Re: Proof of Work - atmospheric carbon

2009-01-31 Thread Bill Stewart

At 10:40 AM 1/30/2009, Thomas Coppi wrote:

 Just out of curiosity, does anyone happen to know of any documented
examples of a botnet being used for something more interesting than
just sending spam or DDoS?


There are good botnets and bad botnets.
Good ones ask you if you want to join, bad ones don't.
Good ones are typically things like s...@home, fold...@home,
Great Internet Mersenne Prime Search,  DES crackers, etc.,
and if you've got something good to do, people will help.
People usually only set up the bad ones
if they want to do something bad - it may be interesting the
first time they do it, like a new flavor of DDOS,
but it's not usually doing the world any favors.


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Re: Proof of Work - atmospheric carbon

2009-01-31 Thread Russ Nelson
John Levine writes:
  http://www.taugh.com/epostage.pdf

I would also point out that nothing is preventing anyone from
implementing their own epostage.  Just send your email via a paypal
Send Money, accompanied with whatever postage you feel is appropriate.
No magic, no standards track epostage, no chicken-and-egg
implementation problem, not even any crypto needed.  Too boring to
actually use, I guess.

-- 
--my blog is athttp://blog.russnelson.com   | Delegislation is a slippery
Cloudmade supports http://openstreetmap.org/| slope to prosperity.
521 Pleasant Valley Rd. | +1 315-323-1241   | Fewer laws, more freedom.
Potsdam, NY 13676-3213  | Sheepdog  | (Not a GOP supporter).

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Re: Proof of Work - atmospheric carbon

2009-01-31 Thread Steven M. Bellovin
On Fri, 30 Jan 2009 11:40:12 -0700
Thomas Coppi thisnuke...@gmail.com wrote:

 On Wed, Jan 28, 2009 at 2:19 PM, John Levine jo...@iecc.com wrote:
  Indeed.  And don't forget that through the magic of botnets, the bad
  guys have vastly more compute power available than the good guys.
 
  Just out of curiosity, does anyone happen to know of any documented
 examples of a botnet being used for something more interesting than
 just sending spam or DDoS?

I asked Rob Thomas of Team Cymru this question (he and they study the
underground).  Here is his answer, posted with permission:


Botnets are routinely used as:

1. Proxies (IRC, HTTP  HTTPS)

2. To recover financial credentials, e.g. paypal, citibank, et al.
   This was the original purpose of the PSNIFF code in some of the early
bots.

Here's a code snippet from the now venerable
rBot_rxbot_041504-dcom-priv-OPTIX_MASTERPASSWORD dating back several
years:

[ ... ]

// Scaled down distributed network raw packet sniffer (ala Carnivore)
//
// When activated, watches for botnet login strings, and
// reports them when found.
//
// The bots NIC must be configured for promiscuous mode (recieve
// all). Chances are this already done, if not, you can enable it
// by passing the SIO_RCVALL* DWORD option with a value of 1, to
// disable promiscuous mode pass with value 0.
//
// This won't work on Win9x bots since SIO_RCVALL needs raw
// socket support which only WinNT+ has.

[ ... ]

PSWORDS pswords[]={
{:.login,BOTP},
{:,login,BOTP},
{:!login,BOTP},
[ ... ]
{paypal,HTTPP},
{PAYPAL,HTTPP},
{paypal.com,HTTPP},
{PAYPAL.COM,HTTPP},
{Set-Cookie:,HTTPP},
{NULL,0}
};

[ ... ]


3. Remember they're called boats now, so anything is possible.  Screen
captures are becoming increasingly popular.

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Re: Proof of Work - atmospheric carbon

2009-01-30 Thread John Levine
You know those crackpot ideas that keep showing up in snake oil crypto?
Well, e-postage is snake oil antispam.

While I think this statement may be true for POW coinage, because for a bot
net it grows on trees, for money that traces back to the international
monetary exchange system, it may not be completely true.

It's close enough to completely true.  Stealing postage via bots is
only one of multiple fatal problems.

I wrote this white paper in 2004; some of the details could stand a
little update but the conclusions are as clear as ever:

http://www.taugh.com/epostage.pdf

R's,
John

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Re: Proof of Work - atmospheric carbon

2009-01-30 Thread Thomas Coppi
On Wed, Jan 28, 2009 at 2:19 PM, John Levine jo...@iecc.com wrote:
 Indeed.  And don't forget that through the magic of botnets, the bad
 guys have vastly more compute power available than the good guys.

 Just out of curiosity, does anyone happen to know of any documented
examples of a botnet being used for something more interesting than
just sending spam or DDoS?

