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China retains supercomputer crown

Written By Unknown on Selasa, 19 November 2013 | 23.43

18 November 2013 Last updated at 09:32 ET By Leo Kelion Technology reporter

A supercomputer built by the Chinese government has retained its place at the top of a list of the world's most powerful systems.

Tianhe-2 can operate at 33.86 petaflop/s - the equivalent of 33,863 trillion calculations per second - according to a test called the Linpack benchmark.

There was only one change near the top of the leader board.

Switzerland's new Piz Daint - with 6.27 petaflop/s - made sixth place.

The Top500 list is compiled twice-yearly by a team led by a professor from Germany's University of Mannheim.

It measures how fast the computers can solve a special type of linear equation to determine their speed, but does not take account of other factors - such as how fast data can be transferred from one part of the system to another - which can also influence real-world performance.

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1. Tianhe-2 (China) 33.86 petaflop/sec

2. Titan (US) 17.59 petaflop/sec

3. Sequoia (US) 17.17 petaflop/sec

4. K computer (Japan) 10.51 petaflop/sec

5. Mira (US) 8.59 petaflop/sec

6. Piz Daint (Swiss) 6.27 petaflop/sec

7. Stampede (US) 5.17 petaflop/sec

8. Juqueen (Germany) 5.09 petaflop/sec

9. Vulcan (US) 4.29 petaflop/sec

10. SuperMuc (Germany) 2.90 petaflop/sec

(Source: Top500 List based on Rmax Linpack benchmark)

IBM - which created five out of the 10 fastest supercomputers in the latest list - told the BBC it believed the way the list was calculated should now be updated, and would press for the change at a conference being held this week in Denver, Colorado.

"The Top500 has been a very useful tool in the past decades to try to have a single number that could be used to measure the performance and the evolution of high-performance computing," said Dr Alessandro Curioni, head of the computational sciences department at IBM's Zurich research lab.

"[But] today we need a more practical measurement that reflects the real use of these supercomputers based on their most important applications.

"We use supercomputers to solve real problems - to push science forward, to help innovation, and ultimately to make our lives better.

"So, one thing that myself and some of my colleagues will do is discuss with the Top500 organisers adding in new measurements."

However, one of the list's creators suggested the request would be denied.

"A very simple benchmark, like the Linpack, cannot reflect the reality of how many real application perform on today's complex computer systems," said Erich Strohmaier.

"More representative benchmarks have to be much more complex in their coding, their execution and how many aspects of their performance need to be recorded and published. This makes understanding their behaviour more difficult.

"Finding a good middle-ground between these extremes has proven to be very difficult, as unfortunately all previous attempts found critics from both camps and were not widely adopted."

China's lead

Tianhe-2 - which translates as Milky Way 2 - was developed by China's National University of Defence Technology and will be based in the city of Guangzhou, in the country's south-eastern Guandong province.

It uses a mixture of processors made by Intel as well as custom-made CPUs (central processing units) designed by the university itself.

The system is to be offered as a "research and education" tool once tests are completed, with local reports suggesting that officials have picked the car industry as a "priority" client.

Its Linpack score is nearly double that of the next supercomputer in the list - Titan, the US Department of Energy's system at the Oak Ridge National Laboratory in Tennessee.

However, one expert said it was still too early to know whether the Chinese system would be able to outperform its US counterpart in real-world tasks.

"You can get bottlenecks," said Prof Alan Woodward, from the University of Surrey's department of computing.

"Talking about the number of calculations that can be carried out per second isn't the same as saying a supercomputer can do that in practice in a sustained way. The processors might be kicking their heels some of the time if they don't get the data as fast as they can handle, for example."

Energy efficiency

Supercomputer applications do not tend to use all the processor power on offer.

IBM notes that its own Sequoia supercomputer - which came third on the latest list - used a relatively high 73% of the machine's theoretical peak performance when it recently carried out what the firm describes as the biggest ever fluid dynamics simulation to date.

The test involved creating virtual equivalents of 15,000 collapsing bubbles - something researchers are studying to find new ways to destroy kidney stones and cancerous cells.

