Tag Archives: bitcoin

Start up: the Gawker-Thiel fiasco in detail, Three to try adblock, how Genius screwed security, and more

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Hello! Your internet thermostat is happy to control your home temperature. Photo by claireonline on Flickr.

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A selection of 12 links for you. Aren’t they pretty? I’m charlesarthur on Twitter. Observations and links welcome.

Market watchers pessimistic about 2-in-1 market • Digitimes

Aaron Lee and Steve Shen:

»To maintain the sales momentum of the Surface Book, Microsoft plans to launch upgraded models of its Surface Pro family products with improved CPU performance in the third quarter of 2016, indicated the sources.

Asustek also plans to launch a Surface Book-like model soon to cash in on the prevailing trend for 2-in-1 products, revealed the sources, adding that Asustek will roll out the new model at a rate of 40,000 units a month.

However, since the 2-in-1 models mostly come with a display in 12- to 13-inch size, demand for such models are likely to be limited, and therefore the proliferation of new models is likely to bring a price war in the segment in the second half, commented the sources.

«

Could be crowded; the 2-in-1 market is definitely limited, but a price war will hurt them.
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Google wins Java copyright case against Oracle • WSJ

Jack Nicas:

»A federal jury here ruled that Google’s use of Oracle Corp.’s Java software didn’t violate copyright law, the latest twist in a six-year legal battle between the two Silicon Valley titans.

Oracle sued Google, a unit of Alphabet Inc., in 2010 for using parts of Java without permission in its Android smartphone software. A federal appeals court ruled in 2014 that Oracle could copyright the Java parts, but Google argued in a new trial this month that its use of Java was limited and covered by rules permitting “fair use” of copyright material.

A 10-person jury on Thursday agreed.

Google acknowledged using 11,000 lines of Java software code. But it said that amounted to less than 0.1% of the 15 million lines of code in its Android mobile-operating system, which runs most of the world’s smartphones.

«

Good. Let that be the end of it, please God. (But no, Oracle says it will appeal.)
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Apple’s secret AI technology: meet VocalIQ, the self-learning technology that is a part of Siri2 • Medium

Brian Roemmele:

»If Apple utilizes just a small subset of the technology developed by VocalIQ [a Cambridge UK startup it bought at the end of 2015], we will see a far more advanced Siri. However I am quite certain the amazing work of Tom Gruber [who worked on the original Siri; no relation to John Gruber] will also be utilized.

Additionally the amazing technology from Emollient, Perception and a number of unannounced and future Apple acquistions will also become a big part of Apple’s AI future. I wrote about how the Voice First, Voice Commerce and Voice Payments world will play out here. As I have asserted in my 1989 Voice Manifesto, there will not be advertising in Voice First devices, there will be Voice Commerce and Voice Payments. The push mechanisms of advertising give way to Intelligent Agents pulling ontologies.

Apple has entered into a new era. Steve Jobs saw this in the twlight of his life and made sure the company had a firm foothold into the future. This future will be lead by Viv, Alexa, Google Home, Facebook M and 100s of companies that no one has yet heard of toiling in garages around the world quite like Apple did in 1975.

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Peter Thiel’s dangerous campaign against Gawker • Fusion

Felix Salmon:

»[Peter Thiel] Thiel end up bankrolling the hugely expensive Hulk Hogan case against Gawker, along with an unknown number of others. And thus did the Hogan case become an attempt to bring a media organization to its knees, more than it was an attempt to deliver justice for Hulk Hogan himself.

Hogan could have accepted a substantial financial settlement; he could also have made it much more likely that he would get paid, by suing in such a manner as to make Gawker’s insurance company liable for any verdict. Instead, he refused all settlements, and withdrew the insurable complaints, to ensure that the company itself would incur as much damage as possible.

The next step, after the Hogan verdict, was for Thiel to go public. After the enormous damages were announced and the long appeals process creaked into action, it started to become obvious that Gawker would need to raise more capital in order to continue to be able to fight the case. (In the worst case scenario, it would need to put up a $50 million bond.) Gawker had already sold some new stock in January; there was talk of doing the same thing again. With cash, Gawker could fight the Hogan verdict, get it reduced or even thrown out entirely, and carry on as a going concern.

But then the Thiel bombshell dropped. The Hogan case, it turned out, wasn’t a war in which Gawker could emerge victorious; instead, it was merely a battle in a much larger fight against an opponent with effectively unlimited resources.

«

Rich rightwingers outspokenly or through subterfuge funding attacks against publications isn’t new; Robert Maxwell (as greedy a capitalist as ever there was) and Jimmy Goldsmith come immediately to mind. Clearly it’s the expectation that because someone is a tech-head they will be progressive that is the wrong one.

Salmon, by the way, thinks that Thiel outed himself to Forbes as the source of funding for Hogan.
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Conservative Facebook investor Peter Thiel funded anti-ACORN videographer • Village Voice

Steven Thrasher:

»[James] O’Keefe is now well known as the young man who dressed up as a pimp with a colleague, Townhall.com blogger Hannah Giles, who was dressed like a prostitute. The pair traveled around the country, seeking advice from ACORN [Association of Community Organisations for Reform Now] workers about how to hide prostitution money for tax purposes. At five of the offices they visited, ACORN workers gave such advice while O’Keefe’s hidden camera was rolling. The videos have cost ACORN the support of Congress, the U.S. Census and the White House, and the organization stands to lose tens of millions of dollars in government grants.

O’Keefe, meanwhile, has repeatedly claimed to be financially independent. In an interview with the New York Post shortly after the ACORN videos hit the Internet, O’Keefe claimed to be “absolutely independent.” Giles said she had “drained my entire savings” to spend the summer making the undercover videos. O’Keefe estimated his budget at $1,300, and said that Giles had paid for her own plane ticket to California. The couple said they lived off of Power Bars and Subway sandwiches for two months.

But O’Keefe turns out to have a substantial history of being funded by conservative figures.

«

Thiel kicked in with funding of somewhere between $10,000 and $30,000, which isn’t a lot on its own, but sure helps. ACORN is defunct as of November 2010, but used to “advocate for low- and moderate-income families by working on neighbourhood safety, voter registration, health care, affordable housing, and other social issues”.
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Gawker founder looking to sell after losing Hogan judgment • New York Post

Claire Atkinson:

»Gawker Media founder Nick Denton has begun quietly soliciting bids for the sale of his company, The Post has learned.

Denton hired Houlihan Lokey media banker Mark Patricof to advise him on the valuation of the cash-hungry company in the event that he needs to sell it to pay damages to Hulk Hogan, who was awarded $140m by a Florida jury after Gawker posted a sex video of the wrestling legend, sources said.

At least one unnamed party has already expressed interest with a deal valued at between $50m and $70m, sources said.

Denton owns a 68% stake in Gawker after bringing in his first outside investor earlier this year. He sold a minority stake for $100m to technology firm Columbus Nova Technology Partners, injecting some much-needed cash as the company fought the Hogan suit.

The value of the business was pegged at $250m around the time of that deal, but that number has since sunk, sources said.

«

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Mt. Gox creditors seek trillions where there are only millions • The New York Times

Nathaniel Popper:

»$2,411,412,137,427.

That figure — $2.4 trillion for those with an untrained eye for very large numbers — is in the same ballpark as the annual economic output of France.

It is also exactly the amount that people around the world claim they lost when Mt. Gox, the Tokyo-based virtual currency exchange, collapsed into bankruptcy in 2014, after huge, unexplained losses of the volatile digital currency Bitcoin.

As with most of the people who lost money with Bernard L. Madoff, the investment manager who was convicted of running a Ponzi scheme, most of those who put their Bitcoin in Mt. Gox will be disappointed: The Japanese trustee overseeing the case said on Wednesday that only $91 million in assets has been tracked down to distribute to claimants — a small portion of the more than $500 million in assets that Mt. Gox claimed it had in the weeks before it went bankrupt in February 2014, and a tiny portion of the amount that claimants have requested.

«

Though as the story notes, the value of BTC currently extant is about $7bn, or 0.3% of $2.4trn. BTC hasn’t fallen that far. So there are lots of fake claims.
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My internet-connected home gadget hell • NY Mag

The wonderful “Internet of shit” account holder on her/his experience:

»At first, I found myself obsessing over the app and my newfound insights into the home. I would check the temperature multiple times a day, as if I needed to know how warm it was inside. As with all home gadgets, my interest eventually waned as it did its job. Eventually, I forgot about the thermostat — until its “smart” features started failing gradually. One time I arrived home to a bitterly cold house, about 10°C (50°F), wondering what had gone wrong — it turned out the internet had gone down while I was away, so the thermostat hadn’t bothered to do anything.

This would eventually become a recurring theme with my thermostat. In the middle of winter it began disconnecting, frequently overnight — even when there was a solid internet connection — and didn’t have a backup mode. I’d wake up seeing my own breath, then spend hours rebooting the thermostat, boiler, and router to get it working again. The only way to control the gadget is via the app, so when it breaks you’re really screwed.

«

I have a Hive (controls heating and hot water via an app or web, remotely or there). The hot water stopped working. Must be a problem with the Hive, right? Spent ages on the phone with British Gas rebooting, checking connections, all that stuff.

Outcome: it was a problem with a valve in the hot water system. Nothing to do with Hive. It had simply added an extra layer of debugging to the system. (Via Charles Knight.)
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Can BuzzFeed News survive the shift to video? • CNN

Dylan Byers:

»BuzzFeed is increasingly staking its future on video, where entertainment is top priority. At the beginning of 2015, video accounted for 15% of the company’s revenues. Today, it’s approaching 50%, according to a company spokesperson. Peretti even moved to Los Angeles last year — for personal reasons, he said, but also because BuzzFeed’s L.A.-based video division was the “fastest growing team” at the company.

Taken together, the reduced revenue projections and the shift to video signal a shift in the balance of power that favors entertainment over journalism. Many industry observers and some staff believe that BuzzFeed will eventually curtail or even jettison its news division in order to focus on more profitable revenue streams.

“The halo that BuzzFeed got from ‘News’, they don’t need it any more,” said one media executive who is familiar with BuzzFeed’s plans. “Entertainment, video, production — that’s where the money is, that’s where they can get growth.”

BuzzFeed News is in “retrenchment,” one senior member of the BuzzFeed editorial staff said. “The growth mode has stopped.”

«

So Buzzfeed can survive the shift fine – it’s whether, or to what extent, the news side can that’s in question. (Related: CNN has autoplay video. Beware.)
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Three network to run 24-hour adblocking trial • The Guardian

Jasper Jackson:

»Mobile provider Three is to run a 24-hour adblocking trial in the UK in the first step towards removing ads for all its customers.

The company is planning to contact customers and ask them to sign up for the trial, which will take place in mid June.

Three claims it wants to introduce adblocking to improve customer privacy, reduce data costs and provide a better experience accessing the web on phones. The company said advertisers should pay for the data costs associated with ads, but that it isn’t trying to get ads removed completely.

Three UK chief marketing officer Tom Malleschitz said: “This is the next step in our journey to make mobile ads better for our customers. The current ad model is broken. It frustrates customers, eats up their data allowance and can jeopardise their privacy. Something needs to change.”

“We can only achieve change by working with all stakeholders in the advertising industry – customers, advertising networks and publishers – to create a new form of advertising that is better for all parties.”

Despite Three’s insistence it wants to work with the companies that are showing its customers ads, many publishers will view the move as an all-out attack on their businesses.

«

This could get ugly.
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Could there be a fifth fundamental force of nature? • Popular Science

Ryan Mandelbaum:

»The Hungarian group found their new force while looking for a “dark photon,” light that only impacts dark matter. They hit a strip of lithium with protons, the lithium sucked up the protons to become an unstable version of beryllium, which threw up pairs of electrons and positrons, the electron’s antiparticle partner. When the protons hit the lithium at a certain angle, 140 degrees, out came way more electrons and positrons than the Hungarians were expecting. They think all that excess stuff could be from a new particle 34 times heavier than the electron, and a hint that maybe there’s a new force lurking somewhere.

Nature reports that other physicists seem skeptical, but are excited about the new force. Still, researchers at the Thomas Jefferson National Accelerator Facility in Newport News, Virginia, CERN, and other labs are trying to see if they can recreate the Hungarian team’s results in their own experiments.

«

Just noting this in case posterity finds a use for it.
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How Genius annotations undermined web security • The Verge

Vining Assar:

»The primary way Genius annotations are accessed on the web is by adding “genius.it” in front of any URL as a prefix. The genius.it server reads the original content behind the scenes, adds the annotations, and delivers the hybrid content. The Genius version of the page includes a few extra scripts and highlighted passages, but until recently it also eliminated the original page’s Content Security Policy. The Content Security Policy is an optional set of instructions encoded in the header of the HTTP connection which tells browsers exactly which sites and servers should be considered safe — any code which isn’t from one of those sites can then be ignored.

Content Security Policies were first introduced in 2012 and are not yet in widespread use, since they can interfere with scripts used for advertising and social-network functionality, and thus tend to be implemented only by sites with high security standards. Still, the sites that do supply Content Security Policies include PayPal, BuzzFeed, Facebook, Twitter, Airbnb, Pinterest, CNN, and IMDb, among others. Since the web-annotator product is designed to work as a substitute for any webpage on the internet, Genius presented a substantial new attack surface, theoretically usable by any malicious hacker who could lure their victims into clicking on a Genius redirect…

…I began to realize that the entire service is built on top of a unique approach to overriding the standard security practices of the web.

«

“Let’s annotate the web!” has been the war cry of various people down the years (including, briefly, Microsoft). It never turns out to be a good idea.
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Errata, corrigenda and ai no corrida: none notified.

Start up: Schrödinger’s Satoshi, the trouble with VC funding, stalking with Waze, dentists get malware, and more

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Would you put yourself in front of a rifle underwater?

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A selection of 10 links for you. Proceed in a westerly direction. I’m charlesarthur on Twitter. Observations and links welcome.

Craig Wright’s New Evidence That He Is Satoshi Nakamoto Is Worthless | Motherboard

Jordan PEarson and Lorenzo Francheschi-Bucchierai:

»While that [blogpost signature] looks legit, according to experts, the evidence Wright provided seems to actually be worthless. As it turns out, Wright simply reused an old signature from a bitcoin transaction performed in 2009 by Satoshi.

Dan Kaminsky, a well-known security researcher, wrote in a post debunking Wright’s alleged evidence that the whole thing is a scam. “Satoshi signed a transaction in 2009. Wright copied that specific signature and tried to pass it off as new,” he added on Twitter. “He’s lying. Full stop.”

Longtime bitcoin developers also pointed out that this signature could have been copied from a public source, and does not prove that Wright controls the associated addresses.

“It would be like if I was trying to prove that I was George Washington and to do that provided a photocopy of the constitution and said, look, I have George Washington’s signature,” Bitcoin developer Peter Todd said.

Todd added that someone contacted him by email two weeks ago, claiming to be Satoshi, and using the same signature trick as proof. He says he ignored the email.

