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TECHNOLOGY Wednesday 9 august 2017

AP Explains: Why HBO hackers demanded payment in bitcoin

AP Technology Writer count owners aren’t nec-
digital currency Bitcoin is essarily known. That’s why
the payment of choice for it’s a payment of choice
HBO’s cyberattackers. The among criminals, including
hackers demand what the “ransomware” hack-
they say is their “6-month ers who crippled computer
salary” in bitcoin, suggest- networks around the world
ing it’s at least $6 million. in May and June. The shut-
Bitcoin allows people to tered underground e-com-
buy goods and services merce site AlphaBay re-
and exchange money quired transactions to be
without involving banks, done in bitcoin and simi-
credit card issuers or other lar digital currencies. That
third parties. Although bit- said, investigators might
coin isn’t widely used, it be able to track down the
has strong appeal in some owners when bitcoins are
circles because transac- converted to regular cur-
tions can be made anon- rency. To combat that, Al-
ymously. The currency is phaBay had offered digital
popular with libertarians, money laundering to shuf- In this Thursday, March 20, 2014, file photo, Christopher David uses a Robocoin kiosk to sell bit-
tech enthusiasts, specula- fle bitcoin through several coins outside of the 500 Startups’ Bitcoinference in Mountain View, Calif.
tors — and criminals. accounts before the con- Associated Press
Here’s a brief look at bit- version. HOW BITCOIN CAME TO BE to attract widespread at- the courage” to publish
coin: HOW POPULAR IS BITCOIN? It’s a mystery. Bitcoin was tention. But proponents proof that he is.
HOW BITCOINS WORK Some businesses have launched in 2009 by a per- say that doesn’t matter: THE FUTURE
Unlike most currencies, bit- jumped on the bitcoin son or group of people op- The currency obeys its The bitcoin system was un-
coin isn’t tied to any bank bandwagon amid a flurry erating under the name own internal logic.An Aus- der threat recently when
or government. Rather, the of media coverage. Over- Satoshi Nakamoto. Bitcoin tralian entrepreneur last some miners were reluctant
coins are created by users stock.com accepts pay- was then adopted by a year stepped forward and to upgrade their systems to
who “mine” them by lend- ments in bitcoin, for ex- small clutch of enthusiasts. claimed to be the founder improve capacity because
ing computing power to ample. But most individuals Nakamoto dropped off of bitcoin, only to say days it could reduce transaction
verify other users’ transac- and businesses won’t ac- the map as bitcoin began later that he did not “have fees they collect.q
tions. They receive bitcoins cept bitcoins for payments.
in exchange. The coins also The currency has about ACLU sues Maine governor for blocking
can be bought and sold on 280,000 daily transactions,
exchanges with U.S. dollars according to bitcoin wallet critics on Facebook
and other currencies. site blockchain.info. That’s
HOW MUCH IS IT WORTH? minuscule compared with
One bitcoin recently trad- cash and cards. By MARINA VILLENEUVE
ed for $3,385, according HOW BITCOINS ARE KEPT Associated Press
to Coinbase, a company SECURE AUGUSTA, Maine (AP) —
that helps users exchange The bitcoin network works The American Civil Liber-
bitcoins. That makes it by harnessing individuals’ ties Union of Maine sued
far more valuable than greed for the collective Republican Gov. Paul LeP-
an ounce of gold, which good. A network of tech- age on Tuesday for block-
trades at about $1,265. savvy users called miners ing critics on his official
The value of bitcoins can keep the system honest by Facebook page and de-
swing sharply, though. It’s pouring their computing leting their comments.
up 33 percent in the past power into a blockchain, The ACLU filed the federal
month. But its price doesn’t a global running tally of lawsuit on behalf of two
always go up. A bitcoin’s every bitcoin transaction. women, saying their First
value plunged by 23 per- The blockchain prevents Amendment rights were
cent against the dollar in rogues from spending the violated. The lawsuit seeks In this Wednesday, March 8, 2017, file photo, Maine Gov. Paul
just a week this past Janu- same bitcoin twice, and attorney fees, a court dec- LePage speaks at a town hall meeting, in Yarmouth, Maine.
ary. It fell by the same the miners are rewarded laration that the governor’s Associated Press
amount again in 10 days for their efforts by being use of his page violates
during March. gifted with the occasional the women’s freedom of
IS IT REALLY ANONYMOUS? bitcoin. As long as min- speech and a court order mediately make him avail- lawsuits against Republican
able for comment.
Kentucky Gov. Matt Bevin
Yes, to a point. Transac- ers keep the blockchain preventing LePage from
tions and accounts can secure, counterfeiting continuing his censorship. The civil liberties organiza- and Republican Maryland
be traced, but the ac- shouldn’t be an issue. LePage’s office didn’t im- tion recently filed similar Gov. Larry Hogan. q