"The thing you want to avoid is to throw away resources," reflected Dr Curioni.

"For scientists, the most important thing is how fast you solve a problem using the machine in an efficient way.

"When we run these types of simulations we invest much larger amounts of money running the machines than buying them."

He added that one of the biggest costs involved is energy use.

According to the Top500 list, Tianhe-2 requires 17,808 of kW power - more than double the 8,209 kW needed by Titan or the 7,890 kW needed by Sequoia.

Dr Curioni believes a revised leader board should take energy efficiency into account.

But Prof Woodward agreed with the list's creators that getting researchers and the governments that sponsored them to agree to a new methodology might be easier said than done.

"There is a lot of kudos in having what is termed the fastest supercomputer," he said.

"So, there will be resistance to a definition that favours one computer over another."


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Google to remove dead teenager image

19 November 2013 Last updated at 07:14 ET

Google has agreed to remove from its Maps service a satellite image that shows a dead teenager.

Kevin Barrera was shot in 2009. His body was found near a railway line in Richmond, California.

Jose Barrera told KTVU-TV he had asked Google to remove the image, which appears to show a police car and officers surrounding a body, out of respect for his son.

It said replacing the image could take eight days.

Mr Barrera said: "When I see this image, that's still like that happened yesterday. And that brings me back to a lot of memories."

Google Maps vice-president Brian McClendon said: "Since the media first contacted us about the image, we've been looking at different technical solutions.

"Google has never accelerated the replacement of updated satellite imagery from our maps before, but given the circumstance we wanted to make an exception in this case."

Google Maps uses a selection of images collected by satellite and at street level by cameras mounted on vehicles.

The satellite images tend to be between one and three years old.

Unlike for the pictures in its StreetView service, there is no facility to report satellite images.

The search giant takes a number of steps to protect privacy of individuals when collecting images for StreetView, including blurring faces and licence plates.


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Samsung pulls Galaxy S3 update

18 November 2013 Last updated at 15:48 ET

Samsung has suspended a software update that upgraded UK-based Galaxy S3 owners to version 4.3 of the Android operating system - also known as Jelly Bean.

The download first became available about a fortnight ago, but subsequently some users began complaining of numerous problems.

These included faster than normal battery drain, some apps refusing to work and alarms failing to trigger.

The firm said it was now investigating the matter.

"We are committed to providing customers with the best possible mobile experience, and will ensure to resume the upgrading service at the earliest possibility," it added in a statement.

Several users posted messages on Samsung's UK Facebook page to complain that the firm had taken this long to act.

"Samsung keep telling us that they will let us know as soon as they find a fix, but in the meantime I am left with a phone that is next to useless," wrote one owner, Dylan Barlow, to the BBC.

The Galaxy S3 was first released in May 2012 running Android 4.0. Although it was later updated to 4.1, users were never offered the 4.2 upgrade - making the latest release the first for the handset since the start of the year.

The SamMobile news blog noted that one of the reasons for the firm to have released the upgrade at this point would have been to allow the phone to be compatible with its new Galaxy Gear smartwatch.

Another site, Android Police, has also revealed that the US network AT&T has pulled the 4.3 update for subscribers who own the newer S4 handsets, but has not yet released a statement.

This is not the first time such upgrades have caused issues,

In February, Vodafone UK and 3 Austria recommended iPhone 4S owners delayed an upgrade to Apple's iOS 6.1 operating system after complaints that some handsets were having problems making calls and connecting to the internet.

Days later the US firm released a new version of the software that fixed the problems.


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Money maker exploits currency trades

18 November 2013 Last updated at 07:01 ET By Mark Ward Technology correspondent, BBC News

A money-making machine that exploits rounding errors in currency exchanges in favour of bank customers has been built by a security researcher.

If left to run at its top speed, the device could generate almost 70 euros (£58) a day by carrying out thousands of small transactions.

The device was built to test the security of online banking systems.

However, said experts, banks' anti-fraud systems would probably prevent the machine cashing in.

