The Power To Print And Distribute Money Without A Central Power

July 13, 2018August 22, 2018 Lorin Olsen

Cryptocurrency has been the rage ever since its introduction almost a decade ago. On October 31, 2008, Satoshi Nakamoto published his paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System“. Since then, Bitcoin (and its enthusiasts and detractors) have been on a wild ride.

I won’t burden this article with a summary of Bitcoin’s history. [For a good summary of that, take a look here.] But one thing is clear: Bitcoin was designed to take power from the existing financial institutions and hopefully vest it into the hands of “the people”.

But its history has shown that the early Bitcoin “ecosystem” was just shifting power from banks and governments towards speculators and members of the tech intelligentsia. Exchanges like Mt. Gox appeared, thrived (for a time), and then were dis-empowered as everyone noticed that con artists were the real beneficiaries.

As blockchain technology has arisen (and matured), the notion of a decentralized ledger has belatedly emerged as the most lasting vestige of the original anti-establishment craze. Everyone and their brother is now implementing blockchain technology. I even think that I saw a Blockchain slushee the last time that I went into a Quick-Trip. [Note: That actually makes some sense when you consider that convenience stores sell currency futures in the form of state-based lottery tickets.]

But the anti-establishment heritage of Bitcoin is now giving way to the centralized management of our government and corporate overlords. As banks and governments erect/impose management systems (i.e., barriers) around the blockchain infrastructure, you should be reminded of the example where governments are controlling access to waterways and irrigation systems. While the water is free, moving water through the dams and controlled waterways costs a whole lot of money. And the banks and governments happen to have a whole lot of money to use as they erect barriers against the vandals who are trying to overrun Rome.

Today, I ran across a really good thought piece about these very subjects. Medium just posted an article by Daniel Jeffries. In his article, Jeffries states, “The true power of cryptocurrencies is the power to print and distribute money without a central power.” And Jeffries is absolutely right. Of course, this means that cryptocurrency is an existential threat to the banks and to the state-supported central banks. Consequently, cryptocurrency has provoked their “immune response” mechanisms.

The outcome of this tension is not yet known. We might actually see decentralized capitalism emerge. Or we might see the stranglehold of financial institutions worsen. Finally, we might see governments further exercise their fiat power over money. This dance will end with either chaos or absolute control.

As for me, I’m hoping for something in between. And I hope that initiatives like Cicada will help to cement some of the really good seismic changes that can come out of cryptocurrency and the blockchain.

https://hackernoon.com/why-everyone-missed-the-most-mind-blowing-feature-of-cryptocurrency-860c3f25f1fb

The Valuation of Trust

October 23, 2011August 22, 2018 Lorin Olsen

Thanks to +Edward Coles and +Merlina Sapphire for sharing this video. It is a good overview of the basics of money and financing. I used the video to launch a rousing discussion on Google+.

This is fundamental Econ 101 stuff. But it is great to see it explained so simply and understandably.
Nevertheless, the narrator makes a simplifying assumption: increases in the money supply gain their value from the existing money supply itself. This assumption is misstated. The value of newly created money is directly proportional to the trust that we place in the banking system and the measure of trust we place in the repayment of debts. When we stop trusting the system, we withdraw our funds and create a run on the banking establishment. And as we saw in the Great Depression, no bank could provide the funds required if all demand deposits were demanded.
So what is the #OccupyWallStreet movement? In my mind, it is an effort to diminish and/or destroy the trust that America has in its banking system. The threat of flagging trust in our system must be challenged. We must begin to trust each other to repay the debts that we owe. And we must trust our banks as institutional that we trust to fulfill the promises/contracts that we have made with them.

After submitting the above text for discussion on Google+, I got some very rousing debate on the issue of trust and the kinds of change that we should be advocating. Here was my response to one reader:

+Jonathan Xavier, I think we can all agree on the definition of the problem. Where we disagree is on the root cause of the problem and/or the solution that we would propose to address the inherent ills in the system.
At a macro level, the issues relate to a lack of trust. We do not trust the banks. And the banks don’t trust their customers. I know of many people that have simply walked away from the commitments that they made to bankers and their depositors. This is true of home mortgages as well as student loans. Any system that makes it simple to abandon promises is a flawed system. If you default on a loan, there should be penalties. But in today’s culture, walking away from your commitment to repay the people that have invested their savings in the bank is wholly unsatisfactory.
At the same time, our banks should not be treating us as a carcass from which they can nourish their bloated excesses. If you thought that current banking fees were unreasonable, just wait for transaction fees that are coming for ATM’s and for mobile phone transactions via NFC. The banking institutions exist as a public trust. And they should be held accountable for that position of trust.
But what are the causes of these troubles?
From my perspective, the challenge is not systemic but personal. We have lost our position as a moral authority in the world because we have failed to act in ethical and moral ways. We need to foster a culture where we work together – not separately. We need to act as communities – not collections of individuals. I need to honor my commitments and hold others to honoring the commitments that they have made to me.
But how do we foster a disciplined and moral personal life that can be replicated throughout out communities? Let’s deal with first things first. Hold yourself accountable for making moral decisions. This is not a question of legalities but of ethics. Our culture has become fascinated with “letter of the law” obedience. Instead, we need to hold ourselves to the “spirit of the law” in our lives.
As for me and my family, we will serve the Lord. And we will honor our commitments. And we will try to live intentional lives – not accidental lives. Let your every decision be something that you consider and decide. And make sure that your frame of reference is something beyond yourself. Too many of us live without a system of values. And then we are surprised when others don’t act compassionately or even honestly.
Our culture was based upon a shared view of ethics. And these ethics were personified in the Ten Commandments. [Note: I’m not advocating religious tests. I’m speaking of the Ten Commandments in their most basic and ethical sense.] If we hope to reclaim stability in times of transition, we must all be using the same moral compass as our guide.
Phew. I need to take a breath. Sorry for the screed. But I believe that in order to make substantive changes in our society, we need to address the root causes that are inherent in the system. BTW, I don’t know that we should impose this on one another until we enact it within our own lives. And as noted before, I believe that change starts within each heart. So I am covenanting (to myself and everyone who can read this) to live by a simple metric: WWJD.

I will be pondering this issue for a while as I think I have more to consider – especially as such conversations prompt deep thought over a protracted period of time. Here’s hoping that the musings and discussions will lead me to a deeper understanding of myself and my place in this society.
-Roo

From Uber-Geek to…Corporate Wonk?

August 27, 2011August 22, 2018 Lorin Olsen

It is always good to see when talent is rewarded. So many of us began our careers very humbly. I started my career by building my own PC. [When I started, you were forced to solder them yourself. And most folks were using CP/M (from Digital Research).] Still others gained their notoriety by being public hackers (some more ethical than others).
Recently, the term “hacker” has been blurred with the term “geek” (not to be confused with the term “nerd”). There have been some fabulous hackers who are very dedicated to the platforms that they “expanded” (through their often unauthorized projects). I still remember many of the Windows Mobile geeks based upon their work on various “kitchens” (i.e., the collection of tools they used to “cook” their products). While I don’t remember any of their real names, their pseudonyms are still memorable.
Many of the early mobile hackers moved on to work for carriers or for handset vendors. They moved from their hacker lifestyle into their corporate lifestyle as effortlessly as changing a suit of clothing. Basically, they morphed from pop stars (in small circles) to anonymous contributors in a much larger lake.
But it is far harder to make those kinds of transitions into anonymity these days. First, the exceptional hackers are elevated to an elite (and very public) status. Today, the application of cred points is done by a community in a social media setting (e.g., Twitter, Google+, etc). And it is also far more difficult to fade away from your past. Today, every word you speak is recorded, parsed, analyzed and used in your next job interview.
Nevertheless, it is still possible to make the jump into mainstream.
A few weeks ago, Samsung hired Steve Kondik (aka, cyanogen). Now, Apple has hired Nicholas Allegra (aka, comex). While I am glad that big companies are looking beyond their own short-sighted misgivings to recognize real talent, I am even happier that exceptional talent will be put to exceptional use in the industry. Let’s welcome Steve and Nicholas to the next phase of their careers/lives.
-Roo

Get Motivated, At His Feet!

May 29, 2011August 22, 2018 Lorin Olsen

I am so very excited. Our program manager (who works for the United States Marine Corps) has asked us to attend the Get Motivated seminar that will be in Kansas City on May 31. The list of attendees is truly remarkable. I am amazed that so many important and inspirational people will be in the same place at one time. This will be totally AWESOME!
But there will come a day when I will be among the most inspirational people of all time.

