Internet Governance & ICANN

Revisiting the Bitcoin bubble

by on April 25, 2011 · 12 comments

Here is [a chart](http://bitcoincharts.com/charts/mtgoxUSD#rg180ztgCzm1g10zm2g25) of the Bitcoin-dollar exchange rate for the past six months. The arrow notes the date [my column on the virtual currency](http://techland.time.com/2011/04/16/online-cash-bitcoin-could-challenge-governments/) was published in TIME.com. The day after that piece was published, the Bitcoin exchange rate [reached an all time high at $1.19](http://www.bitcoinnews.com/post/4703632837/daily-2011-04-17). Yesterday, just over a week later, [it was pushing $2](http://www.bitcoinnews.com/post/4897524633/daily2011-04-24).

A wiser fella than myself once said, correlation is not causation, and no doubt my article was just a contributing factor in Bitcoin’s recent run-up. It’s simply getting increasingly mainstream attention, and with that more speculators and speculation about mainstream adoption. The chart above lends a lot of credence to Tim Lee’s [bubble critique](http://timothyblee.com/2011/04/18/the-bitcoin-bubble/), so I wanted to make sure I wasn’t giving that argument short shrift.

There may well be a Bitcoin bubble, and it may even be likely. But again, I think that misses the greater point about what Bitcoin represents. Bitcoin may be tulips and the bubble may burst, but the innovation—distributed, anonymous payments—is here to stay. Napster went bust, but its innovation presaged BitTorrent, which is here to stay. Could the Bitcoin project itself go bust? Certainly, but the innovation solving the double-spending problem I’ve been talking about, will be taken up and improved by others, just as other picked up and ran with Napster’s innovation.

I want to start thinking through the practical and legal implications of that innovation. If you don’t think the innovation could ever allow for a useful store of value, then mine is a fool’s errand. I guess I’m betting on the success of a censorship resistant currency.

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DC event on Internet governance

by on April 20, 2011 · 0 comments

“Global Internet Governance: Research and Public Policy Challenges for the Next Decade” is the title for a conference event held May 5 and 6 at the American University School of International Service in Washington. See the full program here.

Featured will be a keynote by the NTIA head, Assistant Secretary for Commerce Lawrence Strickling. TLF-ers may be especially interested in the panel on the market for IP version 4 addresses that is emerging as the Regional Internet Registries and ICANN have depleted their free pool of IP addresses. The panel “Scarcity in IPv4 addresses” will feature representatives of the American Registry for Internet Numbers (ARIN) and Addrex/Depository, Inc., the new company that brokered the deal between Nortel and Microsoft. There will also be debates about Wikileaks and the future of the Internet Governance Forum. Academic research papers on ICANN’s Affirmation of Commitments, the role of the national governments in ICANN, the role of social media in the Middle East/North Africa revolutions, and other topics will be presented on the second day. The event was put together by the Global Internet Governance Academic Network (GigaNet). Attendance is free of charge but you are asked to register in advance.

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Bitcoin, intermediaries, and information control

by on April 20, 2011 · 36 comments

I’m gratified that my recent writing on the Bitcoin virtual currency project has stirred much conversation and I thought I’d take a moment to continue that conversation.

Tim Lee has written two posts critiquing the viability of Bitcoin from the supply and demand side. Dan Rothschild has responded in part. Tyler Cower also weighed in.

To address Tim I’ll simply say this: Do I think Bitcoin will replace the dollar? No. Might Bitcoin have certain systemic design flaws that might impede its success? Quite possibly. Will Bitcoin become the de facto, manipulation-proof currency of the internet? Who knows. Tim’s posts are a somewhat technical critique of Bitcoin’s long-term feasibility. It’s a great contribution, but since I’m neither a gold bug nor a Bitcoin booster per se, I don’t find it especially interesting.

That all said, what I do think is revolutionary about Bitcoin is that its developers have solved, without the use of a middleman, the double-spending problem faced by virtual currencies. That gives us license to realistically imagine a world without regulable financial intermediaries online.

