December 2003 - cypherpunks-legacy

e$: Time for a Financial Cryptography "IdeaLab"?
by Robert Hettinga 17 Dec '03

17 Dec '03

Last week, a close friend handed me a February issue of Inc. magazine, the one with an article in it about Bill Gross and his IdeaLab project in Pasadena. Since then, I haven't been able to get Yet Another Idea out of my mind. Gross, a veteran entrepreneur with quite a few successful software startups to his name, has set up a company which uses an investment pool to create and spin off a rapid succession of small internet startups, using a sort of "internet startup in a box" approach, all built around a common core of financial, legal, and marketing people. The idea is to free an entrepreneur to concentrate on designing, building, and selling the startup's product, in this case, some kind of internet software or service. IdeaLab takes a minority equity position in return for its money. A Boston company which has been doing something like this, only on an internal basis, is Thermo-Electron Corporation, who has made much more money spinning off new companies than it ever could as a stand-alone industrial enterprise. IdeaLab thinks that it can have this kind of approach with internet startups above all others because everything on the net happens so fast and the cost of entry is so small that there are actual diseconomies of scale. Moore's Law in a geodesic market as capital surfactant, in other words. :-). Anyway, you can read more about all this, and IdeaLab itself, in the Inc. Magazine archives: <http://www.inc.com/>. So, after a couple of years of sitting on the sidelines and cheering people on (I've had a bunch of fun, but my tax return for last year was a miracle of financial brevity :-)), of second-guessing the market and being right more often than I'd care to think about, I've decided to get into the game and play a bit myself, and see what happens. What I propose to do is to create a Boston-based copy of the IdeaLab concept, focusing on financial cryptography, and, in particular, peer-to-peer internet transaction settlement: internet checking, digital bearer certificate technology for cash and securities, micromoney "mitochondria", that kind of stuff. To do this, I want to collect a core group of financial, legal, and marketing/promotion folks who would work for the lab company itself, and in support of the startup firms it creates, until those firms earn enough money to hire their own people for those jobs. So, I need people in those disciplines who're not only familiar with the net, but also the idea of geodesic markets, and of financial cryptography, but, more important, people who have participated in founding as many startup companies as possible. Finding those people may be hard, but I think they're out there. More important than that, I'm looking for a small initial group of "angel" shareholders who not only invest in the first round of funding for the lab, but can work as advisors to these usually very young technological pioneers, and teach them to think in profit-and-loss terms. Over time, I'd like to populate the advisor pool with successful graduates of the lab. The first round of "angel" funding will be to get the lab started and start the first few companies in areas where I think things are going to pop in the transaction settlement market shortly. A second round would be big enough to get participation from the institutional investment community, but the capitalization of the entire project won't be huge. IdeaLab was started with $5 million, for example. Right now, I think $10 million would be the most I could ask for with a straight face for the whole effort. :-) I'll leave dreamy discussions of some hypothetical hockey-stick investment return curve for the prospectus, where it belongs. ;-). I'm at the utter ground floor on this at the moment. No business plan, just what I think is a pretty good idea. So, I need all the help I can get. If you've any ideas, particularly if you've worked on any of the components I need to make this work, I'd love to hear from you. Cheers, Bob Hettinga ----------------- Robert Hettinga (rah(a)shipwright.com) Philodox e$, 44 Farquhar Street, Boston, MA 02131 USA Lesley Stahl: "You mean *anyone* can set up a web site and compete with the New York Times?" Andrew Kantor: "Yes." Stahl: "Isn't that dangerous?" The e$ Home Page: http://www.shipwright.com/

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Re: SNL/NSA Crypto Security
by Lucky Green 17 Dec '03

17 Dec '03

At 11:57 PM 4/21/97 -0400, John Young wrote: [...] >One affidavit cites Payne's claim to knowing how to "easily >break public key encryption" but refused to tell NSA, thus >harming SNL's customer relations. > >http://jya.com/nsasuit4.htm Indeed. Let's try to get a copy of the draft mentioned in the affidavit: " 20. Also included with the letter to Professor Fushimi was a draft document written by plaintiff Payne entitled a "Public Key Encryption Is Easily Broken." No member of Dr. Payne's management was advised of his plan to release this document and Sandia had no opportunity to inform NSA of his plans. " -- Lucky Green <mailto:shamrock@netcom.com> PGP encrypted mail preferred "I do believe that where there is a choice only between cowardice and violence, I would advise violence." Mahatma Gandhi

