# HG changeset patch # User Christian Urban # Date 1420044202 0 # Node ID 3f0738fc8230dbda363061b1d848a0de8cdc1e70 # Parent 34a8f73b2c9434478e2f6b6b57813c1bf3dbedab updated diff -r 34a8f73b2c94 -r 3f0738fc8230 handouts/ho08.pdf Binary file handouts/ho08.pdf has changed diff -r 34a8f73b2c94 -r 3f0738fc8230 handouts/ho08.tex --- a/handouts/ho08.tex Wed Dec 31 01:49:20 2014 +0000 +++ b/handouts/ho08.tex Wed Dec 31 16:43:22 2014 +0000 @@ -640,16 +640,41 @@ \url{http://bitcoinmagazine.com/13774/government-bans-professor-mining-bitcoin-supercomputer/} \end{center} -\noindent -Bitcoin mining nowadays is only competitive, or profitable, -if you get the energy for free, or use special purpose -computing devices. +\noindent Bitcoin mining nowadays is only competitive, or +profitable, if you get the energy for free, or use special +purpose computing devices. + +This about ``free'' energy can actually hurt you very badly in +unexpected ways. You probably have heard about, or even used, +Amazon's Elastic Compute Cloud (EC2). Essentially, Amazon is +selling computing power that you can use to run your web site, +for example. It is \emph{elastic} in the sense that if you +have a lot of visitors, you pay a lot, if you have only a few, +then it is cheap. In order to bill you they, you need to set +up an account with Amazon and receive some secret keys in +order to authenticate you. The clever (but also dangerous) bit +is that you upload the code of your web site to GitHub and +Amazon will pull it from there. You can probably already guess +where this is going: in order to learn about Amazon's API, it +gives out some limited computing power for free. Somebody used +this offer in order to teach himself Ruby on Rails with a +mildly practical website. Unfortunately, he uploaded also his +secret keys to GitHub (this is really an easy mistake). Now, +nasty people crawl GitHub for the purpose of stealing such +secret keys. What can they do with this? Well, they quickly +max out the limit of computing power with Amazon and mine +Bitcoins (under somebody else's account). Fortunately for this +guy, Amazon was aware of this scam and in a goodwill gesture +refunded him the money the nasty guys incurred over +night with their Bitcoin mining. If you want to read the +complete story, google for ``My \$2375 Amazon EC2 Mistake''. + \subsubsection*{Anonymity with Bitcoins} One question one often hears is how anonymous is it actually to pay with Bitcoins? Paying with paper money used to be a -quite anonymous act (unlike paying with creditcards, for +quite anonymous act (unlike paying with credit cards, for example). But this has changed nowadays: You cannot come to a bank anymore with a suitcase full of money and try to open a bank account. Strict money laundering and taxation laws mean