Dec 17, · New York: Bitcoin surpassed $21, for the first time, another milestone in what’s been an eye-popping rally for the controversial digital asset this year. The world’s largest cryptocurrency surged as much as 10% to $21, in New York on Wednesday, vindicating forecasts that were scoffed at months ago and leading to even higher prognostications. The general feeling is that banks getting on board with Bitcoin is a good thing. But, should we as libertarians and seekers of financial democracy be worried? As Kern alluded to, the banks have had it their way for so long. And so it’s difficult to imagine they also want financial democracy. Bitcoin satoshi vs democracy has been praised and criticized. Critics noted its use in illegal transactions, the large amount of electricity misused by miners, price volatility, and thefts from exchanges. whatever economists, including several Nobel laureates, have characterized it as a speculative bubble.
Bitcoin democracyBitcoin crosses $21,mark for first time amid dizzying rally
Forget it, says Barbara Simons. She is a long-standing critic of online voting, and her research caused the US Department of Defense to nix an Internet voting system it was considering.
There are several challenges facing Internet voting systems. One of the biggest is auditability. How can you prove that a vote was cast the proper way? And when it comes to a recount, there is no paper trail.
Some are mulling block chain-based systems to help solve the tangled problem of Internet voting. Block chains are already used to encode information from — and about — a particular source, made at a particular point of time. The fraudster could simply replace that hash with a new one, but it takes a lot of computing power to calculate a hash on the bitcoin network. And the hash for a bitcoin block is used to help compute the hash of the next block in the block chain.
That is how bitcoin is able to guarantee its validity as a public ledger for all transactions in its history. After all, votes are another kind of transaction that has to be recorded.
The Liberal Alliance party in Denmark is said to be in favour of a block chain-based vote. BitCongress is using the Ethereum platform to build a scrypt-based altcoin called votecoin, that will use its network to hash and verify votes. It will use an application, Axiomity, both to organise and decide the parameters for votes, and to handle the voting process, explains founder Morgan Rockwell, who is also behind Bitcoin Kinetics.
A block chain-based system might provide a useful way to prove that a particular vote was cast by someone with a specific private key, and thereby guarantee the integrity of the votes once they were cast. But, what about guaranteeing the integrity of the voting process itself? The rate of tech geeks who are having bitcoin lifted off them is a sign that this is a deep problem.
And bitcoin owners are people who likely have decent security hygiene and high-entropy passwords. How might a client-side compromise work? Bob is using a PC-based system, with open-source code that anyone can inspect and the machine is under his control.
Bob uses biometric authentication to prove to the voting program that he is who he says he is. Bob then enters his private key — securely stored on a piece of paper in a locked safe — to access his votecoin and cast his vote.
Using the public key, he votes for Jane to be president. So far, so good. That vote, fully authenticated, is then hashed into the block chain for posterity — as a vote for Mike. Zeus does that by waiting for the victim to authenticate themselves to the bank, and then carrying out its own actions using that authentication. Banking trojans also rewrite bank statements to fool users, after all. Some have tried to solve these problems using end-to-end auditable voting systems , which at least try to facilitate electronic voting, if not Internet voting.
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