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DigiCash appoints CEO and...
by Robert Hettinga 17 Dec '03

17 Dec '03

--- begin forwarded text Date: Mon, 28 Apr 1997 22:39:42 +1000 From: Andreas Furche <andreas(a)digicash.com> Reply-To: andreas(a)digicash.com MIME-Version: 1.0 To: ica(a)syd.dit.csiro.au Subject: DigiCash appoints CEO and... Sender: e-payments-owner(a)digicash.com Precedence: bulk +----------------------------------------------------------------------+ This message was addressed to: e-payments(a)lists.commerce.net +----------------------------------------------------------------------+ DIGICASH APPOINTS CEO, INCREASES OUTSIDE INVESTMENT, AND MOVES HEADQUARTERS TO CALIFORNIA MENLO PARK, CA (April 28, 1997) -- DigiCash Inc, a leader and pioneer in smart card technology and secure and private Internet payments software, today announced the appointment of Michael Nash as chief executive officer (CEO) of its worldwide operations. DigiCash founder, Dr. David Chaum, also announced significant additional investment that will fuel the company's growth. Nash will join Dr. Chaum, Nicholas Negroponte, and new investor David Marquardt of August Capital, on an expanded board that adds new resources and depth of industry experience to DigiCash. His primary mission will be to add business and marketing excellence to the world class cryptographic expertise and technology that has enabled development of such cutting edge products as ecash(tm) and OEM smart card systems, for which DigiCash is recognized throughout the banking and financial services industry. "Mike brings a new dimension to DigiCash with his background in the business of electronic payments and his international marketing experience with Visa, American Express and the SmartCard Group at Amdahl," said Dr. Chaum. "The partnership that we form will take this company a great step forward and help us grow into a significant force in the business of electronic commerce." Nash, who conceived and developed VisaCash, a smart card-based, stored value payment system, will create an international sales and marketing strategy for smart cards and ecash(tm), the unique Internet payment system which offers both security and privacy. DigiCash is already providing ecash(tm) systems to Deutsche Bank in Germany, Bank Austria, Advance Bank in Australia, Den norske Bank of Norway and the Nomura Research Institute in Japan, as well as other leading banks. Further expansion in North America, where the company is newly headquartered, will be a major focus for the new CEO. Another reason for the move is to facilitate alliances with firms in the Silicon Valley area that are pioneering commerce on the Internet. "Ecash(tm) is at the forefront of a revolution in the way the world does business," said Nash. "DigiCash technology offers the security and privacy that is inherent in traditional bearer instruments such as coins and bank notes, but with the flexibility and power of the Internet. This is a great opportunity to shape the new way commerce will be done." DigiCash interim Chairman Nicholas Negroponte, author of Being Digital, head of the MIT Media Lab and a member of the Motorola Inc. board is quoted as saying, "Ecash(tm) is the most exciting thing I've seen in 20 years." Negroponte is also a general partner of Applied Technology Investors, one of the firms that is backing DigiCash. Newly appointed director David Marquardt, General Partner at August Capital, and previously Technology Ventures Inc. (TVI) was an early investor in Intuit, Sun Microsystems and Verifone. He also was the sole venture investor in Microsoft where he currently serves on their board of investors. He too is excited by the possibilities of the technology that lies at the heart of DigiCash Products, saying, "This is the type of basic infrastructure that will be essential for the commercial growth of electronic payments on the Internet." The target market for ecash(tm) is enormous. There are more than 20,000 banks and over 10 million retailers around the world that are potential customers for ecash(tm) transactions, and more than a billion consumers who want the security, privacy and convenience of electronic coins and banknotes. Nash, who has already taken up his appointment with DigiCash, sees this entire market as an opportunity for his company. As well as targeting additional leading banks and other customers in North America and the Pacific Rim, he has a stated goal of establishing relationships with leading banks in the G7 nations, a goal which is already more than half accomplished. About DigiCash DigiCash is a private venture capital backed corporation with headquarters in the United States and offices in The Netherlands, Australia and Singapore. Founded by Dr. David Chaum, a luminary in the field of cryptography and electronic cash technology, the company creates and markets the most sophisticated software in the world for smart cards and secure, private Internet payment transactions. - end - EDITORS NOTE: More information on DigiCash and biographies of Michael Nash and Dr. David Chaum are available from LVA or by accessing the DigiCash Website at http://www.digicash.com/ DigiCash and ecash are trademarks of DigiCash and should always be referred to as such. All other trademarks are the property of their owners. Contact details: Netherlands United States DigiCash bv LVA Toby Chaum Ian Cheeseman Ph: +31 20 665 2611 Ph: +1 860 739 5598 Fax: +31 20 665 1126 Fax: +1 860 691 0353 email: press(a)digicash.com email: icheeseman(a)mcimail.com United Kingdom/Europe Australia: LVA UK DigiCash Pty Ltd Mike Hardwidge Andreas Furche Ph: +44 181 994 6762 Ph: +61 2 9375 2316 Fax: +44 181 995 3050 Fax: +61 2 9375 2121 email: 101765.1155(a)compuserve.com email: andreas(a)digicash.com -- Andreas Furche Level 29 The Chifley Tower Managing Director 2 Chifley Square DigiCash Pty. Ltd. Sydney 2000, Australia e-mail: andreas(a)digicash.com ph +61 2 9375 2316 mobile (0419) 385 569 (NEW number!) fax +61 2 9375 2121 ------------------------------------------------------------------------- This message was sent by a majordomo-based automatic list manager. Subscriptions to and archives of this list are available to any person or organization. For further information send a mail message to 'e-payments-request(a)lists.commerce.net' with 'help' (no quotations) contained in the body of your message. --- end forwarded text ----------------- Robert Hettinga (rah(a)shipwright.com) Philodox e$, 44 Farquhar Street, Boston, MA 02131 USA Lesley Stahl: "You mean *anyone* can set up a web site and compete with the New York Times?" Andrew Kantor: "Yes." Stahl: "Isn't that dangerous?" The e$ Home Page: http://www.shipwright.com/

