Chinese car-maker Geely to make Malaysia its global hub, help Proton drive into future


PUTRAJAYA: The entry of a major Chinese carmaker into Proton Holdings Bhd will not only ease its financial woes, but also bring fresh capacity to the group’s underutilised factories.

Zhejiang Geely Automotive Co Ltd plans to turn Malaysia into its global hub to manufacture all of its right-hand drive cars, including its premium Volvo brand.

Geely will take a leadership role in production, sales and marketing. Proton will be responsible for distribution of the brand in Malaysia.
These were among the highlights mentioned at the signing ceremony in Putrajaya between DRB-Hicom, the parent company of Proton, and Geely.

Proton and Geely yesterday signed an agreement that would see Geely take a 49.9% stake in Proton. Both parties have not finalised the price Geely would pay for the stake.

Through the partnership, Geely executive vice-president and chief financial officer Daniel Li said Geely would focus on assisting Proton to sell 500,000 cars in Malaysia and around the region by 2020.

He said Geely would be contributing technology, talent and money to Proton. These include platform-sharing that would see the development of Proton’s first-ever SUV model from Geely’s best selling model – the Boyue.

DRB-Hicom group managing director Datuk Seri Syed Faisal Albar said in the competitive automotive industry, partnership among carmakers globally was common.

A partnership would also further expand Proton’s reach to other markets and give it better economies of scale.

“This partnership with Geely will create more jobs in Proton,” he told reporters yesterday.

Proton has a workforce of about 10,000 which produces about 100,000 cars a year. In 2016, sales of Proton cars dropped 30% to 72,290 units from 102,174 previously.

The company reported a loss of almost RM1bil last year.

Proton’s Tanjung Malim plant, which is designed to produce a million cars every year, will be made a new manufacturing hub for Geely.

Syed Faisal said Proton would relocate its entire production from Shah Alam to Tanjung Malim within five years.

Despite the entry of a new foreign partner, Proton will maintain its national car status. This means its industrial linkages, including vendors and dealers, will not be affected by the change in shareholding.

Under the heads of agreement signed between DRB-Hicom and Geely, the Chinese carmaker will take a 49.9% equity interest in Proton and also a controlling stake in Lotus, the British sportscar maker, from Proton.

No financial details were disclosed in the sale of a stake in Proton, while for Lotus, Geely would be paying £51mil (RM284mil) for a 51% stake in Lotus.

Syed Faisal said DRB-Hicom planned to sign a definitive agreement with Geely in July.

Also present at the signing ceremony was Second Finance Minister Datuk Seri Johari Abdul Ghani, who clarified that with the partnership with Geely in place, Proton would need to repay its RM1.25bil soft loan from the Government.

As part of the conditions for the soft loan, Proton was required to collaborate with a well-known strategic partner.

The requirement to collaborate with a well-known strategic partner was imposed on Proton as part of the conditions issued by the Government for its approval of the RM1.25bil soft loan to Proton, in which a bulk of the money was used to pay its vendors.

Separately, Johari said Proton was entitled to a RM1.1bil reimbursement from the Government for its RM3.5bil spent on research and development in the past.

Johari also said there would be no more “subsidy” for Proton from now on, and that the Government would no longer have a golden share in Proton with Geely entering into a partnership with the national carmaker.

Source: The Star by intan farhana zainulandizwan idris

‘Geely to help Proton drive into future’

IPOH: The decision by Proton to embark on a partnership with China’s Zheijiang Geely Automotive Co Ltd is timely because cars are predicted to be next in line to undergo sweeping innovations.

International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said that in light of Industrial Revolution 4.0, bringing in Geely as Proton’s strategic partner would ensure the Malaysian company’s survival as cars increasingly adopt digital technology.

Industrial Revolution 4.0, or Industry 4.0, is the current trend of automation and data exchange in manufacturing technologies which include cyber-physical systems, the Internet of Things and cloud computing.

“After attending the Hannover Messe, the world’s biggest trade fair for industrial technology, I learned that self-driving cars are the next big thing.

“This means that you are looking at a future where cars will have no steering wheel.

“With just the touch of a panel, the car will bring you to your destination,” Ong said after witnessing the swearing-in of the new committee of the Perak Chinese Cemeteries Management Association yesterday.

He said Geely would be Proton’s channel to embracing technological innovations.

“I’m not saying to expect Proton to be a frontliner in this, but at least with a strategic partner it can move along with the times,” he added.

He said Geely would also open a new market for Proton, which was important for the national carmaker’s survival.