«

In the space of a few hours this story went from “Bitcoin inventor found!” to “HOAAAAXX!”, leaving a lot of very puzzled citizens in the middle. The point about the “ignored email” could be key: if Wright, or someone, has been hawking this around, something is fishy.
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Physicist fires a gun at himself underwater to prove a point » Mashable

»

To demonstrate the difference between air and water resistance, Norweigan physicist Andreas Wahl decided to plonk himself in front of a submerged rifle and pull the trigger.

«

Fantastic. Turns out that if you search on Wahl’s name on YouTube, he’s done a ton of these sorts of experiments.

It does however show that Leonardo DiCaprio need not have been so worried when he jumped into that river while being pursued by rifle-wielding enemies in The Revenant. Bigger risk was hypothermia.

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Theranos and Elizabeth Holmes expose the perverse incentives at work in Silicon Valley » Quartz

Jay Edelson and Christopher Dore, of the law firm Edelson (which has taken class actions against a number of tech companies), argue that the VC model drives companies to ignore rules:

»Take Zynga, the gaming company responsible for Farmville, which has earned the moniker “Scamville” for its allegedly deceptive advertising. The co-founder of Zynga, Mark Pincus, famously said, “I knew I needed revenues…. Like I needed revenues now. So I funded the company myself but I did every horrible thing in the book … just to get revenues right away.” While Pincus, incredibly, made this statement in public, he expressed the private sentiment of countless entrepreneurs faced with the ticking of the VC clock. (Disclosure: our law firm, Edelson PC, has brought class-action lawsuits against Zynga and some of the other companies mentioned below, but not for the conduct discussed in this article.)

This is bad for investors, including venture investors who care just about growth. (Fraudulent companies are, at best, an unreliable source of revenue.) But the reckless pursuit of growth often comes at consumers’ expense as well. That’s because the way that companies grow rapidly is to expand their user bases by hook or by crook, in a process called “growth hacking.”

One of the most common examples of this involves “spam-viting,” or hijacking a consumer’s contact list to blast them with text messages or emails, knowingly in violation of various federal and state statutes. Companies spam-vite because it works. Sending millions of text messages or emails to consumers, dressed up as if they came from those consumers’ friends, is a viable, illegal way to grow a business quickly. LinkedIn, for example, settled a lawsuit for $13 million over its practice of repeatedly sending “add connections” emails to a new user’s entire email contact list. And TextMe, a text-based social network, generated its growth by sending a large volume of text messages to new user’s phone contacts, although it eventually won its legal battle with the Federal Communications Commission.

The pressure to growth-hack begets pressure to disregard the law, at least temporarily.

«

This is a terrific essay; you read it and think “wow, that’s so true”. The saying in Silicon Valley is “it’s better to ask forgiveness than ask permission”; it’s how so many of today’s giants got started – Google, YouTube, Uber and AirBnB being particular examples. All broke, or break, the rules in many ways regularly.
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Google and Microsoft have made a pact to protect surveillance capitalism » The Guardian

Julia Powles on the surprising (to many) decision by Microsoft to withdraw from antitrust complaints and lobbying against Google:

»Microsoft today is facing a very different business ecosystem to the one it dominated in the 1990s. It needs to adapt. And it appears to want to do so by positioning itself at the heart of what Satya Nadella describes as “systems of intelligence”.

Explaining this concept at Hannover Messe 2016, Nadella defined systems of intelligence as cloud-enabled digital feedback loops. They rely on the continuous flow of data from people, places and things, connected to a web of activity. And they promise unprecedented power to reason, predict and gain insight.

This is unbridled Big Data utopianism. And it is a vision that brings Microsoft squarely into Google territory. So maybe Microsoft is pulling out of regulatory battles because it doesn’t want to shoot itself in the foot. For emeritus Harvard Business School professor Shoshana Zuboff, this gets to the core of the Google-Microsoft deal.

Zuboff is a leading critic of what she calls “surveillance capitalism”, the monetization of free behavioral data acquired through surveillance and sold on to entities with an interest in your future behaviour. As she explained to the Guardian: “Google discovered surveillance capitalism. Microsoft has been late to this game, but it has now waded in. Viewed in this way, its agreement with Google is predictable and rational.”

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Are maps necessary? » ROUGH TYPE

Nick Carr, musing on Jason O’Beirne’s post (linked yesterday) about the changes in Google Maps over the years:

»O’Beirne is a bit mystified by the changes Google has wrought. He suspects that they were inspired by a decision to optimize Google Maps for smartphone displays. “Unfortunately,” he writes, “these ‘optimizations’ only served to exacerbate the longstanding imbalances [between levels of detail] already in the maps. As is often the case with cartography: less isn’t more. Less is just less. And that’s certainly the case here.”

I’m sure that’s true. Adapting to “mobile” is the bane of the modern interface designer. (And, you’ll note, the “cleaner” Google Map provides a lot of open space for future ad placements.) But, when it comes to maps, there’s something more profound going on than just the need to squeeze a map onto a tiny screen. Implicit in the Google changes is the obsolescence of the map as a navigational tool. Turn-by-turn directions and automated route selection mean that fewer and fewer people ever have to figure out how to get from one place to another or even to know where they are. As a navigation aid, the map is a vestigial organ. So why not get rid of the useful details and start to think of the map as merely a picture or an image, or a canvas for advertisements?

«

Carr has such a deliciously sardonic tone, yet deployed so sparingly and precisely, it’s shocking he isn’t British.
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Drake’s Spotify gamble is paying off: Views just made $8m in a day » Music Business Worldwide

Tim Ingham:

»On Friday (April 29), Beyonce’s Lemonade became the biggest album of the year so far in the US.

Within another 24 hours, Drake’s Views had surpassed Lemonade’s entire week-one album download figure, with around 600,000 sales.

Views is now easily on course to smash through a million North American sales before the weekend.

Drake and his team will have breathed a big sigh of relief at this news – early vindication for a digital strategy which was by no means a safe bet.

Aside from its status as one of the most eagerly anticipated records of the year, Views (previously ‘Views From The 6’), is a complete Apple exclusive.

In its first week, it’s available to stream on Apple Music and buy on iTunes, but not available anywhere else – including physical stores.

Significantly, fans can’t ‘un-bundle’ Views on iTunes, as they could with Beyonce’s Lemonade last week; they only have the option to buy it as one package, with the exception of recent singles One Dance and Hotline Bling.

Drake took a sizable risk with this approach.

«

Really interested by how some artists can still hit it out of the ground by going for the download-only/one-service-only approach, while others can’t. It’s not just about age, either.
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A poem about Silicon Valley, made up of Quora questions » Fusion

Jason Gilbert:

»Why do so many startups fail?
Why are all the hosts on CouchSurfing male?
Are we going to be tweeting for the rest of our lives?
Why do Silicon Valley billionaires choose average-looking wives?

What makes a startup ecosystem thrive?
What do people plan to do once they’re over 35?
Is an income of $160K enough to survive?
What kind of car does Mark Zuckerberg drive?

«

And there’s more. This is splendid.
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Dental Assn mails malware to members » Krebs on Security

Brian Krebs:

»The American Dental Association (ADA) says it may have inadvertently mailed malware-laced USB thumb drives to thousands of dental offices nationwide.

The problem first came to light in a post on the DSL Reports Security Forum. DSLR member “Mike” from Pittsburgh got curious about the integrity of a USB drive that the ADA mailed to members to share updated “dental procedure codes” — codes that dental offices use to track procedures for billing and insurance purposes…

«

It had a launcher which would take a PC to a site which would try to download malware; and few antivirus checkers would find it.

»

In response to questions from this author, the ADA said the USB media was manufactured in China by a subcontractor of an ADA vendor, and that some 37,000 of the devices have been distributed. The not-for-profit ADA is the nation’s largest dental association, with more than 159,000 members.

“Upon investigation, the ADA concluded that only a small percentage of the manufactured USB devices were infected,” the organization wrote in an emailed statement.

«

One should now routinely assume that anything involving (a) Flash (b) USB drives is potentially a malware route. Fortunately, both are avoidable in normal life.
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Yahoo’s $8bn black hole » Bloomberg Businessweek

Max Chafkin and Brian Womack:

»In some ways, [Yahoo CEO Marissa] Mayer’s strategy has worked. Yahoo’s apps have received stellar marks from both reviewers and users, and the company has created new lines of business that accounted for $390m in revenue last quarter. “Mavens as a revenue source didn’t exist at all in 2011 and was nascent in 2012,” Mayer said proudly on the February earnings call, using an acronym that stands for “mobile, video, native advertising, social.” Yahoo has more than 600 million mobile users, up from about 150 million before she took the job.

But those improvements are nowhere near big enough to turn the company around. “Marissa likes to present Mavens as though it should be compared to some nascent startup,” says SpringOwl’s Jackson. But startups, he points out, don’t begin with a billion users. “It’s as if Yahoo took an above-ground pool, dumped it into a bucket, and said, ‘Wow, we’re really filling up this bucket fast,’ ” he says.

And that traffic isn’t necessarily users delighting in Mayer’s new products and telling their friends; much of it comes from Yahoo paying ever-larger sums to other companies to direct their users to Yahoo’s sites and apps. It paid almost $900m in traffic acquisition fees in 2015, up from $200m in 2014. Predictably, Yahoo users are spending less and less time with its sites. A report by The Information, a tech news site, showed that as of early December, the average time spent on Yahoo properties had declined 32% for Yahoo Mail, 29% for the home page, and 20% for Tumblr over the previous 12 months.

«

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If you use Waze, hackers can stalk you » Fusion

Kashmir Hill:

»Last week, I tested the Waze vulnerability myself, to see how successfully the UC-Santa Barbara team could track me over a three-day period. I told them I’d be in Las Vegas and San Francisco, and where I was staying—the kind of information a snoopy stalker might know about someone he or she wanted to track. Then, their ghost army tried to keep tabs on where I went.

The researchers caught my movements on three occasions, including when I took a taxi to downtown Las Vegas for dinner:

And they caught me commuting to work on the bus in San Francisco. (Though they lost me when I went underground to take the subway.)

The security researchers were only able to track me while I was in a vehicle with Waze running in the foreground of my smartphone. Previously, they could track someone even if Waze was just running in the background of the phone. Waze, an Israeli start-up, was purchased by Google in 2013 for $1.1 billion. Zhao informed the security team at Google about the problem and made a version of the paper about their findings public last year. An update to the app in January of this year prevents it from broadcasting your location when the app is running in the background, an update that Waze described as an energy-saving feature. (So update your Waze app if you haven’t done so recently!)

«

The only way not to be trackable is to choose to be “invisible”. Or not to use Waze, of course. Once more, it’s a theoretical risk – you’d need clever, determined hackers to use it against you – but it also shows how much data these apps leak intentionally.
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Errata, corrigenda and ai no corrida: none notified.

Did you miss yesterday’s Start up: Overspill? Google’s health data grab, Intel’s mobile halt, satire wars, iPad Pro beats Surface Pro, and more.

Start up: Trump’s casino flop, Micromax hits a bump, Samsung’s warning, the prime conspiracy and more

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Google’s Deepmind systems are used to recognise handwriting in images. Photo by invisible monsters on Flickr.

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Here’s how Donald Trump treats the little people » Mother Jones

Kevin Drum on the publicly listed Trump casino-controlling company in the 1990s:

»Trump’s fans were conned into buying up his debt-laden properties and turning them into a public company. Trump, who plainly had no interest in running a casino and had demonstrated no corporate management skills during the prior decade, paid himself millions of dollars from the company’s coffers for doing essentially nothing. He then unloaded his third casino onto the public company at an inflated price.

The public company didn’t show a profit during a single year of its existence. In 2004 the stock was delisted and the company forced into Chapter 11 reorganization. It was renamed Trump Entertainment Resorts, but with Trump still at the helm it continued to pile up losses and amassed debts of nearly $2bn. In 2008, after missing a $53m bond payment, it declared bankruptcy yet again and Trump resigned as the company’s chairman. Its investors lost all their money.

In case you’re curious, this is how Trump treats the little people.

«

Just so you can’t say you weren’t warned. Would a President Trump be as corrupt as Berlusconi? Odds seem strong.
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Google DeepMind: What is it, how it works and should you be scared? » Techworld

Sam Shead interview with Mustafa Suleyman, co-founder of Deepmind, who explains where the systems are used inside Google:

»We use it to identify text on shopfronts and maybe alert people to a discount that’s available in a particular shop or what the menu says in a given restaurant. We do that with an extremely high level of accuracy today. It’s being used in Local Search and elsewhere across the company.

We also use the same core system across Google for speech recognition. It trains roughly in less than 5 days. In 2012 it delivered a 30 percent reduction in error rate against the existing old school system. This was the biggest single improvement in speech recognition in 20 years, again using the same very general deep learning system across all of these.

Across Google we use what we call Tool AI or Deep Learning Networks for fraud detection, spam detection, hand writing recognition, image search, speech recognition, Street View detection, translation.

Sixty handcrafted rule-based systems have now been replaced with deep learning based networks. This gives you a sense of the kind of generality, flexibility and adaptiveness of the kind of advances that have been made across the field and why Google was interested in DeepMind.

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Letter to shareholders » Samsung Investor Relations

Oh-Hyun Kwon, CEO of Samsung Electronics:

»In 2016, the overall global economy may slow down, and uncertainties such as financial risks in emerging markets are expected to increase. The IT industry will change in an unprecedented speed, and competitions will intensify further.

We expect core products of our company, such as smartphone, TV, and memory, will face oversupply issues and intensified price competition. Our competitors will follow close behind our leading position in the global IT industry with aggressive investments and innovations. Moreover, innovative business models such as O2O (Online to Offline) and sharing economy are undermining the importance of hardware, which is our strength, and shifting the core competitiveness to software platform.

To cope with these changes in the business environment, we will continue to implement groundbreaking changes and innovations, and strive to secure differentiated competitiveness.

«

“Oversupply issues” probably doesn’t apply to the smartphones, but the price competition will. And there’s no explanation of how it’s going to cope exactly with that shift to software-based competition.
link to this extract

 

Privacy absolutism » AVC

Venture capitalist Fred Wilson:

»I do not think that because we now have the technology to lock things down (strong encryption) and because the industry that develops and maintains all of this technology has a strong libertarian bent that we should just abandon the framework that has worked in our society for hundreds of years. If society thinks someone is doing something wrong, and if law enforcement can get a warrant, there should be a mechanism to get access to our devices.

I would love to see the tech sector work to figure out a smart way to address this issue. My partner Albert has suggested an approach on his blog. There are some interesting approaches that are already being used in cold storage of bitcoin that could be applied to this situation.

But my meta point here is that I am saddened by the tech sector’s absolutist approach to this issue. The more interesting and fruitful approach would be to think about the most elegant solutions and build them.

«

The linked suggestion by his partner is this:

»I would posit that each device should ship with an *individual* key that is created by the manufacturer specifically for the purpose of unlocking the device. The key should then be stored in a way where it can be requested by law enforcement (either by the manufacturer or a third party that specializes in compliance for this). The process for such a request should run via the judiciary and mirror that for a warrant.