-- 
Thomas Coppi

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Re: Proof of Work - atmospheric carbon

2009-01-30 Thread John Levine
Richard Clayton and I claim that PoW doesn't work:
http://www.cl.cam.ac.uk/~rnc1/proofwork.pdf

I bumped into Cynthia Dwork, who originallyinvented PoW, at a CEAS
meeting a couple of years ago, and she said she doesn't think it
works, either.

R's,
John

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Re: Proof of Work - atmospheric carbon

2009-01-29 Thread Bill Frantz
jo...@iecc.com (John Levine) on Wednesday, January 28, 2009 wrote:

You know those crackpot ideas that keep showing up in snake oil crypto?
Well, e-postage is snake oil antispam.

While I think this statement may be true for POW coinage, because for a bot
net it grows on trees, for money that traces back to the international
monetary exchange system, it may not be completely true.

Snail mail postage limits, but does not eliminate junk mail. I think,
without proof, that most people can live with the amount of junk mail they
receive. At least I don' hear a lot of conversations about the Junk mail
problem.

Now it is certainly true that if machines have a small amount of money
stored within them for postage, someone who 0wns that machine could steal
some of that money. There is a limit to the amount that can be stolen based
on the person who pays for the machine noticing and being bothered. There
is probably safe profit in skimming small amounts from large number of
machines just like there was profit in skimming the round off in payroll
calculations.

Cheers - Bill

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(408)356-8506  | using a perimeter defense is a | 16345 Englewood Ave
www.pwpconsult.com | perimeter. | Los Gatos, CA 95032

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Re: Proof of Work - atmospheric carbon

2009-01-29 Thread Nicolas Williams
On Wed, Jan 28, 2009 at 04:35:50PM -0500, Jerry Leichter wrote:
 [Proposals to use reversible computation, which in principle consume  
 no energy, elided.]
 
 There's a contradiction here between the computer science and economic
 parts of the problem being discussed.  What gives a digital coin value
 is exactly that there is some real-world expense in creating it.

For some definition of digital coin.

An alternative design where all coins are double-spend checked against
on-line infrastructure belonging to the issuer don't have this
constraint.  Though they have different properties.  For example,
anonymity might then depend on trusting mixmaster-type networks to
exchange coins the issuer knows you have for coins that the issuer
doesn't know you have, but that might make anonymity entirely
impractical.  But then, how practical are POW coins anyways?

I suspect most people in the formal sectors of most economies would
gladly live with digital credit/bank cards most of the time and to heck
with digital coins.

 So, how do you tie the cost of a token to power?  Curiously, something  
 of the sort has already been proposed.  It's been pointed out - I'm  
 afraid I don't have the reference - that CPU's keep getting faster and  
 more parallel and a high rate, but memories, while they are getting  
 enormously bigger, aren't getting much faster.  So what the paper I  
 read proposed is hash functions that are expensive, not in CPU  
 seconds, but in memory reads and writes.  Memory writes are inherently  
 non-reversible so inherently cost power; a high-memory-write algorithm  
 is also one that uses power.

Clever!

Nico
-- 

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Re: Proof of Work - atmospheric carbon

2009-01-28 Thread Hal Finney
John Gilmore writes:
 The last thing we need is to deploy a system designed to burn all
 available cycles, consuming electricity and generating carbon dioxide,
 all over the Internet, in order to produce small amounts of bitbux to
 get emails or spams through.

It's interesting to consider the ultimate technological resolution to this
issue. Will a global-scale proof-of-work based system inherently consume
substantial amounts of energy? Or are there ways of doing computing
which would allow such a system to use only moderate energy consumption?

This question relates to the thermodynamics of computation. It has
long been known that logically reversible transformations can be done
with arbitrarily low energy dissipation. Hence attention is focused on
irreversible transformations, particularly those that require bit erasure.
Erasing a bit dissipates approximately energy of approximately kT where
k is Boltzmann's constant and T is temperature.

The question is whether a POW system inherently involves a great deal
of irreversible logical transitions, causing bit erasure and dissipating
energy? Or could a POW token be created using solely reversible logic?

One note is that any algorithm can in principle be made reversible except
for the size of the output: compute it using reversible logic, possibly
creating many excess bits which will allow the reversal, until we get
the answer; then make a copy of the output; then reverse the calculation,
consuming all the excess bits until we get back to the original value. The
only irreversible step was saving the output. However this is impractical
for large calculations like we are talking about, because the number of
excess bits would dwarf the size of the calculation.

