[Bitcoin-development] Double-Spending Fast Payments in Bitcoin due to Client versions 0.8.1

2013-06-27 Thread Arthur Gervais
-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1

Dear Bitcoin developers,

We would like to report a vulnerability which might lead, under some
assumptions, to a double-spending attack in a fast payment scenario.
The vulnerability has been introduced due to signature encoding
incompatibilities between versions 0.8.2 (or 0.8.3) and earlier
Bitcoin versions.

Please find at the following link a detailed description of this
vulnerability:
ftp://ftp.inf.ethz.ch/pub/publications/tech-reports/7xx/789.pdf

We contacted and informed Gavin earlier about this problem.

With best regards,
Arthur Gervais
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Re: [Bitcoin-development] Double-Spending Fast Payments in Bitcoin due to Client versions 0.8.1

2013-06-27 Thread Gregory Maxwell
On Thu, Jun 27, 2013 at 3:23 AM, Arthur Gervais
arthur.gerv...@inf.ethz.ch wrote:
 -BEGIN PGP SIGNED MESSAGE-
 Hash: SHA1

 Dear Bitcoin developers,

 We would like to report a vulnerability which might lead, under some
 assumptions, to a double-spending attack in a fast payment scenario.
 The vulnerability has been introduced due to signature encoding
 incompatibilities between versions 0.8.2 (or 0.8.3) and earlier
 Bitcoin versions.

 Please find at the following link a detailed description of this
 vulnerability:
 ftp://ftp.inf.ethz.ch/pub/publications/tech-reports/7xx/789.pdf

It would be kind if your paper cited the one of the prior discussions
of this transaction pattern:

E.g. https://bitcointalk.org/index.php?topic=196990.msg2048297#msg2048297
(I think there are a couple others)

The family of transaction patterns you describe is one of the ones I
specifically cite as an example of why taking non-reversible actions
on unconfirmed transactions is unsafe (and why most of the Bitcoin
community resources) council the same.  You can get similar patterns
absent changes in the IsStandard rule through a number of other means.
 One obvious one is through concurrent announcement: You announce
conflicting transactions at the same time to many nodes and one
excludes another.  By performing this many times and using chains of
unconfirmed transactions and seeing which family your victim observes
you can create input mixes that are only accepted by very specific
subsets of the network.

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[Bitcoin-development] [ANN] Micropayment Channel Implementation

2013-06-27 Thread bitcoin-list
As of today, a full implementation of micropayment channels has been merged
onto bitcoinj's master branch (to be released in the next version). It is
designed to make it easy for users to create payment channel servers and
clients based on the design at
https://en.bitcoin.it/wiki/Contracts#Example_7:_Rapidly-adjusted_.28micro.29payments_to_a_pre-determined_party,
by creating a simple TCP socket and exchanging protobufs to initialize and
make payments.

It supports various levels of abstractions, allowing users to drive the
state machines which do basic channel init/verification themselves, allow
bitcoinj to handle all the complexity of channel management/expiry/etc and
simply exchange protobufs over whatever whatever connection they wish to
make with the server, or let bitcoinj handle opening a TCP socket and do
all the work. See
https://code.google.com/p/bitcoinj/wiki/WorkingWithMicropayments for
details on how to use the implementation in bitcoinj.

A more full protocol description will be written up in the form of a BIP as
the code matures a bit more (with the hope that other implementations can
appear), but, generally:

1. Client and server exchange version handshake, and client may
optionally request that an existing channel be reopened (the channels last
for 24 hours by default, so if the connection gets killed, reopening an
existing channel is useful).
2. The protocol described on the wiki is followed, exchanging
(canonical!) signatures and transactions until a multisignature contract is
established and broadcast which locks money into the channel, and a refund
transaction is created and signed which allows the client to spend the
entire multisignature transaction to wherever they want
(SIGHASH_NONE|SIGHASH_ANYONECANPAY) after some lock time (by default, 24
hours). Both client and server store a copy of the channel in their wallet
so that if the app itself crashes the refund transaction can still be
broadcast/the channel can still be resumed. At this point either the whole 
wallet should be backed up or the total value in payment channels at any
given time should be kept reasonably low (because payment channels are
designed to combine micropayments into confirmable payments, this shouldn't be 
an issue)
3. The client increments payments by sending the server new signatures
spending the multisig contract partially back to themselves and allowing
the server to do what they want with the rest
(SIGHASH_SINGLE|SIGHASH_ANYONECANPAY).
4. When the client sends a CLOSE message or the channel approaches the
refund transaction unlock time, the server adds any necessary fees to the
latest payment transaction and broadcasts it, closing the channel, 
disconnecting the client if the connection is still open and removing the 
stored channel state from its wallet.

See 
https://code.google.com/p/bitcoinj/source/browse/core/src/paymentchannel.proto 
for the protobuf/protocol description.

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[Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Jim
Hello Everybody,

Over the last few months we have been steadily adding
functionality to MultiBit including:
+ encrypted wallets
+ sign and verify message
+ stability improvements and bug fixes.

As a result of these efforts I think MultiBit is now
suitable for the entry level Bitcoin user. I propose 
that we put MultiBit as the default desktop client 
on the bitcoin.org Choose your wallet page.

I think a typical new user comes to bitcoin.org from a 
google search or a Bitcoin news article. We want them to 
peruse the bitcoin.org site and try out a wallet. They 
should be able to get MultiBit up and running in a tea break. 
Then perhaps they get a colleague to send them some bitcoin 
from an Android phone by zapping a QR code. 

We say: Welcome to the Bitcoin economy !


There is plenty MultiBit cannot do of course. However if
in the first ten minutes we get the new user interested 
there is a good chance they will go on to explore other 
Bitcoin wallets and solutions. 

Let me know if you think this is a good idea (or not!)
and if you have any questions.

Jim

https://multibit.org

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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Jeff Garzik
On Thu, Jun 27, 2013 at 1:10 PM, Jim jim...@fastmail.co.uk wrote:
 Hello Everybody,

 Over the last few months we have been steadily adding
 functionality to MultiBit including:
 + encrypted wallets
 + sign and verify message
 + stability improvements and bug fixes.

 As a result of these efforts I think MultiBit is now
 suitable for the entry level Bitcoin user. I propose
 that we put MultiBit as the default desktop client
 on the bitcoin.org Choose your wallet page.

 I think a typical new user comes to bitcoin.org from a
 google search or a Bitcoin news article. We want them to
 peruse the bitcoin.org site and try out a wallet. They
 should be able to get MultiBit up and running in a tea break.
 Then perhaps they get a colleague to send them some bitcoin
 from an Android phone by zapping a QR code.

This is definitely a great discussion to have.  Here are some initial,
unprioritized thoughts.  As an engineer, there is never a clear
answer, but a balance of costs and benefits.

Arguments in favor of moving away from Bitcoin-Qt/bitcoind for wallet services:
* Bitcoin-Qt is admittedly a very simple wallet.  I see it's core
strengths more as a P2P router for the public blockchain data.
* Wallet feature innovation moves more slowly than
Armory/bitcoinj/blockchain.info.
* Requires the full blockchain, which is resource-intensive versus SPV.

Arguments in favor of retaining Bitcoin-Qt/bitcoind default:
* More field experience, code review and testing on desktop than others
* Very real possibility of an overall net reduction of full nodes on P2P network

Arguments in favor of multibit default:
* Good user interface, perhaps more friendly for entry level users as
you describe
* Based on bitcoinj, which has field experience and a very large
installed base thanks to Bitcoin Wallet/Schildbach

Arguments against multibit default:
* Less testing, field experience on desktop

I'm sure others can come up with a few more.

