politics for the really cool
\"We celebrate the day when the government was overthrown.
Old, 135 pounds, shirt to his jeans knees, 4-
Parekh is an inch of black goat beard hanging from the face of an unborn man, and he is not a violent revolution to establish a dictatorship of the proletariat.
Patrick is a new libertarian.
His weapon: software.
Parrick trades in substances known as \"strong passwords\" in his peers, and crypto software is much stronger than what American companies allow to export.
Cryptography is the science of encrypting information, so they cannot be read by prying eyes.
Is the lifeblood of telephone business;
Credit card verification, bank ATM transaction, wire transfer.
Useful to cheats.
It is great anti-authoritarian.
After encryption with powerful enough code, phone calls become unswitchable, and written information or computer files become undeciphable.
Federal authorities are trying to limit the spread of the technology abroad.
But they don\'t match Pareh and other rebels with programming skills.
For the past three years, Parrick has been combining complex computer science with libertarian philosophy, selling a foreign manufacture in undisclosed territory through a subsidiary of angulia.
So his company, C2Net, surpassed the United States. S.
Looking ahead, the challenge of cryptography to Washington\'s authority;
In fact, this is true for all governments; is daunting.
Even if the federal government can in some way prevent Muammar Gadhafi from using a powerful password;
It is very doubtful at this point;
It will still worry domestic users about all kinds of problems.
\"I realize that it is not feasible to protect privacy on the Internet without viable business support. \"-
Sameer Parekh encryption technology is very useful for anyone who can\'t afford to leave a trail of papers.
This could be the details of someone running an illegal gambling business, or conducting insider trading, or distributing child pornography, or arranging cocaine shipments.
It could also be a perfectly legitimate business operator, except for the prying eyes that he did not want to pay income tax or otherwise submit his transaction to the increasingly invading government.
Parrick envisioned a revolution in which the buildings of the federal government would not be burned down, but simply had no money.
The government is still there, but it will not be the huge welfare state we have today.
This will be the minimalist version seen in places like Hong Kong;
The law and order, the sanctity of the contract and the minimum social security are strong, but that\'s all.
Former chairman of Citibank, Walter Wilston, wrote a chapter in his brilliant 1992 book, The Twilight of sovereignty, about the history of cryptography.
Wriston foresaw the weakening of technical forces by governments and recognized that cryptography would play a key role.
He learned something from his personal experience.
During World War II, he was responsible for the mechanical and electrical equipment used by the Allies to encrypt information.
Wriston believes that encryption technology is a key factor in the transfer of social and economic power by the national government --
Status of PC-
Because the success of internet commerce depends on powerful password technology, its popularity is inevitable.
\"There is nothing the government can do about it,\" said Wriston . \".
\"This is another thing between their fingers.
Please be happy, liberals.
Supporters of Hillary Clinton and the nanny state lamented.
If you want to participate in the crypto revolution against the big government, you don\'t have to go with an arms dealer in a dark alley.
Go to the Internet cafe.
Good Privacy (PGP)
$99 to $249 is a popular show.
The other is SynCrypt from SynData Technologies Inc. , just out. Using this off-the-
You can handle the shelf materials of your business with complete privacy.
No worries about spies.
With the current known code cracking technology, it will take a billion years of supercomputers to predict your information.
There is another dimension to the spread of passwords.
The same math trick used to encode messages can be run in reverse to generate so-
Called Digital signature
This is a real computer stamp.
It can be used to prove that electronic documents originated from specific senders, such as bank depositors or bank officials.
Combine several digital signatures in a clever way, and you have created a mechanism for digital cash;
An electronic payment system similar to Visa or MasterCard, but added an anonymous feature.
Think about it.
A real but untraceable transfer.
Secure anonymous email
Cash could lead to a boom in business on the Internet and reduce the billions of dollars in processing paper checks and paper credit each year --card chits.
Of course, this is bad news for the IRS and its 3,570 revenue --
Page maze of tax code.
When more and more money appears on a satellite in the sky in the form of digital signals, what happens to the Fed\'s control over money supply?
Once the cash is invisible and no paper marks are left, how do you stop money laundering?
How do you catch tax evaders?
\"It\'s easy to be the most important privacy issue in a decade, and probably the most important policy issue. \"-
David Friedman of the IRS estimates that the company loses $120 billion a year for unreported revenue. When E-
Cash is becoming more and more common, and this number will become larger and larger.
After all, the underground economy sometimes comes out.
Dogs can smell traces of cocaine in a bag of notes.