«

It’s also known as “key escrow” and was part of the “Clipper chip” idea which was proposed by the Clinton administration in the 1990s and comprehensively shown to be a bad idea by Matt Blaze (who is still around, on Twitter and elsewhere).

Wilson is the one who was previously stunned by Apple not making iMessage cross-platform, despite the fact that it is demonstrably valuable as an iOS exclusive. I’m approaching the point where I learn what Wilson’s view is on something, and then assume the opposite is what will happen.
link to this extract

 

Microsoft stops taking Bitcoin for Microsoft Store payments » Digital Trends

Trevor Mogg:

»Much was made of Microsoft’s move two years ago to start accepting Bitcoin as a form of payment for purchasing content from its online store.

The situation has, however, quietly changed, as the computer giant has recently added a note to its website revealing it’s no longer accepting the cryptocurrency in the Microsoft Store on Windows 10 devices.

“You can no longer redeem Bitcoin into your Microsoft account,” the message says, though adds that existing balances in user accounts “will still be available for purchases from Microsoft Store, but can’t be refunded.” So to be clear, any funds in your account now are good to use, but forget trying to make any new deposits into your account using Bitcoin.

«

Microsoft accepted Bitcoin? For Windows apps? Doubt that troubled the blockchain very much.
link to this extract

 

India’s Micromax, once a rising star, struggles » Reuters

Himank Sharma:

»A year ago, Micromax vaulted past Samsung Electronics Co Ltd to become India’s leading smartphone brand. Today, its market share has nearly halved, several top executives have resigned, and the company is looking for growth outside India.

In Micromax’s slide to second place is a tale of the promise and peril of India’s booming but hyper-competitive smartphone industry.

India is the world’s fastest-growing smartphone market. Shipments of smartphones jumped 29% to 103m units last year.

Rapid growth has helped nurture a crop of local brands, led by Micromax, that outsourced production to Chinese manufacturers. Now, as Samsung rolls out more affordable phones, the same Chinese factories are entering the Indian market with their own brands, depressing prices and forcing Indian mobile makers to rethink their strategies.

“What the Indian brands did to the global brands two years ago, Chinese phone makers are doing the same to Indian brands now, and over the next year we see tremendous competition for Micromax and other Indian smartphone makers,” said Tarun Pathak, analyst at Counterpoint Research in New Delhi…

…Last May, Alibaba walked away from a mooted $1.2bn purchase of a 20% stake, citing a lack of clarity on growth plans, according to one executive involved in the discussion. Micromax co-founder Vikas Jain said in an interview with Reuters this week that the company and Alibaba disagreed on a future roadmap.

«

The smartphone business’s evolution has been like the PC business’s evolution speeded up; India’s is like the smartphone one, speeded up again.
link to this extract

 

Here’s what a knockoff Apple Watch looks like » Daily Dot

Mike Wehner, way back in April 2015:

»The story of how I came to own this forgery isn’t particularly remarkable: In early March, just as the hype around Apple’s new wearable was reaching a fever pitch, I found a Taiwanese seller who claimed to be selling the Apple Watch for immediate shipment. There was no size option or “collection” to choose from, just four colors, so I selected one and placed an order. It cost me the equivalent of roughly $53, and while I knew the watch that eventually arrived wouldn’t be anything impressive, I was nonetheless curious about just how bad it would be. Now I know.

«

Pretty dire. Wonder if they’re any better now?
link to this extract

 

Music piracy hasn’t gone, it has merely changed its spots » MIDiA Research

Mark Mulligan:

»P2P piracy was tailor made for the 2000’s when:

• Home internet connections were slow
• Most content consumption was desk top based
• People still liked owning music

Now in the streaming era all three of those market dynamics have lessened massively. So little wonder then that piracy technology has evolved to meet the needs of the streaming consumer.

With YouTube the number one digital music destination, and with a catalogue that no other music service will ever be able to match, it makes complete sense that YouTube rippers have emerged as one of the key strands of music piracy tech. Many of which transform YouTube into a fully offline, on demand, ad free, high quality music service.

«

And that’s why the music labels tend to hate YouTube.
link to this extract

 

GMG’s David Pemsel: Membership will make up a third of the Guardian’s revenue within three years » The Media Briefing

Chris Sutcliffe:

»The Guardian has not been agile enough to respond to the challenges faced by the publishing industry over the past few years, according to Guardian Media Group CEO David Pemsel.

Speaking at Digital Media Strategies 2016, Pemsel said that an overly narrow focus on the “big number” of its global audience masked some of the strategic issues that the Guardian was facing:

»

“I think all those big numbers are a proof point about how fast and innovative we’ve been in getting to digital [but] monetising anonymous reach is essentially over.

“To be able to parade around and say ‘we’re big’ is not good enough. We want to convert our anonymous reach into a known audience.”

«

That conversion of its unknown audience to a known one is a “massive opportunity”, based around a refinement and reinvention of The Guardian’s membership scheme, which Pemsel believes could make up one third of the Guardian’s overall revenue within three years.

«

The point about “monetising anonymous reach is essentially over” is a key one. Pemsel is saying that online advertising in itself isn’t enough to fund the Guardian – which ought to worry everyone else.
link to this extract

 

Mathematicians discover prime conspiracy » Quanta Magazine

Erica Klarreich:

»Two mathematicians have uncovered a simple, previously unnoticed property of prime numbers — those numbers that are divisible only by 1 and themselves. Prime numbers, it seems, have decided preferences about the final digits of the primes that immediately follow them.

Among the first billion prime numbers, for instance, a prime ending in 9 is almost 65 percent more likely to be followed by a prime ending in 1 than another prime ending in 9. In a paper posted online on Sunday, Kannan Soundararajan and Robert Lemke Oliver of Stanford University present both numerical and theoretical evidence that prime numbers repel other would-be primes that end in the same digit, and have varied predilections for being followed by primes ending in the other possible final digits.

“We’ve been studying primes for a long time, and no one spotted this before,” said Andrew Granville, a number theorist at the University of Montreal and University College London. “It’s crazy.”

«

My first objection on reading those paragraphs was “they should do it in a different number base than decimal”. Then it turns out that they started in a different number base (3) and worked out from there. So yes, this is a spooky property.
link to this extract

 

Errata, corrigenda and ai no corrida:

Start up: Mac ransomware, bitcoin’s crunch, global warming’s milestone, the price of your attention, and more

Posted on by
3

“I bought it so I wouldn’t forget my PIN.” Photo by mag3707 on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 12 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

First Mac ransomware found in Transmission BitTorrent client » Mac Rumors

»This weekend, a notice appeared on Transmissionbt.com warning users that version 2.90 of the popular Mac BitTorrent client downloaded from their site may have been infected with malware. The warning reads:

»

Everyone running 2.90 on OS X should immediately upgrade to 2.91 or delete their copy of 2.90, as they may have downloaded a malware-infected file.

Using “Activity Monitor” preinstalled in OS X, check whether any process named “kernel_service” is running. If so, double check the process, choose the “Open Files and Ports” and check whether there is a file name like “/Users//Library/kernel_service”. If so, the process is KeRanger’s main process. We suggest terminating it with “Quit -> Force Quit”

«

Reuters reports that the infected download contained the first “Ransomware” found on the Mac platform. Ransomware is a type of malware that encrypts a user’s hard drive and demands payment in order to unencrypt it. This type of attack has been increasingly popular on the PC, but this is the first time it has been seen on the Mac.

According to Reuters, Apple is aware of the issue and has already revoked “a digital certificate from a legitimate Apple developer that enabled the rogue software to install on Macs.”

The malware in question is said to delay encrypting the user’s hard drive for 3 days, so we may see the first reports of those affected as early as Monday.

«

Transmission is open source; expect this problem to affect any open source project in future, especially if it isn’t very active.
link to this extract

 

Market views: hard drive shipments drop by nearly 17% in 2015 » Anandtech

Anton Shilov:

»While no one is writing off the PC market entirely, since it’s heyday nearly a decade ago the PC market has been in a slow decline for some time, and that decline has yet to bottom out. Sales of personal computers declined by roughly 25 – 30m units year-over-year, hitting an eight-year low in 2015 due to economic trends, weak international currencies, and competition from tablets and smartphones in some markets. Shipments of PC components naturally dropped alongside weak PC sales, but hard drive sales in particular have made for an interesitng observation: for 2015, declines of HDD sales greatly outpaced the regress of the PC market. Based on estimates from Western Digital and Seagate (see counting methodology below), the total available market of hard drives contracted by nearly 100 million units year-over-year in 2015.

The three major producers of hard drives shipped a total of 468.9m hard drives in 2015, according to estimates from both Seagate and Western Digital. This is down from 564.1m units in 2014, or by 17%. By comparison, back in 2010 at the peak of HDD sales, the industry sold 651m HDDs.

«

The implication – since more drives are shipped than PCs – is that add-on drive purchases are falling along with PC sales. That would make sense; if you don’t have a PC, you don’t need an add-on.

However average capacity per drive has gone from 578MB in Q1 2011 to 1.35TB in Q4 2015. Price per drive has been fairly static, at around $60.
link to this extract

 

Bitcoin’s capacity issues no ‘nightmare’, but higher fees may be new reality » CoinDesk

Stan Higgins:

»The bitcoin network has been on the receiving end of spam attacks during most of its history, including spam events last fall that were revealed to be the work of an entity called CoinWallet that claimed it was seeking to showcase capacity issues on the network.

Yet this week’s occurrence appears to be of a different sort, involving a string of transactions with relatively high fees – something that appears to be pricing out users who are using hard-coded fees that, as a result, leaving them at a disadvantage.

Certain industry representatives interviewed were also split on whether to call the new transactions ‘spam’ due to the fact that identifying the nature of the activity is difficult.

Justus Ranvier, a contributor to the Open Bitcoin Privacy Project, which aims to assess the privacy featured offered by bitcoin wallets, said the transactions could be coming from a badly designed exchange wallet or a malicious attack “designed to sway the block size debate”, but that there is no way to tell definitively.

Avalon’s Yifu Guo told CoinDesk that he believes the effort may be an attempt to tumble coins – or obscure the transaction history of funds by mixing them repeatedly.

A video posted to YouTube further illustrates the activity, further supporting the idea that some individual or group is pushing up overall network fees through a stream of transactions.

«

Feels like a turning point for bitcoin; and the uncertainty, and higher fees, means some organisations are abandoning it, says Higgins.
link to this extract

 

PIN number analysis » Data Genetics

Nick Berry:

»I was able to find almost 3.4 million four digit passwords. Every single one of the of the 10,000 combinations of digits from 0000 through to 9999 were represented in the dataset.

The most popular password is  1234  …

… it’s staggering how popular this password appears to be. Utterly staggering at the lack of imagination …

… nearly 11% of the 3.4 million passwords are  1234  !!!

The next most popular 4-digit PIN in use is  1111  with over 6% of passwords being this.

In third place is  0000  with almost 2%.

A table of the top 20 found passwords in shown at the right. A staggering 26.83% of all passwords could be guessed by attempting these 20 combinations!

«

Wonderful graphs and explanations. And those 20 PINs – oh, my.
link to this extract

 

Why Trump? » George Lakoff

Lakoff is a professor of cognitive science and linguistics at the University of California at Berkeley:

»I work in the cognitive and brain sciences. In the 1990’s, I undertook to answer a question in my field: How do the various policy positions of conservatives and progressives hang together? Take conservatism: What does being against abortion have to do with being for owning guns? What does owning guns have to do with denying the reality of global warming? How does being anti-government fit with wanting a stronger military? How can you be pro-life and for the death penalty? Progressives have the opposite views. How do their views hang together?

The answer came from a realization that we tend to understand the nation metaphorically in family terms: We have founding fathers. We send our sons and daughters to war. We have homeland security. The conservative and progressive worldviews dividing our country can most readily be understood in terms of moral worldviews that are encapsulated in two very different common forms of family life: The Nurturant Parent family (progressive) and the Strict Father family (conservative).

What do social issues and the politics have to do with the family? We are first governed in our families, and so we grow up understanding governing institutions in terms of the governing systems of families.

«

This is fascinating, especially because it can be applied more widely in other countries and parties and candidates.
link to this extract

 

Our hemisphere’s temperature just reached a terrifying milestone » Slate

Eric Holthaus:

»As of Thursday morning, it appears that average temperatures across the Northern Hemisphere have breached the 2 degrees Celsius above “normal” mark for the first time in recorded history, and likely the first time since human civilization began thousands of years ago.* That mark has long been held (somewhat arbitrarily) as the point above which climate change may begin to become “dangerous” to humanity. It’s now arrived—though very briefly—much more quickly than anticipated. This is a milestone moment for our species. Climate change deserves our greatest possible attention.


Global temperatures hit a new all-time record high in February, shattering the old record set just last month amid a record-strong El Niño. Pic: Ryan Maue/Weatherbell Analytics

Our planet’s preliminary February temperature data are in, and it’s now abundantly clear: Global warming is going into overdrive.

There are dozens of global temperature datasets, and usually I (and my climate journalist colleagues) wait until the official ones are released about the middle of the following month to announce a record-warm month at the global level. But this month’s data is so extraordinary that there’s no need to wait: February obliterated the all-time global temperature record set just last month.

«

link to this extract

 

Source: Microsoft mulled an $8bn bid for Slack, will focus on Skype instead » TechCrunch

Jon Russell and Ingrid Lunden:

»When Slack announced new voice and video services earlier this week, the enterprise messaging startup signalled a move into territory dominated by the likes of Microsoft’s Skype. But it looks like this is not the only moment when the two company’s paths have crossed in recent times.

Microsoft eyed Slack as a potential acquisition target for as much as $8 billion, TechCrunch has heard. But an internal campaign around making an offer failed to drum up support. Microsoft co-founder Bill Gates and CEO Satya Nadella were among those unconvinced by the idea, with Gates pushing instead to add more features into Skype to make it more competitive with Slack in the business market, our source says.

Slack’s momentum in picking up new users — it currently has 2.3m daily active users, 675,000 of them paying — makes it a competitive threat for others who are hoping to lead in enterprise collaboration services.

«

I get from this: there’s still a sort of acquisition lunacy inside Microsoft, which has bought Skype and Nokia’s mobile arm and scores of other companies without making them pay; Gates and Nadella are now going to pour cold water on them and say things like “We already spent BILLIONS a company that can do this, REMEMBER?”
link to this extract

 

Amazon to restore encryption to Fire tablets after complaints » Reuters

Jim Finkle:

»Amazon said it plans to restore an encryption feature on its Fire tablets after customers and privacy advocates criticized the company for quietly removing the security option when it released its latest operating system.

“We will return the option for full-disk encryption with a Fire OS update coming this spring,” company spokeswoman Robin Handaly told Reuters via email on Saturday.

Amazon’s decision to drop encryption from the Fire operating system came to light late this week. The company said it had removed the feature in a version of its Fire OS that began shipping in the fall because few customers used it.

On-device encryption scrambles data so that the device can be accessed only if the user enters the correct password. Well-known cryptologist Bruce Schneier called Amazon’s removal of the feature “stupid” and was among many who publicly urged the company to restore it.

