Answers From Sealand: CTO Ryan Lackey Responds  
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 <http://slashdot.org/search.pl?topic=news>Posted by timothy
<http://www.monkey.org/~timothy> on Monday July 03, @11:00AM
from the drysuits-required dept.
A few weeks ago, you asked questions of Ryan Lackey, CTO for HavenCo, a
company dedicated to providing secure off-shore data hosting from Sealand, a
principality off the coast of England. Ryan has lately survived dental
emergencies, the loss of a laptop (it dropped into the North Sea -- how many
people can say that?) and other stresses, but he's followed through with
some interesting answers. He even has some ideas for how you can make a lot
of money, and lists the tools you need to start your own data haven. Kudos
to Ryan for taking the time to answer so thoroughly. 
Why do you need physical security at all?
by Jamie Zawinski ([EMAIL PROTECTED]) / 
Lots of people are asking questions about physical security, and how you're
going to repel missiles and commandos, but I've got the opposite question:
why do you need physical security and a physical location at all? Would not
the best way to protect your customers' data be to wrap it in hard crypto
and distribute it far and wide across the whole of the net, ensuring that
there is not a single point of failure or a single physical installation
that can be isolated? 
As we've seen again and again recently, the best protection against
censorship and other legal attacks is massive redundancy and
decentralization. 
Ryan Lackey: This actually brings up several issues, which I will address in
turn. 
        Physical location vs. distributed presence 
                You seem to be suggesting a distributed data store, a la
Eternity, by Ross Anderson. Basically, a federation of servers on the net,
possibly hidden servers interfaced to the outside world through remailers
(such as Blacknet) or ZKS Freedom. These servers would move data around
among themselves, opaque to the outside world, and users would be able to
store their data, manually or automatically, on as many servers as possible.
There would presumably be some kind of payment system so users could
anonymously pay for documents to be stored (as if you run the system for
free, it will end up collapsing due to a flood of useless content; if you
use a MRU/LRU scheme for your caches, script kiddies will just run scripts
to keep their favorite documents in the cache, dropping real content out). 
                While this approach is interesting from a theoretical
standpoint, there are no production-quality systems ready yet. Additionally,
there are fundamental limits to distributed computation -- latency, as you
add nodes, or threat of compromise, if you have very few nodes. 
                We're going to be incorporating some distributed cache
technology which should provide our datacenters with some of the benefits of
freenet/eternity type systems. Our system will, however, have a small number
of very secure nodes, such as our facilities on Sealand, in which customers
can conduct trusted transactions -- the intermediate results are guaranteed
confidentiality and integrity in processing. 
                The distributed data serving systems are also not practical
for any transaction oriented site, especially low-latency transaction
oriented sites, at least without a small number of trusted nodes to do the
processing. Due to security constraints, this means tamper-resistantant
hardware, and since this hardware is expensive, it needs to be purchased in
limited quantity, and protected from theft/attack, meaning you want to put
it in a small number of high security physical environments. Since it
becomes a critical link in all of your transactions, you also need high
quality bandwidth. 
                These distributed hosting systems are certainly interesting,
but don't really meet all the neets of our customers. If we borrow 10% of
the technology in building a secure distributed cache system, we'll be able
to offer 95% of the benefits, as well. 
        Secret physical location vs. single well-defended point 
                If you're going to have a physical location, there's no easy
way to distribute to a very large number of physical locations; you have a
base cost per site, and your security is incredibly low until you spend a
substantial multiple of that. There are definite economies of scale in
running larger datacenters. 
                Keeping physical locations secret is difficult. Keeping
active physical sites, with actual servers connected to the net, secret,
while still having decent pingtimes and large pipes, is almost impossible.
You would need to go with hidden fiber cables laid through some kind of
territory in which you could destroy anyone or anything looking for them,
and your physical site would need to have the same density as the
surrounding area, as well as no magnetic anomaly, or unusual power
consumption, or whatever. Or, you could communicate by non-DFable HF SS
radio, but that would severely limit your bitrates. I'd say this is
basically hopeless. 
        How much of our security is HavenCo, vs. Sealand 
                A fair bit of the security on Sealand is related to
protecting the Principality of Sealand from the kind of takeover which was
attempted in 1978, rather than strictly necessary for HavenCo itself.
HavenCo's security is primarily due to tamper-resistant hardware and
cryptography, not the site security of Sealand. 
What will you do WHEN you get shut down? 
by joshamania ([EMAIL PROTECTED]) 
I haven't seen this question yet, so now I ask. In order to do the proper
due dililgence on this matter, I would like to know what you will do when
you get shut down? I don't think it likely at all that the UK will not take
a serious look at what you are doing and disagree with it. They are not
going to allow you to operate within their territorial claim and not be
subject to their laws. Period. 
Ryan: We are not within the UK's territorial claim. In the event the UK were
to illegaly move against us, we would respond as appropriate; lawsuits would
be the most likely course of action. It is highly unlikely the UK would
intervene with military force, as they are a primarily law-abiding country
with a strong tradition of respecting the law, due process, etc. 
I've read that you have plans for other locations, but the information was
very vague (as is this question ;). What do you plan to do when, either the
UK invades, the US invades (highly likely from where I sit, there are
entirely too many people in this country that think that my business is
their business), or some non-governmental organization invades? Why wouldn't
some unscrupulous individual bent on corporate espionage and blackmail just
hire some mercenaries and come steal your servers? 
We intend to have multiple physical locations, with ideally the same level
of physical security we have on Sealand, and as much bandwidth as possible,
at the earliest possible opportunity. We have identified a set of sites
around the world in various stages of development, and can set up more sites
relatively rapidly. Certainly major moves by the UK or others against
Sealand would accelerate this process dramatically. 
It's almost impossible for anyone to steal a functional server, and I'd say
it would be much more difficult than that (almost impossible, but nothing is
really impossible) to extract useful data from that server. Certainly a
well-funded terrorist could shut us down, at least temporarily, but a
well-funded terrorist could cripple almost all Europe to US connectivity by
cutting a couple of cables, blowing up 4 cable landing stations, or taking
out Telehouse in downtown London. Or doing the same kind of DDoS tricks done
during the NANOG meeting earlier in 2000. 