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AES Comments
by Bruce Schneier 17 Dec '03

17 Dec '03

26 April 1997 Director, Computer Systems Laboratory Attn: FIPS for AES Comments Technology Building, Room A231 National Institute of Standards and Technology Gaithersburg, MD 20899 RE: Advanced Encryption Standard (AES) Dear Mr. Director: This letter is to offer additional advice subsequent to the 15 April 1997 meeting at NIST, "Developing the Advanced Encryption Workshop." I appreciate your institute's efforts to develop an AES, and am pleased that you recognize the importance of this task. Much of the discussion at the 15 April meeting centered around the "Minimum Acceptability Requirements" and the "Evaluation Criteria" for the AES. These are important metrics: good Evaluation Criteria will ensure that the best algorithm is selected as the AES, while good Minimum Acceptability Requirements will limit the submissions to high-quality ones. At the meeting you repeatedly stated that you intend that AES will be a standard for 20-30 years. To me, this means that the algorithm will be used in legacy applications for at least another ten, securing information that may be required to be confidential for yet another ten. Assuming we have a standard approved by the year 2000, the AES must be secure through the year 2050. We need to look at AES requirements with this in mind. Clearly, any algorithm approved for the AES must be secure. The difficulty will be choosing among several secure algorithms. In this letter, I would like to ignore the important problem of deciding if an algorithm is secure (and if it will remain secure through the year 2050), and concentrate on the non-cryptographic requirements. At the meeting we discussed both flexibility and efficiency: what they mean, how important they are, and how to compare. Evaluating encryption algorithms on 32-bit processors such as the Pentium seems short-sighted for such a long-lasting standard. Just as the DES, designed for dedicated hardware in the mid 1970s, is inefficient on any modern processor, any AES designed for today's computer architectures will be inefficient on whatever is used 20 years from now. That isn't much of a problem, though. Programmers have spent long hours optimizing DES for different architectures. And computing power still doubles every eighteen months: any algorithm becomes ten times faster just by waiting five years. Everything is fast on the 64-bit DEC Alpha. The difficulty is in the low end: embedded systems, smart cards. The lesson of the past 20 years of computing seems to be that while the high end always gets better, the low end never goes away. We're still programming tiny 8-bit microprocessors; instead of being used in desktop computers, they're in cellular phones, automobiles, electrical meters, and smart cards. These processors will be around for a long time to come, in Dick-Tracy-like wristwatch communicators, small affixable processors (Micron is building the technology), and who knows what else (nanotechnology?). The AES should be efficient on the low-end processors that are around today, and be scalable to 16-, 32-, and 64-bit processors. And think fast; almost anything written today is faster than triple-DES (see table below). Encryption at 16 clock cycles per byte; that takes real work. Clock Cycles per Algorithm Byte Encrypted Name on a Pentium SEAL (stream) 4 RC4 (stream) 7 Blowfish 18 Khufu 20 RC5 (16 rounds) 23 DES 45 IDEA 50 Triple-DES 108 With this in mind, I propose a set of Minimum Acceptability Criteria that pushes the envelope of current encryption algorithms: A variable key, supporting (at least) a 128- and 256-bit key . Both block modes and a stream modes, with the steam modes at least five times faster than the block modes. Block modes with a 128-bit block. A standard hash-function mode. A standard MAC (Message Authentication Code) mode. Variability in the algorithm to provide a family key for different applications. Encryption speeds (in clock cycles per byte encrypted): No more than 64 on an 8-bit smart card with a 128-bit key. No more than 32 on a 16-bit processor with a 128-bit key. No more than 16 on a Pentium, Pentium Pro, PowerPC, or DEC Alpha with a 128-bit key. No more than double with a 256-bit key on any platform. Encryption and decryption speeds within 10% of each other. Key setup no more than 5 times the speed to encrypt one block for a 128-bit key, and no more than 10 times encryption speed for a 256-bit key. Implementable in hardware with a total table size of less than 256 bytes. Hardware encryption throughput of one block per clock cycle (given enough gates), with a maximum latency of 16 clock cycles. Minimum RAM requirements (RAM only, not code or tables) of no more than 64 bytes on an 8-bit smart-card processor. Minimum table size of no more than 256 bytes on an 8-bit smart-card processor. These requirements are not easy to meet. As far as I know, no published block cipher meets them all (although some come close in many areas). But requirements such as these will challenge the world's cryptographic research organizations to create something useful. I know you realize that the selection process will take several years to complete. Therefor, I urge you to approve triple-DES as an interim standard. This will satisfy users who need a 64-bit block cipher for compatibility reasons, while allowing you the time required to choose and approve the best AES you can. I applaud your efforts in this matter, and I look forward seeing your call for submissions in the Federal Register Sincerely, Bruce Schneier ************************************************************************ * Bruce Schneier 2,000,000,000,000,000,000,000,000,002,000, * Counterpane Systems 000,000,000,000,000,000,002,000,000,002,293 * schneier(a)counterpane.com The last prime number...alphabetically! * (612) 823-1098 Two vigintillion, two undecillion, two * 101 E Minnehaha Pkwy trillion, two thousand, two hundred and * Minneapolis, MN 55419 ninety three. * http://www.counterpane.com ************************************************************************

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17 Dec '03

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Re: Crypto moves forward: Commerce Dept panel and SAFE markup
by Lucky Green 17 Dec '03

17 Dec '03

At 11:13 AM 4/25/97 -0700, Ernest Hua wrote: >Let's let the legislative process (whatever you think of it) take its >course. I'll be happy even if they sneak some screwy secret committee >on the final bill, as long as we are not subject to that committee or >any other governmental body just because we allow ftp of C source code >by our off-shore friends. I think this is a dangerous position to take... make that fatal. The code is already being ftp'ed out of the US. The law would gain you little. But the new restrictions/enhanced penalties, which will inevitably be included in any crypto bill that might become law, will set us back severely. Personally, I hope that none of the crypto bills pending gets passed. -- Lucky Green <mailto:shamrock@netcom.com> PGP encrypted mail preferred "I do believe that where there is a choice only between cowardice and violence, I would advise violence." Mahatma Gandhi

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Staale & Elm
by harka＠nycmetro.com 17 Dec '03