Tiny trades

The device was created by Romanian security researcher Dr Adrian Furtuna, who noticed what happened when certain amounts of Romanian leu were exchanged for euros.

These transactions were rounded up in a customer's favour so they ended up with cash worth slightly more than they started with.

"The trick is that users can choose the amounts that they want to exchange such that the rounding will be always done in their favour," Dr Furtuna told the BBC.

The amounts involved are so small, 0.005 of a euro, that thousands of transactions are needed to generate a significant amount of money.

Dr Furtuna, who works for KPMG Romania as a penetration tester, set out to see if banks' online currency trading systems were vulnerable to large scale exploitation of this rounding error.

The machine was needed because many banks use authentication gadgets to secure online transactions.

These devices typically generate a short sequence of numbers that must be entered alongside other credentials when moving or exchanging money online.

He automated the sequence by building a machine that could press buttons on the security device and read the code it generated as part of the authentication process.

The response rate of the device limited the number of transactions that could be carried out, Dr Furtuna told the BBC. At most, he said, it could carry out 14,400 transactions per day. This means, at most, it could generate about 68 euros per day if left to run unchallenged.

So far the device has been only proven to work in the lab, as the bank that asked Dr Furtuna to test its security did not give him permission to try it against its live online banking system.

Separate research had shown that the online systems of at least five banks in Romania might be vulnerable to the money-machine attack, he said. Other banks in other nations might also be susceptible, he added.

"Banks believe that nobody can do a high number of transactions in a feasible time since each transaction requires to be signed using the [authentication] device," he said. "By building this machine I proved that this assumption is wrong and transactions can be automated with or without an [authenticator]."

Tod Beardsley, a security engineer at Rapid7, said such "salami slicing" attacks were well known, having been depicted in films such as Superman III, Hackers and Office Space.

"Salami slicing attacks are usually illegal, since they usually add up to some kind of bank or tax fraud, or run afoul of anti-money laundering laws," he added.

Many banks avoided falling victim to such attacks by imposing a minimum transaction size that removed the fractional error, said Mr Beardsley.

Penetration tester Charlie Svensson, from security firm Sentor, said banks' anti-fraud mechanisms would probably spot and stop anyone trying to carry out thousands of tiny trades all day, every day.

"I have the feeling that he would not be the first to do this, but banks tend to take notice when money goes missing," he said. "If there's one thing that banks worry about, it's money."


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Sony responds to PS4 glitch reports

18 November 2013 Last updated at 08:44 ET

Sony has published a troubleshooting guide for users experiencing problems with the new PlayStation 4.

Some users have complained about a blue light continuously flashing on their consoles, affecting its operation.

Sony said this could be triggered by various issues, including a problem with the PS4's power supply, hard drive or hardware or TV compatibility.

The PS4 is Sony's latest gaming console. It sold more than one million units within 24 hours of its US launch.

The company said the number of systems affected by the issue represented less than 0.4% of units shipped to date.

"This is within our expectations for a new product introduction, and the vast majority of PS4 feedback has been overwhelmingly positive," Sony said in a statement.

'Isolated incidents'

Some of the users highlighted the issues on Sony's US PlayStation forum.

"My PS4 turns on, blinks blue, turns white and won't connect to my TV," posted a user by the name of Newender.

Another user, Juggalugalotus, said: "Mine just blinks blue and I don't get any audio or video. Tried all four of my HDMI cables and checked all of the settings on the TV. Nothing.

"Basically we bought a $400 [£250] paperweight."

Sony said it was "closely monitoring for additional reports, but we think these are isolated incidents".

According to Sony, some of the problems associated with the blinking of the blue light could include no audio or video output to the TV and the console powering off.

The company has recommended that users facing such issues turn off the console completely by pressing the power button for seven seconds.

It has also advised users to make sure that the hard drive "is properly seated" in its bay, saying a loose connection can prevent the console from powering on completely.


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Search engines to block abuse images

18 November 2013 Last updated at 15:53 ET

Leading search engine companies Google and Microsoft have agreed measures to make it harder to find child abuse images online.

