Hackers discuss Bitcoin, Litecoin, Alternative Cryptocurrencies at HackMiami 2013 Hackers Conference

Hackers discuss Bitcoin, Litecoin, Alternative Cryptocurrencies at HackMiami 2013 Hackers Conference

Cryptocurrency technologies such as Bitcoin and Litecoin could be a double edged sword, warned a panel of hackers at the annual HackMiami 2013 Hackers Conference that took place last week in Miami Beach, FL.

The panel concluded that the free market economic advantages of cryptocurrencies and the potential for transaction anonymity can be completely destroyed by improper use of the technology by the end user. Furthermore, increasing government regulation and recent law enforcement actions against electronic currencies indicates there is a possibility of increased scrutiny on all commodities that are deemed competitive with government backed fiat monetary systems.

The panel was moderated by Alexander Heid, president of HackMiami, and featured an array of white hat hackers and information security professionals, some of whom are operators of cryptocurrency mining operations and merchants that accept Bitcoin as a form of payment.

The panel featured James Ball, treasurer of HackMiami, Travis Tolle, professional cryptographic hardware consultant, Chris Snyder, a network security specialist and operator of a mining pool server, and Bryce Case, also known as YTCracker, the famed nerdcore rapper who accepts Bitcoin in exchange for his music and donations to his forum, DigitalGangster.com.

“The general public needs further education on the concept of 'mining' Bitcoin,” stated James Ball.

“It is not the creation of cryptocurrency out of thin air. 'Mining' is slang for the use of large amounts of computational processing power to process the completion of transactions on the Bitcoin network.”

Ball went on to explain that when a block of transactions is completed, those who assisted in processing the transactions are rewarded for their efforts with transaction fees that are collected along the way by the decentralized network. The peer to peer infrastructure relies on individuals to process transactions ensuring that there is no central authority. The value of Bitcoin, Litecoin, and all cryptocurrencies are determined by marketplace supply and demand.

“In true open source spirit, the original code of both Bitcoin and Litecoin has been forked repeatedly resulting in alt-coins of many shapes and sizes,” stated Travis Tolle.

“Most of the newer altcoins have been created as classic pump and dump scams, but a few offer true innovations on an already brilliant concept, such as the use of alternative encryption algorithms.”

Tolle went on to state that Litecoin is currently the second strongest currency in terms of market cap and user base, and interesting competitors such as P2PCoin and BitBar are slowly gaining traction.

The scrutiny and regulation that is being applied to Bitcoin is in response to the hyped threat of the potential for illegal transactions taking place over the unregulated network, such as the sale of drugs.

“It is much more efficient for criminals to make use of cash or other standard fiat methods of payment than to rely on Bitcoin,” stated Chris Snyder.

Snyder stated the the rapid and unpredictable marketplace fluctuations combined with the complete transparency of every transaction on the Bitcoin blockchain creates an economic environment that is unattractive to digital criminals.

“The reason we are seeing crackdowns on e-currencies is because digital currency is outside the reach of government, decentralized cryptocurrencies are the only wallets government can't stick their hands into,” said Snyder.

YTCracker, real name Bryce Case, discussed the potential for governments to maliciously utilize cryptocurrency technology for controlling populations through a cashless economy. Case stated that if the US government regulations require extensive documentation of transactions that are over a certain limit, when Bitcoin or any other alt-coin reaches that amount per coin, the government has essentially regulated that cryptocurrency.

“A permanent public record is kept on the transaction network blockchain, and if a user correlates identifiable information with a unique payment address, that person is forever associated with every payment that goes in and out of that address. In the event the US government decides to go cashless and replaces the paper dollar with a cryptocurrency, they will have a much easier time documenting every single transaction over the network, especially as mandated compliance regulations have been incrementally implemented over a long period of time,” stated Bryce Case.

“Even more frightening,” elaborated Case,

“is the concept that the cashless cryptocurrency solution would be implemented by consent, not force, as the enthusiasts such as the participants on this panel are the ones who may be unwittingly acting as eager participants and early adopters of a potentially oppressive technology.”

About HackMiami

HackMiami is the premier resource in South Florida for highly skilled hackers that specialize in vulnerability analysis, penetration testing, digital forensics, and all manner of information technology and security.

HackMiami seeks to develop and harness the participation of the information security community through regular events, presentations, labs and competitions. These events allow the hacker community a forum to present their research, develop new techniques and methodologies, and at the same time provides valuable a networking resource for contracting opportunities.

HackMiami: https://www.hackmiami.com/
HackMiami on Twitter: @hackmiami


Related News

Crypto Hackers Mark Successful First Quarter. Here’s How Much They’ve Made

Crypto hackers have been making off with billions of dollars from the market every year. These hackers who find vulnerabilities in the products being used by investors have been known to cart away hundreds of millions at a time. 2022 has proven to be no different from these hackers who have ramped up their efforts. […]

Small Crypto Investors Suffer As Hackers Increasingly Target Phone Numbers

Hackers, for the most part, usually target institutional crypto investors and exchanges. But since the adoption of cryptocurrencies like Bitcoin became more mainstream, these hackers started targeting small individual investors. Related Reading | Hackers Are Now Trying To Steal Crypto Via Malicious NFTs They hack random people through SIM swaps or switching a phone number from […]

Hackers Congress Paralelní Polis Is Ready to Deliver Fifty-Eight Hours Of Fre...

This weekend, the annual Hackers Congress Paralelní Polis will be convening in Prague, as well as throwing a massive 58-hour long live stream. We sent over a few questions to the conference's team to help make the case for why this conference is important to Bitcoiners. The post Hackers Congress Paralelní Polis Is Ready to Deliver Fifty-Eight Hours Of Freedom Content appeared first on Bitcoin Magazine.

Hackers Donate Bitcoin From Ransomware Attacks to Charities

A group of hackers has donated some of the bitcoin it extorted via ransomware attacks to charities, claiming that it wants to “make the world a better place.” However, the law says donations from ill-gotten gains must be rejected but charities have no way of returning donated bitcoin to the hackers. Hackers Donate Bitcoin to Charities A group of hackers known as “Darkside” has surprised the world by donating a portion of the proceeds from ransomware attacks to two charities, the BBC reported Monday, adding that the group is relatively new on the scene. Darkside....

US Government Expands Charges Against North Korean Hackers- Authorities Descr...

The U.S. Department of Justice (DOJ) unsealed new charges against the North Korean state-sponsored Lazarus Group. The hackers are allegedly responsible for stealing over $1.3 billion in cryptocurrencies and fiat during coordinated cyber-heists. North Korean Hackers Also Developed and Deployed Malicious Crypto Apps According to the announcement, law enforcement expanded charges to Park Jin Hyok, a North Korean military hacker, from his involvement in hacking Sony in 2018, deploying Wannacry ransomware attacks, and other financial cyber thefts. Moreover, the new indictment unsealed mentioned....