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Business Technology

Why is Generating Random Numbers so Hard?

by Rafi Kronzon on February 15, 2012

Random DiceYesterday, the news broke that some secure Internet transactions are actually easy to crack. This type of revelation can have a devastating effect on our confidence in Internet commerce, although I doubt this one will much impact.

The authors of the revealing study found a flaw in the random number generation that is used to encrypt much Internet data. This is not the first time that we’ve discovered that the numbers our computers generate aren’t really random. Why?

A very good random number generator is a physical one, for example, rolling a die. Unfortunately, rolling a die takes a long time, and that makes it a bit impractical for the billions of random numbers we need every day for everything from online gaming to Internet commerce.

Instead, we use so-called pseudo-random number generators. These are computer programs that generate random numbers based on complex mathematical formulas that can be “seeded” by physical events (the weather patterns, the number of letters in the New York Times each day, etc.). The problem is that we sometimes find flaws in these mathematical formulas or seeding that make these  random numbers deterministic.

So, how do we find something that is truly random? The truth is, nobody knows the answer. Debates on randomness can devolve (or evolve, depending on how you look at it) into discussions about determinism, quantum theory, and the way the universe works.

Whether or not you believe we’ll ever find true randomness, Our day-to-day needs only require something complex enough so that our current computing power can’t find the flaws. At least for long enough to let me buy my shoes on Zappos safely!

PS: For a cool discussion on randomness, check out random.org.

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Can Dwolla Disrupt the Credit Card Industry?

by Rafi Kronzon on February 8, 2012

As a small business owner, I despise the credit card industry. As I’ve written in the past, the charges are ridiculously high for the value of the service (around 2-3% per transaction).

Start-ups have been trying for years to disrupt the credit card industry. Paypal created its own money network that can be tied into your credit card accounts. More recently, Square introduced a merchant service with a flat fee of 2.75%. Other services such as Google Wallet simply store all consumer accounts in one place. None of these really attack the core of the credit card industry because on many transactions, they still pay the credit card company’s interchange fees, which they must pass on to the merchant (me).

Dwolla,  is taking it’s swipe (yuk, yuk) at the heart of the credit card industry. Actually, it’s going after the debit card industry, but I’ll get to that in a minute. To use Dwolla, a consumer must create an account attached to her bank account. The consumer can then make instant payments to merchants that accept Dwolla. The consumer can either manually transfer funds to her Dwolla account (free), or can have it done automatically after each purchase ($3/month) or “borrow” the amount from Dwolla – to be repaid at the end of the billing cycle.

So, who wants Dwolla? For merchants, it’s a slam dunk. Let’s see, should I pay 3% or $0.25 for a transaction?  But for consumers, the picture quickly becomes murky.

  • Anyone that wants to borrow and repay over time can’t use Dwolla. It’s the equivalent of a debit card, not a credit card. This fact shrinks Dwolla’s user base considerably. [click to continue…]
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How to get around the Wikipedia block in 4 easy steps

by Rafi Kronzon January 18, 2012 Business Technology

First, a disclaimer. We support the blackout, and are against the SOPA and PIPA bills. Second, we don’t believe that posting out an easy way to see Wikipedia entries somehow circumvents their message. Third, we know that if they didn’t want you to look at all, they could have blacked out the entire site. 1. [...]

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Your WPA2 protected wireless router can be easily hacked

by Brice Petruzzelli January 5, 2012 Alerts

Yes, you read that correctly.  It’s been recently discovered that a hacker with free tools can get your WPA2 within a few hours. Millions of wireless routers may be vulnerable, including those from Belkin, Buffalo, D-Link, Cisco’s Linksys and Netgear. How it works: Many routers come with a feature called WPS – Wifi Protected Setup [...]

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Five Reasons to Extinguishing the Kindle Fire

by Rafi Kronzon December 29, 2011 Business Technology

I spent the last few days with the Kindle Fire, which my father-in-law generously gave my wife for Christmas. I was interested in the Fire since it came out. The price is super- aggressive, and at $200 Amazon reportedly takes a loss on each device it sells. Since it’s Android-based, I was also excited to [...]

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Taking Sliderocket for a spin

by Rafi Kronzon December 5, 2011 Business Technology

I spent a little time with Sliderocket to see if it’s a good substitute to Microsoft’s Powerpoint or Apple’s Keynote. We’re always in search of Microsoft Office replacements, and we’re not huge fan of Google Docs’ Presentation, which I find clunky. What is it: Sliderocket is an online presentation creation app, meaning you don’t need [...]

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