Therefore, since we are surrounded by such a great cloud of witnesses, let us throw off everything that hinders and the sin that so easily entangles, and let us run with perseverance the race marked out for us. Hebrews 12:1

On that day, I will be at the very feet of Jesus. I can only imagine what that day will be like. Last weekend, we were all told that the end was near. In fact, the end was supposed to happen on Meredith’s wedding day. But the end did not occur as predicted. We were told that we would need to wait to be in the presence of Jesus.
However, God doesn’t make us wait until that day. We can be at Jesus’ feet every day. Yes, the day of His return will come “soon and very soon.” But the day that we kneel at His feet can be this very day and this very moment.

Let us come before him with thanksgiving and extol him with music and song. Psalms 95:2

God, teach me to come into your presence with each and every breath that I take. May I kneel before Your awesome majesty. And may I trust in Your will for my life. So let it be written! So let it be done
-Roo

Does Amazon Have the Whole Enchilada?

April 2, 2011August 22, 2018 Lorin Olsen

For those who have read my musings for some time, you’ll know that I use a lot of Amazon services.

I have purchased music from Amazon for many years. Why would I use Amazon’s music service when iTunes owned the market? Because I really believe in competition. And I really believe in good prices. And I really believe in digital freedom. Consequently, I’ve bought many dozens of albums from Amazon’s music service. And recently, I’ve purchased from both my home computer and my Android phone.
I’ve also used Amazon’s Video service for a few years. Amazon decided that they would boldly venture into the same market that Netflix and Blockbuster had already captured. I originally chose Amazon because they weren’t Apple. But then I began to use their service more fully. And I realized that because they weren’t Apple, they were intrinsically better.
Yeah, that’s an exaggeration. But not by much. I bought a Panasonic Blu-Ray player. And it included streaming from Amazon VOD. Because both Amazon and Panasonic had an established history of leveraging open source technologies, it was a natural harmony. And as my Viera Cast capabilities grew, so have the Amazon VOD capabilities – especially with the Amazon prime membership that my wife has.
But while I’ve had Amazon VOD for about two years, I haven’t really exploited it much until I had the right wireless infrastructure at home. Now that I have that in place, it’s been wonderful using the Amazon service. I can get almost any video I want whenever I want it. And if I choose to buy it, then Amazon has provided a video locker to store the digital content in.
Since getting my Android phone last year, I have been waiting for Amazon to open up their own Android market. This week, they finally made it official and started vending apps using their retail purchasing engine. I haven’t bought a lot of apps from them yet. But if they provide the same application re-installs that the Google market does, then I may switch my purchases to Amazon. [Note: I really love automatic reinstallation of apps from the Android market. Every time that I switch ROM’s, I need to reload my system. So this is a sticking point for me.]

I’ve used a lot of “cloud-based” storage in the past. While at Microsoft, I tinkered with SkyDrive. BTW, this was a revolutionary concept that suffered from a horrible implementation. [Note: That is quite typical for many Microsoft technologies. They can always out-market you on technology that they acquire. And they can almost always build really cool new things. But they oftentimes have trouble building and marketing first-generation technology.]
But when SkyDrive didn’t seize the market, the most notable cloud-based storage tool in the market became DropBox. DropBox got a lot of the technology right. And they really captured a chunk of the geek market. Indeed, Cindy and I have used DropBox for several years. And it has been a wonderful success whenever she has needed a collaborative storage platform for her master’s degree classwork. But like SkyDrive, DropBox never made a big enough splash in the market to begin to seize the consumer marketplace.
And now it’s Amazon’s turn.
I REALLY love the cloud storage offering that Amazon released this week. If you’ve had your head in the clouds (or had your head stuck somewhere else), then I will tell you that the Amazon service is called the Amazon Cloud Drive. I love the name. It leverages the notion of the cloud (as popularized by Microsoft ads) and adds to it the simple and well-understood notion of the “drive” as storage. Hence, Cloud Drive may well be a marketing winner.
And the Cloud Drive offering is fairly complete. You can use it on your PC or Mac. And you can use it on your phone. And you can use it on a tablet. So far, it seems to really “sing” with music-based files. Of course, that makes sense as music files are the largest commodity that will be stored. It will be months (or maybe even years) before videos will become a ubiquitous on the service. So adroit mastery of music files hits the Amazon sweet spot.
And they have chosen a good niche for the amount of free storage. It is larger than either DropBox or SkyDrive. The current offering is 5GB for free. I suspect that Apple and Google may try and best this with a 25GB offering. But we’ll have to see. The folks at Forbes think that the first major reply will be to up the storage limits. If that happens, I would bet that Amazon will respond. That might be a fun price war to watch.
So far, I really like the first volley in the impending digital storage wars. Like the folks at Forbes, I see Apple and Google jumping in on this. And I think that Google may just buy DropBox. They don’t need the DropBox tech. But they may want the customers and the buzz. But I also think that you may see some other folks jumping in. I do believe that Microsoft may burnish and re-launch SkyDrive. If they do, this might be hella fun.
And I really think that storage vendors and media player vendors are going to want to get in on the action. While they may not be able to make a complete offering themselves, it will be nice to see how they are used as channel providers to the bigger players.
So what will it take to win? Winners (and survivors) will need the following:

They will need capital to purchase and implement the vast quantities of storage that may be required.
They will need established data center management skills to make the cloud-based storage initiative viable.
They will need marketing to get the message to customers
They will need partners for channel depth and diversity of correlated features/capabilities.
They will need digital content.
They will need a retail channel (with a strong purchasing and delivery engine).

Google has many of these. I do think that they lack diverse content – although YouTube does help. What they really need is some content partners – like Sony???
Apple has some of these. Nevertheless, they lack a robust and diverse partner ecosystem. Yes, they have lots of partners. But they re so closed that they are technologically inbred. And they don’t have a lot of online storage already in their pipeline. Yes, they sell content. But they don’t really store it for their customers. They move it to their customers’ devices.
Amazon has most of these (except for the brand identity across many markets). They do have all of the pieces in place. But no one knows that. They have content. They have storage. They have the retail channel. But they need critical mind-share in the consumer marketplace
I think that the market can bear all three of these big players – for now. And Amazon is first out of the gate. If they can capture enough early market, they may be the big winner.
I just wish that I could get “credit” for all of the Amazon MP3 purchases I’ve already made. I hate to move all my stuff right back to them – and then have to buy additional storage. It’s not fair! Wah! Wah! Wah!
-Roo

The Egyptian Crisis Proves the Need for Anonymity

January 29, 2011August 22, 2018 Lorin Olsen

I had a very interesting conversation at work yesterday. Someone I work with asked me about the “cool tools” that I really believe in. After thinking long and hard about the question, I told him that I believe in freedom of speech and I believe in anonymity as a bulwark to ensure both the freedom of speech and the freedom of thought. He nodded his head at the blandishment. Then I told him about TOR (the onion router). After a few minutes, he asked for a URL. So I gladly pointed him to http://www.torproject.org.
Most of the time, I am greeted with crickets when I talk about TOR. In fact, most people recite the old rubric that if you have done nothing wrong, then you should have nothing to hide. While I often agree with this sentiment, I always cringe when I hear it. Why? Because Americans have a fundamental right to think and speak whatever is in our hearts and minds. But in some places, the definitions of right and wrong are horribly twisted. During times of great crisis, freedoms are routinely challenged. And that is exactly what is happening in Egypt today.
I am not informed enough to know whether President Hosni Mubarak is or is not a tyrant. He is unelected. And he has been the unelected leader since the death of Anwar Sadat (over thirty years ago). And he has suppressed speech – especially the speech of the extreme minorities (like the Muslim Brotherhood). Do I want a stable regime that is peaceful towards Israel to be replaced by some unknown group that may be hostile to peace? Absolutely not. But I can’t read the future. So I won’t comment on what I would like to see. Again, I am not familiar enough to pick “right” and “wrong” in a complex multinational struggle.
But I do know this: when freedom is challenged, geeks turn to technology. And there are geeks in Egypt that are turning toward TOR. When President Mubarak shut down cell phones, messages came from alternate sources. And when folk feared that their browsing and their postings would be monitored, they turned to the tools of anonymity.
TOR usage has skyrocketed. There are now four times as many people using TOR to ensure their anonymity. And the number of relays supporting these users has also skyrocketed (see below).
This spike in relays is across the globe. And geeks everywhere are bombarding Twitter and they are deluging Facebook. And folks are starting to march in America. I am so glad to see that people are engaged and active. I am not certain what outcome I want to see. But I do want to see freedom of speech and freedom of thought flourish in times of turmoil. So count me in.
-Roo

Why Use Tor?