«

Andrew Cunningham at Ars Technica actually took the trouble to ask Amazon (and get a response) about why it was removing the encryption, and got the “nobody’s using it” answer – one that will have been behind the curve in news terms.

But more generally, those devices are often used for children because they’re cheap. Amazon says the hardware is not up to encrypting/decrypting on the fly. Seems like a weak excuse for poor security.
link to this extract

 

Cambridge Computer Crime Database » Cambridge University Computer Laboratory

Alice Hutchings maintains it:

»The Cambridge Computer Crime Database (CCCD) is a database of computer crime events where the offender has been arrested, charged and/or prosecuted in the United Kingdom, dating from 1 January 2010. These are broadly classified as high tech offences, including those that fall under the Computer Misuse Act. The database also includes offences that involve the use of computers that fall under other legislation. This includes fraud, conspiracy, misconduct in public office, data protection, and money laundering offences where there is a link to high tech or computer crime.

«

Useful resource for journalists writing on the topic.
link to this extract

 

Can I annoy you for a penny a minute? » Medium

Rob Leathern:

»US TV advertising revenue is expected to reach $78.8 billion this year. The average person over 2 years of age in the United States still watches an amazing 29 hours and 47 minutes of TV per week. Which means, when you work it out, that’s just $0.18 in ad revenue per hour of TV watched.

TV Networks are even speeding up their programming in order to fit in more ads as prices fall and viewership dwindles. The average hour of cable television now has 15.8 minutes of ads compared with 14.5 minutes five years ago. The Wall Street Journal reported that “TBS used compression technology to speed up [movies and TV shows]”  —  this video on YouTube shows an example of this tactic with a Seinfeld rerun. For reruns and movies especially, cable networks have long rolled credits very quickly or cut TV opening sequences out entirely.

«

Whenever I visit the US, I’m astonished by the sheer volume of ads on TV; it seems to me to infect the entire culture; if you’ll tolerate this, you’ll tolerate anything. But people are beginning to break away by turning to Netflix, etc. (How have feature films survived as an art form in the US without ad breaks? Yes, I know, ticket prices, popcorn prices and paid placement.)

By thre way, when Leathern did the calculation for 2009, it was $0.24 per hour. If the ads look worse, they probably are, for that price.
link to this extract

 

On dormant cyber pathogens and unicorns » Zdziarski’s Blog of Things

Jonathan Zdziarski on the amicus claim by the San Bernadino district attorney Gary Fagan that the Farook 5C could “contain evidence that can only be found on the seized phone that it was used as a weapon to introduce a lying dormant cyber pathogen that endangers San Bernadino County’s infrastructure”:

»I was fortunate to have read this brief before it was publicly released in the news. I quickly googled the term “cyber pathogen” to see if anyone had used it in computer science. The first result was a hit on what appears to be Harry Potter fiction. That’s right, a Demigod from Gryffindor is the closest thing Google could find about cyber pathogens. The next several results show that Google is equally confused about the term, throwing out random results about fungus, academic pathogen models, and cyber conflicts. There is absolutely nothing in the universe that knows what a cyber pathogen is, except for Fagan apparently.

«

“Lying dormant cyber pathogen” sounds like something that would get tossed from a script on the first read through. Amazing that Fagan’s team left it in.
link to this extract

 

Galaxy S7 system uses up 8GB out of the box, but you can move apps to SD » Droid Life

Kellen Barranger:

»Remember that big stink that was made about Samsung not allowing for Android 6.0 Marshmallow’s Adoptable Storage feature? Well, this is right here is why people threw a bit of a fit. Out of the box, the Samsung Galaxy S7 uses up 8GB of the phone’s 32GB for system apps and TouchWiz and whatever else Samsung has pre-loaded. That’s a quarter of all of your internal storage, to put it another way. That’s…not good.

As you can see from the image above, before I even completed setup on my Galaxy S7 (we unboxed it here!), I was down to around half of my 32GB storage available. In actuality, the image shows that I’ve used under 16GB total, but I’m still installing apps and have already jumped past the halfway mark and now have around 15GB left to use. If I were a typical smartphone owner who keeps a phone for two years, 15GB isn’t leaving me much space to install apps to.

«

Of course, you can move it to the SD card. Is that why people would buy an S7 – so they feel obliged to get an SD card too?
link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: Bitcoin’s nightmare, the cheating economy, how Snapchat took off, Oculus spurns Macs, and more

Posted on by
2

SIM swaps are leading to bank fraud. Photo by mroach on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 10 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

How Snapchat built a business by confusing olds » Bloomberg BusinessWeek

Max Chafkin and Sarah Frier:

»Compared with Twitter or Facebook, Snapchat can seem almost aggressively user-unfriendly. If you’re new to the app and looking for posts by your kid, your boyfriend, or DJ Khaled, good luck. It’s hard to find somebody without knowing his or her screen name. This is by design. “We’ve made it very hard for parents to embarrass their children,” [Snapchat founder Evan] Spiegel said at a conference in January. “It’s much more for sharing personal moments than it is about this public display.”

Spiegel, who declined to be interviewed, has been cagey about Snapchat’s business prospects. Its annual revenue is small—perhaps $200m, according to several press reports—but it has already drawn many big-name advertisers. Earlier this year, PepsiCo, Amazon.com, Marriott International, and Budweiser paid more than $1m to have their ads appear within the company’s Super Bowl coverage, according to a person familiar with the deals. And because Snapchat has yet to really try to sell ads to the small and midsize businesses that make up most of Google’s and Facebook’s customer base, there’s a lot of potential.

As Facebook has transformed from a slightly wild place to a communications tool for parents, teachers, and heads of state, Snapchat’s more playful ethos, and the fact that anything posted on it disappears in 24 hours, has made it the looser, goofier social network. “You’re sending this ephemera back and forth to your friends,” says Charlie McKittrick, the head of strategy at Mother New York, an ad agency. “It’s the detritus of life. But it’s really funny.” Last September, while Mark Zuckerberg hosted Indian Prime Minister Narendra Modi on Facebook’s campus, the big news at Snapchat’s offices in Venice was a feature called Lenses, which makes your selfies look like you’re vomiting a rainbow.

«

link to this extract

 

We’re moving away from torrents, so whats next? » Strike

“Andrew”:

»As you can see if just a teeny bit taxing on my server, so as of today I wanted to officially annouce that Strike will no longer focus on torrents, in fact I’ve decided to phase Strike into creating open source utilities that help every day life. Our first project is already under development and called Ulterius, an open source C# based framework that allows you to remotely manage windows based systems, all from any HTML5 enabled browser…

…Q: Will you ever do torrent related things again?

A: Most likely not. It’s easier to create completely original content than to attempt to ride the tails of existing content. While I found P2P technology fun, and I’ll continue to follow it and maybe develop stuff around it. I don’t foresee myself ever hosting Anything as a service in the future.

«

Combination of lawsuits against others, and the gigantic bandwidth demand on his site. Mostly the bandwidth, it seems.
link to this extract

 

Will we compile? » ROUGH TYPE

Nick Carr:

»Getting machines to understand, and speak, the language used by people — natural language processing — has long been a central goal of artificial intelligence research. In a provocative new interview at Edge, Stephen Wolfram turns that goal on its head. The real challenge, he suggests, is getting people to understand, and speak, the language used by machines. In a future world in which we rely on computers to fulfill our desires, we’re going to need to be able to express those desires in a way that computers can understand…

…Computers can’t choose our goals for us, Wolfram correctly observes. “Goals are a human construct.” Determining our purposes will remain a human activity, beyond the reach of automation. But will it really matter? If we are required to formulate our goals in a language a machine can understand, is not the machine determining, or at least circumscribing, our purposes? Can you assume another’s language without also assuming its system of meaning and its system of being?

«

Very deep questions underlying this. And speaking of controlling machines through spoken language..
link to this extract

 

Amazon adds the $130 Amazon Tap and the $90 Echo Dot to the Echo family » Techcrunch

Sarah Buhr:

»The Echo has received more than 33,000 Amazon reviews at a nearly five-star rating since launching in late 2014 and was one of the best-selling items going for more than $100 over the holidays. Amazon has not released sales figures for Echo, but its rise in popularity and the ability to build upon and integrate with the companion Alexa API have moved the Echo front and center as a must-have device for the smart home.

Amazon is now introducing two new members to the Echo family with slightly different uses in hopes of achieving a similar reaction: Amazon Tap is a portable version of the original Echo, and Echo Dot is a tiny, hockey-puck-sized version that includes a built-in line-out connector to hook into your choice of speaker.

«

link to this extract

 

Online break-in forces bank to tighten security » BBC News

Shari Vahl:

»Two major high street banks will change security procedures after journalists from BBC Radio 4’s You and Yours programme broke into an account online and removed money.
Recently bank customers accounts have been successfully attacked by criminals who divert mobile phone accounts.

Criminals persuade phone providers to divert mobile phone numbers in what is sometimes called “SIM swap fraud”.

Some banks text security details when customers forget their details.

The activation codes sent by text to mobile phones also allow payments to be made from an account.

The scam works by blocking the genuine phone. The owner is unaware of why the phone has been blocked and allows the criminal – who now has control of their phone – to syphon money from their bank account.

You and Yours has been contacted by dozens of people affected by the scam. All say they have never revealed their security details to anyone, and the that first they knew something was wrong was their mobile phone going dead.

«

Wow.
link to this extract

 

Chinese ISPs caught injecting ads and malware into web pages » The Hacker News

Rakesh Krishnan:

»Chinese Internet Service Providers (ISPs) have been caught red-handed injecting advertisements as well as malware through their network traffic.

Three Israeli researchers uncovered that the major Chinese-based ISPs named China Telecom and China Unicom, two of Asia’s largest network operators, have been engaged in an illegal practice of content injection in network traffic.

Chinese ISPs had set up many proxy servers to pollute the client’s network traffic not only with insignificant advertisements but also malware links, in some cases, inside the websites they visit.
If an Internet user tries to access a domain that resides under these Chinese ISPs, the forged packet redirects the user’s browser to parse the rogue network routes. As a result, the client’s legitimate traffic will be redirected to malicious sites/ads, benefiting the ISPs.

«

link to this extract

 

TensorFlow for Poets » Pete Warden’s blog

»I want to show how anyone with a Mac laptop and the ability to use the Terminal can create their own image classifier using TensorFlow, without having to do any coding.

I feel very lucky to be a part of building TensorFlow, because it’s a great opportunity to bring the power of deep learning to a mass audience. I look around and see so many applications that could benefit from the technology by understanding the images, speech, or text their users enter. The frustrating part is that deep learning is still seen as a very hard topic for product engineers to grasp. That’s true at the cutting edge of research, but otherwise it’s mostly a holdover from the early days. There’s already a lot of great documentation on the TensorFlow site, but to demonstrate how easy it can be for general software engineers to pick up I’m going to present a walk-through that takes you from a clean OS X laptop all the way to classifying your own categories of images. You’ll find written instructions in this post, along with a screencast showing exactly what I’m doing.

«

Warden was at Jetpac, which was bought by Google because of its expertise at machine learning and image classification. This is the one to follow to dive into deep learning (aka machine learning, aka AI).
link to this extract

 

Oculus’ Palmer Luckey will consider Mac support if Apple ‘ever releases a good computer’ » Shacknews

Daniel Perez:

»We spoke to Oculus VR founder Palmer Luckey recently during an Xbox press event where we took the opportunity to ask him some questions regarding the future of his company, and his product, the Oculus Rift.

One question we were dying to ask is he sees a future for the Oculus Rift with Apple computers. When asked if there would ever be Mac support for the Rift, Palmer responds by saying “That is up to Apple. If they ever release a good computer, we will do it.”

Palmer continues to clarify what he meant by that blunt statement by saying “It just boils down to the fact that Apple doesn’t prioritize high-end GPUs. You can buy a $6,000 Mac Pro with the top of the line AMD FirePro D700, and it still doesn’t match our recommended specs. So if they prioritize higher-end GPUs like they used to for a while back in the day, we’d love to support Mac. But right now, there’s just not a single machine out there that supports it.”

«

There aren’t that many Windows PCs that support it, either. Wonder if this is a high priority for Apple just now.
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The cheating economy » Medium

Doug Bierend on Studypool, which lets students “hire” tutors for “help understanding their homework” – which the students of course translate into “doing their homework”, and give bad grades to those tutors who don’t comply:

»Rarely is the sharing model of enterprise, epitomized by the likes of Uber and Airbnb, sensitive to the costs incurred by its host system — those two companies are hardly compelled to preserve the integrity of the “legacy” cab companies and hoteliers they are undercutting. Likewise, success for this platform isn’t determined by whether it actually helps people learn. After all, optimizing and reducing the latency in busing information from one place to another makes sense — a lot of sense — for servers and data, but where brains and ideas are concerned, learning isn’t always efficient. And any approach that offers a backdoor — knowingly or not—where intellectual honesty is concerned is bound to reap the patronage of the many people willing to buy an answer or grade rather than earn it.

«

A passing thought: Bierend is a professional journalist (it shines through in this piece – read it all), and this appeared in “Bright” – which is funded by the Gates Foundation, and subsumed into Medium. The brave new world where a non-profit created from the money out of a brief technology monopoly pays for journalism published on a site created from the money paid to the creator of free publishing platforms (Blogger and Twitter) that were funded by advertising. Who says there aren’t new business models for journalism?
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Bitcoin’s nightmare scenario has come to pass » The Verge

Ben Popper:

»Over the last year and a half a number of prominent voices in the Bitcoin community have been warning that the system needed to make fundamental changes to its core software code to avoid being overwhelmed by the continued growth of Bitcoin transactions. There was strong disagreement within the community, however, about how to solve this problem, or if the problem would ever materialize.

This week the dire predictions came to pass, as the network reached its capacity, causing transactions around the world to be massively delayed, and in some cases to fail completely. The average time to confirm a transaction has ballooned from 10 minutes to 43 minutes. Users are left confused and shops that once accepted Bitcoin are dropping out.

«

Remember how Mike Hearn, who saw this problem coming and proposed an increase in block size which would have headed it off, was criticised to hell and back for being “misleading”? I bet he’s feeling vindicated now. Wonder how his then-critics feel. (Update: not great, apparently, since the Pond Politics page I referenced has been deleted in the meantime.)
link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: Asus’s router screwup, slower smartphones, Ek speaks, the FBI’s other iPhones, hi – it’s Sony, and more

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What if you reduced novels to their punctuation? How would they look? Photo by Jilligan86 on Flickr.

You mean you signed up to receive each day’s Start Up post by email? Nice one.

A selection of 11 links for you. Calorie-free. I’m charlesarthur on Twitter. Observations and links welcome.