-- 
Jeff Garzik
Senior Software Engineer and open source evangelist
BitPay, Inc.  https://bitpay.com/

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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Gregory Maxwell
On Thu, Jun 27, 2013 at 10:10 AM, Jim jim...@fastmail.co.uk wrote:
 Let me know if you think this is a good idea (or not!)
 and if you have any questions.

Being able to promote a fast SPV desktop wallet would be great!

I went through an cycle of testing on multibit after I saw some
complaints when it went up on the page before without at lot of
discussion. There were a number of issues with it at the time, in
particular the frequent deadlocks— though Mike was saying that those
should be fixed.

I see some of the the other things that were concerning for me at the
time are still uncorrected though, e.g. no proxy support (so users
can't follow our recommended best practices of using it with Tor),
that it reuses addresses (esp for change), that it doesn't clearly
distinguish confirmation level. It also make repeated https
connections to 141.101.113.245? (I'm not seeing the IP in the source,
and it doesn't have a useful reverse dns entry, so I can't tell what
its for).  Is there any timeframe for changing any of this stuff?

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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Alex Kravets
Hi guys,

This would be a big step forward.  Anecdotally I can report that 5% of *
non-nerds* who don't abandon Bitcoin after waiting for the initial
blockchain download and *ongoing* sync on every restart, end up using
blockchain.info simply because it just works and works on their iPads 
iPhones.

Conversely, all the serious nerds end up using Armory and/or Brainwallets
for ultimate control.




On Thu, Jun 27, 2013 at 10:56 AM, Gregory Maxwell gmaxw...@gmail.comwrote:

 On Thu, Jun 27, 2013 at 10:10 AM, Jim jim...@fastmail.co.uk wrote:
  Let me know if you think this is a good idea (or not!)
  and if you have any questions.

 Being able to promote a fast SPV desktop wallet would be great!

 I went through an cycle of testing on multibit after I saw some
 complaints when it went up on the page before without at lot of
 discussion. There were a number of issues with it at the time, in
 particular the frequent deadlocks— though Mike was saying that those
 should be fixed.

 I see some of the the other things that were concerning for me at the
 time are still uncorrected though, e.g. no proxy support (so users
 can't follow our recommended best practices of using it with Tor),
 that it reuses addresses (esp for change), that it doesn't clearly
 distinguish confirmation level. It also make repeated https
 connections to 141.101.113.245? (I'm not seeing the IP in the source,
 and it doesn't have a useful reverse dns entry, so I can't tell what
 its for).  Is there any timeframe for changing any of this stuff?


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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Luke-Jr
On Thursday, June 27, 2013 5:30:21 PM Jeff Garzik wrote:
 * Very real possibility of an overall net reduction of full nodes on P2P
 network

Even a reduction of *nodes at all*, as I've never seen a listening bitcoinj or 
MultiBit node. :/

Jim, will MultiBit be adding p2p listening support?

 I'm sure others can come up with a few more.

Possibly against: Does MultiBit still promote Bitcoin misunderstandings with 
misinformation like from addresses? (my apologies if I am remembering a 
different client)

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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Gregory Maxwell
On Thu, Jun 27, 2013 at 11:04 AM, Luke-Jr l...@dashjr.org wrote:
 On Thursday, June 27, 2013 5:30:21 PM Jeff Garzik wrote:
 * Very real possibility of an overall net reduction of full nodes on P2P
 network
 Even a reduction of *nodes at all*, as I've never seen a listening bitcoinj or
 MultiBit node. :/
 Jim, will MultiBit be adding p2p listening support?

Without validation listening isn't currently very useful. :( Maybe it
could be somewhat more with some protocol additions.

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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Jim
A few replies, in order of point raised:

Jeff:
Arguments against multibit default:
* Less testing, field experience on desktop

Yes this is true - downloads of multibit have typically been around
1/7th to 1/5th of bitcoin-QT downloads. It helps of course that
the bitcoinj networking/ object model is also used by Andreas 
as you note.


Greg:
I think Mike has squashed the deadlocking problems with reentrant 
locks (primarily in the Wallet). I haven't seen one in at least a month.