Dogs have no smell in the Earth economy.
For libertarians, today\'s encryption technology is the best thing ever since the right to carry weapons.
After all, when you can order tea from tax, why is it arrested for dumping tea to the port
Free jurisdiction over the network, encryption of purchase orders, payment in anonymous digital currency?
Liberals see encryption as a weapon to a bloodless grass-roots revolution in which income streams replace street barricades as a battleground.
\"We are concerned about the kidnappers. we are concerned about terrorists. we are concerned about the integrity of the banking industry. we are concerned about legitimate interests and economic secrets . \" Two years ago, the FBI director told members of the International Institute of crypto.
Freeh has been struggling with tighter government control over encryption.
He wants to have a \"key hosting\" bureaucracy that will hold encryption keys that can be used to interpret any encrypted messages if they are deemed necessary by law enforcement.
But do we want to give that great power to the bureaucrats?
\"Go back to England, when the king wants to draw out what we call terrorists today;
In retrospect, the people we see are patriots;
He wants to open the envelope . \"
\"Nothing has changed;
Now the government wants to open your emailmail.
If I were the national drug czar, I would have done the same.
The problem is that none of us believe that the government will limit this interception to these specific information.
\"If the FBI is threatened, it doesn\'t totally frustrate the seemingly excessive number of libertarian people in the hacker community.
\"With the internet everywhere, passwords are cheap and accessible, and the government is getting harder and harder to control transactions between people,\" 24-year-old Adam Shostack claims. year-
Customers include old password consultants invested by Fidelity.
On February, he instructed participants at the financial encryption conference to use encryption to protect large networks from attackers and cheaters.
Venue: Caribbean tax haven, Anguilla Island.
It\'s too early to name it, but computer technology and modern communications are at the threshold of creating a new political movement.
Talk to David Friedman, professor of economics at the University of California Santa Clara.
Friedman supports an-big-
Even better than his famous father Milton Friedman\'s philosophy of government.
He called a series of issues raised by encryption \"the most important privacy issue in a decade, perhaps the most important policy issue.
\"He acknowledged the shortcomings of the technology to be useful to offenders.
But the benefits of universal privacy outweigh the disadvantages, he said: \"Overall, it will be a change in a more free and interesting society.
\"Cryptography, the craft of Secret Writing, is almost as long as writing itself.
The bad guys always use it. So have rebels. Its better-
For a long time, the well-known application is to develop a military plan for security and a spy Bulletin.
The biggest user today, if not the government, is the banking industry.
Encryption guarantees more than $1 trillion a day for Fedwire and chip systems.
Modern cryptography was born at Stanford University twenty years ago.
It is called public key encryption by Whitfield Diffie and Martin Hellman.
In classical cryptography, keys are kept secret.
The sender will encode the document using a key or formula;
The receiver will use formulas closely related to decoding.
For communication, the sender and receiver must share the key.
This is usually a weakness.
The messenger sent to transfer the key may be intercepted or leaked. With public-
The key is encrypted to solve this problem.
The recipient of the confidential message creates the encoding and decoding key at the same time.
The special arithmetic of these keys, perfected by three mathematicians at MIT, is such that it cannot be distinguished from the other: knowing the encryption formula will never tell you how to interpret the message.
Therefore, the recipient does not need to give special consideration to his choice of messenger to deliver the encryption key.
In fact, he has the ability to publish keys that the world can see. Modern-
The practice of the day is to dump the key to the Internet home page or server.
What makes encryption a killer app?
The MIT algorithm requires the sender and the receiver to perform billions of calculations on each message, which was not possible until recently.
The rescue of Moore\'s law.
The computing power is doubled every 18 months, making it 166-
Million Hertz Pentium
Any plan in-line.
When you send an order over the internet, your mail content will go through a series of network routers and servers before reaching the final destination.
Anyone who controls one of the machines along the way can intercept your credit card information.
You will not send an order unless you know it is safe.
This is an imaginary scene.
You work at Apple and know that two days before the announcement, Microsoft will put in some cash, which may have an impact on the stock price.
You tip your brother. in-
By law, he will provide tips to third parties, who are active traders in technology stocks.
Do this by phone, and even if you have never seen a trader, you have a fairly high risk of being caught.
So you and your brother encrypt the stock tipsin-
The public key of the law, and it is published on the internet, perhaps in the middle of a chat room visited by many people. Your brother-in-
The same is true of the law using the trader\'s public key.
For an outsider, both of these messages appear to be meaningless rubbish.
They know nothing about whose key is used to encrypt them.