December 19, 2010August 22, 2018 Lorin Olsen

So why should you use Tor?
That’s a good question. First, you need to know what Tor does. I find that simple descriptions are often the best. So here is my simple version of what Tor is: Tor is a means of tunneling specific messages (i.e., traffic) through an anonymous (and reasonably secure) network. Wikipedia describes it here.
Many people look at Tor and ask why is such a thing needed? Their questions presuppose that they trust the networks that they communicate across. Most folks think Tor is just for copyright violators, organized criminals or other unsavory netizens. But that is both too simplistic and too trusting. Tor is for anyone who needs to ensure that their communications across the network remain anonymous and/or secured.
Let’s consider a real-world example. There are many nations that do not allow for the Bible to even be carried . Further, many countries routinely persecute and prosecute people that publicly proclaim the gospel of Jesus Christ. But the gospel cannot be silenced by mere mortals. There are men and women who have always been willing to share the Word of God regardless of the cost to themselves.
And throughout the world, tyrannical governments seek to squelch opposition by monitoring the communications of their citizens. Indeed, you could easily argue that the majority of people in the world are being “watched” by the very governments that should defend their liberties.
Like the early Christians in ancient Rome, there will always be those who stand for truth and justice rather than simply obey corrupt civil authorities. And in these nations, tools that help maintain the anonymity of persecuted citizens are very important tools indeed.
If you don’t believe that this was true for our nation, then ask yourself why so many of our founding fathers used pseudonyms for their writings. Indeed, even the authors of the Federalist papers used pseudonyms – although not just for the sake of anonymity.
-Roo

A Maze of Twisty Passages…

July 3, 2010August 22, 2018 Lorin Olsen

I am definitely an old school gamer. My son plays games like Modern Warfare 2 and Left 4 Dead 2. But I started when games required thought and not just lightning-fast reflexes. And one of the very first computer games I remember was Colossal Cave. I first played it on an IBM S/370 that ran MVS and TSO (i.e., Time Sharing Option). But some of my most favorite memories of the game were when I played it on the Heathkit H89 PC that I soldered together with my own hands.
And there was one part of the game that always fascinated me: the maze of passages. Actually, there were two such mazes: one had twisty passages that were all alike and the other had twisty passages that were all different. And in these tunnels, you could either become lost forever or find the pirate’s treasure.
So what does this game have to do with anything? It’s simple: the use of tunnels can lead to frustration or it can lead to treasure. For today, I’m going to talk about tunnels that can be used for treasure.
Most of us know about one form of tunneling or another. Many people use (or know about) SSL tunnels and/or IPSec tunnels. These kinds of tunnels are commonly used by many folks who must use VPN technologies to access resources that are secured behind corporate firewalls. Most people have no real idea of what is going on “behind the scenes” when they use their corporate VPN’s. But the basic premise is simple: one kind of data that is commonly blocked can be “wrapped” within another kind of data that can be allowed to pass. Think of this as the knife in the birthday cake. The guards won’t allow the knife to be given to a prisoner. But the guards can be fooled if the real payload is hidden from sight.
Of course, this analogy is simplistic – and somewhat deceptive. Tunnels are not used just to hide nefarious objects from the prying eyes of the world. They are more commonly used to control the kinds of data that passes the sentry points in a system. Think of it this way: if the cargo hole in a ship is shaped like a square, then valid cargo must also be shaped to accommodate the size and shape of the square entryway.
For those who have a little more knowledge, there are other forms of tunnels that are commonplace. For example, SSH tunnels are de rigeur for most system administrators. SSH tunnels can be associated with commercial tools (like VanDyke’s Secure Shell or BitVise’s Tunnelier). But they can also be used with open and freely available tools (like sshd and PuTTY). I use SSH tunnels for so many things. SSH is used to secure my router. It is also used to securely access my home systems from any location on the Internet.
But amongst those who work with security for a living, there are many other forms of tunneling – some widespread, others obscure. For years, TOR (The Onion Router) has been used as a means of anonymous (and encrypted) browsing. And TOR has often been used with local proxies that ease the burden of tunnel configuration and workload separation. But recently, the use of TOR and local proxies has gotten a whole lot simpler. You can now downlod a single package that will install and configure a browser, a proxy and TOR onto a portable platform (i.e., a USB key). In this kind of configuration, you can insert a USB device into almost any system connected to almost any public hotspot. Once the browser is launched, you can commence anonymous and secure browsing of the Internet.
And these tools can now be combined with all sorts of other tunneling tools. For example, you could tunnel TOR traffic within SSH and then forward it across a DNS tunnel. This would allow you to bypass most content filters established on the networks to which you might be connected.
Is this cool technology? Most definitely it is. Can this technology be used for good things? Of course it can. Consider an evangelist within a repressive country. Such a person can connect and communicate with others within his country or with those who are outside his country.
But can this technology also be used for nefarious purposes? In candor, it certainly could be used for illegitimate purposes. But I think of these kinds of technologies in the same way that I think of freedom of speech. We must allow gross and unseemly speech if we want to have any freedom of speech. Otherwise, our speech (however comely and delightful it might be) could be considered objectionable – and hence, controllable.
So what should we do about the maze of twisty passages? In my narrow view, I must come down on the side of allowing such technologies. They can be used for good or “twisted” into unacceptable uses. Of course, the same thing is true about guns. They can similarly be used for unsavory purposes. But the protection of our liberties will lie in our ability to use tools that allow us to secure and protect individual liberties – even when this means that the state will have a more difficult time dealing with the criminals.
-Roo

