1. The Digital Path: Smart Contracts and the Third World →

    Inadequate and ill-adapted property institutions in the third world prevent the extralegal assets of the poor from serving as capital. In particular, the absence of credible systems of title transfer makes real estate holdings ineffective as collateral for loans. How can this barrier to wealth creation be surmounted? Country-by-country institutional reform is possible, but inevitably slow. New options based on computer networks and trusted computational agents may provide a shorter path. By leveraging trust in first-world institutions while enabling the evolution of contractual arrangements that fit local needs and traditions, this approach could bring advanced property systems to regions now paralyzed by their absence.

    - Mark S. Miller and Marc Stiegler, The Digital Path: Smart Contracts and the Third World

  2. Rules of American justice: a tale of three cases →

    The Rules of American Justice are quite clear:

    (1) If you are a high-ranking government official who commits war crimes, you will receive full-scale immunity, both civil and criminal, and will have the American President demand that all citizens Look Forward, Not Backward.

    (2) If you are a low-ranking member of the military, you will receive relatively trivial punishments in order to protect higher-ranking officials and cast the appearance of accountability.

    (3) If you are a victim of American war crimes, you are a non-person with no legal rights or even any entitlement to see the inside of a courtroom.

    (4) If you talk publicly about any of these war crimes, you have committed the Gravest Crime — you are guilty of espionage – and will have the full weight of the American criminal justice system come crashing down upon you.

    - Glenn Greenwald

  3. The United States Constitution rests on a handful of closely related premises. (Let’s call them “Madisonian.”) First: the Constitution has to serve the interests of citizens, not politicians and especially not state politicians. For an emphatic statement see Federalist 45 (To appreciate the depth of Madison’s conviction on this point, note that the verbal bombast in 45 is out of character for him. Even his letters to Dolley sound like they were written by her accountant.) Second: the Constitution has to make politics possible and discipline it against factional abuse. For the general theory see Federalist 10. Third, the Constitution has to ensure stability, both in the sense of institutional durability and of preventing political hyperactivity. For the perils of a “mutable government” see Federalist 62.

    Now invert the premises. First: the Constitution must protect the “states as states”—that is, their political elites and hangers-on. Second: the Constitution should facilitate interest group politics. Third: the Constitution should be democratic (and since the demos is fickle, the Constitution should be unstable). There you have the actual Constitution, upside-down. Get used to it: it’s the New Deal Constitution under which we live.

    — Michael S. Greve, discussing his book The Upside Down Constitution

  4. Secret panel can put Americans on "kill list" →

    (Reuters) - American militants like Anwar al-Awlaki are placed on a kill or capture list by a secretive panel of senior government officials, which then informs the president of its decisions, according to officials.

    There is no public record of the operations or decisions of the panel, which is a subset of the White House’s National Security Council, several current and former officials said. Neither is there any law establishing its existence or setting out the rules by which it is supposed to operate.

  5. SCOTUS: Flushing your toilet negates your 4th Amendment rights →

    In an 8-1 decision, the U.S. Supreme Court ruled that cops do not need a search warrant to enter a home if, after banging on the door, they hear sounds that suggest evidence is being destroyed.

  6. All complex systems contain parasites. In any system of cooperative behavior, an uncooperative strategy will be effective — and the system will tolerate the uncooperatives — as long as they’re not too numerous or too effective. Thus, as a species evolves cooperative behavior, it also evolves a dishonest minority that takes advantage of the honest majority. If individuals within a species have the ability to switch strategies, the dishonest minority will never be reduced to zero. As a result, the species simultaneously evolves two things: 1) security systems to protect itself from this dishonest minority, and 2) deception systems to successfully be parasitic.

    Humans evolved along this path. The basic mechanism can be modeled simply. It is in our collective group interest for everyone to cooperate. It is in any given individual’s short-term self interest not to cooperate: to defect, in game theory terms. But if everyone defects, society falls apart. To ensure widespread cooperation and minimal defection, we collectively implement a variety of societal security systems.

    Two of these systems evolved in prehistory: morals and reputation. Two others evolved as our social groups became larger and more formal: laws and technical security systems. What these security systems do, effectively, is give individuals incentives to act in the group interest. But none of these systems, with the possible exception of some fanciful science-fiction technologies, can ever bring that dishonest minority down to zero.

    — Bruce Schneier, in his forthcoming book, The Dishonest Minority: Security and its Role in Modern Society

  7. Online Cash Bitcoin Could Challenge Governments, Banks →

    Bitcoin is the first online currency to solve the so-called “double spending” problem without resorting to a third-party intermediary. The key is distributing the database of transactions across a peer-to-peer network. This allows a record to be kept of all transfers, so the same cash can’t be spent twice—because it’s distributed (a lot like BitTorrent), there’s no central authority. This makes digital bitcoins like cash dollars or euros: Hand them over directly to a payee, and you don’t have them anymore, all without the help of a third party.

  8. A former Queensland internet king is believed to have been a key figure behind FBI action against three major gambling websites in the United States. →

    Daniel Tzvetkoff, who had been facing 75 years jail in the US, has done a deal with prosecutors which has seen him freed on bail and living in a secret New York location. The Courier-Mail reported today that the deal came after Tzvetkoff  - a Brisbane boy wonder, who started a company with school mates at 13  - became embroiled in a massive, $543 million stew of money laundering, bank fraud and conspiracy that could bring down the world of online gambling.

  9. Moscow cops confiscate copies of book outing corrupt authorities →

  10. Code is Law: On Liberty in Cyberspace →

    Every age has its potential regulator, its threat to liberty. Our founders feared a newly empowered federal government; the Constitution is written against that fear. John Stuart Mill worried about the regulation by social norms in nineteenth-century England; his book On Liberty is written against that regulation. Many of the progressives in the twentieth century worried about the injustices of the market. The reforms of the market, and the safety nets that surround it, were erected in response.

    Ours is the age of cyberspace. It, too, has a regulator. This regulator, too, threatens liberty. But so obsessed are we with the idea that liberty means “freedom from government” that we don’t even see the regulation in this new space. We therefore don’t see the threat to liberty that this regulation presents.

    This regulator is code—the software and hardware that make cyberspace as it is. This code, or architecture, sets the terms on which life in cyberspace is experienced. It determines how easy it is to protect privacy, or how easy it is to censor speech. It determines whether access to information is general or whether information is zoned. It affects who sees what, or what is monitored. In a host of ways that one cannot begin to see unless one begins to understand the nature of this code, the code of cyberspace regulates.

    This regulation is changing. The code of cyberspace is changing. And as this code changes, the character of cyberspace will change as well. Cyberspace will change from a place that protects anonymity, free speech, and individual control, to a place that makes anonymity harder, speech less free, and individual control the province of individual experts only.

    My aim in this short essay is to give a sense of this regulation, and a sense of how it is changing. For unless we understand how cyberspace can embed, or displace, values from our constitutional tradition, we will lose control over those values. The law in cyberspace—code—will displace them.