We discussed proxy support on the bitcoinj mailing list a while ago 
and at the time the stumbling block was the Java library used for 
the networking (Netty) did not support it. Mike or Miron would 
know better than I if this is still the case.

Change address behaviour will improve significantly when HD
wallet support goes into multibit/ bitcoinj (I am hoping to get my
bit done over the summer). Matija Mazi has been working on a 
Java impl of HD wallets so it is coming down the pipe but
there is a lot to do yet.

Connections out from MultiBit are:
+ 4 bitcoind nodes on port 8333
+ multibit.org (188.138.113.201) for help, current version info
   (and probably more in future)
+ the currency ticker will make HTTP gets to the source of
   whichever exchange(s) you have set up e.g MtGox, CampBX.
   This calls should disappear if you switch the currency conversion
   and ticker off.

I think that is all the connections out I make.

Mainly due to the exchanges abruptly changing their APIs and
breaking things we are planning to put in intermediate 
Exchange Data Provider servers. Tim Molter is working on this
in his XChange project. That will enable us to patch the server
when things change and the multibits in the field won't be
affected. There will probably be a couple of these initially
for redundancy.

Alex: Yes I think most users migrate to blockchain.info or,
more recently coinbase.com. They are both good wallets
but I'd like to keep Bitcoin as P2P as possible.

Luke-Jr
I think you are right here on the number of full nodes versus
SPV nodes.
I don't think we even know yet what are the working ratios of
full nodes to SPV nodes. I haven't seen anybody do any 
analysis on this.

I doubt multibit will ever participate in the Bitcoin network 
other than as an SPV client. All the optimisation is to reduce
data traffic - it is effectively a mobile wallet that happens to
live on a desktop. It is not really intended to be more than
a wallet for regular people to store and spend their bitcoin.

In English the nomenclature for direction of the transactions
is: Sent to and Received with. To be honest I 
haven't transliterated the localisation files to check other
language packs but the localisers are pretty good in my
experience.





On Thu, Jun 27, 2013, at 07:41 PM, Gregory Maxwell wrote:
 On Thu, Jun 27, 2013 at 11:04 AM, Luke-Jr l...@dashjr.org wrote:
  On Thursday, June 27, 2013 5:30:21 PM Jeff Garzik wrote:
  * Very real possibility of an overall net reduction of full nodes on P2P
  network
  Even a reduction of *nodes at all*, as I've never seen a listening bitcoinj 
  or
  MultiBit node. :/
  Jim, will MultiBit be adding p2p listening support?
 
 Without validation listening isn't currently very useful. :( Maybe it
 could be somewhat more with some protocol additions.
 
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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Jim
RE: 141.101.113.245

http://whois.domaintools.com/141.101.113.245
gives it as CloudFlare - I suspect it is protecting
Mt Gox when we make our get for currency ticker info.


On Thu, Jun 27, 2013, at 08:18 PM, Jim wrote:
 A few replies, in order of point raised:
 
 Jeff:
 Arguments against multibit default:
 * Less testing, field experience on desktop
 
 Yes this is true - downloads of multibit have typically been around
 1/7th to 1/5th of bitcoin-QT downloads. It helps of course that
 the bitcoinj networking/ object model is also used by Andreas 
 as you note.
 
 
 Greg:
 I think Mike has squashed the deadlocking problems with reentrant 
 locks (primarily in the Wallet). I haven't seen one in at least a month.
 
 We discussed proxy support on the bitcoinj mailing list a while ago 
 and at the time the stumbling block was the Java library used for 
 the networking (Netty) did not support it. Mike or Miron would 
 know better than I if this is still the case.
 
 Change address behaviour will improve significantly when HD
 wallet support goes into multibit/ bitcoinj (I am hoping to get my
 bit done over the summer). Matija Mazi has been working on a 
 Java impl of HD wallets so it is coming down the pipe but
 there is a lot to do yet.
 