ASUS settles FTC charges that insecure home routers and “cloud” services put consumers’ privacy at risk » Federal Trade Commission

»Taiwan-based computer hardware maker ASUSTeK Computer, Inc. has agreed to settle Federal Trade Commission charges that critical security flaws in its routers put the home networks of hundreds of thousands of consumers at risk. The administrative complaint also charges that the routers’ insecure “cloud” services led to the compromise of thousands of consumers’ connected storage devices, exposing their sensitive personal information on the internet…

…ASUS marketed its routers as including numerous security features that the company claimed could “protect computers from any unauthorized access, hacking, and virus attacks” and “protect [the] local network against attacks from hackers.” Despite these claims, the FTC’s complaint alleges that ASUS didn’t take reasonable steps to secure the software on its routers.

For instance, according to the complaint, hackers could exploit pervasive security bugs in the router’s web-based control panel to change any of the router’s security settings without the consumer’s knowledge…

…In February 2014, hackers used readily available tools to locate vulnerable ASUS routers and exploited these security flaws to gain unauthorized access to over 12,900 consumers’ connected storage devices.

«

Swingeing fine? No – just “a comprehensive security program subject to independent audits for the next 20 years.” Pfft.
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Session with Daniel Ek / Feb 16, 2016 » Quora

Lots of questions and answers from Spotify’s founder/chief. I found this one interesting:

»

Q: How will you compete as Amazon, Google (incl. YouTube), Apple, etc. strengthen and expand the scope of their respective lock-in?

A: I believe in focus. All of the companies you mention have music as a hobby, a very small part of their overall business. We do one thing and try to do it really well. This means we have a company 100% dedicated to finding the right content, personalizing it for you and serving it up with partners who are specialized in what they do. The big platform companies don’t generally like partnering. We do. This opens up lots of doors. To put it another way, we are really focused on delivering the best possible music experience you can find. I’m not saying we don’t think about the competition – of course we do, it would be crazy not to. But we think about them more in terms of how to make Spotfy so easy, so fun, and so relevant for our users that whether you wait on lines for every new Apple device, get your groceries from Amazon Prime, or use every Google mail and workplace app, you still want to listen to music on Spotify because it’s the best experience there is.

«

link to this extract

 

Pirated App Store client for iOS found on Apple’s App Store » HelpNet Security

Zeljka Zorz:

»The app hasn’t been flagged as potentially dangerous by Apple’s strict code reviewers, most likely because the app was made to look like a simple app for learning English if a reviewer (or user) accessed the app from anywhere outside China, and showed its true face only for those located in China.

Also, it’s coded in the Lua programming language, and this allows the developers to update the app remotely and repeatedly without triggering Apple’s app review process.

The app was available for download in the App Store for over three and a half months (since October 30, 2015 to the end of last week), but has now been removed.

The researchers haven’t discovered any actual malicious functionality in the app, but given its capabilities, it should definitely be considered risky to use. They dubbed it ZergHelper, and discovered over 50 enterprise-signed versions of the app being distributed in the wild through alternative channels.

«

Enterprise certificates are still the biggest weak point for getting apps onto iPhones. This one was clever too in using geolocation, and Lua.
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Justice Department seeks to force Apple to extract data from about 12 other iPhones » WSJ

Devlin Barrett:

»The letter, written last week from an Apple lawyer to a federal judge, lists the locations of those phone cases: Four in Illinois, three in New York, two in California, two in Ohio, and one in Massachusetts.

The letter doesn’t describe the specific types of criminal investigations related to those phones, but people familiar with them said they don’t involve terrorism cases. The 12 cases remain in a kind of limbo amid the bigger, more confrontational legal duel between the government and the company over an iPhone seized in the terror case in California, these people said.

«

How surprising that the other cases where the Department wants to do exactly the same aren’t about a high-profile mass shooting that has been framed as “terrorism”.

On another note, this story has prompted some excellent reporting. Such as the next one…
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Secret memo details US’s broader strategy to crack phones » Bloomberg Business

Terrific scoop by Michael Riley and Jordan Robertson:

»In a secret meeting convened by the White House around Thanksgiving, senior national security officials ordered agencies across the U.S. government to find ways to counter encryption software and gain access to the most heavily protected user data on the most secure consumer devices, including Apple Inc.’s iPhone, the marquee product of one of America’s most valuable companies, according to two people familiar with the decision.

The approach was formalized in a confidential National Security Council “decision memo,” tasking government agencies with developing encryption workarounds, estimating additional budgets and identifying laws that may need to be changed to counter what FBI Director James Comey calls the “going dark” problem: investigators being unable to access the contents of encrypted data stored on mobile devices or traveling across the Internet. Details of the memo reveal that, in private, the government was honing a sharper edge to its relationship with Silicon Valley alongside more public signs of rapprochement.

«

link to this extract

 

Bitcoin miners back proposed timeline for 2017 hard fork » CoinDesk

Stan Higgins:

»A group of bitcoin miners constituting close to 80% of the network hashrate, as well representatives from exchanges, service providers and contributors to the Bitcoin Core development project, have proposed a development timeline for scaling the bitcoin network.

The statement’s release comes after a more than 18 hour-long meeting in Hong Kong that drew participants from China’s bitcoin mining community and members of the Bitcoin Core team.

Some of the letter’s signatories were party to a previous statement that voiced opposition to any “contentious hard fork” to the bitcoin network.

According the proposed timeline, Bitcoin Core contributors Matt Corallo, Luke Dashjr, Cory Fields, Johnson Lau and Peter Todd will produce and recommend code for a hard fork to the bitcoin network that would feature a block size increase. The code for this proposal is expected to be made available by July.

«

The picture accompanying the article shows that the group comprises 21 people. So much for bitcoin being decentralised: this group decides which way everything moves.
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Punctuation in novels » Medium

Adam Calhoun:

»When we think of novels, of newspapers and blogs, we think of words. We easily forget the little suggestions pushed in between: the punctuation. But how can we be so cruel to such a fundamental part of writing?

Inspired by a series of posters, I wondered what did my favorite books look like without words.

Here’s Blood Meridian by Cormac McCarthy (left) and Absalom, Absalom! by William Faulkner.

«

A lovely idea. Hemingway turns out to be a radical.
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Sony worms way into Ear with Xperia headset-cum-virtual assistant » Ars Technica UK

Mark Walton:

»As it dawns on smartphone makers that—after years of healthy upgrades—consumers are perfectly happy with their existing phone, they’ve started to pile on the features instead. LG has its wacky upgradable G5, Samsung has its Gear VR headset, and Sony… well, it’s got the Xperia Ear, a Bluetooth headset-cum-virtual assistant that it hopes will take away the need for everyone to keep pulling their smartphones out of their pockets.

You can take calls with Xperia Ear, send messages, get the latest traffic updates, and it’ll even send you directions using GPS (via the phone it’s paired with). None of that is particularly innovative as such, but the Ear’s USP is the way its packaged up into a neat, and arguably more reliable package that your traditional virtual assistant along the lines of Siri or Google Now. For instance, when a call comes in and you pick up the Ear, it has a proximity sensor that automatically answers the call and flings it to your earlobe.

If you’re stuck for the perfect cupcake recipe or want to know who invented the Burrito (sorry, I have the MWC hunger), the Ear can find that stuff out too via voice activated Internet searches. Again, this is functionality most people already have access to via their phone, but Sony hopes that by removing the need to pull out their phones altogether, and instead reach for the Ear, people will won’t be quite as shut out from the outside world.

OK, so the concept is clearly a strange one, and there’s evidence to suggest that such devices—like the similar Motorola hint—have struggled to find a market.

«

Can’t imagine why. You make it sound so… useful.
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Google to shut down Google Compare products in US and UK on March 23 » Search Engine Land

Ginny Marvin:

»The company only recently began rebuilding the Compare product from the ashes of the Advisor program in the US. The single piece left standing from that initial effort was the credit card offering — savings accounts, CDs and mortgages had all discontinued. Compare for Auto Insurance launched just last March, starting in California. Then Google relaunched Compare for Mortgage quotes in November with Zillow and Lending Tree among the launch partners. Both of those relaunches had limited roll outs. In the UK, Google Compare has been running since 2012 for car insurance, mortgage rates, credit cards and travel insurance.

A Google spokesperson told Search Engine Land that while searches on these queries remained high, the product didn’t get the traction it hoped for and revenue was minimal. That’s in part due to the limited availability of the products in both the US and the UK.

«

Another one for the graveyard.
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Double-digit smartphone market growth is over » Kantar Worldpanel

»Feature phone owners across markets are challenged in finding smartphones that offer what they consider a good value for money spent. They are unlikely to upgrade to a smartphone until they can no longer rely on their current device. While looking year over year might not be enough to see a clear trend, examining the past three years makes it clear that smartphone life cycles are getting longer.

In mature markets, the profitable high end of the market is saturated. In the US, the high-end segment, devices with an unsubsidized price of more than $500 represented 48% of sales in 2015, growing a mere 9% over 2014. In the EU5, where the high-end segment represented just 27% of sales, growth was commensurately lower than in the US, coming in at 6%.

What should the industry expect for 2016? According to Milanesi, 48% of smartphone owners in the EU5 are currently planning to upgrade their smartphone over the next 12 months. This number decreases to 46% in the US, and 28% in urban China. Consumer brand preference for their next device varies a little by region, but two brand names that remain prominent are Apple and Samsung.

«

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Google + GSMA announcement on RCS is no gamechanger » Disruptive Wireless

Dean Bubley:

»From the announcement: “Operators have agreed to transition toward a common, universal profile based on the GSMA’s RCS specifications and an Android RCS client provided by Google.”

It’s belatedly throwing various independent RCS app providers under the bus, trying to make disparate RCS implementations actually work together. As with VoLTE, RCS has suffered a wide range of non-interoperable versions to date, which is rather embarrassing for an application that was mainly standardised for the purpose of interoperability, rather than user-utility.

That it’s failed to actually be interoperable, as well as failed to be useful & well-designed, is just another eaten brain in the 8-year zombie catastrophe of RCS.

What’s interesting is what’s not in the statement:

– No mention of messaging-as-a-platform, despite that being hinted at previously in RCS presentations I’ve seen. Given that WeChat, Facebook Messenger, WhatsApp and others are shifting to commerce/advertising “streams”, that’s a surprising omission.
– No current usage numbers for RCS. There’s vague pronouncements about “towards a billion users”, but no baseline of current DAUs/MAUs for “proper” RCS usage, not just SMS-replacement texting.
– It doesn’t mention the new RCS client being made mandatory in future Android builds. It just says it’s available. The PR is very operator-centric, which doesn’t seem to suggest that all OEMs will automatically implement it in new devices, especially where they’re sold through open-market channels.
– No reference to whether the client will be appearing on WiFi-only tablets, or other Android devices (cars, watches, Chromebooks etc)
– No mention of AT&T or Verizon in the press release, although there’s an AT&T speaker at MWC on stage with them apparently (link)
– No clear timelines or wholehearted commitment by Google “an important step forward in bringing a better messaging experience for Android users everywhere”
– No mention of Samsung, which also happened to have Mark Zuckerberg from Facebook keynoting its big press conference yesterday. Given Google is trying to wrest back control of Android from its OEMs’ influence, that’s not a good sign for Samsung+RCS
– No reference to the South Korean operators ditching Joyn recently.

It’s also still unclear exactly what the future RCS business/revenue model might look like. Although it references the Jibe platform for MNOs, it doesn’t rule out my previous hypothesis of “Android iMessage” either.

«

link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: sexism in funding, Powa struggles, China’s smartphone rat race, Apple software, and more

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Good password on paper

A bit dated? Doesn’t matter, password crackers are after you. Photo by Simon Lieschke on Flickr.

It’s a secret, but you can sign up to receive each day’s Start Up post by email. Tell no one.

A selection of 9 links for you. Plaited in plaid. I’m charlesarthur on Twitter. Observations and links welcome.

VCs- don’t compare me to your wife, just don’t » Medium

Sarah Nadav:

Investors, you should know that the only thing that I have in common with your wife is a vagina. You need to know that because the women who are sitting in front of you to pitch are Entrepreneurs – and we are a totally different breed of human being than just about anyone else.

Your wife may or may not be an entrepreneur. But the extent to which she is founding a company is the extent to which I have something in common with her.

When you ask me about having it all, or how am I going to manage my kids, I seriously think that you are insane. Because in my head, I can’t imagine a scenario where you trust someone with millions of dollars to run a business but think that they don’t know how to deal with childcare.

Oh, but you have to read the message exchange with one venture capitalist about A Woman’s Place. According to him it definitely isn’t in the boardroom.
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China smartphone market sees its highest shipment ever of 117.3m in 2015Q4 » IDC

Shipments grew 8% year-on-year in the quarter:

“Xiaomi, Huawei and Apple are the top smartphone players in 2015. This is a stark contrast to the top players in 2013, which was Samsung, Lenovo and Coolpad – with Samsung clearly dominating other players. With operators reducing smartphone subsidy and given the volatility of consumers’ brand preference in the market, the smartphone scene has changed significantly since then,” says Tay Xiaohan, Senior Market Analyst with IDC Asia/Pacific’s Client Devices team.

“Xiaomi entered the market at a time when the China smartphone market was still growing, and was able to capture a significant market share with its disruptive sales model. Huawei, with its investments in R&D, strong products, branding and channel connections, saw it having significant growth in 2015. Apple, on the other hand, continues to be a strong and desirable brand in the eyes of the Chinese consumers. With the Chinese market now slowing down, it is unlikely that we will see any new players making a big impact on the smartphone market compared to the way Xiaomi did in the previous years,” adds Ms. Tay.

So the door is shut to new entrants. Remember that scene in Skyfall where Javier Bardem is describing rat removal to James Bond? (Here’s the link if you’d forgotten.) The smartphone business in China now turns into that scenario.
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The superhero of artificial intelligence: can this genius keep it in check? » The Guardian

Clemency Burton-Hill on DeepMind’s Demis Hassabis. The interview with him is OK – though mostly dead-bat responses from him – but I thought this was more indicative of the challenge, and potential for the company:

Upstairs, wrapping the original building, is a modern open-plan structure featuring a deck with undeniably magnificent views of London’s rooftops.

It’s up here, on Friday nights, that the DeepMinders gather for drinks. One employee describes the ritual to me enthusiastically as a way “to end the week on a high”. Socialising is an intrinsic way of life: I’m told of the DeepMind running club, football team, board games club. (“That one gets pretty competitive.”) A wall chart with moveable photographs indicates where everyone is hot-desking on any given day. It’s aggressively open-plan. The engineers – mostly male – that I pass in the corridors shatter the stereotype of people working in the nerdier corners of human endeavour: these guys look fit, happy, cool. A certain air of intellectual glamour, it has to be said, vibrates in the atmosphere. And no wonder. The smartest people on the planet are queuing up to work here, and the retention rate is, so far, a remarkable 100%, despite the accelerating focus on AI among many of Google’s biggest competitors, not to mention leading universities all over the globe.