If one of our sites is taken down temporarily, we'll have sufficient spare
capacity in others to allow customers who have wisely stored backups and
hot-spares elsewhere to be online almost instantly. Some users will be
particularly smart and purchase operational servers in multiple sites, using
distributed technology to keep servers in sync, and may notice no outage at
all even if multiple HavenCo sites are rendered nonfunctional. 
I love the idea, but this is just ridiculous. Unless you've got unlimited
capital coming out of your ears, this is not going to happen. Even if the
governments leave the physical location alone, they are bound to shut off
your land lines. Satellite bandwidth is beyond prohibitively expensive right
now and will remain so for many years. Do you plan to launch your own
satellite and man your own ground station in some secret location in order
to maintain connenctivity? 
There are various legal obstacles to shutting off landlines running through
a country. 
You have apparently not priced satellite bandwidth recently, or have a
high-bandwidth, low-value application in mind when you say "beyond
prohibitively expensive". For many applications, satellite bandwidth is
cheap enough to not matter; for a high-value financial transaction conducted
in under 10 KB, it is insignificant how much it costs to move a megabyte of
data? Even for relatively bulk data (not illegal mp3 archives, or pr0n, or
warez, but original-content websites, etc.), satellite bandwidth is
affordable today. Additionally, we will have distributed cache technology to
avoid sending the same static data over satellite links. And we will
obviously try hard to maintain landline connectivity. 
Even that wouldn't be enough. Governments would find that and shut it down
too... 
HavenCo's justification 
by The Dodger ([EMAIL PROTECTED]) 
What exactly is HavenCo offering? On the one hand, you refer to yourselves
as "the world's most secure managed colocation facility" (setting aside for
the moment the fact that HavenCo is not a co-location facility) and on the
other, your website makes vague references to the fact that Sealand is a
sovereign territory. 
Ryan: We offer the ability for anyone in the world to come to us, pay for
service, and have a host suitable for running ultra-high security
e-business, ready in near-realtime, with the highest levels of reliability
and performance, in a variety of jurisdictions/locations/replicated sites.
We're picking locations based on proximity to users, proximity to major
pieces of net infrastructure, and unique advantages of the location
(regulatory, image, security, cost, etc.) We provide these hosts with
support systems designed for how secure e-businesses need to operate; 24x7,
anywhere in the world, and with the highest levels of security and
professionalism. 
Five years ago, when I first heard of Sealand and it's alleged sovereignty,
I looked into it as a potential site for a hosting facility. However, I
concluded that Sealand's claim to sovereignty wasn't anywhere near strong
enough to ensure that it could avoid being subjected to British law (in
particular financial law). Given the fact that it exists, in my opinion,
because it's owners are viewed as relatively harmless eccentrics by the
British authorities, and that it is not recognised as a bona fide
principality by any other nation (notwithstanding the visit by a German
diplomat), I concluded that if a hosting facility were to be established on
Sealand from which, subsequently, actions were carried out or services
provided, which sufficiently antagonised a bona fide government, steps would
be taken to ensure that such actions or services ceased. 
In short, whilst the idea of Sealand existing as the world's smallest
independent nation is a good read in the newspapers, and makes for terrific
brochure blurb for a company like HavenCo, I don't believe it to be a truly
tenable position. 
We feel the Sealand location is viable as a secure colocation facility
regardless of the actions of the British government. In its current
sovereign state, it is highly useful, but even if it were at some point in
the future considered fully part of the UK, it would continue to be an
ultra-high security colocation facility with very high speed links to the
core of Europe's Internet (London and Amsterdam). 
The strength of Sealand's claims to sovereignty has been repeatedly
confirmed by academics and those in the legal profession; the only ones who
downplay it are those who feel they have something to lose by Sealand's
sovereignty. 
Additionally, HavenCo has no intention at all of engaging in any business
which would "sufficient[ly] antagonize a bona fide government" (including
Sealand). Our AUP prohibits infrastructure-threatening content (spam,
network terrorism), and Sealand's laws prohibit child pornography. HavenCo
itself serves no objectionable data, and engages in no business which would
be illegal in any major country of the world; we simply sell server
colocation to users. 
Security was something else I looked at. I looked at four methods of
connectivity - fibre, microwave, sattelite and packet radio. Any means of
connectivity (except, perhaps, for packet radio), exposes a "Seahouse" to
the prospect of it's connectivity being shut off at the mainland (whether it
be in the UK or the Continent). From a pure security point of view, fibre is
obviously the best option. Microwave, sattelite and radio can be snooped
both from Earth and space. Sattelite and radio links have their own problems
with regard to latency. 
I do not understand why you care about snooping on public IP links; this is
data, encrypted and unencrypted, which is entering or leaving the facility
via the public internet, and could be just as easily monitoring anywhere
else. There is no problem for us in broadcasting this information. If you
want your data in transit on the internet to be private, everyone knows to
encrypt it. 
Satellite does not need to terminate in UK/Europe to reach Sealand. 
There are specific laws in many countries regarding cutting communications
to third-countries or isolated communities, so we are not as worried about
cutting service on microwave/fiber links as you are. 
The provision of traditional utilities to a "Seahouse" present further
problems - unless a cable could be install ed to bring power from the
mainland (which, again, leaves the facility open to being shut down by
mainland authorities), such a facility must generate it's own power. I
dismissed wind and wave as too unreliable, leaving diesel-based generation.
This would be expensive and the possiblity of being unable to resupply
because of bad weather arises (note that, at one point, Sealand was
abandoned because of bad weather). Any interruption to power would result in
disruption of environment control (AC, fire suppression systems). 
We run entirely on locally-generated power, currently with reciprocating
Diesel engines, and substantial onsite fuel storage. We are confident in our
ability to ride out any storm, as far as fuel resupply. Generating power
from Diesels is a well-tried technology on offshore platforms. 
I've never actually heard the "Sealand abandoned due to bad weather" story,
and the Royal Family of Sealand, who are involved in management, deny that
such an event ever occured. (I think another tower or radio ship from the
pirate radio days may have been abandoned due to weather, but not Sealand.) 
The actual environment itself was also a concern - I'm not sure how suitable
a sea-tower is, as a facility for hosting sensitive computer equipment. 
We have suitable environmental control systems to provide a superior
environment for hosting machines, with high levels of redundancy in our
engineering plant. 