 Connections out from MultiBit are:
 + 4 bitcoind nodes on port 8333
 + multibit.org (188.138.113.201) for help, current version info
(and probably more in future)
 + the currency ticker will make HTTP gets to the source of
whichever exchange(s) you have set up e.g MtGox, CampBX.
This calls should disappear if you switch the currency conversion
and ticker off.
 
 I think that is all the connections out I make.
 
 Mainly due to the exchanges abruptly changing their APIs and
 breaking things we are planning to put in intermediate 
 Exchange Data Provider servers. Tim Molter is working on this
 in his XChange project. That will enable us to patch the server
 when things change and the multibits in the field won't be
 affected. There will probably be a couple of these initially
 for redundancy.
 
 Alex: Yes I think most users migrate to blockchain.info or,
 more recently coinbase.com. They are both good wallets
 but I'd like to keep Bitcoin as P2P as possible.
 
 Luke-Jr
 I think you are right here on the number of full nodes versus
 SPV nodes.
 I don't think we even know yet what are the working ratios of
 full nodes to SPV nodes. I haven't seen anybody do any 
 analysis on this.
 
 I doubt multibit will ever participate in the Bitcoin network 
 other than as an SPV client. All the optimisation is to reduce
 data traffic - it is effectively a mobile wallet that happens to
 live on a desktop. It is not really intended to be more than
 a wallet for regular people to store and spend their bitcoin.
 
 In English the nomenclature for direction of the transactions
 is: Sent to and Received with. To be honest I 
 haven't transliterated the localisation files to check other
 language packs but the localisers are pretty good in my
 experience.
 
 
 
 
 
 On Thu, Jun 27, 2013, at 07:41 PM, Gregory Maxwell wrote:
  On Thu, Jun 27, 2013 at 11:04 AM, Luke-Jr l...@dashjr.org wrote:
   On Thursday, June 27, 2013 5:30:21 PM Jeff Garzik wrote:
   * Very real possibility of an overall net reduction of full nodes on P2P
   network
   Even a reduction of *nodes at all*, as I've never seen a listening 
   bitcoinj or
   MultiBit node. :/
   Jim, will MultiBit be adding p2p listening support?
  
  Without validation listening isn't currently very useful. :( Maybe it
  could be somewhat more with some protocol additions.
  
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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Jim
I missed Greg's point on confirmations.
It is definitely a challenge to explain/ visualize both:
+ has the transaction propagated the network ?
and
+ it it confirmed/ buried in a block ?

when those words probably don't mean much to
the intended audience.

The transaction status icons I *think* do it
(explained here:
https://multibit.org/en/help/v0.5/help_transactions.html).

It basically boils down to:
1) triangle or square : bad.
2) filling circle : good
3) tick mark : great.


On Thu, Jun 27, 2013, at 08:40 PM, Jim wrote:
 RE: 141.101.113.245
 
 http://whois.domaintools.com/141.101.113.245
 gives it as CloudFlare - I suspect it is protecting
 Mt Gox when we make our get for currency ticker info.
 
 
 On Thu, Jun 27, 2013, at 08:18 PM, Jim wrote:
  A few replies, in order of point raised:
  
  Jeff:
  Arguments against multibit default:
  * Less testing, field experience on desktop
  
  Yes this is true - downloads of multibit have typically been around
  1/7th to 1/5th of bitcoin-QT downloads. It helps of course that
  the bitcoinj networking/ object model is also used by Andreas 
  as you note.
  
  
  Greg:
  I think Mike has squashed the deadlocking problems with reentrant 
  locks (primarily in the Wallet). I haven't seen one in at least a month.
  
  We discussed proxy support on the bitcoinj mailing list a while ago 
  and at the time the stumbling block was the Java library used for 
  the networking (Netty) did not support it. Mike or Miron would 
  know better than I if this is still the case.
  