“We’re really lucky,” says Hassabis, who compares his company to the Apollo programme and Manhattan Project for both the breathtaking scale of its ambition and the quality of the minds he is assembling at an ever increasing rate. “We are able to literally get the best scientists from each country each year. So we’ll have, say, the person that won the Physics Olympiad in Poland, the person who got the top maths PhD of the year in France. We’ve got more ideas than we’ve got researchers, but at the same time, there are more great people coming to our door than we can take on. So we’re in a very fortunate position. The only limitation is how many people we can absorb without damaging the culture.”

link to this extract

 

Powa Technologies missed staff and contractor payments » FT.com

Kadhim Shubber and Murad Ahmed:

Powa has raised about $175m, mainly from Boston-based investment fund Wellington Management, which the company says values it at $2.7bn.

Its headquarters are spread over two floors in what Mr Wagner called in one of the videos “the opulent surroundings” of Heron Tower, a skyscraper in the heart of City of London. A person with knowledge of the matter said that Powa could be paying as much as £2.5m a year.

When Powa was founded in 2007, it planned to develop a mobile payments system. More recently it has focused on its PowaTag product, a mobile platform that allows people to buy and order a product by photographing an image of it with their mobile phones.

Mr Wagner has predicted that the business will be bigger than Google or Alibaba, the Chinese ecommerce group. “What we’re building here is the biggest tech company in living memory,” he told the Financial Times in April last year.

But in the video to staff, Mr Wagner said that the company was “basically pre-revenue”, a term that refers to a lack of sales. “As we go forward from here that revenue will start to flow in meaningful ways but right now it isn’t,” he said.

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Dan Lyons’ HubSpot book ‘Disrupted’: a few predictions » BostInno

Kyle Alspach on the forthcoming book from “Fake Steve Jobs”, aka Lyons, who worked for a while at Hubspot:

• The book is going to accuse HubSpot’s management of being hypocritical—touting how the company is making a positive difference in the world when in reality, according to Lyons at least, they’re not much better than spammers. We already knew this from the shorter description that was posted previously, but the superlatives from other authors suggest just how central the theme will be to the book:

– “Dan Lyons goes deep inside a company that uses terms like ‘world class marketing thought leaders’ to show us how ridiculous, wasteful, and infantile tech start-ups like this can be.”―Nick Bilton (author of “Hatching Twitter”)

– Disrupted “just might tell us something important about the hypocrisy and cult-like fervor inside today’s technology giants.”―Brad Stone (author of “The Everything Store”)

– “Disrupted explores the ways in which many technology companies have come to fool the public and themselves.”—Ashlee Vance (author of “Elon Musk”)

• Some HubSpot executives will definitely be singled out. Such as: “Dan’s absentee boss sent cryptic emails about employees who had ‘graduated’ (read: been fired).”

Waiter! Popcorn!
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Password cracking attacks on Bitcoin wallets net $103,000 » Ars Technica

Dan Goodin:

Hackers have siphoned about $103,000 out of Bitcoin accounts that were protected with an alternative security measure, according to research that tracked six years’ worth of transactions. Account-holders used easy-to-remember passwords to protect their accounts instead of the long cryptographic keys normally required.

The heists were carried out against almost 900 accounts where the owners used passwords to generate the private encryption keys required to withdraw funds. In many cases, the vulnerable accounts were drained within minutes or seconds of going live. The electronic wallets were popularly known as “brain wallets” because, the thinking went, Bitcoin funds were stored in users’ minds through memorization of a password rather than a 64-character private key that had to be written on paper or stored digitally. For years, brain wallets were promoted as a safer and more user-friendly way to secure Bitcoins and other digital currencies, although Gregory Maxwell, Gavin Andresen, and many other Bitcoin experts had long warned that they were a bad idea.

Here’s a paper about what happened; to crack the wallets, tables with as many as billions of potential passwords may have been deployed against them. Yes, billions.
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New finding may explain heat loss in fusion reactors » MIT News

The expectation by physicists for more than a decade had been that turbulence associated with ions (atoms with an electric charge) was so much larger than turbulence caused by electrons — nearly two orders of magnitude smaller — that the latter would be completely smeared out by the much larger eddies. And even if the smaller eddies survived the larger-scale disruptions, the conventional thinking went, these electron-scale whirls would be so much smaller that their effects would be negligible.

The new findings show that this conventional wisdom was wrong on both counts. The two scales of turbulence do indeed coexist, the researchers found, and they interact with each other so strongly that it’s impossible to understand their effects without including both kinds in any simulations.

However, it requires prodigious amounts of computer time to run simulations that encompass such widely disparate scales, explains Howard, who is the lead author on the paper detailing these simulations.

Accomplishing each simulation required 15 million hours of computation, carried out by 17,000 processors over a period of 37 days at the National Energy Research Scientific Computing Center — making this team the biggest user of that facility for the year. Using an ordinary MacBook Pro to run the full set of six simulations that the team carried out, Howard estimates, would have taken 3,000 years.

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Apple’s elephant in the room » Medium

Alexandra Mintsopoulos on the meme about Apple’s “declining” software quality:

If the biggest example that can be pointed to is iTunes or its back-end (which seem to generate the most criticism) then there isn’t any validity to the idea that Apple’s software quality is declining. iTunes has been the target of complaints for as long as anyone can remember and it seems clear that it will be reworked much like Photos, iWork, or Final Cut have been (and likely receive the same backlash for missing functionality). The reason it hasn’t been done sooner is obvious: it has hundreds of millions of users and transacts billions of dollars in sales, revamping it from the ground up is akin to fixing an airplane while it’s in flight and won’t be done lightly.

There is a massive disconnect between enthusiasts and Apple’s broader customer base on the perception of Apple’s software quality. That is a PR problem for Apple to solve, not a software one.

I thought it was pretty clear in Eddy Cue’s appearance on John Gruber’s podcast (linked here yesterday) that Cue said iTunes is being redesigned, but you don’t do that sort of thing in an afternoon. The vast majority of iTunes-on-desktop users are not using Apple Music. The problem that then needs to be solved is to what extent iTunes could, or should, be broken into multiple apps.
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My Telltale heart: From Monkey Island to the Walking Dead – games matter » The Malcontent

Mic Wright, arguing (on yesterday’s point) that yes, video games are a cultural product:

Most of the brain trust from LucasArts ended up in a berth at TellTale games, where the rabbit and pooch P.I team of Sam & Max and Guybrush Threepwood, the protagonist of the Monkey Island games, also ended up.

Preempting a question I have just imagined Charles – who commissioned my first ever piece for The Guardian – asking, Telltale/LucasArts has also delivered more serious and dramatic gaming experiences. The Game of Thrones and Walking Dead games developed by the studio drop the player into storylines where moral and tactical decisions are at the heart of the gameplay.

In the branching narratives, you’re forced to decide which friends or allies to sacrifice among other pretty gut-wrenching choices. Both sets of titles fundamentally dive into the nature of what it is to be a human in society and, through your choices, end up making you think about your real life character and behaviour.

Of course lots of games are just games, but then what does the average Adam Sandler movie or Dan Brown novel tell us about the human experience?

Touché on that last one. I remain sceptical; I’m not saying that video games cannot be cultural, emotional experiences. However, I don’t think they’ve generally achieved that yet. The question is whether they will continue to remain at the Sandler/Brown end of the spectrum, where I think they are.

After all, very few “games” (chess, squash, football) achieve “cultural event” status. The only ones I can think off immediately are the 1972 Fischer-Spassky chess match (west v east, a cold war fought with chess pieces) and 1997’s chess match of Kasparov v Deep Blue (humans v machines – disappointing outcome). Wimbledon finals, World Cup finals, some Olympic events do manage a “where were you when..?” status, but that’s not quite the same as having cultural impact – i.e. showing us something about where we really are. Any other suggestions?
link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: the tech productivity gap, adtech fraud to pass $7bn, the stacked chart delusion, and more

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Sexual harassment is a problem even in large tech companies. Photo by ghedo on Flickr.

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A selection of 10 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

The future is here. It just needs a big push » WSJ

Christopher Mims:

Past technological revolutions—the steam engine, electricity, the automobile, the telephone—have brought gains in welfare to all corners of the world. Continued sharp declines in poverty in Asia and Africa can be traced to the belated adoption of these old technologies.

But if the automobile, to take one revolution, helped make possible one of the greatest sustained economic booms in U.S. history, one that led to unprecedented prosperity for the middle class, why isn’t the more recent tech revolution doing the same?

Economists and economic historians think they have an answer. To put it bluntly, they say, the problem with the current technological revolution is that, despite multiple Internet booms, we have yet to figure out how to allocate enough capital to information technology and all it enables.

I was ready to say “but everyone has smartphones, even those fleeing countries”; however Mims’s argument is much more subtle: see the graphic below. Productivity isn’t rising. Why not, given all this technology?

Year-over-year change in U.S. labor productivity (output per hour), five-year moving average


link to this extract

 

Ad fraud to cost brands $7.2bn this year » FT.com

Shannon Bond:

The advertising industry’s rapid shift to digital formats is providing a boon to fraudsters, who will cost brands $7.2bn this year, up from $6.3bn in 2015, according to new research.

Marketers are losing money to fraudulent viewing by “bots”, or automated computer programs, that mimic human behaviour. Advertisers pay for those views even though they are not seen by the real people campaigns are intended to reach.

The study by the US’s Association of National Advertisers, whose members collectively spend more than $250bn a year on marketing, and White Ops, an online ad fraud investigator, attributed the rise in projected losses to an expected 15 per cent rise in digital ad spending this year.

Comparatively small survey, but big advertisers – and they all saw “bot traffic” getting worse. One ad-tech exec was upset at yesterday’s link on this topic, but ad fraud matters: this might appear to represent only 3% of spend, but it’s a huge amount of money, and this is only the loss you’re sure about.
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What I learnt from being sexually harassed at Google » Gadgette

Julia Chou:

A recent study reported that 60% of women in Silicon Valley have been sexually harassed. Of those, 65% have received advances directly from a superior. These statistics caught me by surprise, though they probably shouldn’t have — I am one of them.

While at Google — a company well-known for its “Do no evil” culture — one of my managers sexually harassed me and made me feel incredibly uncomfortable. In the span of a week, I went from feeling excited and motivated about my job to feeling lethargic, anxious, and unenthused. As the youngest member of my team and the only woman, I felt stupid and naïve.

In that week, I was kissed on the cheek, asked to sit on my manager’s lap, told about my manager’s sex life and virility, and told that “all men go through an Asian fetish at some time,” among other wildly discomfiting, work-inappropriate things. Then I was asked to dinner alone. After a week of feeling confused and disrespected, my fight or flight reaction kicked in, and I immediately took the next shuttle home…

…During the HR investigation that ensued, I remember being shamed by a female colleague who thought I was blowing the situation out of proportion. She thought I was being overly sensitive, and that it was wrong of me to report my manager. That hurt. I thought she would’ve naturally supported me.

Concerning story. As a side note, Gadgette is clearly trying to shift subtly away from the conventional “here’s what a company announced in a blogpost today” output of the overwhelming majority of (male-targeting) tech sites.
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Hypocrisy and why Mike Hearn will not be missed by Bitcoin » Pond Politics

John Hardy:

Another complaint [Hearn, who left the bitcoin community after his proposal to increase block size was rejected – whether by fair means or foul including DDOS attacks] makes is that Chinese miners have a majority of network power, and consequently do not want to increase the block size because it will make it harder for them to compete. This to me is either naive or wilfully misleading. If an increased block size struggled to pass through the firewall, the side of the firewall with the greatest hashing power would benefit most (the Chinese side), as the other size would end up producing more orphan nodes. Nobody wants this, including Chinese miners, because it will damage the integrity of Bitcoin and people are willing to wait and try other solutions first.

Hearn: Even if a new team was built to replace Bitcoin Core, the problem of mining power being concentrated behind the Great Firewall would remain. Bitcoin has no future whilst it’s controlled by fewer than 10 people. And there’s no solution in sight for this problem: nobody even has any suggestions. For a community that has always worried about the block chain being taken over by an oppressive government, it is a rich irony.

The rich irony here, is that increasing the block size through XT would actually exacerbate the problem, and that Mike seems oblivious to this.

Ultimately, having lost in the battle of consensus, Mike Hearn has taken his ball and gone home. Bitcoin XT could not gain consensus because enough people believe in the Core team’s vision for a more graceful and innovative solution for scaling Bitcoin, rather than clunkily just bumping up a number and hoping for the best.

Yes, its fine to be sceptical of Core’s vision, but the beauty of Bitcoin is that if SegWit and LN do not deliver on their promises, consensus will soon form around an alternative. In the mean time, if transactions slow down and the network fails, consensus may form sooner. Bitcoin is not dead, people recognise it is in an experimental phase and will be prepared to be patient. One day Mike may well regret not having a little more of it himself.

There are reasonable criticisms on both sides of the block size debate, the censorship and DDOS has been concerning, but so has the wilful misinformation coming from the other side.

I’ve linked to Hardy’s post rather than Greg Slepak’s point-by-point rebuttal because Hardy seems to offer a broader overview that deals directly with the issues.

I’m still unconvinced that Hearn is wrong. Hardy’s point that Chinese miners wouldn’t want to have their capacity locked behind the Great Firewall, and the fact that there was a DDOS campaign to block Hearn’s Bitcoin XT proposal (miners running XT were hit with DDOS attacks) suggests there is money, not just principle, behind the status quo.

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It’s Wikipedia mythbuster time: 8 of the best on your 15th birthday » The Register

An excellent list from Andreas Kolbe, which ends with this one:

But Wikipedia needs money, doesn’t it?

That depends on your definition of “need”. Wikipedia’s article writers work for free. The Foundation’s employees, however, don’t. Their number has ballooned from eleven in 2007 to almost 300 today (17 in Fundraising alone). Internet hosting, once Wikipedia’s main expense, cost less than $2m last year; at the same time, the Foundation reported net assets of $78m, including $35m in “cash and cash equivalents” and $29m in “short-term investments”.

But the Foundation has long planned to set up an endowment; these plans are now going ahead. Secondly, with alternative knowledge delivery systems like Apple’s Siri and Google’s Knowledge Graph on the rise, some feel the days of the encyclopedia are numbered. Resources are being invested in Wikidata and a new “Discovery” or “Knowledge Engine” project said to have been a contributory factor in the current dust-up between the volunteer community and the Wikimedia board.

The question of what happens as usage shifts more to mobile is probably the biggest for Wikipedia’s next 15 years. (Via Seth Finkelstein.)
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Microsoft shares new details on HoloLens: up to 5.5hr battery life, device link and more » Petri

Brad Sams:

At an event in Tel Aviv, Bruce Harris, a Microsoft Technical Evangelist, shared new details about the company’s upcoming Hololens. The highly anticipated device will start shipping to developers this quarter but the company has not announced yet when the device will generally available to consumer or enterprise clients.

Bruce notes that any universal application that can currently run on Windows 10, will run natively, out of the box, on Hololens and the device is “totally wireless” and uses Wi-Fi and Bluetooth for communication. In fact, there will not be a wired option for this device.

Battery life, while it depends on your usage, can run up to 5.5 hours and under heavy load is closer to 2.5 hours when pushing the device to its limits; anything can connect to the device, as long as it supports Wi-Fi or Bluetooth.