While Tim overlooks what makes Bitcoin radical, Tom Sydnor groks it viscerally. Writing in a lengthy comment on my post, Tom expresses dismay at what Bitcoin represents and offers what I would, with apologies, characterize as the cyber-conservative response. Continue reading →

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Bitcoin: Imagine a net without intermediaries

by on April 16, 2011 · 43 comments

Yesterday the FBI effectively [shut down](http://thehill.com/blogs/hillicon-valley/technology/156429-fbi-shuts-down-online-poker-sites) three of the largest gambling sites online and indicted their executives. From a tech policy perspective, these events highlight how central intermediary control is to the regulation of the internet.

Department of Justice lawyers were able to take down the sites using the same tools we’ve [seen DHS use](http://techland.time.com/2011/02/17/operation-protect-our-children-accidentally-shutters-84000-sites/) against alleged pirate and child porn sites: they seize the domain names. Because the sites are hosted overseas (where online gambling is legal), the feds can’t physically shut down the servers, so they do the next best thing. They get a seizure warrant for the domain names that point to the servers and [force the domain name registrars](http://pokerati.com/2011/04/15/poker-panic-11-update-on-domain-name-seizures/) to point them instead to a government IP address, such as [50.17.223.71](http://50.17.223.71). The most popular TLDs, including .com, .net, .org, and .info, have registrars that are American companies within U.S. jurisdiction.

Another intermediary point of control for the federal government are payment processors. The indictments revealed yesterday relate to violations of the [Unlawful Internet Gambling Enforcement Act](http://www.firstamendment.com/site-articles/UIEGA/), which makes it illegal for banks and processors like Visa, MasterCard and PayPal to let consenting adults use their money to gamble online. According to the DOJ, in order to let them bet, the poker sites “arranged for the money received from U.S. gamblers to be disguised as payments to hundreds of non-existent online merchants purporting to sell merchandise such as jewelry and golf balls.” ([PDF](http://www.wired.com/images_blogs/threatlevel/2011/04/scheinbergetalindictmentpr.pdf))

Now, imagine if there were no intermediaries.

[In my TIME.com Techland column today, I write about Bitcoin](http://techland.time.com/2011/04/16/online-cash-bitcoin-could-challenge-governments/), a completely decentralized and anonymous virtual currency that I think will be revolutionary.

>Because Bitcoin is an open-source project, and because the database exists only in the distributed peer-to-peer network created by its users, there is no Bitcoin company to raid, subpoena or shut down. Even if the Bitcoin.org site were taken offline and the Sourceforge project removed, the currency would be unaffected. Like BitTorrent, taking down any of the individual computers that make up the peer-to-peer system would have little effect on the rest of the network. And because the currency is truly anonymous, there are no identities to trace.

And if a P2P currency can make it so that there is no fiscal intermediary to regulate, how about a distributed DNS system so that there are no registrars to coerce? This is something Peter Sunde of Pirate Bay fame [has been working on](http://www.wired.co.uk/news/archive/2010-12/02/peter-sunde-p2p-dns). These ideas may sound radical and far-fetched, but if we truly want to see an online regime of “[denationalized liberalism](http://techliberation.com/2010/11/28/mueller%E2%80%99s-networks-and-states-classical-liberalism-for-the-information-age/),” as Milton Mueller puts it, then getting rid of the intermediaries in the net’s infrastructure might be the best path forward.

Again, check out [my piece in TIME](http://techland.time.com/2011/04/16/online-cash-bitcoin-could-challenge-governments/) for a thorough explanation of Bitcoin and its implications. I plan to be writing about it a lot more and devote some of my research time to it.

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Event 4/7: What Should Lawmakers Do About Rogue Websites?

by on April 5, 2011 · 0 comments

The Competitive Enterprise Institute and TechFreedom are hosting a panel discussion this Thursday featuring intellectual property scholars and Internet governance experts. The event will explore the need for, and concerns about, recent legislative proposals to give law enforcement new tools to combat so-called “rogue websites” that facilitate and engage in unlawful counterfeiting and copyright infringement.

Video of the event will be posted here on TechLiberation.com.