  Change address behaviour will improve significantly when HD
  wallet support goes into multibit/ bitcoinj (I am hoping to get my
  bit done over the summer). Matija Mazi has been working on a 
  Java impl of HD wallets so it is coming down the pipe but
  there is a lot to do yet.
  
  Connections out from MultiBit are:
  + 4 bitcoind nodes on port 8333
  + multibit.org (188.138.113.201) for help, current version info
 (and probably more in future)
  + the currency ticker will make HTTP gets to the source of
 whichever exchange(s) you have set up e.g MtGox, CampBX.
 This calls should disappear if you switch the currency conversion
 and ticker off.
  
  I think that is all the connections out I make.
  
  Mainly due to the exchanges abruptly changing their APIs and
  breaking things we are planning to put in intermediate 
  Exchange Data Provider servers. Tim Molter is working on this
  in his XChange project. That will enable us to patch the server
  when things change and the multibits in the field won't be
  affected. There will probably be a couple of these initially
  for redundancy.
  
  Alex: Yes I think most users migrate to blockchain.info or,
  more recently coinbase.com. They are both good wallets
  but I'd like to keep Bitcoin as P2P as possible.
  
  Luke-Jr
  I think you are right here on the number of full nodes versus
  SPV nodes.
  I don't think we even know yet what are the working ratios of
  full nodes to SPV nodes. I haven't seen anybody do any 
  analysis on this.
  
  I doubt multibit will ever participate in the Bitcoin network 
  other than as an SPV client. All the optimisation is to reduce
  data traffic - it is effectively a mobile wallet that happens to
  live on a desktop. It is not really intended to be more than
  a wallet for regular people to store and spend their bitcoin.
  
  In English the nomenclature for direction of the transactions
  is: Sent to and Received with. To be honest I 
  haven't transliterated the localisation files to check other
  language packs but the localisers are pretty good in my
  experience.
  
  
  
  
  
  On Thu, Jun 27, 2013, at 07:41 PM, Gregory Maxwell wrote:
   On Thu, Jun 27, 2013 at 11:04 AM, Luke-Jr l...@dashjr.org wrote:
On Thursday, June 27, 2013 5:30:21 PM Jeff Garzik wrote:
* Very real possibility of an overall net reduction of full nodes on 
P2P
network
Even a reduction of *nodes at all*, as I've never seen a listening 
bitcoinj or
MultiBit node. :/
Jim, will MultiBit be adding p2p listening support?
   
   Without validation listening isn't currently very useful. :( Maybe it
   could be somewhat more with some protocol additions.
   
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Re: [Bitcoin-development] Proposal: MultiBit as default desktop client on bitcoin.org

2013-06-27 Thread Caleb James DeLisle


On 06/27/2013 01:56 PM, Gregory Maxwell wrote:
 On Thu, Jun 27, 2013 at 10:10 AM, Jim jim...@fastmail.co.uk wrote:
 Let me know if you think this is a good idea (or not!)
 and if you have any questions.
 
 Being able to promote a fast SPV desktop wallet would be great!
 
 I went through an cycle of testing on multibit after I saw some
 complaints when it went up on the page before without at lot of
 discussion. There were a number of issues with it at the time, in
 particular the frequent deadlocks— though Mike was saying that those
 should be fixed.
 
 I see some of the the other things that were concerning for me at the
 time are still uncorrected though, e.g. no proxy support (so users
 can't follow our recommended best practices of using it with Tor),


If I were a Bitcoin dev, I would not want to talk about anonymity or
TOR because that's likely to attract people with paranoid dilutions
and they're really terrible users to support :)

Also yay for promoting fast, easy to use clients for casual users!

Thanks,
Caleb


 that it reuses addresses (esp for change), that it doesn't clearly
 distinguish confirmation level. It also make repeated https
 connections to 141.101.113.245? (I'm not seeing the IP in the source,
 and it doesn't have a useful reverse dns entry, so I can't tell what
 its for).  Is there any timeframe for changing any of this stuff?
 
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