17 Dec '03

-----BEGIN PGP SIGNED MESSAGE----- Howdy :) 1. Does anybody know, what happened to the International PGP-Homepage (http//www.ifi.uio.no/PGP/)? It comes up as "Link not found" (?!) Also Staales personal page (http://www.ifi.uio.no/~staalesc/) seems to be gone... 2. A friend of mine is using Linux and Elm. I recently got her to use PGP, but the poor thing does everything manually via command lines. Can anybody recommend some good front-end's available for Linux-Elm? Ciao Harka /*************************************************************/ /* This user supports FREE SPEECH ONLINE ...more info at */ /* and PRIVATE ONLINE COMMUNICATIONS! -> http://www.epic.org */ /* E-mail: harka(at)nycmetro.com (PGP-encrypted mail pref'd) */ /* PGP public key available upon request. [KeyID: 04174301] */ /* F-print: FD E4 F8 6D C1 6A 44 F5 28 9C 40 6E B8 94 78 E8 */ /*<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>*/ /* May there be peace in this world, may all anger dissolve */ /* and may all living beings find the way to happiness... */ /*************************************************************/ ... Want to use PGP? --> http://bureau42.base.org/public/pgpsteps.txt -----BEGIN PGP SIGNATURE----- Version: 2.6.2 iQEVAgUBM2JpPTltEBIEF0MBAQGnHwf9FEKh2mDV3xLhfeCX4UG823cB34qXyEl5 zyh2OeVwN8U21H2Vq09vv0OMKR4ObLRRA6xKRtQgRsSDZUEnsWvfp+O5tD7MRlvo CWH+TbPufzYsLXs6HtGVU6i8ImvN75WY7VuE1+cyYCzscR8M2l0wGlNGdnhvPg0X HQ7EZsLbcppdq8G73jBpoviLWxWD5JjjTmEbBg2yMI8stx84WwzcYy/LGj9nTc0t J4jFUcvT4RDWwWveiGY4vHrAe2338VQARmBDpsItAaWDYbMU7TJQoJ8OF73/iYoJ tRg3S0cuUFwzvJPGpvWEsDJHOlsQGg06WjVSgRfxeNaeEK5w3bOthA== =rDLZ -----END PGP SIGNATURE----- If encryption is outlawed, only outlaws will have encryption...

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International PGP page
by harka＠nycmetro.com 17 Dec '03

17 Dec '03

-----BEGIN PGP SIGNED MESSAGE----- Hmm, now it's back again...strange. Ciao Harka -----BEGIN PGP SIGNATURE----- Version: 2.6.2 iQEVAgUBM2JqqzltEBIEF0MBAQHIpwf/U5SJoAkWezR046gMqddmsSCA28sDzJiD 5kJmCkgSq8qhnr79jOtdk8uvHailW++Xx/kDtvXkk8YpmJV1ALaSdrPTuN+TCnGS xx0aDm2ju5FuUdzeP0zcp6UJPAKZgmvy5tEue5j47mxzN/iBqzxW9m409ovJWWVs fWk+/Ga+LlbMKwE0pqV83GVbaVkEiIu/ZfmwIHLf8q/Y2YFpEMEM+AgYKbX+RZJd +jT4s35CdXUP0ia1FepfuLHnxf/mtVJTLqiZhd3bErKxS9XeHUjufh7jcLes2izl cziaUk9LnWoUg9wdbnXzkyMmAVd48quPxU3QOpfx16aUPa+oTanYig== =+nsL -----END PGP SIGNATURE----- If encryption is outlawed, only outlaws will have encryption...

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17 Dec '03

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Re: [ADMINISTRATIVIUM] Accounts payable
by lucifer＠dhp.com 17 Dec '03

17 Dec '03

Date: Mon, 21 Apr 1997 09:13:49 -0600 (MDT) From: Graham-John Bullers <real(a)freenet.edmonton.ab.ca> To: Huge Cajones Remailer <nobody(a)huge.cajones.com> Cc: cypherpunks(a)toad.com Subject: Re: [ADMINISTRATIVIUM] Accounts payable Sender: owner-cypherpunks(a)toad.com I think Vulis needs each of us to send ten copies of this back to him. On Mon, 21 Apr 1997, Huge Cajones Remailer wrote: > Timmy May is a licenced sexual pervert who wears Graham-John Bullers' > underwear. > > . ___ o Timmy May > ^z\/o\ o > ^z/\_~_/ > ' ' > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Graham-John Bullers Modulator of alt.2600.modulated ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ email : real(a)freenet.edmonton.ab.ca : ab756(a)freenet.toronto.on.ca ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://www.freenet.edmonton.ab.ca/~real/index.html ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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