What: “What Should Lawmakers Do About Rogue Websites?” — A CEI/TechFreedom event
When: Thursday, April 7 (12:00 – 2:00 p.m.)
Where: The National Press Club (529 14th Street NW, Washington D.C.)
Who: Juliana Gruenwald, National Journal (moderator)

Daniel Castro, Information Technology & Innovation Foundation

Larry Downes, TechFreedom

Danny McPherson, VeriSign

Ryan Radia, Competitive Enterprise Institute

David Sohn, Center for Democracy & Technology

Thomas Sydnor, Association for Competitive Technology

 

Space is very limited. To guarantee a seat, please register for the event by emailing nciandella@cei.org.

  • Juliana Gruenwald, National Journal (moderator)
  • Daniel Castro, Information Technology & Innovation Foundation
  • Larry Downes, TechFreedom
  • Danny McPherson, VeriSign
  • Ryan Radia, Competitive Enterprise Institute
  • David Sohn, Center for Democracy & Technology
  • Thomas Sydnor, Association for Competitive Technology

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    Is Digital Utopianism Dead? And Other Questions

    by on March 10, 2011 · 0 comments

    What I hoped would be a short blog post to accompany the video from Geoff Manne and my appearances this week on PBS’s “Ideas in Action with Jim Glassman” turned out to be a very long article which I’ve published over at Forbes.com.

    I apologize to Geoff for taking an innocent comment he made on the broadcast completely out of context, and to everyone else who chooses to read 2,000 words I’ve written in response.

    So all I’ll say here is that Geoff Manne and I taped the program in January, as part of the launch of TechFreedom and of “The Next Digital Decade.”   Enjoy!

     

     

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    Egyptian Government Attacks Egypt’s Internet

    by on January 28, 2011 · 3 comments

    In response to civil unrest, the Egyptian government appears to have ordered service providers to shut down all international connections to the Internet. According to the blog post at the link just above, Egypt’s four main ISPs have cut off their connections to the outside world. Specifically, their “BGP routes were withdrawn.” The Border Gateway Protocol is what most Internet service providers use to establish routing between one another, so that Internet traffic flows among them. I anticipate we might have comments here that dig deeper into specifics.

    An attack on BGP is one of few potential sources of global shock cited by an OECD report I noted recently. The report almost certainly imagined a technical attack by rogue actors but, assuming current reporting to be true, the source of this attack is a government exercising coercion over Internet service providers within its jurisdiction.

    That is far from an impossibility in the United States. The U.S. government has proposed both directly and indirectly to centralize control over U.S. Internet service providers. C|Net’s Declan McCullagh reports that an “Internet kill switch” proposal championed by by Sens. Joseph Lieberman (I-Conn.) and Susan Collins (R-Maine) will be reintroduced in the new Congress very soon. The idea is to give “kill switch” authority to the government for use in responding to some kind of “cyberemergency.” We see here that a government with use “kill switch” power will use it when the “emergency” is a challenge to its authority.

    When done in good faith, flipping an Internet “kill switch” would be stupid and self-destructive, tantamount to an auto-immune reaction that compounds the damage from a cybersecurity incident. The more likely use of “kill switch” authority would be bad faith, as the Egyptian government illustrates, to suppress speech and assembly rights.

    In the person of the Federal Communications Commission, the U.S. government has also proposed to bring Internet service providers under a regulatory umbrella that it could turn to censorship or protest suppression in the future. Larry Downes has a five-part analysis of the government’s regulatory plan here on TLF (1, 2, 3, 4, 5). The intention of its proponents is in no way to give the government this kind of authority, but government power is not always used as intended, and there is plenty of scholarship to show that government agencies use their power to achieve goals that are non-statutory and even unconstitutional.

    The D.C. area’s surfeit of recent weather caused the cancellation yesterday of a book event I was to participate in, discussing Evgeny Morozov’s The Net Delusion: The Dark Side of Internet Freedom. I don’t know that he makes the case overwhelmingly, but Morozov argues that governments are ably using the Internet to stifle freedom movements. (See Adam’s review, hear Jerry’s podcast.)

    Events going on here in the United States right now could position the U.S. government to exercise the kind of authority we might look down our noses at Egypt for practicing. The lesson from the Egypt story—what we know of it so far—is that eternal vigilance is the price of freedom.

