Tether weakens Ecosystem with Wallet-Freezing Policy
Tether introduces a wallet-freezing policy targeting sanctioned individuals, diminishing its security. Aligning with global regulatory standards, the company now freezes wallets listed on the OFAC SDN List, ensuring the responsible use of Tether tokens and preventing misuse.
- The policy goes beyond Tether’s platform, affecting secondary market transactions to deter illicit activities.
- Paolo Ardoino, CEO of Tether, emphasizes the move as part of their effort to foster a safer and compliant stablecoin ecosystem.
https://tether.to/en/tether-introduces-new-policy-to-strengthen-ecosystem-security/
Bipartisan Support for Digital Asset Anti-Money Laundering Act Grows
Five new senators have joined as cosponsors of the Digital Asset Anti-Money Laundering Act, led by Elizabeth Warren, to enhance regulations on crypto assets for preventing illicit activities.
- The act aims to extend anti-money laundering and counter-terrorism financing frameworks to the digital asset ecosystem, closing loopholes and increasing compliance.
- The bipartisan support includes members of the Senate Banking Committee, signaling growing concern over the use of cryptocurrencies in money laundering, ransomware attacks, and other financial crimes.
LogoFAIL: Universal Firmware Exploit Threatens Windows and Linux Systems
A new firmware attack named LogoFAIL has been discovered, targeting computers running Windows or Linux on UEFI firmware by IBVs such as AMI, Insyde, and Phoenix. This vulnerability allows attackers to rewrite the boot-up logo, bypassing advanced security measures and potentially installing undetectable bootkits.
- LogoFAIL executes during the DXE phase of the system boot, impacting platforms with Intel, AMD, or ARM processors.
- While Macs and certain OEM PCs have protection against this exploit, many systems are at risk and require UEFI security patches from their motherboard manufacturers or OEMs.
Relational Contracts & Trust Networks via Nostr
Though bitcoin operates without a need for trust, real-world economic activities often still require it. The article explores how Relational Contract theory can establish and quantify trust through Nostr, highlighting that economic transactions can maintain stability without third-party escrow or the threat of violence. The concept is that trust is built through repeated successful exchanges where both parties recognize mutual benefits, leading to stable trading relationships.
- The challenges of relational contracts, such as bootstrapping trust from zero and the costliness of destroying relationships, can be mitigated through strategic interactions and cost signalling.
- The author proposes a sybil-resistant proof-of-trade-history that leverages a voluntary transaction rake to build reputational data, which could shift the preference towards honest cooperation rather than defection.
- Potential for Nostr lies in markets dominated by a few companies that inhibit free interaction, where peer-to-peer transactions via Nostr can lead to substantial market improvements and drive bitcoin adoption as the default currency.
- The author expresses optimism for Nostr's potential to reshape economic systems and ends the article with a personal note on starting an aerospace & defense startup, inviting interested readers to get in touch.
https://heaviside.substack.com/p/nostrato-how-relational-contracts
The Church of Complexity: Simplify, Don't Overcomplicate Tech Solutions
The tech industry's propensity for overcomplexity in solutions, especially through microservices, has become increasingly problematic, fueled by trends such as JavaScript's use in server development and the influence of FAANG veterans in startups. This complexity is often unnecessary and can lead to significant waste of resources without obvious benefits.
- Successful startups often adopt a 'Keep It Simple' mentality, proving that simplicity can lead to better performance and reduced costs.
- Companies can experience better outcomes with simple, performant systems rather than adopting microservices prematurely, a move that often results in increased difficulty and cost.
https://renegadeotter.com/2023/09/10/death-by-a-thousand-microservices.html
Bitkey's Bitcoin Wallet Recovery Strategy
Bitkey introduces a comprehensive recovery system aimed at helping customers regain access to their Bitcoin wallets. It offers features like Cloud Backup for lost or upgraded phones, Delay and Notify for lost hardware, Social Recovery for multiple lost components, and Break Glass for discontinuing the current app version. Industry experts suggest enhancements in security measures and additional trusted contact verifications.
- The recovery paper released by Bitkey reveals detailed mechanisms, ensuring users understand how to utilize the various recovery options available.
- Bitkey is considering expert feedback to refine the security and user experience before the official launch, with plans to make the code available for public review.
Geothermal Breakthrough in Nevada
A novel geothermal project by startup Fervo has begun supplying electricity to a local grid serving Google's data centers, marking a landmark achievement for renewable energy. Dubbed Project Red, this operation in Nevada is the first to efficiently exploit the Earth's heat using advanced geothermal technology, potentially paving the way for widespread use of this green energy source, despite its current minimal contribution to the global power supply.
- The endeavor uses an 'enhanced' geothermal system to create artificial hot springs by injecting water into dry rock, heating it enough to generate power—a technique adapted from hydraulic fracturing.
- With initial success, producing 2-3 megawatts and the potential for more, Fervo's CEO Tim Latimer sees the project as a scalable solution that could significantly increase the viability of geothermal energy worldwide.
Countering Terrorist Financing in the Digital Age
The U.S. Department of the Treasury is looking to bolster counter-terrorist financing measures, particularly addressing the misuse of cryptocurrencies by organizations like Hamas. In a letter and accompanying memo, the Treasury has proposed several recommendations to strengthen its authorities and close perceived gaps in current financial regulations.
