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Cryptoanarchy - 20 years since Crypto Anarchist Manifesto

Onion routing, TOR, I2P, Hidden Web Services, Anonymous snail-mail, fingerprint anonymization, digital currencies and possible security problems.
by Pavol Luptak on 26 August 2012

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Transcript of Cryptoanarchy - 20 years since Crypto Anarchist Manifesto

Noteworthy cypherpunks
John Gilmore: — Sun Microsystems' fifth employee, one of the founders of the Cypherpunks as well as the Electronic Frontier Foundation, project leader for FreeS/WAN
Julian Assang — WikiLeaks founder, deniable cryptography inventor, journalist, co-author of Underground
Philip Zimmermann — original creator of PGP v1.0 (1991), co-founder of PGP Inc (1996)
Bruce Schneier — well-known security author, founder of Counterpane
Jim Bell — author of the Assassination Politics paper
Eric Blossom — designer of the Starium cryptographically-secured mobile phone, founder of the GNU Radio project.
Jon Callas — technical lead on OpenPGP specification and Chief Technical Officer of PGP Corporation
Bram Cohen — creator of BitTorrent
Mike Godwin — Electronic Frontier Foundation lawyer
Ian Goldberg — professor at University of Waterloo, designer of the Off-the-record messaging protocol
Marc Horowitz — author of the first PGP key server
Tim Hudson — Co-author of SSLeay, the precursor to OpenSSL
Timothy C. May — former Chief Scientist at Intel, author of A Crypto Anarchist Manifesto[12] and the Cyphernomicom[13]
and much more... Anonymity networks CRYPTO-ANARCHISM The Crypto Anarchist Manifesto
Timothy C. May <tcmay@netcom.com>

A specter is haunting the modern world, the specter of crypto anarchy.

Computer technology is on the verge of providing the ability for individuals and groups to communicate and interact with each other in a totally anonymous manner. Two persons may exchange messages, conduct business, and negotiate electronic contracts without ever knowing the True Name, or legal identity, of the other. Interactions over networks will be untraceable, via extensive re- routing of encrypted packets and tamper-proof boxes which implement cryptographic protocols with nearly perfect assurance against any tampering. Reputations will be of central importance, far more important in dealings than even the credit ratings of today. These developments will alter completely the nature of government regulation, the ability to tax and control economic interactions, the ability to keep information secret, and will even alter the nature of trust and reputation.

The technology for this revolution--and it surely will be both a social and economic revolution--has existed in theory for the past decade. The methods are based upon public-key encryption, zero-knowledge interactive proof systems, and various software protocols for interaction, authentication, and verification. The focus has until now been on academic conferences in Europe and the U.S., conferences monitored closely by the National Security Agency. But only recently have computer networks and personal computers attained sufficient speed to make the ideas practically realizable. And the next ten years will bring enough additional speed to make the ideas economically feasible and essentially unstoppable. High-speed networks, ISDN, tamper-proof boxes, smart cards, satellites, Ku-band transmitters, multi-MIPS personal computers, and encryption chips now under development will be some of the enabling technologies.

The State will of course try to slow or halt the spread of this technology, citing national security concerns, use of the technology by drug dealers and tax evaders, and fears of societal disintegration. Many of these concerns will be valid; crypto anarchy will allow national secrets to be trade freely and will allow illicit and stolen materials to be traded. An anonymous computerized market will even make possible abhorrent markets for assassinations and extortion. Various criminal and foreign elements will be active users of CryptoNet. But this will not halt the spread of crypto anarchy.

Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions. Combined with emerging information markets, crypto anarchy will create a liquid market for any and all material which can be put into words and pictures. And just as a seemingly minor invention like barbed wire made possible the fencing-off of vast ranches and farms, thus altering forever the concepts of land and property rights in the frontier West, so too will the seemingly minor discovery out of an arcane branch of mathematics come to be the wire clippers which dismantle the barbed wire around intellectual property.

Arise, you have nothing to lose but your barbed wire fences!