Finally the security of Sealand itelf was a concern. I conducted an analysis
aimed at examining what sort of operation would be required to attack,
conquer or destroy Sealand. With the help of an individual with experience
of this type of military operation, I determined that carrying out a
professional operation designed to invade and seize terporary control of the
tower, would cost somewhere in the region of 200,000 (around $320,000). This
would involve sourcing weapons and experienced personnel, as well as
arranging for a suitable method of accessing the target. 
Security is not my job, but two points to consider: 
        Security has been upgraded, and continues to be upgraded. Presumably
your estimate was based on the condition 5 years ago. Certainly at one point
(1978), a semi-trusted group were able to conquer the fortress for less than
$320 000 in today's money. I would definitely put my money on the defense if
the same situation came up today. 
        HavenCo's security does not depend crucially on the security of
Sealand. We have tamper-resistance and cryptographic technology so as long
as Sealand security serves its purpose as a "speedbump" to a major attacker,
it will allow machines to be placed into a secure state prior to loss of
control. Even in the event of a rapid attack, or compromised insider,
customer data inside tamper-resistant processing devices would not be
vulnerable at any point. 
(note that the people guarding U.S. nuclear weapons depots are armed with
M-16s and radios, not even frag grenades. US nuclear weapons have equivalent
tamper-resistant technology to what we deploy in our servers. Security only
needs to defend against vandalism and make sure that any theft is detected;
there is no attempt made to prevent an assault by a capital ship or
sufficient well-armed company of soldiers from taking control of the
weapons, assuming they can get to the facility without being detected.) 
Conquering the tower would be a different matter, requiring a long-term
commitment to both the security and logistics of the tower. Destroying it by
UDT methods would not be easy or cheap, although severaly disrupting it's
habitability by something like mortar attack would be a lot cheaper. 
Placing a warship with mortar in the waters near the UK's major container
port would be ... highly unpopular. 
Placing mortars ashore for long enough to close on target would also inspire
a very unfavorable response from the UK military. Any mortar which could hit
Sealand from shore could also threaten hundreds of thousands of British
citizens. British gun laws, being what they are, and the British experience
with mortar attacks on Heathrow being what it is, I would not want to try
it. 
We don't promise customers protection from denial of service, of a physical
or electronic kind, but we do try our hardest to prevent/stop DoS attempts. 
In the end, I decided that Sealand sovereignty/legal position, security and
suitability as a hosting location were not up to scratch. 
I find it interesting that HavenCo have found otherwise. I note with
interest that the HavenCo website indicates that they intend to open hosting
facilities in other countries, and I find myself wondering whether the
SeaLand thing is merely a publicity stunt/gimmick, purely for the purpose of
impressing the press, potential clients and investors. 
I am unclear on exactly why your analysis was so different than ours; we
have a well-developed security model for global secure colocation, and
Sealand fits into the model perfectly (admittedly, we're unlikely to need to
buy drysuits for any of our future datacenters, but that's a minor issue).
We are using only a very small number of novel or cutting edge technologies,
and relying on standard best industry practice for most of our operations. I
think we have addressed any of the engineering concerns you have; I don't
understand why you feel the power situation is so complex, or the network
situation so dire. 
It may be that we have different target markets; we're providing a very
specific product, global high-security colocation, rather than
general-purpose server hosting for the average user. 
As for your security concerns, I think our security model simplifies this
dramatically, and our security team are responsible for dealing with the
kind of threats you mention. I have complete faith in their ability to
provide us with defense against all viable threats. 
The jurisdictional issue is of course an open one, but we have substantially
hedged our bets by ensuring Sealand is a viable colocation location
regardless of any future change of sovereignty status. 
Finally, addressing that issue of the definition of co-location. A
co-location facility allows companies (typically telcos, ISPs) to locate
equipment within the same building, to enable interconnect/exchange of IP
traffic. HavenCo says that it will not allow clients to place it's own
equipment in the facility. If this is the case, then HavenCo's Sealand
facility will be a hosting facility, where clients are constrained to
choosing equipment which HavenCo can supply/support. 
As for whether or not we provide true colocation, it depends (as for
spelling, I prefer the shorter/European spelling "colocation"; some within
HavenCo like "co-location", others like "collocation"). We will allow
arbitrary equipment to be housed within our facility if we can be assured it
will not interact poorly with other equipment, just like if you want to put
your equipment in a cage at a local AT&T office. This means we need to know
HVAC/power specs, inspect it to make sure it's not a bomb or monitoring
device, etc. The easiest way for us to do this is say "we will not accept
end-users, but will instead order to customer spec from known/reputable
vendors". If you want a Juniper M160, we'll get one from Juniper for you and
install it, giving you the ssh keys. If you want a Sun Ultra Enterprise
6500, same thing. If one wishes to have media shipped separately, we can
x-ray/chemical sniff just the media, and pop in your drives into hardware
which has been shipped separately, so you don't need to rely on us to do
initial system setup and handoff. Or, you can ftp us a disk image, and we'll
just write it to a standard drive and install it in the machine for you when
it arrives. 
We can do arbitrary cross-connects (fiber only), and can connect to telco
circuits as required, in arbitrary locations. Many other true colo
facilities require that all cross connects be done by facility staff (I
don't actually know of any which allow customer-run crossconnects between
cages). We also offer the standard complement of "remote hands" through full
sysadmin service. 
The one area where we prefer that our customers use standard hardware which
we supply is x86 1U PCs. We'd prefer if all of our customers used our
standard config 1U machine, which is sold at a very good price, as it
simplifies our engineering, sparing, and logistics. We can get your server
up in seconds, once our online ordering systems are up, by maintaining
inventory. If we allowed people to colo arbitrary crappy $200 PCs, we'd face
an endless cycle of dealing with broken power supplies, fans breaking and
taking out the whole machine, etc., and I'd be happy to charge people 10x
more than for our 1U servers to colo their own no-name 1U box. We can
provide a free "if it breaks while it's with us, we'll fix/replace it"
warranty on our standard 1U boxes, too, since we've got the spares onsite,
and know they are top-notch hardware which should very rarely fail. 
We'll even provide people with access to their own hardware. Compared to
places which allow customers onsite, we've got very high latency for this;
we need to ship the machine to either your own address, or to a neutral
facility ashore, and you can screw with your machine, and then ship it back
to us (at which point we'll go through the same security process to make
sure nothing bad has been added to the machine). 
