything else constant. For example, "The amount of a good or service that people want is inversely related to the price, ceteris paribus." The things that are held constant in this example are the tastes and preferences of consumers, the availability of substitutes etc. [LINK] Return to Econ 100 Home page [LINK] Problem Set for Unit 1

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BlackNet
by Tim May 17 Dec '03

17 Dec '03

Someone just asked me for an explanation of "BlackNet," as he hadn't heard of it before. There are several places to look: --a Web search on the term, along with "cypherpunks" or "cryptography" or my name so as to narrow down the search somewhat (apparently some persons of color decided to use BlackNet as their group's name, thus leading to some collisions_ --archives of the list, partially available at http://infinity.nus.sg/cypherpunks/ --my Cyphernomicon, available at http://www.oberlin.edu/~brchkind/cyphernomicon/ --another article, available at http://www.powergrid.com/1.01/cryptoanarchy.html --or, the item below, part of a chapter called "True Nyms and Crypto Anarchy," which may or may not appear in the forthcoming edition of Vernor Vinge's "True Names." This section discusses data havens, and the BlackNet experiment in 1993: DATA HAVENS AND INFORMATION MARKETS Another science fiction writer, Bruce Sterling, popularized "data havens" in his 1988 novel, "Islands in the Net." He focussed on _physical_ data havens, but cyberspace data havens are more interesting, and to likely to be more important. That they are distributed in many legal jurisdictions, and may not even be traceable to any particular jurisdiction, is crucial. A data haven is a place, physical or virtual, where information may be stored or accessed. The usual connotation is that the data are illegal in some jurisdictions, but not in the haven. Data havens and information markets are already springing up, using the methods described to make information retrievable anonymously and untraceably. Using networks of remailers and, of course, encryption, messages may be posted in public forums like the Usenet, and read by anyone in the world with access, sort of like a cyberspatial "Democracy Wall" where controversial messages may be posted. These "message pools" are the main way cyberspatial data havens are implemented. Offers may be in plaintext, so as to be readable to humans, with instructions on how to reply (and with a public key to be used). This allows fully-untraceable markets to develop. It is likely that services will soon arise which archive articles for fees, to ensure that a URL (Uniform Resource Locator) is "persistent" over a period of many years. Ross Anderson's "Eternity Service" provides a means of distributing the publication of something so that even later attempts to withdraw all copies are thwarted...this has obvious value in fighting censorship, but will also have implications when other types of publication occur (for example, a pirated work would not be withdrawable from the system, leaving it permanently liberated) Examples of likely data haven markets are: credit data bases, doctor and lawyer data bases, and other heavily-regulated (or even unallowed) data bases. Information on explosives, drug cultivation and processing, methods for suicide, and other such contraband info. Data havens may also carry copyrighted material, sans payment to holders, and various national and trade secrets. As one example, the "Fair Credit Reporting Act" in the U.S. limits the length of time credit records may be kept (to 7 or 8 years) and places various restrictions on what may be collected or reported. What if Alice "remembers" that Bob, applying for credit from her, declared bankruptcy ten years earlier, and ran out on various debts? Should she be banned from taking this into account? What if she accesses a data base which is _not_ bound by the FCRA, perhaps one in a data haven accessible over the Net? Can Alice "sell" her remembrances to others? (Apparently not, unless she agrees to the various terms of the FCRA. So much for her First Amendment rights.) This is the kind of data haven application I expect will develop over the next several years. It could be in a jurisdiction which ignores such things as the FCRA, such as a Caribbean island nation, or it could be in cyberspace, using various cryptographic protocols, Web proxies, and remailers for access. Imagine the market for access to data bases on "bad doctors" and "rip-off lawyers." There are many interesting issues involved in such data bases: inaccurate information, responses by those charges, the basis for making judgements, etc. Some will make malicious, false charges. (This is ostensibly why such data bases are banned, or heavily regulated. Governments reserve the rights to make such data available. Of course, these are the same governments which falsify credit records for government agents, which give the professional guilds like the American Medical Association and the American Bar Association the power to stop competitors from entering their markets, so what else can be expected?) Information markets match potential buyers and sellers of information. One experimental "information market" is BlackNet, a system I devised in 1993 as an example of what could be