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..........................................................................
Timothy C. May | Crypto Anarchy: encryption, digital money,
tcmay@netcom.com | anonymous networks, digital pseudonyms, zero
408-688-5409 | knowledge, reputations, information markets,
W.A.S.T.E.: Aptos, CA | black markets, collapse of governments.
Higher Power: 2^756839 | PGP Public Key: by arrangement. Citizens in the United Kingdom must, upon request, give passwords for decryption of personal systems to authorities. Failing to do this can result in imprisonment for up to two years, without evidence of other criminal activity Crypto-anarchists consider the development and use of cryptography to be the main defense against censorship, telecommunications data retention, the warrantless surveillance for (not only Internet) freedom of expression

Without the ability to encrypt messages, personal information and private life would be seriously damaged

The encrypted anonymous networks (the "cipherspace") can be regarded as an independent lawless territory or as an autonomous zone

Relies heavily on plausible deniability to avoid censorship It should be impossible to know the actual identity of anyone in cipherspace. Therefore, it would be impossible to impose any censorship and to enforce any law. Because of that, they assert that concepts like copyright would be unenforceable inside cipherspace Plausible deniability is a legal concept. It refers to lack of evidence proving an allegation.
If your opponent lacks incontrovertible proof (evidence) of their allegation, you can "plausibly deny" the allegation even though it may be true. Implementation of Onion Routing
Volunteers operate an overlay network of onion routers that employ encryption in a multi-layered manner (hence the onion routing metaphor) to ensure perfect forward secrecy between routers
That anonymity extends to the operation of censorship-resistant servers via Tor's anonymous hidden service feature Tor hidden web services Hidden services are accessed through Tor-specific .onion pseudo top-level domain (TLD), or pseudomain (e.g. tor2web proxy)
Can be used to avoid censorships, for publishing sensitive materia, whistleblowing and of course promoting and selling illegal products and service Brute force attack can be mounted by a global passive or active adversary, watching all the messages pass between all of the nodes and attempting to correlate which message follows which path
If they can send 5GB to an I2P destination and monitor everyone's network connection, they can eliminate all peers who did not receive 5GB of data
It's difficult to perform, but possible for example by an observer at a large ISP or an Internet exchange point Intersection attacks against low latency systems are extremely powerful - periodically make contact with the target and keep track of what peers are on the network
Over time, as node churn occurs the attacker will gain significant information about the target by simply intersecting the sets of peers that are online when a message successfully goes through
if an attacker is at both ends of your tunnel and the network is sufficiently small at the same time, he may be successful Greedy user attack: This is simply people trying to consume significantly more resources than they are willing to contribute
Starvation attack: A hostile user may attempt to harm the network by creating a significant number of peers in the network who are not identified as being under control of the same entity (as with Sybil). These nodes then decide not to provide any resources to the network, causing existing peers to search through a larger network database or request more tunnels than should be necessary
Flooding attack: A hostile user may attempt to flood the network, a peer, a destination, or a tunnel
CPU load attack: There are currently some methods for people to remotely request that a peer perform some cryptographically expensive operation, and a hostile attacker could use these to flood that peer with a large number of them in an attempt to overload the CPU
Floodfill DOS attack: A hostile user may attempt to harm the network by becoming a floodfill router. The current defenses against unreliable, intermittent, or malicious floodfill routers are poor. my Personal Disclaimer The goal of this presentation is to describe positives as well as negatives of the CRYPTOANARCHY system
I am a voluntaryist and follow the non-coercion principle
I suspect that CRYPTOANARCHY may be (in the near future) THE ONLY WAY how to preserve our human rights - FREEDOM and ANONYMITY
If it becomes true, we need to COMPLETELY REDESIGN our society in a more liberal way The types of material censored
varied depending on country, e.g.:
Human Rights (blocked in China)
Religion (blocked in Saudi Arabia, UAE, Iran, Bahrain)
Pornography (blocked in SaudiArabia, UAE, Iran, Bahrain, Singapore, Burma, . . . )