Convicted insider trader Dennis Levin used a secret account in the Caribbean.
But how do you use an offshore account without going through customs or making phone calls?
In view of the powerful features of encryption and digital signature, modern-
Levine can do anonymous emails
Without making any suspicious calls or flying, you can trade from his comfortable home computer.
Perhaps one day the government will have to abandon the liberal view that laws against insider trading will only hinder the efficiency of the market?
\"Because passwords are easy to access, it is difficult for the government to control transactions between people. \"-
Maybe one day it will be Adam shukard.
Meanwhile, the government is trying to put the crypto genie back in the bottle.
Current export controls allow the sale of weak passwords (
The kind that the National Security Agency might crack)
But it\'s not a password that takes trillions of years to crack.
The problem is that the basic skills are well known;
In fact, the equations that drive these public-key systems are published by Swiss mathematicians in their 1760 s.
Any reasonably capable Russian programmer can re-invent the software from scratch, which is what is happening (see box, p. 174).
At this point, trying to regulate cryptography is like trying to reduce the murder rate by regulating the sale of kitchen knives.
The next battlefield will be around digital currency.
A system, Mondex, has been adopted by an international banking consortium led by National Westminster.
However, the system includes a digital tracking that can be called.
Password author David Sham says his competitive product is anonymous and cannot be tracked;
Except for people who spend money.
Customers want to be anonymous, he said; that\'s why 2.
6 billion $100 bills are in circulation.
SHOM is at a distance from the liberal crowd, but his preaching about letting us spy is the music in their ears.
His invention is likely to lead to a society supported by Friedman and Parrick, in which widespread encryption forces the government to accept the less disruptive role in the flow of information.
Now, the government has policy on prescription drug claims, which can be said in real estate ads, that he can talk about publicly traded stocks and when and who can fund a political ad
Is all this necessary in order to preserve the federation and ensure domestic peace?
The answer depends on your politics.
If you\'re a liberal big government or a big government
Winger, the answer is yes.
But not everyone thinks we need as much government as we do now.
When he was 16year-old high-
A student in libertiville is ill.
Sameer Parekh hit 9,000 of Henry David solo.
An article on the Apple ii gs computer, \"civil disobedience,\" was posted on the electronic bulletin board.
The paper begins: \"I sincerely accept the motto\" The least governed government is the best \"and want to see it work faster and more systematically.
In the end, I also believe that it finally reached this point;
This government is the best, it is not managed at all.
On the World Wide Web, take a look at Thoreau\'s \"civil disobedience\" and you may see: what Sameer Parekh typed. . . .
1/12/1991 \"at the end of the article.
Over the years, many have copied the document and posted the full Parrick name and typos on their own website.
Soro\'s article refers to Thomas Jefferson, another hero of Parrick.
As it happens, one of Jefferson\'s many passions, as well as the United States in order to maintain its fledglingS.
The government as small as possible is cryptography.
In the 1790 s, he invented an elegant hand-held rotating password machine.
What can he do with his laptop!
There is something on the Internet that will resist authority.
\"Liberalism is more important in cyberspace than in real space,\" says David Friedman . \".
Almost all political discussionsline is pro-
Or anti-free will.
Liberalism is the central axis.
As a liberal axis? Perhaps.
The network executives have been challenging authority to return to the 1970 telephone dive zone, and they have used their electronic knowledge to beat Marbel for a long time.
Some mobile acrobats evolved into today\'s self.
The term combines the sci-fi genre of cyberpunk with the English \"crypto\" spelling.
The electronic punk family (
View internet newsgroup \"alt. cypherpunks\")
Including John Gilmore, one of Sun Microsystems\'s first employees and an early member of the Electronic Frontier Foundation.
The liberal axis is particularly powerful in the EFF, which defends hackers and crypto scholars against their federal opponents.
Programming in Berkeley
Mail server that allows subscribers to send and receive emails
Mail under anonymous or pseudonym, and access the Internet through a specially programmed \"anonymous\" server without leaving an electronic thread that can be used by the website operator;
Or the enforcer of the Securities and Exchange Commission;
Know who visited and when.
After dropping out of Berkeley in 1995, he worked full-time in protecting the identity of network operators.
Aware that the privacy of his users is only as secure as the server where their account is located, Parekh invites his friends in the hacking community to try to hack into the Web servers sold by Microsoft and Netscape.
Breakthrough of success
Ins was rewarded with a T-shirt. The results (
\"I have to stop handing out T-shirts \")
Let him believe that the real money earned is to sell explosion-proof products online. Server software.