A Geek Goes SEO

April 17, 2010August 22, 2018 Lorin Olsen

I am a geek. And I’ve been a geek for many decades. I was playing with computers when I was fifteen. That doesn’t sound like much to adults today. But I was fifteen in 1976. I was introduced to computer technology by a math teacher who was responsible for entering teacher’s time sheets into the Montgomery County school system. I’ve been hooked on tech ever since.
In the ensuing decades, I’ve been a programmer, a security specialist, a capacity planner, an infrastructure technologist, an enterprise architect and a lot of management positions in between. But in every job, I’ve been a geek. I’ve always loved the technology. And I’ve never gotten tired of the thrill that I get when I conquer something new.
So it is with a great deal of joy that I’ve tackled the most recent challenge given to me by my wife. She is a marketing and communications specialist. But she has found herself “displaced” in the recent economic turmoil. So while she is seeking a permanent gig, she is doing some piecework. She has been doing some new blog startups and some site development for an informal network that she has nurtured over the years. And she needed someone to help her with site testing. That’s where I come in.
She needs a place to “test” some of the site designs she is working on. And so I’ve decided to set up a platform within the house. When she launches sites, we ultimately go to hosting services that are appropriate for each client. But during development of sites and concepts, she wants to test sites and test WordPress plugins (esp. SEO type add-ons).
So I’ve decided to leverage open source technology throughout the platform. Here are the components thus far:
– I am using XAMPP as a distribution package for Apache, MySQL, PHP and Perl. I’ve also decided to include Tomcat – just in case she decides to leverage any lightweight Java packages.
– I am using WordPress as the blog site manager. [Note: There is a very good primer on setup of this platform here.] I’ve used WordPress for quite some time. But I’ve either used the WordPress.com site for lightweight hosting or I’ve contracted with a hosting provider. But in this case, I’m running it myself. The cool thing about doing it this way is that I finally get to play with WP plugins. And there are some exceptional plugins for WordPress sites.
– There are quite a few sites that tell you what plugins you should use for SEO tweaks. I wouldn’t dream of recommending one over another as I am so new to all of this. So what I did was use Google to compare SEO plugins. I figure that someone who knows SEO would be able to “goose” their posts on the subject. So I did an informal survey of multiple blog posts to see which plugins were recommended most often. Given a fifteen minute analysis window, I decided that the “Top 5” analysis done by PCDrome seemed quite sound. So I am beginning to test this on my lab setup. I’ll let everyone know how it turns out.
Obviously, this platform is evolving. But I do have one takeaway from all of this: don’t just trust someone who claims SEO knowledge; verify their competence by looking at the sites and successes that they have had.
-Roo