Field of view is similar to a 15in monitor about two feet away from your face and the reason for this size on the field of view is because of cost and battery life. Harris notes that as manufacturing improves, the company intends to expand the field of view once it makes sense from a pricing perspective.

Harris also says that they are manufacturing the device themselves but it is not being made in the US like the Surface Hub.

I think five and a half hours would be more than enough time to be wearing a device like this. I’d like to know what optometrists think of the potential long-term effects. (One writeup said the 5.5hr life would be “when working on Word documents.” If you’re using a Hololens to work on Word, could I suggest you’re doing it wrong?)
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iOS code shows Apple experimenting with ultra fast, light-based Li-Fi wireless data for future iPhones » Apple Insider

Sam Oliver:

Beginning with iOS 9.1, the operating system’s library cache file makes mention of “LiFiCapability” alongside other hardware and software capability declarations. The change was spotted by Twitter user Chase Fromm and independently confirmed by AppleInsider.

Li-Fi works in a way not entirely unlike a traditional infrared remote control. Data is transmitted by rapidly modulating a light source, and received with a light sensor before being reassembled into an electronic signal.

Unlike your television remote, Li-Fi uses visible light and the modulation happens in a manner imperceptible to the human eye: that means the same bulb that lights your hallway can act as a data access point. It’s also much faster, with theoretical throughput capacity of up to 224 gigabits per second.

Indoor use only, obvs.
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After Dark in CSS » Bryan Braun

Classic Mac screensavers, rendered in CSS. Which I’m afraid means you can’t use them as screensavers, unless you put your browser into full screen. Code available on Github for the CSS-inclined.
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I hate stacked area charts » All this

Dr Drang:

I keep seeing stacked area charts in my travels around the ’net. Horace Dediu at Asymco, for example, seems particularly fond of them. It’s easy to see why. They have big blocks of color to attract the eye, and they don’t look as stodgy as their sibling, the stacked column chart. But I find them often misleading, even when their creator doesn’t intend them to be.

Here’s a fictitious example to show what I’m talking about. It’s a timeline of the change in market share, in percent, of three companies that are the only manufacturers of a particular device. We’ll call the companies Orange, Green, and Blue and use those colors in our charts. Let’s look at this chart.

Obviously, Orange started out dominating the market, but Blue expanded rapidly and took over. But here’s the harder question: How did Green do over this period?

Answer first, then read. Strong argument. You can, as he says, move them around so Green is on the bottom, but what if you have a four-way split and you’re trying to get them to represent correctly?
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HTC reportedly to set up independent VR company » Digitimes

HTC plans to spin off its virtual reality (VR) business unit to form an independent company in a bid boost its VR business operations, according to a Taipei-based Central News Agency (CNA) report.

HTC and its chairperson Cher Wang will hold a 100% stake in the planned VR company initially, the report said. HTC did not comment or confirm the report.

Wang said earlier on the sidelines of CES 2016 that HTC will set up an independent business unit to develop and operate VR platform products with the possibility that the unit may operate outside HTC.

Remember when HTC bought a chunk of Beats and then sold it – making an overall profit of $80m? Maybe this could be like that.
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Errata, corrigenda and ai no corrida:

Start up: Apple’s $8bn tax bill?, the tech funding squeeze, Friends Liquidated, Samsung ‘Live Photos’+ more

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At least you knew that the advert might be seen by real people. No such assurances in the online world. Photo by University of Pittsburgh Libraries on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 12 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Why you should never consider a travel planning startup » Tnooz

Nadav Gur, principal at NG Vanguard Enterprises:

First, you need to acquire users. Guess what — if they’re not planning a trip, they’re not interested in travel planners. They don’t even acknowledge their existence.

People are bombarded by new websites/apps/brands all the time, and they filter for what’s relevant.

That’s what you see GEICO ads on TV all the time – cause the only way to get your attention those 1–2 times a year when you give a damn about insurance, is to be in front of you all the time.
No matter how much press/word-of-mouth/viral exposure you’re getting, it only registers if/when it happens to be relevant.

Inevitably this means that you too have to advertise a lot. And no, free user acquisition schemes like SEO do not work in 2015 at scale in established markets.

The Priceline Group spends over $2bn per year on Google Ads alone. Guess why?

Not so easily disrupted. And that’s before you get to the question of how many people spend enough on travel for any affiliate amounts to be worthwhile.
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Tech faces hour of reckoning as fundraising drops, layoffs rise » USA Today

Jon Swartz:

Is tech in for a rude awakening this year after a magic carpet ride the past few years?

The numbers, and recent actions by once-highflying start-ups, would seem to suggest so.

Consider: Mega-rounds, defined as funding of more than $100 million for venture capitalist-backed companies, are in free fall. The rate of private start-ups attaining unicorn status — a valuation of at least $1 billion — are grinding to a crawl. Friday layoffs at tech start-ups, deemed Black Fridays, are increasing. Bellwether tech stocks such as Apple, Google, Facebook and Amazon have been taking it on the chin.

“It’s a time to re-calibrate — so many companies can’t burn extraordinary amounts of money forever,” says Sunil Panel, co-founder of Sidecar, a pioneer in the crowded ride-sharing space that shuttered operations on Dec. 31.

Last year, Silicon Valley projected unbridled swagger. Today, “there is definitely an era of reckoning,” says Chris Sacca, a venture investor with stakes in Uber and Twitter. “Reality is setting in.”

Not sure about “grinding to a crawl” (note to USA Today subs: things grind to a halt, or slow to a crawl), but the slowdown in stupid ideas is palpable.
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European antitrust chief takes swipe at privacy issue » The New York Times

Mark Scott on the EC’s Margrethe Vestager’s speech at the DLD conference:

“If a few companies control the data you need to cut costs, then you give them the power to drive others out of the market,” Ms. Vestager said at the DLD conference, a gathering of digital executives and policy makers.

She said that “it’s hard to know” how much data is given up when using an online messaging service.

“But it’s a business transaction, not a free giveaway,” she continued. “As consumers, we need to be treated fairly.”

Ms. Vestager’s warning shot in the often-rancorous privacy debate comes ahead of a Jan. 31 deadline for Europe and the United States to reach a new data-sharing agreement…

…A number of European executives echoed Ms. Vestager’s fears about how a small number of American tech companies could use their large-scale data collection to favor their own services over those of rivals. Among them was Oliver Samwer, the German entrepreneur who co-founded Rocket Internet, one of the region’s most high-profile tech companies.

“If someone like Google or Facebook has all of the data, then that’s not good,” Mr. Samwer said here on Sunday.

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Whatsapp goes free, says it won’t introduce ads » Mashable

Whatsapp readily acknowledges that killing its only source of income will raise questions about introducing third-party ads. But the company has a different idea.

“Starting this year, we will test tools that allow you to use WhatsApp to communicate with businesses and organizations that you want to hear from. That could mean communicating with your bank about whether a recent transaction was fraudulent, or with an airline about a delayed flight,” the post reads.

We reckon Whatsapp will charge organizations and business for establishing channels with their users through the service, though no details were announced. The idea is by no means new; a Bloomberg report in May 2015 claimed Whatsapp might foray into B2C messaging in the “longer term.”

Perfectly sensible business idea, and could also turn it into a platform like WeChat (whose capabilities and inclusions dwarf those of any western app).
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Friends Reunited website to close down » BBC News

Zoe Kleinman:

Friends Reunited launched in the year 2000 and was bought by broadcaster ITV for £175m ($250m) in 2005.

However, it failed to keep pace with other social networks.

It was sold to comic publisher DC Thompson for only £25m in 2009 and Mr Pankhurst wrote in a blog post that the company had offered it back to him a couple of years ago.

Pankhurst and business partner Jason Porter agreed to take on the site for a trial period to see if they could revitalise it.

“It became clear that most of the actual users coming to the site were using it purely as a messageboard,” wrote Mr Pankhurst.

“And I also realised that of the more than 10 million users registered, a lot had done so over a decade ago and hence their contact details were out of date. But importantly – it hasn’t covered its costs and like any business this can’t continue indefinitely. Therefore, whilst it’s sad, I believe it’s time to move on and put Friends Reunited to bed.”

Quite why ITV or DC Thompson bought it is one of those mysteries of business; it was never remotely a fit with either. So after ruining many marriages (of people who looked up old school flames), it’s handing that particular torch over to Facebook, where people can do exactly the same…
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Pakistan lifts ban on Youtube after launch of own version » Reuters

Tommy Wilkes:

Pakistan said on Monday it had removed a three-year ban on YouTube after the Google-owned video-sharing website launched a local version that allows the government to remove material it considers offensive.

Pakistan banned access to YouTube in September 2012 after an anti-Islam film, “Innocence of Muslims”, was uploaded to the site, sparking violent protests across major cities in the Muslim-majority country of 190 million people.

The Ministry of Information Technology and Telecom said in a statement that under the new version of YouTube, the Pakistan Telecommunication Authority can ask for access to offending material to be blocked.

“On the recommendation of PTA, Government of Pakistan has allowed access to recently launched country version of YouTube for Internet users in Pakistan,” the ministry said.

“Google has provided an online web process through which requests for blocking access of the offending material can be made by PTA to Google directly and Google/YouTube will accordingly restrict access to the said offending material for users within Pakistan.”

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November 2013: Bitcoin under pressure » The Economist

The Economist doesn’t name writers, but I happen to know this is by Glenn Fleishman, writing back in 2013:

Server farms with endless racks of ASIC cards have already sprung up. But as part of Bitcoin’s design, the reward for mining a block halves every 210,000 blocks, or roughly every four years. Sometime in 2017, at the current rate, it will drop to 12.5 Bitcoins. If the returns from mining decline, who will verify the integrity of the block chain?

To head off this problem, a market-based mechanism is in the works which will raise the current voluntary fees paid by users (around five cents per transaction) in return for verification. “Nodes in the peer-to-peer network will try to estimate the minimum fee needed to get the transaction confirmed,” says Mr Hearn.

Bitcoin’s growing popularity is having other ripple effects. Every participant in the system must keep a copy of the block chain, which now exceeds 11 gigabytes in size and continues to grow steadily. This alone deters casual use. Bitcoin’s designer proposed a method of pruning the chain to include only unspent amounts, but it has not been implemented.

As the rate of transactions increases, squeezing all financial activity into the preset size limit for each block has started to become problematic. The protocol may need to be tweaked to allow more transactions per block, among other changes. A further problem relates to the volunteer machines, or nodes, that allow Bitcoin to function. These nodes relay transactions and transmit updates to the block chain. But, says Matthew Green, a security researcher at Johns Hopkins University, the ecosystem provides no compensation for maintaining these nodes—only for mining. The rising cost of operating nodes could jeopardise Bitcoin’s ability to scale.

Following Mike Hearn’s farewell the other day, I think Fleishman is allowed to say “told you so”.
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“Bitcoin Boulevard” no longer booming » Marketplace.org

Elizabeth Miller:

It’s been almost two years since a group of businesses in a Cleveland suburb started accepting digital currency bitcoin as a form of payment. The response at first was huge.  Visitors from around the world stopped at what became known as “Bitcoin Boulevard.” But now, the bitcoin hype has subsided. 

Along a lane of small retail stores, restaurants and bars, nine independent Cleveland Heights businesses banded together to form Bitcoin Boulevard in May 2014. But today, two of those businesses have closed, one is not actively accepting bitcoin, and a wine shop ceased most of its bitcoin transactions after the Ohio Division of Liquor Control banned alcohol purchases with the digital currency.

Mitchell’s Fine Chocolates is one of the original nine businesses. Owner Bill Mitchell says he started seeing a drop in bitcoin payment when its value dwindled at the beginning of 2015.

“Since the latter part of the winter of this year going through the end of October, it’s been deader than a doornail,” said Mitchell.

Mitchell isn’t the only one seeing a drop in bitcoin business. Shawn Paul Salon says it has only had six bitcoin transactions in the past 18 months. That’s a lot less exciting than everyone had hoped.

Reality check.
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The problem with Adgorithms’ prospectus » Investors Chronicle

Alex Newman, on the AIM-listed ad tech company whose shares have plummeted by 80% from their IPO:

So what went wrong? This is what the company said in its first profit warning, on 9 October, explaining a “significant” and indefinite impact on revenue:

“In recent weeks, the online advertising market has experienced severe disruption, resulting in a loss of supply for major online advertising exchanges and a drop in demand from major media buyers.”

In fact, this disruption had begun several months before, even prior to Adgorithms’ listing. In April, media trading platform news site adexchanger.com reported that AppNexus – which, together with fellow ad exchange Adap.TV related to the majority of Adgorithms’ 2014 revenues – had started screening out unverifiable media inventory. AppNexus’ chief executive, who followed several other ad exchanges when he launched the clean-up in November 2014, later acknowledged that more than half of the impressions flowing through his platform were failing the test. This has had the dual effect of suppressing Adgorithms’ revenues and – according to Peel Hunt analyst Alex DeGroote – increasing the cost of digital media.

Adgorithms certainly should have known about AppNexus’ clean-up plans before listing, and was aware that at least one of its peers had been hit by the broader changes. In April, fellow Israeli ad tech group Matomy Media (MTMY) issued a profit warning, citing the “implementation by one of the leading media trading platforms [this was AppNexus] of a new media verification and screening tool that resulted in an immediate decrease in the amount of digital media available for purchase”.

“Unverifiable” inventory is what can also be called “fraudulent” ads – shown to bots on sites that humans never visit. It’s worth visiting the AdExchanger link (“screening out unverifiable…”) which points to just how much junk and fraud there may be going on.

Seriously, online ads have ended the age of “half of what I spend on advertising is wasted”. Now you have no idea what proportion it may be if you’re using an ad network.
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Samsung to launch Live Photos rival called Vivid Photo with Galaxy S7 » Android Geeks

Marius Maria:

Back in September, Apple launched the iPhone 6S which comes with Live Photos, a feature which captures 1.5 seconds of video before and after a picture is taken. HTC’s Zoe Capture was capable of doing the same thing long before Live Photos, but this gimmick only became cool now because Apple has it on its phones.

But Samsung wants to jump into the Live Photos bandwagon, too. According to one of our sources the software engineers of the South Korean phone maker are testing a Live Photos-like feature that is supposed to debut with the Galaxy S7 later this year.

Not sure about the “But” beginning that second paragraph. All sorts of words fit better: “Now”, “Predictably”, “Unsurprisingly”. Cold comfort for HTC.
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App economy jobs in the United States (Part 1) » Progressive Policy Institute

Michael Mandel:

Is 1.66 million a reasonable figure for US App Economy employment? This figure is based on our estimate of roughly 550,000 core app economy workers. That’s out of roughly 5 million people employed in computer and mathematical occupations or as computer and information systems managers. In effect, core app economy workers make up roughly 11% of the tech workforce.

Informal discussions with tech executives suggest that it’s reasonable to attribute roughly 11 percent of the tech workforce to the App Economy in the United States. Large portions of software development involve backend systems, such as financial and operation databases, which are not mobile specific. On the other hand, software development focused on online consumer or individual interactions must necessarily involve apps, because Americans increasingly access the Internet via their smartphone or other mobile devices. Going forward, mobile is likely to become more important rather than less, further pushing up the number of App Economy jobs.