When a country’s government controls international connectivity, they can block requests for banned websites TOR Network Topology 7 Hardcoded "trusted" authoritative directory servers are used for obtaining random TOR nodes
3 TOR nodes (entry node, middle node, exit node) run by volunteers are used for the encrypted channel
If the directory servers are blocked, it is possible to use TOR bridges Summary Anonymous networks can be used for downloading any kind of content including illegal or copyrighted one, in the future it will be MUCH MORE DIFFICULT (or ALMOST IMPOSSIBLE) to detect these "ILLEGAL" ACTIVITIES
Forcing copyrights does not work, we need to analyze and use new models of SUSTAINABILITY in the digital era
New taxation models (how to pay taxes) should be proposed and deployed
REPUTATION instead of true identity becomes much more important
All governments will have a "hard time" - massively used END-TO-END ENCRYPTED COMMUNICATION WITHOUT INTERCEPTING CAPABILITIES should be accepted

Will we live in the future in a liberal world or dictatorship? Thank you a lot for your attendance and changing your mind :-) The Directive requires Member States to ensure that communications providers must retain, for a period of between 6 months and 2 years, necessary data as specified in the Directive
to trace and identify the source of a communication;
to trace and identify the destination of a communication;
to identify the date, time and duration of a communication;
to identify the type of communication;
to identify the communication device;
to identify the location of mobile communication equipment. Do you think the government should have a right to put a camera in every room or place where people communicate? If not.... Why do you think it should have the right to gather and intercept the online or mobile communication of all innocent people?
(Yes, terrorists and criminals use end-to-end secure calls and PGP). And the current state: Anonymous cryptocurrency Bitcoin becomes the fastest growing currency in the world - completely out of control of the existing governments or banks, although all transactions are public, there is no relation to the Bitcoin owners in the real world
GLBSE - Global Bitcoin Stock Exchange
Legal and illegal anonymous free markets use TOR hidden web services / I2P with almost no possibility to track them (e.g. Silk Road)
Strong reputation systems are emerging (e.g. Bitcoin OTC)
Trustfulness escrow services that provide "trust connection" between untrusted anonymous entities (e.g. SilkRoad, ClearCoin) Cryptoanarchy facts NO, you DO NOT choose it - cryptoanarchy exists and will exist regardless whether you like it or not
It is extremely difficult to ban the cryptoanarchy system without banning strong encryption, the other drastic option is to perform 1984-like random "searches" by the police or secret agencies
Tax laws or copyrights cannot be forced, any content can be anonymously shared
Any repression in the society (e.g. "War on Drugs", content restrictions, etc.) supports the cryptonarchy system
Liberalization and legalization may weaken its influence Unlimited freedom
no censorship at all Free and secure communication and Internet access from all dictatorship countries (China, Arabic world, ..)
Bypassing all kinds of censorship (e.g. IWF used by all Slovak mobile operators)
Bypassing EU data retention law that monitor all innocent people End-to-end encrypted communication without possibility of an interception Currently the government makes impossible providing of the end-to-end encrypted telecommunication services (there should be always a "backdoor" for secret agencies)
This can be easily bypassed by SIP/TLS+ZRTP in case of voice calls and PGP/SMIME in case of email/instant communication
Sophisticated criminals and terrorists have already used encrypted technologies - it is easy to configure it Cryptocurrency Bitcoin Anonymous peer-to-peer distributed and decentralized currency with almost no possibility to shutdown
Probably the only way how you can make any business completely anonymously
Bitcoin deanonymization attacks can be prevented by many Bitcoin laundries
BTC exchanges (connection with reality) is probably the weakest point in the Bitcoin system
There are many way how to buy/sell Bicoins anonymously Libertarian's dream - Completely free and unregulated markets becomes true Tax evasion Due to the anonymous character of buyers and sellers, it is impossible to enforce paying taxes
We should expect massive tax evasion in the near future
New alternative ways of tax systems - Head Tax, Poll Tax, Geolibertarianism Child pornography Very sensitive topic, unfortunately people do not think rationally in this case
Often used as an excuse for deployment of Internet censorship (IWF)
Freenet, TOR hidden web services can be used for anonymous distribution of child pornography with almost no tracking possible
Should we criminalize people for a posession of any sensitive content if they do not directly support child abuse? In case they do not pay for it and do not distribute it?
Australian case of "little breasts", rendering childporn in Japan, 0-day worm that compromise hundreds thousands of people by childporn Possibility of anonymous collaborative murders Jim Bell published Assasination Politics in 1992
Cryptoanarchy allows anonymous collaborative murders - asymmetric cryptography and cryptocurrency can be used for gathering anonymous money for anonymous killer's reward
Cryptoanarchists believe that authoritative governments caused in the past much more people's deaths than anarchy would cause (e.g. in the World wars) Reputation systems Escrow services Defines trustworthiness of anonymous entities in the cryptoanarchy system
Gaining a good reputation should be difficult and long-term process
Reputation spoofing should be complicated
PGP trust value, Bitcoin OTC Trusted 3rd-party organization that mediates the bussiness between two anonymous parties
Can be completely anonymous (e.g. Silk Road escrow service)
Buyer makes an order, sends money to the trusted escrow service, the escrow service just sends a notification to the seller, the seller sends the product or provides service, when the buyer receives products, he sends a notification to the escrow service to unblock and sends money to the seller
Nobody is motivated to make a fraud
ClearCoin Impossibility to enforce copyrights Due to the anonymity it is impossible to enforce copyrights
It is almost impossible to remove any content that is illegal or violate copyrights
It is impossible to enforce paying any copyright fees
FCForum's Sustainable Models for Creativity in the digital age may be a suitable solution Thank you....