The hash collisions used in systems like Bitcoin or Hashcash (technically
not collisions, rather searches for pre-images of hash values with many
leading zero bits) seem inherently irreversible. The algorithm typically
sets up a pre-image that includes a counter value, computes the hash,
increments the counter and repeats until a hash is found with the desired
properties. The hash function itself typically uses many intrinsically
irreversible transitions, since logical irreversibility is a defining
requirement of a hash function. Even if we use the trick in the preceding
paragraph to eliminate the cost of the intermediate steps in computing
the hash, we would still need to erase the output result each iteration,
dissipating energy. Typical POW systems in use today require millions
to billions of iterations, and this would be likely to increase in the
future, so the dissipation could be substantial.

Replacing the hash with a logically invertible function might help to
reduce the number of intermediate bits, and eliminate the need to use
the run-backwards trick. One would require that both the pre-image and
the post-image contain a number of bits in fixed positions. However this
would still seem to require the same kind of search algorithm, causing
dissipation as each intermediate result is erased.

Perhaps a variation on this idea would work, if the logically invertible
function was itself very slow, perhaps paramaterized to have a huge number
of rounds. Then only a relatively small number of iterations would be
needed before a lucky result is found, for a given level of POW effort.
This would reduce dissipation. However it would slow down verification,
and since verification of the POW will be done far more often than
creation, we can't afford to tip things too far in that direction.

Another idea I had was to use a deterministic POW rather than a random
one like hash collision. Cryptographic work on timed commitments and
related topics has shown that repeated squarings modulo an unknown RSA
modulus allow for a relatively concise and quickly verifiable proofs that
some very large number of squarings had taken place, with no shortcuts
possible for the creation of the resulting certification. Broadly
speaking, modular squaring is logically reversible, in that one could
theoretically compute the square root. But in practice, as with the
hash computation, computing a modular square using logically reversible
operations will produce a large number of excess bits. Even if the excess
from a single squaring could be consumed using the trick mentioned
above, one would still be forced to erase the temporarily result of
each individual squaring operation, as the POW would require a very
large number of squarings.  So the overall dissipation would appear to
be similar to the hash computation.

(Also, it's not clear that a deterministic POW works well for an
application like Bitcoin; it might let the owner of the fastest computer
win every POW race, giving him too much power.)

So the question from John's challenge remains open: is there a POW
system which could be built solely on logically reversible computation?
The computation has to be intrinsically time consuming, but with a short
and quickly verifiable 

Re: Proof of Work - atmospheric carbon

2009-01-28 Thread John Levine
(Also, it's not clear that a deterministic POW works well for an
application like Bitcoin; it might let the owner of the fastest computer
win every POW race, giving him too much power.)

Indeed.  And don't forget that through the magic of botnets, the bad
guys have vastly more compute power available than the good guys.

You know those crackpot ideas that keep showing up in snake oil crypto?
Well, e-postage is snake oil antispam.

R's,
John
 

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Re: Proof of Work - atmospheric carbon

2009-01-28 Thread Jerry Leichter

On Jan 27, 2009, at 2:35 PM, Hal Finney wrote:


John Gilmore writes:

The last thing we need is to deploy a system designed to burn all
available cycles, consuming electricity and generating carbon  
dioxide,

all over the Internet, in order to produce small amounts of bitbux to
get emails or spams through.


It's interesting to consider the ultimate technological resolution  
to this
issue. Will a global-scale proof-of-work based system inherently  
consume

substantial amounts of energy? Or are there ways of doing computing
which would allow such a system to use only moderate energy  
consumption? ...
[Proposals to use reversible computation, which in principle consume  
no energy, elided.]


There's a contradiction here between the computer science and economic  
parts of the problem
being discussed.  What gives a digital coin value is exactly that  
there is some real-world expense in creating it.  We talk about proof  
of work, but in fact work done by a computer doesn't, in and of  
itself, have any value.  It gets a value only when it's a limited  
resource *which might have been used for something else* - i.e., the  
value of the spare cycles that might be thrown at doing the  
computations comes from the opportunity cost incurred.  If this were  
not so, anyone could just create as many as they wanted at no cost to  
themselves.  In fact, this is behind the cost model 'bot herders using  
other people's machines.  But ultimately that only works for the 'bot  
herders because there is no significant loss to the owners of those  
machines either!


Now, if instead we used algorithms not based on some abstraction  
notion of work, but on the equivalent power that had to be  
dissipated to do the computation, then the value of a digital token  
would truly be grounded in the real world.  Spare cycles would no  
longer be free - they would show up on your power bill.  Sure, the  
'bot herders wouldn't have to pay - but if the owners of the pwned  
machines saw a real cost, they would have an incentive to do something  
about it (which they basically don't, today).