We can do another comparison. In 2007, before the introduction of the iPhone, there were roughly 3.9 million people employed in computer and mathematical occupations or as computer and information systems managers. Since then tech employment has risen by 1.1 million, suggesting roughly half the net gain in tech occupational employment since 2007 has come from the App Economy.

For the job breakdown, it puts iOS at 1.4m (87%), Android at 1.1m (70%), BlackBerry at 107,000 (6%) and Windows Phone/Mobile at 45,000 (3%). Adds up to 166% because some people (two-thirds?) work on multiple ecosystems. (Via Horace Dediu.)
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Apple may be on hook for $8bn in taxes in Europe probe » Bloomberg Business

Adam Satariano:

The European Commission contends that Apple’s corporate arrangement in Ireland allows it to calculate profits using more favorable accounting methods. Apple calculates its tax bill using low operating costs, a move that dramatically decreases what the company pays to the Irish government. While Apple generates about 55% of its revenue outside the US, its foreign tax rate is about 1.8%. If the Commission decides to enforce a tougher accounting standard, Apple may owe taxes at a 12.5% rate, on $64.1bn in profit generated from 2004 to 2012, according to Larson, a litigation analyst for Bloomberg Intelligence.

Apple is perhaps the highest-profile case of US companies facing scrutiny from officials in Europe. Starbucks, Amazon and McDonalds also have had its tax policies questioned.

Several senators came to the defense of US companies on Friday. In a letter to US Treasury Secretary Jack Lew, bipartisan members of the Senate Finance Committee asked the administration to make sure that European regulators won’t impose retroactive penalties like those that would hit Apple.

Odd if Google, Microsoft, Facebook and Twitter aren’t also in this.
link to this extract

Errata, corrigenda and ai no corrida:

Start up: writing clickbait, search v the law, IAB disses AdBlock Plus, Android’s future in 2010, and more

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Bitcoin: a failed experiment, or still going strong? Photo by portalgda on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 12 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

The resolution of the Bitcoin experiment » Medium

Mike Hearn:

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Hearn’s article – in which he describes how he has gone from being an enthusiast and believer who left a safe job at Google to work on bitcoin – points to a looming problem: Chinese miners control over 50% of mining capability (the level where fakery becomes possible) and new proposals on fee payments could lead to transaction reversals.

I haven’t seen any adequate rebuttals of Hearn’s post (there are lots of ad hominem “don’t let the door hit you on the way out” responses, or others saying “everything’s GREAT, shuddup”), though this by “Bit Credit” makes a vague attempt. It also contains this passage:

from an economic interest it makes no sense to undermine bitcoin by fracturing it. And so surprise, suprise, bitcoin participants are making rational economic decisions. Bitcoin is not a democracy where 51% rules. In fact that is Bitcoin in a state of attack.

Bitcoin isn’t a democracy, in that its rules are determined by the core developers. But it is a democracy in that if 51% of miners start mucking about, bad things happen. And “attack”? Odd choice of word.
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How Peach onboards new users » User Onboarding

Peach is the darling of the app world right now, and their onboarding has been heralded as one of the best ever from a newcomer. Care to see why?

Without further ado, here is…

How Peach Onboards New Users

Well, it has sort of fallen out of “darling” status, but any app designer will learn from this – especially the “what is this? What does that word mean? Am I saying this to the whole world? HELLPPP!” It is 120 slides, but easy to click through.
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‘Shocking celebrity nip slips’: secrets I learned writing clickbait journalism » Broadly

Kate Lloyd:

Laura, another celebrity journalist who has worked online for popular tabloids, explains there are other times when she has had to sex up stories about celebrity women who weren’t even trying to be especially provocative. “You could do a red carpet round-up of ‘all these women look great in these dresses’ but you’d change it to ‘plunging necklines’ or ‘high splits,'” she explains. “Marriage announcements would be sexed up with ‘cleavage enhancing’ or ‘revealing’ outfit descriptions. You’d add in words like ‘nip slip’ even if nipples are nowhere near having a slip because that’s what people are searching for. It was literally just for SEO, and it was soul destroying.”

One journalist told me she worked on a site where every picture of a female celebrity — including those in full coverage outfits — was tagged with the word ‘panties.’

While you’re groaning at clickbait “shows her ex what he’s missing in tiny bikini” headlines, there’s a whole new level of trickery that lurks behind them. For example, a female celebrity recently posed for a tasteful set of nude photos with a glossy magazine, who published the story with an empowering, “you go girl!” headline. The page’s URL, however, was a chain of sexy keywords that simply ended with “nude-photos.” Things get especially murky once you delve even deeper into the behind-the-scenes sorcery. One tabloid journalist told me she worked on a site where every picture of a female celebrity—including those in full coverage outfits—was tagged with the word “panties.” I’ll also admit to using the phrase “nearly-naked” in headlines just to hit the search term “naked”.

And just when you’re wondering what the world would look like if women were in charge of search engine algorithms:

…Tabloid journalist Laura explains that while the amount of sexualized content about women isn’t decreasing, she’s starting to produce more sexualized content about men.

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A few keystrokes could solve the crime. Would you press enter? » Just Security

Jonathan Zittrain:

Suppose a laptop were found at the apartment of one of the perpetrators of last year’s Paris attacks. It’s searched by the authorities pursuant to a warrant, and they find a file on the laptop that’s a set of instructions for carrying out the attacks.

The discovery would surely help in the prosecution of the laptop’s owner, tying him to the crime. But a junior prosecutor has a further idea. The private document was likely shared among other conspirators, some of whom are still on the run or unknown entirely. Surely Google has the ability to run a search of all Gmail inboxes, outboxes, and message drafts folders, plus Google Drive cloud storage, to see if any of its 900 million users are currently in possession of that exact document. If Google could be persuaded or ordered to run the search, it could generate a list of only those Google accounts possessing the precise file — and all other Google users would remain undisturbed, except for the briefest of computerized “touches” on their accounts to see if the file reposed there.

A list of users with the document would spark further investigation of those accounts to help identify whether their owners had a role in the attacks — all according to the law, with a round of warrants obtained from the probable cause arising from possessing the suspect document.

So, if you’re the person receiving the search request at Google, should you run it? Zittrain takes you around the back-and-forth, which is subtle.
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The Long Goodbye » Anne Wheaton dot Com

Anne Wheaton:

I chose to be on Twitter. I am not a celebrity. I am a middle-aged woman who’s a retired hairdresser who now runs a non-profit, is on the Board of Directors at Pasadena Humane Society, has a house FULL of rescue animals, and has two wonderful boys. I do not have a job I need to promote, nor am I looking for a job to take on. I have a full life with an amazing husband and family, wonderful friends, and a successful business I run. If something I choose to do on the side isn’t fun, I need to walk away from it because my free time is pretty scarce. Twitter used to be the fun thing I did on the side, and for the most part, it just isn’t fun anymore, so I need to walk away from it and that’s okay.

I deleted my Twitter account last night and immediately felt relieved.

She’s married to Wil Wheaton, who has been anti-Gamergate, on the basis that reasonable people don’t abuse women and other people pointlessly and unceasingly. Increasingly, Gamergate strikes me as Twitter’s id; untrammelled raging male idiocy, which is never reined in by any form of superego (such as “is this really a good idea?”). And the concern is that that superego will never arrive. (Another thought is that with American politics becoming increasingly polarised, Gamergate backers are more aligned with the extreme Republican line of thinking, and certainly with its refusal to engage with any other viewpoint.)

Read her post from April on how quickly just “being a woman on Twitter” turned into “being someone at whom people post random, vicious, worrying things for no other reason than to be vicious and worrying.”
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Web-based OAuth is a security nightmare for apps » Terence Eden’s Blog

You know those apps where you go in and it asks you to authorise it using Twitter or whatever? Eden doesn’t like them:

In Periscope’s case, the user has to trust that the app hasn’t just ripped-off the Twitter website. There’s absolutely no way to verify that it is a genuine and secure login page.

Even if you have 2-Factor Authentication (where Twitter texts you a login code) you’re not safe. Why? Because if the app is intercepting your username and password, it can also intercept your 2FA code. Sure, it can only use it for a minute or so (with some restrictions) – but that’s enough time to completely take over your account.

As software developers, we have to stop encouraging this anti-pattern. Periscope is teaching users that it’s OK to type their password into any box which looks like it’s authentic.

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IAB dis-invites us, disses compromise and buries dissent » Adblock Plus

Ben Willians:

Adblock Plus has some very good relationships within the IAB (Interactive Advertising Bureau), which is the trade organization that represents advertisers and publishers. We coach many IAB members about our Acceptable Ads guidelines for reasonable, nonintrusive ads, and we have spoken on some IAB panel discussions (especially in the UK).

Unfortunately, the top brass at the US IAB don’t want us coming to their Leadership Summit next week in Palm Desert, California. We attended last year, and we signed up again for their 2016 meeting … including paying the hefty entrance fee. We were fully confirmed and they even listed us on their website as a participant.

Then this week we got one of those sudden emails that land in your inbox innocently, then floor you with something weird, unbelievable or ridiculous when you click on them. This one came from an unfamiliar IAB address, and it informed us that our registration for the summit was canceled and our fee refunded.

The IAB hasn’t said anything about why, as of the time of this post. Apart from a statement which said that “The IAB Annual Leadership Meeting is for serious conversation among important digital industry stakeholders.” Does it think adblocking isn’t serious, or isn’t important?
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There are no secure smartphones » Devever

Hugo Landau:

There are no secure smartphones.

This is a simple fact which is overlooked remarkably often.

Modern smartphones have a CPU chip, and a baseband chip which handles radio network communications (GSM/UMTS/LTE/etc.) This chip is connected to the CPU via DMA. Thus, unless an IOMMU [input-output memory management unit] is used, the baseband has full access to main memory, and can compromise it arbitrarily.

It can be safely assumed that this baseband is highly insecure. It is closed source and probably not audited at all. My understanding is that the genesis of modern baseband firmware is a development effort for GSM basebands dating back to the 1990s during which the importance of secure software development practices were not apparent. In other words, and my understanding is that this is borne out by research, this firmware tends to be extremely insecure and probably has numerous remote code execution vulnerabilities.

Thus, no smartphone can be considered secure against an adversary capable of compromising the radio link (called the Um link). This includes any entity capable of deploying Stingray-like devices, or any entity capable of obtaining control of a base station, whether by hacking or legal or other coercion.

It would, in my view, be abject insanity not to assume that half a dozen or more nation-states (or their associated contractors) have code execution exploits against popular basebands in stock.

Question then is how far up the stack you can get from the baseband.
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August 2010: Android’s pursuit of the biggest losers » Asymco

Horace Dediu, writing back in the days when Nokia and Sony Ericsson made handsets, and BlackBerry was big, noting that LG and Motorola and Sony Ericsson had lost money, though Samsung was doing OK:

how likely are these disrupted ex-giants to recover and take Android forward? My bet: slim to none. Android does not offer more than a lifeline. It is not a foundation for long-term profitability as it presumes the profits accrue to the network and possibly to Google. Profit evaporation out of devices to Google may be a possibility at some time in the future, but only if the devices don’t need too much attention to remain competitive. But because they’re still not good enough (and they won’t be for years to come), it’s certain that attention to detail is what will be most important to stay abreast of Apple.

So here we have the real challenge to Android:  partnership with defeated incumbents whose ability to build profitable and differentiated products is hamstrung by the licensing model and whose incentives to move up the steep trajectory of necessary improvements are limited.

In other words, Android’s licensees won’t have the profits or the motivation to spend on R&D so as to make exceptionally competitive products at a time when being competitive is what matters most.

He also points out that Windows Mobile had the same problem, seven years earlier.

Five years later, the point about long-term profitability and R+D is being borne out. Only Samsung has managed to stay profitable – because of its components businesses.
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Xiaomi finally releases 2015 sales stats » Tech in Asia

Erik Crouch:

The case of the missing phone statistics has finally been solved – today, Xiaomi revealed that it sold 70m smartphones in 2015, a number below even their most modest predictions.

It’s been apparent for a while that something went wrong for Xiaomi in 2015. In 2014, the company predicted that they would sell 100m phones in the coming year – an estimate that was promptly bumped down to 80m last March.

When late 2015 rolled around, and China’s techies eagerly awaited the company’s sales report, they were met with silence. CEO Lei Jun talked in December about how the company “does not emphasize goals such as smartphone sales anymore,” which certainly didn’t build anyone’s confidence that the company had met its targets.

As Crouch notes, 2016 could be make or break. With China’s smartphone market slowing down, it really needs to find something fresh.
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Delicious changes » The Official Delicious Blog

Delicious was the original bookmarking service (admit it, you thought it had just vanished):

My name is Tony Aly, and I’m the CEO of Delicious Media, a new company formed in alliance between my company, Domainersuite, and Science, the company that has managed Delicious since 2013. Science has transitioned control of Delicious to our new entity so that my team and I can dedicate ourselves to the long-term success and stability of this wonderful, useful, trailblazing site.

As part of this transition, over the next few weeks, we will be a making a few fairly prominent changes to the site.

The first big change you’ll notice is our transition from the javascript front-end framework that has been powering the content at https://www.delicious.com. The engineers who crafted this version of the site are incredibly talented, and their code is amazing. It’s beautiful and powerful, but it has posed several significant challenges for us. For example, the search engines have a real problem reading our content, hindering users’ efforts to use Google or Bing to find what they’re looking for on Delicious.

Translation: “damn engineers.” Except what’s the point of search engines indexing a bookmarking site? Delicious has been through so many changes of ownership – bought by Yahoo in 2005, then sold to YouTube’s founders, then sold on and on. Never quite manages to regain momentum. I use Pinboard – reliable, cheap, doesn’t mess about. And has a terrific Twitter feed.

For what might have been, read Bobbie Johnson’s article from 2005 about Yahoo buying Delicious.
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Wikipedia: an old-fashioned corner of truth on the internet » Telegraph

I wrote about Wikipedia’s 15th birthday (on Friday), and largely I have nothing but applause for its approach that anyone could write or edit, and its pursuit of the “neutral point of view”, and (especially) its ad-free ethos. Though:

That’s not to say it’s without faults. There are plenty, some deeply ingrained. Most of its editors are male, meaning topics relevant to women are underrepresented. As the site (and each editor) ages, it becomes harder to attract new editors as the existing clique becomes embedded. With no overall editor determining its direction or content, the topics and content can vary enormously. The world probably doesn’t need zillions of explanatory articles about the Japanese video game franchise Pokemon – but perhaps could do with some of the articles about less-simple concepts being rewritten to a more novice-friendly standard. That’s what the Encyclopaedia Britannica had that Wikipedia doesn’t: consistency.

But that’s also the web revealing our real character. Those who can be bothered to create are more interested in Pokemon than explaining maths or science. We peer into Wikipedia, and see ourselves peering back.

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Errata, corrigenda and ai no corrida: none noted.