I can't think of any service offered by other colos which we do not offer: 
*       Colo arbitrary equipment, provided it meets facility requirements 
*       User access to hardware, outside the secure hosting area 
*       Remote hands/config service 
*       Arbitrary crossconnects or telco connects. 
possible questions for HavenCo
by leto ([EMAIL PROTECTED]) 
1 ...The website displays a copyright logo. Did Sealand sign the Berne
Convention, and thus does it respect copyright? 
Ryan: We weren't supposed to have the copyright logo on our site; it has
since been removed (the website was kind of rushed). 
2... Explain who is the real owner, because outsiders are confused with
havenco, principality-sealand.net and sealandgov.com 
HavenCo, Ltd. is a company doing global secure colocation. Our first (and
presently only) site is in the Principality of Sealand. We hope to expand
rapidly to other locations; secure colo in 5 jurisdictions is worth far more
than five times as much as secure colo in 1 jursidiction. 
Principality-Sealand.net is run by criminals from Germany who formerly
staged an invasion of Sealand, and were repelled through force of arms. More
info about this incident is on sealandgov.com 
Sealandgov.com is the official website of the Government of the Principality
of Sealand. HavenCo is providing technical assistance.
(fruitsofthesea.demon.co.uk/sealand is the former official website of the
Government) 
3...Will I be allowed to store encrypted files there that HavenCo can't
possible read, condone nor condemn? 
We encourage customers to encrypt data so malicious attackers on the
Internet cannot hack into your machine and read your data. We provide tools
by default to do this on the machines; there are some tradeoffs between
security and performance and security and convenience, and the user gets to
turn the dial. 
We encourage customers to use SSL or other transport-security when dealing
with their end-users to keep end-user data safe from attackers who would
snoop on the traffic, or malicious parties who would try to spoof/modify
data in transit. 
4 ... Why does Havenco insist on policies that allow them to remove content
based on their disgretion? How many judges does Sealand have to deal with
this, or will Joe random Sysadmin play judge? 
It is mainly in the case of serious threat to HavenCo/Sealand. We want to
always keep our promises to customers; the only promise we can reasonably
make and always keep, as far as security, is that no one will be able to
affect the confidentiality or integrity of your server. We have to reserve
the right to shut off a given customer and anonymously refund payment, as if
we didn't, and someone presented a serious threat to us (even if only just
to see how we would react), we would be forced to either break a contract
with a customer, or shut down all of our operations. We want to have a way
to respond to such circumstances (and if you get your money refunded, it's
just a minor inconvenience...truly controversial data should be backed up
and replicated, and you can be back online relatively quickly after such an
incident. And you can be sure we'll work to make sure we never have to
exercise this ability to pull a given customer.) 
5...How will havenco prevent their backbone ISP or that ISP's country from
interfering with Sealand/Havenco? 
Our number one way of preventing people from cutting our links is by making
sure we provide a net benefit to the world; we provide a place for secure
e-commerce, privacy-protected internet services (do you really want people
to be able to subpoena online psychiatric records in civil cases?), and
uncensorable free speech (information about repressive regimes, corporate
malfeasance, corrupt politicians, racial/ethnic/etc. discrimination), etc. 
Even if a company or country is against a given piece of data one of our
customer hosts, the company or country will benefit more by our continued
availability than they would gain by censoring the data. 
Additionally, we will have redundancy across network providers and countries
so that even if one of them incorrectly decides to cut off service, we will
not be substantially affected. We have lots of technical means for dealing
with this kind of problem. 
Additionally, various contracts and laws exist so countries and companies
can't arbitrarily terminate backbone services; it's possible they would then
become 'editors', rather than common carriers, and many countries have laws
guaranteeing communications transit for third-countries. 
Is this site permitted? 
by broody (clue@localhost) 
After reading your TOS I have become rather curious in regards to the
following clause: 
"Unacceptable publications include, but are not limited to: 
1.Material that is ruled unlawful in the jurisdiction of the originating
server (Such as child pornography, in the case of our flagship Sealand
datacenter)" 
In the case of the Sealand datacenter, what are some of the limitations? 
Ryan: Aside from the HavenCo AUP (no spam, no network attacks), the only
laws regarding content hosting in Sealand are those against child
pornography.
Please note that in the following examples I am not equating one example
with any other or implying that any of the following should be censored;
rather they are examples of what I would consider sticky wickets when
running a "data haven" and wonder how such things will be handled. 
Imagine the following: 
*       I am a rabid anti-choice activist in the United States. I wish to
post a site with a hit list of doctors performing abortions in the United
States. After each "accident" I wish to mark them with a big red X. I
publish detailed information on how to find each of these doctors. Is this
site permitted? 
                This material being hosted on Sealand is legal. I am not a
lawyer, but it is possible posting the site may be illegal if you live in
the US. US authorities will certainly investigate, and civil lawsuits may be
filed if the site is linked to an identifiable US person or organization. 
                We won't pull the site on Sealand, even if it is illegal to
post in the U.S., but it is entirely possible the poster, if living in the
US and proven within the U.S. by U.S. authorities to be linked to the site,
may suffer legal penalties until the site is pulled. (We will pull the site
if the customer himself requests we pull the site, of course) 
                (This is a case of data where even if you oppose it,
censoring it leads you down the slippery slope to authoritarianism. We
believe free speech will primary serve as a tool for constructive public
debate, commerce, and greater understanding between adversarial groups. 
                If someone set up a site such as the one above, more free
speech, rather than less, would probably render it impotent -- those opposed
to it could express their concern, and the groups who directly benefit from
the site would probably lose more in public support/legislative power than
they would gain from trying to create a culture of fear. And the same
privacy/security technologies could be applied the other way -- keep the
identities of doctors performing abortions in the United States
confidential. Privacy can be a powerful tool for accountability as well as
secrecy) 
*       I am a hacker who wants to play DVDs on my Linux box and I want to
use free software. I want to place source code on my website. The United
States says this violates some stupid law and some annoying people object.
Is this site permitted? 
                DeCSS does not violate Sealand laws in any way. DeCSS can be
posted freely on Sealand. Again, caveat emptor if you are a known person in
the US who can be provably linked to posting it outside the US. 