As many as 100,000 search terms will now return no results that find illegal material, and will trigger warnings that child abuse imagery is illegal.

PM David Cameron has welcomed the move but said it must be delivered or he would bring forward new legislation.

Child protection experts have warned most images are on hidden networks.

In July, Mr Cameron called on Google and Microsoft's Bing - which together account for 95% of search traffic - to do more to prevent people getting access to illegal images.

David Cameron

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He said they needed to ensure that searches which were unambiguously aimed at finding illegal images should return no results.

The issue of online images showing the sexual abuse of children has made headlines in recent months after the convictions of Stuart Hazell and Mark Bridger for the murders of Tia Sharp and April Jones.

Both Hazell and Bridger were known to have sought out and viewed child abuse images online.

On Monday, Downing Street said the government would be checking to see that internet companies acted "urgently" .

Google and Microsoft joined other internet firms, the National Crime Agency (NCA) and charities at Downing Street for an internet safety summit earlier.

At the meeting, the NCA's director general said initial tests showed that changes introduced by the search engines were working.

The prime minister told the meeting the UK would hold an international summit on the issue next year, with a "specific focus on protecting the victims of online child abuse".

Continue reading the main story

What difference have today's measures by Google and Microsoft made?

Typing "child pornography" in to Google's search engine now brings up a set of search results that include warnings that child abuse imagery is illegal.

The first three links are all related to reporting disturbing images or seeking help if you think you or someone you know has a problem with child abuse images.

The first link is an advert that links to a Google statement about protecting children from sexual abuse. The next link directs you to the Internet Watch Foundation, where you can report criminal online content, and a link to Stop it Now advises users how they can get help and advice.

The remaining search results are mainly news stories from around the world reporting on child abuse images.

Speaking after the summit, Mr Cameron said the next stage was to target the "dark internet" - where people share images online without making them publicly available.

He said Britain would work with other countries and use its "best brains" to catch people who share images of child abuse.

New software

Now both companies have introduced new algorithms [software instructions] that will prevent searches for child abuse imagery delivering results that could lead to such material.

Google communications director Peter Barron said the changes, which had cleaned up the results for more than 100,000 queries that might be related to the sexual abuse of children, would make it "much, much more difficult to find this content online".

"We're agreed that child sexual imagery is a case apart, it's illegal everywhere in the world, there's a consensus on that. It's absolutely right that we identify this stuff, we remove it and we report it to the authorities," he said.

The restrictions will be launched in the UK first, before being expanded to other English-speaking countries and 158 other languages in the next six months.

Google communications director Peter Barron and Microsoft's general manager of marketing and operations Nicola Hodson

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Google's Peter Barron and Microsoft's Nicola Hodson say they have worked together to block and remove content

Warnings - from both Google and charities - will make it clear child abuse is illegal.

Microsoft, which in a rare display of unity is working closely with Google on this issue, says its Bing search engine will also produce clean results.

Microsoft's general manager of marketing and operations Nicola Hodson said: "Day-to-day we're fierce competitors, and we collaborate on this issue because it transcends that.

"It will be much harder to find that content on both Bing and Google. We are blocking content, removing content and helping people to find the right content or also sources of help should they need that," she said.

Tory MP Claire Perry, Mr Cameron's adviser on the sexualisation and commercialisation of childhood, told BBC Radio 4's Today programme the new measures were a "great step forward".

Continue reading the main story

Analysis

Mark Ward Technology correspondent, BBC News


Google and Microsoft's efforts will make it harder to search for abuse images but will do nothing to limit access to what is on the deep web or held on darknets.

The deep web is simply those parts of the web not catalogued by search engines. These are the parts of websites search crawlers do not visit or cannot find.

Some deep web sites are password protected, or only give access to people visiting from certain addresses or are forums or places that block indexers or use file formats they do not log.

Darknets are stand-alone networks that sit separate to the web but are accessible to those that run the right software to get at them. Many operate on a peer-to-peer basis and can only be accessed by those invited to join them.