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    And so the IP & Porn Wars Give Way to the Privacy & Cybersecurity Wars

    by on December 7, 2010 · 5 comments

    Every once and awhile it’s worth taking a step back and looking at the long view of how Internet policy developments have unfolded and consider where they might be heading next.  We’ve reached such a moment as it pertains to efforts to police the Internet for copyright piracy, objectionable online content, privacy violations, and cybersecurity.  We’re at an interesting crossroads in this regard since the prospects for successful cracking down on copyright piracy and pornography appear grim.  Seemingly every effort that has been tried has failed.  The Net is awash in online porn and pirated content.  I am not expressing a normative position on this, rather, I’m just stating what now seems to be commonly accepted fact.

    In the meantime, the United States is in the process of creating new information control regimes and this time its access to personal information and cybersecurity that are the focus of regulatory efforts.  The goal of the privacy-related regulatory efforts is to help Netizens better protect their privacy in online environments and stop the “arms race” of escalating technological capabilities.  The goal of cybersecurity efforts is to make digital networks and systems more secure or, more profoundly as we see in the Wikileaks case, it is to bottle up state secrets.

    These efforts are also likely to fail.  Simply stated, it’s a nightmare to bottle-up information once it’s out there.  Continue reading →

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    Mueller’s Networks and States = Classical Liberalism for the Information Age

    by on November 28, 2010 · 8 comments

    Milton Mueller, a professor at Syracuse University’s School of Information Studies, is a familiar figure to anyone who follows Internet governance issues.  He has established himself as a leading Net governance guru thanks to his extensive academic record in this field with books like Ruling the Root: Internet Governance and the Taming of Cyberspace (2002) and his work with The Internet Governance Project and the Global Internet Governance Academic Network.  Mueller’s latest book, Networks and States: The Global Politics of Internet Governance, continues his exploration of the forces shaping Internet policy across the globe.

    The de Tocqueville of Cyberspace

    What Mueller is doing – better than anyone else, in my opinion – is becoming the early chronicler of the unfolding Internet governance scene.  He meticulously reports on, and then deconstructs, ongoing governance developments along the cyber-frontier.  He is, in effect, a sort of de Tocqueville for cyberspace; an outsider looking in and asking questions about what makes this new world tick.  Fifty years from now, when historians look back on the opening era of Internet governance squabbles, Milton Mueller’s work will be among the first things they consult.

    Mueller’s goal in Networks and States is two-fold and has both an empirical and normative element.  First, he aims to extend his exploration of the actors and forces affecting Internet governance debates and then develop a framework and taxonomy to better map and understand these forces and actors. He does a wonderful job on that front, even though many Net governance issues (especially those related to domain name system issues and ICANN) can be incredibly boring.  Mueller finds a way to make them far more interesting, especially by helping to familiarize the reader with the personalities and organizations that increasingly dominate these debates and the issues and principles that drive their actions or activism.

    Mueller’s second goal in Networks and States is to breathe new life into the old cyber-libertarian philosophy that was more prevalent during the Net’s founding era but has lost favor today.  I plan to discuss this second goal in more detail here because Mueller has done something quite important in Networks and States: He has issued a call to arms to those who care about classical liberalism telling us, in effect, to get off our duffs and get serious about the fight for Internet freedom. Continue reading →

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    Five Ways Congress Can Fix COICA Copyright Bill

    by on November 19, 2010 · 15 comments

    On November 18, the Senate Judiciary Committee unanimously approved the “Combating Online Infringements and Counterfeits Act” (COICA). The bill would enable the U.S. Attorney General to obtain a court order disabling access to web domains that are “dedicated to infringing activities.”

    These “rogue websites” are a real problem, as the website Fight Online Theft explains, so it’s a good thing that Congress is working to address them. However, some of COICA’s provisions raise profound constitutional concerns, and the bill lacks adequate safeguards to protect against the unwarranted suspension of Internet domain names, as the website Don’t Censor the Net argues. The bill also doesn’t provide a mechanism for website operators targeted by the Attorney General to defend their site in an adversary judicial proceeding. This week, a group of over 40 law professors submitted a letter to the U.S. Senate arguing that COICA, in its current form, suffers from “egregious Constitutional infirmities.”

    To address these concerns, CEI is urging Congress to amend COICA to provide for more robust safeguards, including: Continue reading →

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