*       I am a devoted Iron Chef fan and Fuji TV has just sent me a cease
and desist order. I wish to move my materials to Sealand. Is this site
permitted? 
                It is permitted on Sealand. It may be legally risky to move
data to another jurisdiction if you've already received a cease and desist
order yourself, but that risk is confined to your own jurisdiction, not
Sealand. 
*       I am a regular guy in the UK creating a website about my daily life.
Some people don't like the way I talk about them and my site is pulled. Is
this site permitted? 
                I do not see how this could possibly be against our AUP on
Sealand, so it would be acceptable. Your own risk in your own jurisdiction
is up to you. 
*       Will you allow sites advocating the overthrow of rival goverments,
challenged uses of intellectual property, bomb making instructions, and
other information that will get other nation-states panties in a twist? 
                If you don't violate our AUP, we don't care. We don't have
time/staff to monitor what you're doing, anyway. Buy a box, keep up to date
on the bills, and we will keep it up on our net; any hassles you have in
your own jurisdiction are your own problem, but you don't need to fear us
doing anything to you or your box, except in the extreme circumstance in
which our continued survival is threatened, in which case we may decide from
a pragmatic basis to discontinue service and anonymously refund the balance
in your account. 
International Affairs (Score:5, Interesting)
by panda 
According to the Sealand Government web site, Havenco "will now take over
operations of the government of Sealand." As I understand the other text on
the same page, it is generally believed that the government of the UK would
not interfere in any acts of piracy, terrorism, or assault on your
"territory." 
Since you are now within the limits of the territorial waters claimed by the
UK, you probably won't have to worry about a full-out assault from a
sovereign nation, but another attack like that of 1978 could happen again.
Of course, there is nothing but a few court rulings to protect you from Her
Majesty's Armed Forces. 
Ryan: Two minor points: 
        We're not within UK territorial waters, due to the fact that Sealand
was occupied and declared sovereignty prior to the action by the UK to
extend territorial waters. Sealand's territory and territorial waters are
not diminished by actions taken by the UK after Sealand's sovereignty was
declared. If the UK decides to declare 200km territorial waters next year,
it will not affect the sovereignty or territorial waters of France, Belgium,
Sealand, Ireland, etc. 
        The UK would have been very reluctant to allow a fully fitted out
warship from some remote power to even pass through the Channel, let alone
get within 7nm of her major container port, even if it only had 3nm
territorial waters, if the UK believed that warship was coming to attack
near the UK. Missiles have sufficiently long range, and ease of targeting,
that anything which threatens Sealand also threatens Felixstowe, and even
London, so a threat warship appearing near Sealand would probably be
responded to by the Royal Navy regardless. 
We're in a better position to defend against a 1978-style incident than
Sealand was in 1978; I'd rather not go into specific security measures
(especially since I'm not responsible for designing/implementing them,
except for the parts related to the servers themselves), but if you remove
the threat of great power military involvement, it would be very difficult
to successfully take Sealand without destroying it entirely in the process.
Since our security promise to customers is that their data will not be
revealed to anyone, nor will their machine process data incorrectly due to
influence by anyone, and this promise does not include more than
best-efforts prevention of Denial of Service, an attack which destroys
Sealand does not violate our security promise to customers. It would still
suck, a lot, and we try hard to prevent it, but ultimately, protecting
against denial of service 100% is impossible; all we can do is try very
hard, and make it as hard as possible for an attacker to deny service. 
In addition [to] "a few court rulings", we have international law on our
side. Several legal authorities have confirmed over the years that Sealand
meets all the requirements for a sovereign state. There's also the complete
PR catastrophe that would befall a major country which invaded the world's
smallest country over a free-speech issue; I can't imagine any elected
government taking that risk. 
Given the precarious nature of the "sovereignty" of Sealand, will you be
seeking international recognition and treaties to guarantee your physical
security from such attacks? Will you be joining any of the international
protocols for cooperation in law enforcement or other areas? I would think
that joining these would go a long way to cementing your viability. 
I'm not responsible for the actions of the Government of the Principality of
Sealand, but from what they've done in the past, and what I've heard
discussed, they have every intention of being a responsible international
citizen. Sealand is likely to seek recognition or enter into treaties
whenever it is in the best interest of Sealand. Particularly relevant to
Sealand are international telecommunications treaties and organizations. 
Compared to the average state, however, Sealand has very limited resources,
both in personnel and money, so I wouldn't expect Sealand to open embassies
with every country in the world, sponsor major international aid
organizations, or spend huge amounts of money on nationalistic extravagance.

user-side threats 
by laborit ([EMAIL PROTECTED]) 
Let's say that you do manage to completely secure your clients' hardware and
data. Do you think you can also completely obscure the fact that said client
is doing business with HavenCo? 
If so, may we have more details on how? 
Ryan: Yes, this is a major issue. We believe we can do this. 
There are several issues: 
        Anonymize initial contact and decision to buy
        This is simple; browse our website from a webcafe, or use ZKS
Freedom, or just hide in the crowd (we get a lot of hits, and if every one
of those hits was a server sale, I would already have my toy (C-17 fitted
out as a corporate jet/cargo carrier)). 
        Anonymize initial setup communications
        We can accept a service order through an anonymous remailer system,
or through ZKS Freedom to an SSL website. This service order should include
cryptographic authentication information so we can authenticate you in the
future. We'll have this ready for review in advance of commercial sales. It
will also be broadcast, so if you trust us, you can just pick up a signed
copy from a newsgroup or mailing list, rather than going to our website and
downloading. 
        Anonymize initial and continuing payment
        This is perhaps the trickiest part. We can be rather flexible on
this. There are some effectively-pseudonymous payment systems out there, and
there is always cash. We can certainly come up with a solution in almost any
case; it just adds complication. This situation will, I'm sure, improve in
the future, as it's only a matter of time before someone develops and
deploys truly payer/payee anonymous electronic cash, now that there is a
large and credible potential market. 
        Anonymize future administrative interactions
        Again, ZKS Freedom browsed SSL pages, or remailers. You'll need to
authenticate yourself to us, be it by client cert, PGP signature, magic
token, one time password list, or something else. 
        Anonymize systems administration connections
        ssh through ZKS Freedom is what I would personally use, but you can
probably do something tricky with a shell interfaced to email and pgp, run
through remailers (high latency, though), or web-based administration, or
something novel. If your server accepts lots of SSL connections from users,
you could masquerade as a regular user, and then tunnel ssh/telnet through
SSL. 