"We're not declaring victory but this is a massive step in the right direction," she said.

Lyn Smith, grandmother of April Jones, who was killed by Mark Bridger in October last year, welcomed the plans for new online restrictions.

"I don't know if it's enough but it's a start. I'm glad David Cameron has got involved in this," she said.

'Missed opportunity'

But Jim Gamble, former head of the Child Exploitation and Online Protection Centre (Ceop), told BBC Breakfast he did not think the measures would make any difference with regard to protecting children from paedophiles.

"They don't go on to Google to search for images. They go on to the dark corners of the internet on peer-to-peer websites," he said.

He said search engines had already been blocking inappropriate content and the latest move was just an enhancement of what was already happening.

A better solution would be to spend £1.5m on hiring 12 child protection experts and 12 co-ordinators in each of the police regions to hunt down online predators, he added.

NSPCC chief executive officer Peter Wanless said "a concerted and sustained effort from all quarters" was needed to stay one step ahead of sex offenders, who were getting ever more technologically advanced.

Former head of CEOP Jim Gamble

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Former head of anti-exploitation body Ceop, Jim Gamble: "I don't think this will make any difference"

"This is the key child protection issue of a generation - we cannot fail," he said.

A June report by Ceop highlighted how the "hidden internet" helped distributors of child abuse images evade detection by using encrypted networks and other secure methods.

Google and Microsoft have agreed to work with the UK's National Crime Agency and the Internet Watch Foundation to try to tackle networks which host child abuse images.

The two companies are also using their technological expertise to help in the identification of abuse images.


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'Selfie' named as word of the year

18 November 2013 Last updated at 22:31 ET

"Selfie" has been named as word of the year by Oxford Dictionaries.

The word has evolved from a niche social media tag into a mainstream term for a self-portrait photograph, the editors said.

Research suggested its frequency in the English language had increased by 17,000% in the last year, they added.

Other shortlisted words included "twerk" - a raunchy dance move performed by Miley Cyrus - and "binge-watch" - meaning watching lots of TV.

"Schmeat", meaning a form of meat synthetically produced from biological tissue, was also a contender.

'Inventiveness'

The word of the year award celebrates the inventiveness of English speakers when confronted with social, political or technological change.

Oxford Dictionaries online editor Richard Holden

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Oxford Dictionaries online editor Richard Holden explains the choice of "selfie" as word of the year

In 2004, the word of the year was "chav", in 2008 it was credit crunch and last year it was "omnishambles".

To qualify, a word need not have been coined within the past 12 months, but it does need to have become prominent or notable in that time.

Selfie is defined by Oxford Dictionaries as "a photograph that one has taken of oneself, typically with a smartphone or webcam and uploaded to a social media website".

Its increase in use is calculated by Oxford Dictionaries using a research programme that collects around 150 million English words currently in use from around the web each month.

This software can be used to track the emergence of new words and monitor changes in geography, register, and frequency of use.

Papal power

Selfie can be traced back to 2002 when it was used in an Australian online forum, according to Oxford Dictionaries.

A man posted a picture of injuries to his face sustained when he tripped over some steps. He apologised for the fact that it was out of focus, saying that it was not because he was drunk but because it was a selfie.

This year, selfie has gained momentum throughout the English-speaking world, helped by pictures such as one of the Pope with teenagers that went viral.

Judy Pearsall, editorial director for Oxford Dictionaries, said: "Social media sites helped to popularise the term, with the hashtag #selfie appearing on the photo-sharing website Flickr as early as 2004, but usage wasn't widespread until around 2012, when selfie was being used commonly in mainstream media sources."

Selfie was added to the Oxford Dictionaries Online in August, but is not yet in the Oxford English Dictionary, although it is being considered for future use.

Other words that were shortlisted included "showrooming" - examining a product at a shop before buying it online at a lower price - and bitcoin - a digital currency in which transactions can be performed without the need for a central bank.


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Yahoo to encrypt all users' data

19 November 2013 Last updated at 07:31 ET

Yahoo has announced it will encrypt all user information that moves between its data centres by the end of March 2014.