Microsoft and Netscape are restricted by the United States. S.
Parekh takes the opportunity from exporting server software with strong encryption.
He took a copy of Apache, a popular server package that was offered free of charge on the Internet, and he set out to complete the heavy task of knitting
Write the encryption program to the server software.
Once he figured out how to do this, Parekh signed up with a programmer in a country he wouldn\'t name (lest the U. S.
Relying on the state to strengthen its password export laws)
Write the software and set up a sister company in Anguilla\'s Caribbean tax haven to sell it to the rest of the world.
If you don\'t like your country\'s tax rate or export laws, set up a Web server in a tax haven, Mando or Vanuatu in the Caribbean Sea, where to merge and run your business from anywhere through the Internet.
Countries like this use low taxes and secrecy protection to compete for corporate customs.
As the world economy becomes less and lessand factory-
Hope more countries welcome the border
In this economy, encryption provides two basic functions: it maintains transaction security in the World Network, which makes the nature of the transaction invisible in the spy of border guards and tax collectors.
Encryption of c2net less than a year later-
The DingTalk software runs on about 30,000 domain names;
More than any other commercial software that Netscape and Microsoft sell.
In the process, the United StatesS.
Lost a few high
Technical work, not to mention the tax on software sales.
Parekh predicts that taxes will decrease as more and more commercial transactions are encrypted and hidden in front of the IRS.
The decline in taxes will lead to the privatization of many of the government\'s current functions, and people will be more free to choose what services to spend money on.
They are even free to choose what kind of money to use.
Perhaps this is not the Fed\'s record.
Strangely, Federal Reserve Chairman Alan Greenspan did not fully disapprove of the libertarian goal of withdrawing funds from the exclusive control of the federal government.
Greenspan was a libertarian when he was young;
Regulars at Ayn Rand salon (1905-1982).
Mr Greenspan predicted that e-commerce would give birth to private money.
\"As the international financial system becomes more complex,\" Greenspan said at a Treasury meeting last year, \"our regulatory role is increasingly dependent on private markets.
Similar to regulations that appeared in more primitive forms in the 1850 s.
\"Greenspan made it clear that he did not think the government should try to stop the tide, although it would weaken the authority of organizations like his Federal Reserve Board.
He went on to say: \"What I am particularly concerned about is that we will not try to unduly hinder our latest innovations, electronic currencies, or, more generally, our increasingly extensive electronic payment systems.
\"Ian Goldberg is working on this very innovative work of folding encryption schemes together to create a universal digital currency that combines all the different forms of digital currency in the electronic market
Goldberg, a 24-year-old graduate student in Berkeley, Canada, spent most of his time fiddling with and researching crypto systems.
In September 1995, Goldberg set off a chill on the backbone of the Internet scene.
And the chain reaction of stock prices)
When he announced that he and his colleague David Wagner had discovered a major vulnerability in the security layer of the Navigator Web browser.
16 months later, in response to the challenge of security software company RSA,
Goldberg designed a program that uses the idle computing cycle of about 250 various workstations in the Berkeley Department of Computer Science to attack 40-
Bit key, the government\'s export restrictions on unregistered encryption software.
Goldberg\'s gang tried 100 billion keys an hour and cracked the password within 31/2 hours.
The experiment attracted attention.
Where is the end of all this?
Goldberg predicts that tax laws and business regulations will need to change in order to adapt to the world of encrypted Internetline business.
The FBI will have to track bombers by focusing on ammonium nitrate instead of by telephone lines.
\"Taxes must be based more on physical objects such as land;
\"Let\'s say one person is completely convinced of the tax,\" he said . \".
\"With encryption, you can not only hide your transactions, but also your assets.
Intellectual property is easily hidden.
\"As for the government\'s restrictions on encryption, Goldberg thinks these restrictions are more ridiculous than harmful.
\"I don\'t think the terrorists would say, \'Since there is a law against strong cryptography, we won\'t use it.
Walter Wilston said: \"There is no prayer to win against all these governments.
The Internet has strengthened strong encryption technology and has grown exponentially, and it will inevitably weaken the government we know, Wriston said.
\"They didn\'t have a chance to do that,\" he said with a smile . \".
\"No one can control it.
\"We don\'t know where it\'s going to end, nor do anyone else, but for good or bad, the impact on political, economic and human freedom is enormous.
The 20 th century is a century of great war and government;
Fascist, communist, welfare state
The 21 st century will be completely different. (
There are several early Forbes stories about encryption on our website www. forbes. com. )