        Anonymize end-user connections to the server
        This is not strictly necessary in all applications. End-users can
always use something like Freedom, or crowds, or anonymizer.com. Maybe your
server interacts with users through email/remailer nets, like Tim May's
Blacknet. 
If not, do you think that certain governments will make it a crime to simply
do business with Sealand? I understand your explanation that you're not
undermining the authority of other governments -- but you are undermining
their power to legislate away certain activities to which they object, and I
imagine they won't like that. In a world which places little value on a
citizen's soveriegnty against hir government, there would be few
reprucussions to (say) the U.S. making it illegal to purchase your services,
but it would put a big dent in your ability to do business. 
I think it is highly unlikely this will happen, but we've certainly
considered it, and want to make sure we have a credible plan in case it does
happen; by having such a plan, we can remove any value in making doing
business with Sealand illegal, after all, so maybe it won't happen. 
I think any country which starts restricting what countries its citizens can
do business with is headed down a slippery slope. The US certainly does this
already, with the "seven evil countries", but we're not going to be
supporting state-sponsored terrorism, or expropriating property from
influential Florida voters, so I think we're sufficiently benign to not be
at much risk. Certainly there are countries in the world where conducting
commercial transactions with a non-local business, in dollars, is illegal
for the average citizen; those are some of the countries to which HavenCo's
service can bring the greatest benefits. 
Do you need any help?
by BoLean ([EMAIL PROTECTED]) 
Is there any way that we internet users or the Open Source Community could
help with Heavenco? Are there any specific software/software security need
that you have? Have you considered working with individulas/groups from
other countries to help politically support your operations from their
native soil? 
Ryan: Yes. 
I'm working on preparing a list, but there are several areas where we could
use help. 
In general, I'd prefer to work with the existing authors of existing
packages to incorporate new features into the mainline. We don't have a huge
number of programmers, and our requirements are not terribly unique; mainly
we can assist with some requirements definition and design, and would want
the teams to handle deciding if it's worthwhile, design integration into
their future plans, implementation, and support/maintenance. 
(examples:) 
*       We're working with the OpenSSL people to get better support for
OpenSSL using some more obscure crypto adapters. We'll probably do the same
with GnuPG for OpenPGP. 
*       I'd like a security-audited subset release of Debian GNU/Linux, with
some additional cryptographic signing of packages by auditors. I'd also like
to get Debian support for some more esoteric hardware platforms we might use
(without revealing too much info :). My personal favorite platforms are
Debian and FreeBSD; there are lots of nice automated systems
management/upgrade tools one can do with ports and debs. 
*       I'd like a web-based application, using applets or tamper-resistant
hardware, which can send/receive OpenPGP-compliant messages. 
*       Various enhancements to NOC management, network monitoring, etc.
open source tools (rrd, nocol, etc.). 
*       A decent SMS-to-email (and reverse) gateway for the Orange cellphone
network in the UK :) 
*       Various enhancements to networking tools, practices, etc. for
increased DDoS resistance. 
*       Some cache and SSL enhancements, probably to be presented at IETF. 
*       Secure time that doesn't suck (there's a wg, but I want tools). 
*       People developing for tamper-resistance, using a
common-across-all-tamper-resistant-devices API, such as JavaCard. I'll speak
about this at Defcon this summer. 
*       Good open-source SQL databases; I like PostgreSQL, others like
MySQL, and having good open-source SQL db alternatives is always good. 
*       A web-based time management/scheduler/etc. I've looked at Xen, for
Zope, and it looks promising. I don't want to use MS Project. UNIX clients
would be great too. 
*       Web-based general ledger/accounting tools; again, I don't want to be
stuck using Quickbooks/MS Excel. UNIX/Gnome clients would be great too. 
Why and what?
by Julian Morrison ([EMAIL PROTECTED]) 
What motivates you to set up a data haven? Are you motivated primarily by
libertarian principle, or do you intend it mostly as a way to make money
from sealand's sovereign status? Or both? 
Ryan: Initially, we were motivated primarily by libertarian principle, but
that includes a desire to make money. The business would not be possible,
nor would we pursue it, if it did not hold the promise of being wildly
profitable if successful. 
Will you allow data that does any of the following: 
*       - evades taxes or excise? 
                Sealand has no taxes nor customs duties, so it would be
impossible to evade Sealand taxes or excise. It would be even harder to do
so with an Internet server. :) We have no responsibility to assist in
enforcing tax or customs regulations of arbitrary other countries, within
Sealand. 
*       - breaks local morality and legislated morality (including where
oppressive eg: Iran)? 
                Again, Sealand has no local morality or legislated morality,
at least as applies to Internet servers on Sealand. No content would be
rejected due to this, in the Sealand datacenter. We regulate based on
location of the server. If a country, such as Iran, decides content hosted
in Sealand is inappropriate for Iranians, they can make it illegal within
Iran, and then Iranians accessing HavenCo colo'd servers in Sealand would be
violating Iranian law in Iran, and potentially subject to Iranian
prosecution. Not Our Problem. 
*       - belongs to political dissidents? 
                As far as I know, Sealand has no political dissidents; it's
too small. No content would be rejected due to belonging to political
dissidents in other countries (and I'm sure Sealand would happily allow
content belonging to dissident Sealanders to be hosted in Sealand as well). 
                We have no real way of knowing if a user setting up a server
is a political dissident in another country, anyway. It's not one of the
questions on our account creation form :) 
*       - belongs to terrorists, organised-crime, etc? 
                We certainly don't support terrorism or organized crime, but
anyone can set up a server. We do not screen customers as they set up
servers, nor do we conduct 4 week background checks prior to beginning
service. Think "cash and carry." 
*       - is uploaded and maintained completely anonymously? 
                We encourage users to upload/maintain content/servers as
anonymously as possible, for security reasons -- if people don't know who
the admins of a server are, they won't try rubber-hose tactics, or will they
try to steal your laptop, install BO2k on your machine, etc. 
*       - is maintained with absolutely no access granted to anyone trying
to prosecute on grounds of its content? 
                Users are welcome to keep information private and restricted
to any group they choose. In general, we think most users will be publishing
data to be visible to as many users (at least paying users) as possible. 