The internet provider said it had taken this step after allegations the US government had secretly accessed users' data without the company's knowledge.

In October the Washington Post obtained documents from former National Security Agency contractor Edward Snowden.

They alleged the agency had broken in to the main communication links that connect Yahoo's data centres.

The company had already revealed plans to encrypt email communications from January 2014 after previous allegations of government agencies accessing email traffic.

In a statement released on the company's Tumblr account on Monday, chief executive Marissa Mayer said: "I want to reiterate what we have said in the past - Yahoo has never given access to our data centres to the NSA or to any other government agency. Ever.

"There is nothing more important to us than protecting our users' privacy."

Users will also be given the option to encrypt communications between themselves and Yahoo.

Google encrypts

Mark Manulis, associate professor of applied cryptography and network security at the University of Surrey, told the BBC: "We'll see more of this.

"[Yahoo] is moving along with other companies in this direction. This is better than no encryption but is it enough?"

"It makes it harder for the average hacker, but it still could be possible for government agencies [to access] depending on what encryption is used," he said.

Google already encrypts its email service and has been speeding up the implementation of its encryption between data centres since June.

According to the documents leaked by Mr Snowden, the NSA's programme for accessing companies' data links is known as Muscular and is operated jointly with UK spy agency GCHQ.

The documents indicate Yahoo and Google had been targeted in this way.

More than 181 million records were processed in the month prior to January 2013, according to the Washington Post.

A separate programme known as Prism, also run by the NSA, reportedly allows the agency to access users' emails and a range of other data with the permission of a court order.

The NSA has requested access to information from Microsoft and its Skype division, Google and its YouTube division, Yahoo, Facebook, AOL and Apple, according to a leaked presentation from April 2013.


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Facebook defends beheadings footage

19 November 2013 Last updated at 08:29 ET By Justin Parkinson Political reporter, BBC News

Facebook will continue to allow users to show footage of beheadings as long as it is posted in "the right context", MPs have heard.

The social network site has been criticised for allowing such images to be shown, amid warnings they could cause psychological damage.

But Facebook's UK and Ireland policy director Simon Milner said the footage could expose human rights abuses.

There would also be "more prior warnings" on content, he added.

Facebook introduced a temporary ban on decapitation clips in May, but announced last month that it believed users should be free to watch them.

'Refining'

Mr Milner, appearing before the Commons Culture, Media and Sport Committee, said: "We are grateful that we live in a country where beheadings aren't normal."

However, he told the MPs that in some parts of the world they were a "normal part of life" and that human rights activists wanted "to use our platform to highlight what's going on".

Such people were "condemning, not glorifying" beheadings and there was "a place for people to share that kind of content in the right context".

The BBC was alerted to Facebook's change in policy last month by a reader who said the firm was refusing to remove a page showing a clip of a masked man killing a woman, which is believed to have been filmed in Mexico.

It was posted under the title, Challenge: Anybody can watch this video?

After facing criticism from its own safety advisors and media commentators, the firm eventually blocked the clip, but continued to allow others on the same theme to remain.

Mr Milner told MPs: "We don't post things to Facebook. It's our users who post to Facebook."

He promised that the site would increase the number of prior warnings of distressing content, was "refining" its procedures and was "taking steps to ensure people share more responsibly".

He added: "If you go to Facebook and search for beheadings, you would never be able to find them. In some other parts of the internet they are much easier to find it."

Facebook allows anyone aged 13 and above to be a member.

Its terms and conditions state that it will remove photos or videos that "glorify violence" in addition to other banned material.


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'Legitimate' Bitcoin's value soars

19 November 2013 Last updated at 11:32 ET

The value of virtual currency Bitcoin has soared to over $900 (£559), after a US Senate committee hearing.

The committee was told that virtual currencies were a "legitimate financial service" with the same benefits and risks as other online payment systems.

The Homeland Security and Governmental Affairs Committee is exploring the "promises and risks" of Bitcoin for "government and society at large".

The currency has more than trebled in value since October.