- Among the proposals is the introduction of a new authority analogous to secondary sanctions specifically targeting crypto transactions that may aid terrorists. This could include additional record-keeping requirements or even bans for financial institutions on certain types of cryptocurrency dealings.
- The Treasury suggests categorizing entities such as virtual asset wallet providers, blockchain validators, and decentralized finance (DeFi) services as "financial institutions," making them subject to the Bank Secrecy Act. This would treat wallet providers, miners, and DeFi service providers similarly to traditional financial institutions in terms of regulation.
- The Treasury also seeks to extend the IEEPA to include "blockchain nodes or other elements of cryptocurrency transactions," aiming to sanction these technological components directly in response to the Tornado Cash litigation, despite acknowledging the technical and constitutional challenges such measures would face.
- The proposals underscore the struggle to balance necessary national security interests with constitutional rights such as freedom of expression. The efficacy and legality of these measures will depend on their precise legislative drafting, and significant scrutiny is expected as they develop.
Ronaldo Sued Over Binance Promotion
Cristiano Ronaldo, the world's top-earning athlete, is embroiled in a billion-dollar class action lawsuit. His involvement with Binance, a cryptocurrency exchange recently fined $4 billion, has led to claims that he aided the sale of unregistered securities.
- Binance faced severe penalties after a settlement with the U.S. government, with its CEO stepping down amid allegations of fraud.
- Other celebrities have also faced lawsuits for endorsing crypto projects, reflecting a growing scrutiny on famous figures promoting financial investments.
Pentagon Fails to Account for Billions in Audit
The U.S. Department of Defense has failed its sixth consecutive audit, demonstrating an ongoing inability to account for billions in spending. Despite the Pentagon's budget approaching $1 trillion—the largest of any federal agency—it has never passed an annual audit required by Congress and lacks a clear timeline for when it might achieve this. The latest audit examined $3.8 trillion in assets and $4 trillion in liabilities, with the Pentagon arguing they have made progress, though there is no concrete evidence to support this claim.
- The Pentagon comptroller and other officials have failed to provide a definitive deadline for passing the audit, moving away from a previously suggested 2027 target.
- President Joe Biden's budget request for a record $886 billion for the Pentagon faces the possibility of an additional $80 billion increase by Congress, despite the ongoing audit failures and threats of a government shutdown over spending concerns.
Dwindling Attraction of U.S. Treasury Bonds
U.S. Treasury bonds are facing a severe demand crunch, resulting in the worst downturn since the Civil War. Factors such as increased borrowing by the government and a reduction in purchases by traditional buyers have led to high yields and struggling bond auctions. The scenario is compounded by the Federal Reserve offloading its bond holdings and major foreign creditors like China and Japan selling their bonds due to currency pressures.
- Treasury bonds offer lower yields than short-term bills, causing investors to prefer the latter.
- The U.S. spends a significant portion of its GDP on debt servicing, with expectations of this cost rising, setting the stage for continued borrowing amid shrinking demand from global and domestic buyers.
https://www.semafor.com/article/11/28/2023/nobody-wants-us-treasury-bonds
Wallet of Satoshi Pulls Out of U.S. App Stores
Popular Bitcoin wallet, Wallet of Satoshi, has ceased its operations in the U.S. following its delisting from the Apple and Google app stores on August 12th, 2021. The Wallet of Satoshi team cited regulatory pressures as the reason for the withdrawal and assured current U.S. users can still transfer their funds seamlessly from the custodial wallet. With the future uncertain for Wallet of Satoshi, the article warns against the use of custodial solutions and non-open-source software and hardware for Bitcoin, urging users to opt for self-custody and open-source alternatives.
- Non-custodial Bitcoin wallets like Phoenix, Zeus, and Breez offer features such as channel balance visibility, seed phrase backups, and just-in-time channels.
- The event underscores the importance of self-sovereignty in the cryptocurrency space, as reliance on third-party custodians can lead to compromised security and loss of funds due to regulatory or operational changes.
https://sovereignoutcomes.com/transfer-your-fund-from-wallet-of-satoshi-immediately
U.S. Government Collects Vast Citizen Data
The U.S. government has been covertly gathering substantial amounts of sensitive personal data on American citizens, as unveiled in a declassified report by an advisory panel to Avril Haines, the director of national intelligence. The data collection raises significant privacy concerns, suggesting a gap between legal surveillance limits and the government's activities.
- The government bypasses the need for warrants by purchasing the data, exploiting legal ambiguities and weak privacy laws.
- Advisers highlight risks such as "mission creep" and potential misuse for stalking or harassment, underscoring a disconnect between public perception and actual government surveillance capabilities.
https://www.wired.com/story/odni-commercially-available-information-report/
“The monetary system strongly effects almost all aspects of our existence. It is the most fundamental infrastructure of society.
It is painfully obvious to me that our current societies are sick and self-destructive, and it seems like the most effective way to help heal is to accelerate the transition to a strong monetary system, that is based in math, to recover from this weak fiat money that is toxic to everyone, even including the people who think they'd profit from printing it...”
Don't put the logic in the view. Or the controller. Or the model. Or the database. Just turn off the computer. Go and read a book.
Getting banned on Twitter has been the best thing that’s happened to me recently. Without that happening, I wouldn’t have gone down the nostr rabbit hole.