......for changing you mind References Timothy C.May: Cryptoanarchist Manifesto
Peter Ludlow: Crypto Anarchy, Cyberstates, Pirate Utopias
http://agorism.info/_media/a-lodging-of-wayfaring-men.pdf
A Free Market Odyssey - The Adventures of Jonathan Gullible
http://www.cypherpunks.to/faq/cyphernomicron/
http://www.bitcoin.org
http://www.torproject.org
http://www.i2p.de
http://www.freenetproject.org John Gilmore: — Sun Microsystems' fifth employee, one of the founders of the Cypherpunks as well as the Electronic Frontier Foundation, project leader for FreeS/WAN
Timothy C. May — former Chief Scientist at Intel, author of A Crypto Anarchist Manifesto and the Cyphernomicom
Eric Hughes: — Founding member of Cypherpunks, author of A Cypherpunk's Manifesto
Julian Assange — WikiLeaks founder, deniable cryptography inventor, journalist, co-author of Underground
Philip Zimmermann — original creator of PGP v1.0 (1991), co-founder of PGP Inc (1996)
Bruce Schneier — well-known security author, founder of Counterpane
Jim Bell — author of the Assassination Politics paper
Eric Blossom — designer of the Starium cryptographically-secured mobile phone, founder of the GNU Radio project.
Jon Callas — technical lead on OpenPGP specification and Chief Technical Officer of PGP Corporation
Bram Cohen — creator of BitTorrent
Mike Godwin — Electronic Frontier Foundation lawyer
Ian Goldberg — professor at University of Waterloo, designer of the Off-the-record messaging protocol
Marc Horowitz — author of the first PGP key server
Tim Hudson — Co-author of SSLeay, the precursor to OpenSSL

and much more... Fortunately, we have hidden containers/volumes based on steganography:
truecrypt
archicrypt
bestcrypt
drivecrypt
scramdisk Bitcoin legal status Till now Bitcoin is legal everywhere in the world
Federal Association of Digital Economy (BVDW) calls for ban of bitcoins
FBI, CIA and DEA are hunting (with no success) Silk Road sellers
European Comission Payments Committee asks for opinion on regulating Bitcoins
We started a legal analysis of using Bitcoins in Slovakia (can be Bitcoin used in an official "Barter Business"?)
See the full transcript