Fear and confusion

The US Senate hearing was prompted by the closure of the Silk Road website in October. The site, which sold drugs and other illegal goods, was shut down by the FBI.

Users of the site were required to pay for their transactions using bitcoins.

Representatives from the Department of Justice and financial regulator the Securities and Exchange Commission have been asked to provide their views about virtual currencies to the committee and submissions have been received from the FBI and the US Federal Reserve.

"Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us," the chair of the committee, Senator Thomas Carper, said in opening remarks.

The FBI, in a letter to the committee released on Sunday, said that it recognised virtual currencies offered "legitimate financial services" but they could be "exploited by malicious actors".

Mythili Raman, the head of the Justice Department's Criminal Division, told the committee: "We have seen increasing use of such currencies by drug dealers, traffickers of child pornography, and perpetrators of large-scale fraud schemes."

Mainstream acceptance

Jerry Brito, senior research fellow at George Mason University told Bloomberg: ''Two years ago it was alarm when Silk Road first came on the scene.

''Since then, Congress has been educating itself and understands that there are great potential benefits, and like any new technology there are going to be some challenges. But they see there is a balance to be struck here and they are generally positive on the technology," he said.

Continue reading the main story

Bitcoin is often referred to as a new kind of currency.

But it may be best to think of its units as being virtual tokens rather than physical coins or notes.

However, like all currencies its value is determined by how much people are willing to exchange it for.

To spend bitcoins, a process called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.

For each problem solved, the bitcoins' owner can transfer a block of coins.

Third-parties can provide the computer processing power to solve the problems and are rewarded for their efforts with new bitcoins.

To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of about 3,600 new bitcoins a day.

There are currently about 11 million bitcoins in existence.

To receive a bitcoin a user must have a Bitcoin address - a randomly generated string of 27-34 letters and numbers - which acts as a kind of virtual postbox to and from which the bitcoins are sent.

Since there is no registry of these addresses, people can use them to protect their anonymity when making a transaction.

These addresses are in turn stored in Bitcoin wallets which are used to manage savings.

They operate like privately run bank accounts - with the proviso that if the data is lost, so are the bitcoins contained.

Trade in Bitcoin is small compared with that in countries' official currencies. But since its creation in 2008, Bitcoin has become a popular way to pay for things online. There are currently more than 12 million bitcoins in existence according to Bitcoincharts, a website that provides financial information about the currency.

On one exchange site, Mt. Gox, the value of the currency rose to $900 (£559) on Monday before falling back to $727 (£452). This compares with a price of $200 (£124) in late October.

The closing down of Silk Road and hearings in front of US government committees have led some to believe that prices are increasing as investors think Bitcoin will gain more mainstream acceptance.

"Lots of factors are driving the price action in Bitcoin, including pure speculation," said Garrick Hileman, an economic historian at the London School of Economics.

"Regulatory interest in Bitcoin also traditionally has a positive effect on the price of Bitcoin," he added.

Jan Lambregts, head of financial market research at Rabobank, which does not trade in Bitcoin, said regulators were right to get involved.

"Looking at it from a distance, it very much looks like it could be a speculative bubble. It's a small market, with a lot of interest in it, which is inflating and distorting the price," he said.

"But you can see the concerns for governments - this is a currency outside their normal domain and which is not influenced by central banks.

"It may all be relatively small-scale now, but decisions taken now could have wider repercussions were such virtual currency experiments to be expanded in the future," he added.

Some have questioned whether trading in Bitcoin is insufficiently transparent and therefore easier to use for illegitimate means. Patrick Murck, from the Bitcoin Foundation, which promotes the use of the currency, told the BBC that the network was very open and everybody could see every transaction that happened.

"I would challenge that it's for illegitimate use or bad actions. What we're finding is not that it's a haven for illegitimate activities but that there are many legitimate uses," he said.

Whatever people are using Bitcoin for, Mr Brito thinks it's here to stay.

"These hearings mean Bitcoin is finally coming into its own," he said.

"It's a real thing and it's not going anywhere and these hearings highlight that."


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