From: "James A. Donald" <jamesd@netcom.com>
Date: Tue, 24 Jan 95 11:58:38 PST
To: joshua geller <joshua@dee.retix.com>
Subject: Re: Clinton freezes U.S. assets of Mideast groups
In-Reply-To: <199501241834.KAA13284@sleepy.retix.com>
Message-ID: <Pine.3.89.9501241122.A12422-0100000@netcom10>
MIME-Version: 1.0
Content-Type: text/plain


The Eurodollar market got started because Russia feared 
arbitrary confiscation of its dollar bank accounts.

In the West, we see governments arbitrarily and
capriciously stealing financial assets.

As a result first world banking no longer has a large
advantage over third world banking.

This will eventually inject serious money into cyberspace
financial institutions -- once they exist, run smoothly,
have credible audit trails and a reputation.

At present it seems to me that unix machines on the internet
are intrinsicly insecure -- the methods used to secure them
are a collection of ad hoc patches.  For example all
unix machines are vulnerable to the trojan
horse attack.

(I expect the usual flame from Perry that I am stupifyingly
ignorant and that that is all fixed or will be shortly 
-- no Perry it is not all fixed -- it cannot be fixed.  
The necessary fixes have to be designed in at the
beginning.)

In consequence finance software running on the internet is
only acceptable for small time stuff.

Windows NT is supposedly secure.  Certainly its design makes
it possible to write software that is intrinsicly secure,
rather than creating a particular fix for each particular
hole.   The perimeter you have to defend is much smaller
and easier to explore.

On the other hand existing Unix security is probably
adequate for immediately proposed uses of internet
money -- selling beads and trinkets.

 ---------------------------------------------------------------------
                                          |  
We have the right to defend ourselves     |   http://www.catalog.com/jamesd/
and our property, because of the kind     |  
of animals that we are. True law          |   James A. Donald
derives from this right, not from the     |  
arbitrary power of the omnipotent state.  |   jamesd@netcom.com