Eliminating the power cost puts you back to amortizing the fixed cost  
of the CPU and memory doing the computation - a cost that's dropping  
all the time.  I don't see how you get to an economically viable  
mechanism that way.


So, how do you tie the cost of a token to power?  Curiously, something  
of the sort has already been proposed.  It's been pointed out - I'm  
afraid I don't have the reference - that CPU's keep getting faster and  
more parallel and a high rate, but memories, while they are getting  
enormously bigger, aren't getting much faster.  So what the paper I  
read proposed is hash functions that are expensive, not in CPU  
seconds, but in memory reads and writes.  Memory writes are inherently  
non-reversible so inherently cost power; a high-memory-write algorithm  
is also one that uses power.


(BTW, a number of years back, a VC friend ran by me a proposal to buy  
the spare cycles on people's set-top boxes - which have pretty hefty  
chips in them - and rent out the resulting distributed compute  
server.  The claim was that you didn't have to pay people much of  
anything for use of their boxes - you'd only do it when they were  
otherwise unoccupied, so they should be happy to get even very small  
payments.  I pointed out the cost they had neglected:  Increased power  
use.  Sure, individuals probably wouldn't notice - but at some point  
some consumer organization would.  The resulting bad publicity would  
kill the business.  We did a bit of calculation to add that in to what  
would be paid to the box owners and the whole enterprise started  
looking less interesting from a purely economic point of view - not  
that it didn't have plenty of other problems.)


-- Jerry

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Re: Proof of Work - atmospheric carbon

2009-01-27 Thread Zooko O'Whielacronx
On Jan 26, 2009, at 13:08 PM, John Levine wrote:

 If only.  People have been saying for at least a decade that all we
 have to do to solve the spam problem is to charge a small fee for
 every message sent.

I was one of those people, a decade and a half ago, on the cypherpunks
mailing list.  In fact, as I recall I once discussed with John Gilmore
after a Bay Area Cypherpunks Physical Meeting whether he would pay me to
implement some sort of solution to spam, but we didn't agree on a
strategy.

 Unfortunately, there's a variety of reasons that's never going to work.

Hey, the future is long.  (We hope.)

 One of the larger reasons is that despite a lot of smart people
 working on micropayments, we have nothing approaching a system that
 will work for billions of tranactions per day, where 90% of the
 purported payments are bogus, along with the lack of any interface to
 the real world financial system that would scale and withstand the
 predictable attacks.

Coincidentally, I just blogged today about how we are much closer to
this now than we were then, even though none of the smart people that
you were probably thinking of are involved in the new deployments:

http://testgrid.allmydata.org:3567/uri/URI:DIR2-RO:j74uhg25nwdpjpacl6rkat2yhm:kav7ijeft5h7r7rxdp5bgtlt3viv32yabqajkrdykozia5544jqa/wiki.html#%5B%5BDecentralized%20Money%5D%5D

WoW-gold, for example, appears to have at least millions of transactions
a day.  Does anyone have more detail about the scale and scope of these
currencies?

 My white paper could use a little updating, but the basic conclusions
 remain sound:

 http://www.taugh.com/epostage.pdf

Thanks!  I'll read this.

Regards,

Zooko

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Re: Proof of Work - atmospheric carbon

2009-01-26 Thread John Gilmore
  If POW tokens do become useful, and especially if they become money,
  machines will no longer sit idle. Users will expect their computers to
  be earning them money (assuming the reward is greater than the cost to
  operate).

Computers are already designed to consume much less electricity when
idle than when running full tilt.  This trend will continue and
extend; some modern chips throttle down to zero MHz and virtually zero
watts at idle, waking automatically at the next interrupt.

The last thing we need is to deploy a system designed to burn all
available cycles, consuming electricity and generating carbon dioxide,
all over the Internet, in order to produce small amounts of bitbux to
get emails or spams through.

Can't we just convert actual money in a bank account into bitbux --
cheaply and without a carbon tax?  Please?

John

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Re: Proof of Work - atmospheric carbon

2009-01-26 Thread John Levine
Can't we just convert actual money in a bank account into bitbux --
cheaply and without a carbon tax?  Please?

If only.  People have been saying for at least a decade that all we
have to do to solve the spam problem is to charge a small fee for
every message sent.  Unfortunately, there's a variety of reasons
that's never going to work.  One of the larger reasons is that despite
a lot of smart people working on micropayments, we have nothing
approaching a system that will work for billions of tranactions per
day, where 90% of the purported payments are bogus, along with the
lack of any interface to the real world financial system that would
scale and withstand the predictable attacks.

My white paper could use a little updating, but the basic conclusions
remain sound:

http://www.taugh.com/epostage.pdf

R's,
John

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