Do you percieve what you're doing as moral? If so why? 
Yes. We provide a valuable service to customers, promising a certain level
of quality, security, and privacy, and work very hard to keep those
promises. We do not mislead or coerce anyone into being our customers, and
do not engage in anticompetitive or illegal practices against anyone. 
DoS 
by dingbat_hp ([EMAIL PROTECTED]) 
Sealand will inevitably have thin comms links and so will be more exposed
than most to a DoS attack. Recent cases have involved ISPs pulling user
sites simply for being attacked in this way - they accept the target site is
blameless, but pulled it "for the good of the majority of users" and the
restoration of their own comms. 
Ryan: Our network architecture is actually going to be relatively advanced.
Basically, private peering in insane quantities at nexuses of internet
traffic around the world, quality cache/filtering at those sites, and then
encrypted tunnels over private links back to our datacenters. In the short
term, these pipes back to the datacenters will be a bit undersized
(10-200mbps), but we're planning to have gigabits of connectivity all the
way to our datacenters in the medium term. 
Resistance to DoS and DDoS is sort of the age-old battle of arms vs. armor;
the newest arms will always win, but slightly older arms will lose against
the newest armor. 
We're in a better position than most w.r.t. DDoS; because we're on the side
of individual liberty and privacy, it's unlikely any actual hackers/packet
warriors/etc. would *want* to attack our network; if they did, they'd be
suppressing free speech, exactly the thing many of them say they're for. And
of course the people developing all the cutting edge stuff are the internet
community, not governments and corporations; if we can resist
several-month-old tools, we'll probably be able to resist most government or
corporate sponsored DoS attempts. 
DoS attempts are against terms of service, and the law, in most
jurisdictions and networks. We'll work with companies and authorities in
other countries to eliminate any sources of DoS against our networks, and
will work with other service providers to eliminate the pathetic
configurations which are used to effect most DoS attempts. If you look at
how rabidly people go after spammers, multiply that by 100 and that's how
hard people go after DoS. 
How would Havenco respond to such an attack ? Taking the moral highground,
or the pragmatic approach of letting individual users be picked off? 
I don't think we'd shut off a customer simply for being the target of a DoS
attempt, provided the customer was not violating our AUP. We may as needed
take pragmatic steps to ensure maximal connectivity and fulfillment of our
SLAs for the maximum number of customers, such as partitioning our network
during heavy DoS attempts, etc. 
Disconnected Living in a Connected Business
by Amoeba Protozoa ([EMAIL PROTECTED]) 
Setting up a company on a remote island, even one that doesn't require a lot
of on-site workers, was undoubtably difficult. 
Ryan: Yes. We actually delayed a lot of the onsite work, which we could have
started as early as November, until March/April, due to inclement winter
North Sea weather and negotiations with the Royal Family. 
What were the major challenges of setting up on the island? How many people,
and what sort of equipment did it take? Is there more left to do? 
The single biggest challenge in setting this up has been scheduling; certain
items have really long lead times, and there are long critical paths. For
instance, you need power to operate tools/computers/etc. during buildout,
but installing a major power system requires quite a bit of engineering
already be completed onsite. We were lucky that a lot of facilities were
already in place, including a small generator, housing, kitchen, and a
winch. 
We have learned a LOT about how to do this in the future; we should be able
to create a new datacenter on a green-field site in a matter of a few weeks!
Hint: use technologies and procedures with more in common with military
logistics than traditional datacenter buildout. (anyone with a nice site in
a country with favorable laws and/or government partnership? Email me,
[EMAIL PROTECTED]!) 
We had to do a bunch of interim steps in order to install larger equipment;
for a while, I was using a laptop and portable phone for IP connectivity,
then geosync satellite transponder, and finally a combination of multiple
technologies. 
Our power system is still under construction; we've got small UPSes and
generator power, but the production system, with a set of large UPSes,
3-phase PDUs, etc., is still in progress. 
We've used a variety of transportation technologies; various helicopters,
boats and ships, containerized transport, etc. (I must say I prefer the
helicopter to the boats, even if it's less exciting) 
I'd say that in total, there have been up to 40 people involved so far,
within HavenCo, the Sealand Government, and key vendors. 
Some of the most useful tools are exactly the same ones you'd use in setting
up any kind of techie venture anywhere in the world: 
*       relocatable power taps (i.e. power strips) 
*       Gerber Multitools/leatherman, pocket knives 
*       De Walt power drill/screwdrivers 
*       Duct tape 
*       Cat 5 UTP for temporary 100baseTX runs 
*       Free OSes, on CD and off the net 
*       Quality generic PC clone hardware 
*       netcat 
*       Linux, *BSD 
*       VMware (yes!) 
*       ssh (quite possibly the single most useful piece of network software
ever invented) 
*       thttpd (otherwise, we'd have a hard time standing up to slashdot
effect, combined with media effect, on random webservers) 
*       laptops running UNIX, to make temporary servers, do NAT, etc. 
*       email-to-fax, fax-to-email services 
*       cellphones (yes, we can get cell coverage on Sealand, at least on
deck; this has saved us quite a bit of hassle) 
and some which are specific to our site: 
*       drysuits (like in my photo in Wired...if you don't wear one, and
you're going along at 30 kts in a small boat, you will freeze) 
*       Rigid Inflatable Boat (the 22' thing in a lot of the pictures) 
*       canned goods (although eating some variant on corned beef hash, or
rice pudding, gets kind of old after a few days) 
*       winches and list motors, angle grinders, oxy-acetylene torches 
*       1 ton plastic pallet tanks, for water, diesel, etc. 
*       Our best friend, a 25 gallon/hour reverse-osmosis watermaker,
without which one would be unable to shower (a very recent addition to the
Sealand family ...) 
And now we've got some Pelican 1650 equipment cases for transporting all our
equipment, and I'm getting a 26U portable waterproof rack for transporting
core routers/etc. (previously, I was using drybags, and somehow my
laptop/rio/nikon990/cellphone/palmvx/etc. got dropped during a transfer from
the boat at night, after being removed from the drybag :( Thankfully I had
backups...and we'll see if "it just stopped working suddenly" is a viable
warranty strategy, since it's strictly true. (Donations to the "Ryan Lackey
small consumer electronics collection" are always accepted, of course,
particularly nice pre-release toys.) 