done, as an exercise in guerilla ontology. It allowed fully-anonymous, two-way exchanges of information of all sorts. The basic idea was to use a "message pool," a publicly readable place for messages. By using chains of remailers, messages could be untraceably and anonymously deposited in such pools, and then read anonymously by others (because the message pool was broadcast widely, a la Usenet). By including public keys for later communications, two-way unreadable (to others) communication could be established, all within the message pool. Such an information market also acts as a distributed data haven. As Paul Leyland succinctly described the experiment: "Tim May showed how mutually anonymous secure information trading could be implemented with a public forum such as Usenet and with public key cryptography. Each information purchaser wishing to take part posts a sales pitch and a public key to Usenet. Information to be traded would then have a public key appended so that a reply can be posted and the whole encrypted in the public key of the other party. For anonymity, the keys should contain no information that links it to an identifiable person. May posted a 1024-bit PGP key supposedly belonging to "Blacknet". As May's purpose was only educational, he soon admitted authorship." An example of an item offered for sale early on, in plaintext, was proof that African diplomats were being blackmailed by the CIA in Washington and New York. A public key for later communications was included. This is just one example. There are reports that U.S. authorities have investigated this market because of its presence on networks at Defense Department research labs. Not much they can do about it, of course, and more such entities are expected. The implications for espionage are profound, and largely unstoppable. Anyone with a home computer and access to the Net or Web, in various forms, can use these methods to communicate securely, anonymously or pseudonymously, and with little fear of detection. "Digital dead drops" can be used to post information obtained, far more securely than the old physical dead drops...no more messages left in Coke cans at the bases of trees on remote roads. Payments can also be made untraceably; this of course opens up the possibility that anyone in any government agency may act as a part-time spy. Matching buyers and sellers of organs is another example of such a market, although one that clearly involves some real-world transfers (and so it cannot be as untraceable as purely cyberspatial transactions can be). A huge demand (life and death), but there are various laws tightly controlling such markets, thus forcing them into Third World nations. Fortunately, strong cryptography allows market needs to be met without interference by governments. (Those who are repelled by such markets are of course free not to patronize them.) Whistleblowing is another growing use of anonymous remailers, with those fearing retaliation using remailers to publicly post their incriminating information. The Usenet newsgroups "alt.whistleblowing" and "alt.anonymous.messages" are places where anonymously remailed messages blowing the whistle have appeared. Of course, there's a fine line between whistleblowing, revenge, and espionage. Ditto for "leaks" from highly-placed sources. "Digital Deep Throats" will multiply, and anyone in Washington, or Paris, or wherever, can make his case safely and anonymously by digitally leaking material to the press. Gibson foresaw a similar situation in "Count Zero," where employees of high tech corporations agree to be ensconced in remote labs, disconnected from the Nets and other leakage paths. We may see a time when those with security clearances are explicitly forbidden from using the Net except through firewalled machines, with monitoring programs running. Information selling by employees may even take whimsical forms, such as the selling of topless images of women who flashed for the video cameras on "Splash Mountain" at Disneyland (now called "Flash Mountain" by some). Employees of the ride swiped copies of the digital images and uploaded them anonymously to various Web sites. Ditto for medical records of famous persons. DMV records have also been stolen by state employees with access, and sold to information broker, private investigators, and even curious fans (the DMV records of notoriously reclusive author Thomas Pynchon showed up on the Net). Rumors are that information brokers are prepared to pay handsomely for a CD-ROM containing the U.S. government's "key escrow" data base. The larger issue is that mere laws are not adequate to deal with these kinds of sales of personal information, corporate information, etc. The bottom line is this: if one wants something kept secret, it must be kept secret. In a free society, few personal secrets are compelled. Unfortunately, we have for too long been in a situation where governments insist that people give out their true names, their various government identification numbers, their medical situations, and so on. "And who shall guard the guardians?" The technology of privacy protection can change this balance of power. Cryptography provides for "personal empowerment," to use the current phrasing.

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