What are some of your day-to-day facilities like (food, shelter, perhaps
even recreation)? 
We have a small kitchen, and make 2 meals a day (breakfast is generic cereal
and stuff). For housing, people have from 50 to 150 square feet of space
each; it's not great, but is totally passable. We have one room dedicated to
recreation, the lounge, with a TV and a bunch of books. You can also go out
on deck and admire the view. My favorite room for recreation is the NOC,
though, since I'd probably spend my spare time hacking on new tools or
webpages, reading online books or websites, or playing computer games. 
We have a professional cook/housekeeper onsite (a recent addition), which
greatly improves quality of life -- I have better food when I'm on Sealand
than I ever did when I cooked for myself (that it's free is nice too). 
(FYI, last night I slept on my desk in the NOC because I was too lazy to
walk 300' to my bedroom...it was surprisingly comfortable. Antistatic foam
makes a good pillow, too.) 
We're planning to improve the food/shelter/recreation situation, but it's
sufficiently good now that it's not a priority. People have discussed
getting a DVD library, video projectors, satellite TV system, better books,
putting computers throughout the recreation spaces so we can play networked
video games against each other (and others on the net), a hot tub, nice
commercial kitchen, professional chef, etc. 
The most impressive thing is that the Sealand Royal Guards (mainly
ex-British soldiers who provide security, physical maintenance, and
logistics support), many of whom had never used a computer before, have
started using the PC we left in the lounge, and now want me to get them
laptops. Sadly, it's a win98 box, so the GNOME/KDE people should hurry up
and produce a viable alternative so I can give them Linux laptops...) IRC,
the web (ok, mostly porn), etc. seem like the best way to introduce people
to the net -- in less than a week, they've become pretty self-sufficient on
the Internet. 
What is your daily cash burn rate? Are there ways to cut it? I don't know
what the daily cash burn rate is; we don't have the kind of absurd burn rate
common in silicon valley, though, even though we have substantial physical
construction involvement. 
We could almost certainly cut burn rate if we needed to, but we'd rather
focus on increasing revenue, which is potentially infinite, than decreasing
costs, which becomes exponentially harder as you get closer to $0, and is
finite. 
Are you making a profit now? If not, when do you plan to be able to? 
This I don't know; I do techie stuff. I don't think the financial people
would share this information at this point, either. 
Do you have a plan in case of a hostile take-over? 
Our stock is closely held, so a stock-based hostile takeover is unlikely. 
If you mean a military takeover, yes, we have comprehensive security plans,
but this is handled by our onsite security people, and I have little
involvement. My personal plan is "don't get shot", and "stay away from where
people might potentially be shooting." While people may focus on the extreme
possibilities where we get raided by some corporate mercenary team or
religious fundamentalists or something, in reality, our security concerns
are much more likely to be "someone falls down a ladder and breaks a leg;
how to we deal with this" or "minor electrical fire in the kitchen"; that
kind of thing is handled quite well. 
Where can I send my resume? :) 
[EMAIL PROTECTED] Include a description of what kind of job you would
*want*, along with a resume. Please please please only use .txt or URLs, not
.doc! (guess which resumes I don't even bother reading...) 
Interesting concept...I wish you luck! 
Web Email (was: Re:Disconnected Living)
by xyzzy 
Ooo! The more interesting question to ask is: Can I get (either for free, or
since this is a business, for pay) an email address at havenco.com, or some
other domain hosted at Sealand? 
Ryan: You can definitely not have a havenco.com email address, unless you
work for us. 
If anyone with a server at HavenCo/Sealand sets up a mail server on Sealand,
you are welcome to contract with that person to buy an account. I imagine
web-based and non-web based outsourced email provided from Sealand will be a
major market, for the reasons you mention. 
You could set this up yourself, too. $1500/month for the box, you should be
able to get a few thousand accounts, and if people paid $10/month each for
non-subpoenable email, you'd be profitable quickly. Dedicated machines per
major user would also work; if a company wanted to oursource their
intranet/extranet and email servers, you probably would want to just resell
one or more machines per customer. 
In reality, the most important data any person or organization has is their
email! It can be read, spied on, subpoenaed, etc. I'd pay MONEY for this
service. 
I agree. You'd definitely want web-based via SSL or applet security for
viewing, or PGP in/out relaying, though; it would be silly to just put the
mail server on Sealand and not protect the messages in transit. 
Will Sealand be getting a top-level country code? If so, you could also sell
domains, but let me say that I think the hottest idea is selling web-based
email accounts. 
You're welcome to point .com/.net/.org domains at HavenCo IP addresses. Same
goes for country codes. 
We'd really like our own country code, but getting one is a really long and
involved process, so don't hold your breath. .com is still the most
respected commercial domain, so I think it will be a really long time before
any serious commercial business relies on non-.com domains. 
Dibs on "[EMAIL PROTECTED]" :-) 
Points of Contact to the Internet
by gregor_b_dramkin ([EMAIL PROTECTED]) 
What will you do when pressure is exerted on your landlubber ISP to shutdown
your connection? Move to another ISP? What happens when no one else will
give you bandwidth? A renegade server farm doesn't do any good if no router
will accept its traffic. 
Don't say it can't/won't happen. Unfortunately, it can and probably will. 
Ryan: We don't buy transit from ISPs. We only buy transit from tier 1 and 2
network providers, and arrange peering with as many as possible. 
We are relying on having a very high quality, very well run network, with a
large amount of desired content, as well as a top-notch well-known network
administration team, to encourage as many networks as possible to privately
peer with us at our major points of presence. 
I certainly agree that if no one will carry our traffic, we're in bad shape,
but luckily this is the Internet, and most of the people making those
decisions are still fundamentally pro-freedom and individual liberty, with a
techical background. We're going to be a very good internet citizen,
participating in a variety of infrastructure development programs with
pro-internet organizations, and peering with us is good for everyone. 
Many countries have third-country communications laws which would make it
unlawful for the government to exert pressure on ISPs to drop routes for
given customers in other countries. Additionally, the value of the internet
will fall dramatically if major governments get involved in censoring
traffic at that level; we've already seen examples of countries which try to
block all potentially offensive or subversive traffic at their borders; not
a lot of net startups moving there, eh? 



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