He said it was not a decision made purely in favour of China.

“Over the years, it’s been no secret that Proton accumulated losses and will need a big market to cater to in order to settle all the debts. This is the reality.

“Proton only narrowly met its sales target of 580,000 units last year, while Chinese brands sold 28 million units,” he said.

In view of its small volume, Ong said it would be difficult for Proton to fund sophisticated research and development initiatives.

“We need a larger market for things to work out. The Industrial Revolution 4.0 is all about innovation. We can’t do it ourselves, which is why working with advanced nations is our best bet,” he added.

The Star by Amanda Yeap

Related links:

Najib: Up to RM1bil losses for Proton if sale to Geely blocked …

RM500 aid for civil servants – Nation

PM: Sovereignty will never be compromised – Nation

No place for sentiment in Proton deal – theSundaily

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Proton and a terribly flawed Malaysian Automotive Policy 

Millennials Will Destroy Bitcoin


Irrational exuberance is alive and well.

A textbook bubble in Bitcoin prices is developing right now.
And it has everything to do with Bitcoin’s investors.
Bitcoin Bubble
I’m probably not going to gain any friends with this perspective. But there are inarguable factors that suggest Bitcoin’s own buyers are irrationally driving up prices. And their
exuberance is setting the market up for a crash.
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Let me clear one thing up about Bitcoin before I explain why I think prices are eventually headed for a crash…
As I argued before, Bitcoin is a legitimate form of money. But for the time being, it’s being treated as a speculative investment.
Money is typically used in exchange. And while Bitcoin can be used in exchange, it’s largely not. Gary Schneider, Professor of Accounting at California State University, says only about 10% of Bitcoin is held by people who use it as currency. The large majority are
speculators hoping to sell at higher prices.
The fact that the market is dominated by speculators is not necessarily the problem for Bitcoin. And here’s where I’m sure to piss some people off… The problem for Bitcoin is its
buyers.
Who are they?
Well, according to a recent survey, approximately 60% of Bitcoin owners are under 35 years old.
Bitcoin User Age
In short, most Bitcoin buyers are millennials. And that’s all we need to know about them to make an inarguable point (told you I wouldn’t be making any friends here).
The fact is this: A 35-year-old speculator intrinsically has much less experience in risk management than a 60-year-old. And remember, most Bitcoin owners are mostly speculators, as opposed to users of the product.
AND remember they’re speculating on a currency, which is among the most volatile of financial instruments.
AND remember they’re speculating on what essentially amounts to a new, experimental currency.
All this considered, Bitcoin looks to me as one of the (if not the) most speculative financial instruments available…
Expect for Bitcoin’s derivatives, of course.
Yes, believe it or not, Bitcoin has a futures market. And there are products that offer even more risk. On its Perpetual Bitcoin/USD Swap Contracts, BitMEX offers up to 100x
leverage!
But to really understand why I think Bitcoin is eventually headed for a crash, let’s consider the most famous market bubble in history…
Dutch Tulip Mania
In the 17th century, formal futures markets developed in the Dutch Republic, providing the infrastructure for a massive bubble in the price of tulip bulbs.
The tulip first became fashionable in France, where early modern ladies of the aristocracy began sporting the flower on their dresses. From there, the tulip became the flower to show off social status and wealth. The demand for bulbs subsequently
skyrocketed, and prices immediately followed.
At the peak of Tulip Mania in 1637, a single tulip bulb could cost as much as 10,000 gilders, the price of a nice middle-class townhouse in Amsterdam. According to one author, 12 acres of land was once offered for one rare bulb. For a flower bulb!
Semper Augustus The Semper Augustus was the most coveted of all Dutch tulips.
Of course, the bubble eventually burst. The price of tulip bulbs collapsed, and fortunes in perceived value disappeared over night.
My team of researchers recently uncovered a key patent that exposes a major chink in Tesla’s armor…
This patent describes a groundbreaking
technology that could simply blow Elon Musk, and frankly the entire
solar industry, out of the water.
We’ve managed to uncover the tiny company
with exclusive rights to this technology. It trades at less than $0.15 a
share, but don’t expect it to stay there for long.
Over the next several years, I believe the value of this firm could absolutely explode… by my calculations, upwards of 4,600%.
I’ve included the patent filing and everything you need to know about this small company in this brief, free video presentation.
Here’s what I really want you to take away from this story…
If we consider whom the people were who took part in Dutch Tulip Mania and compare them to the majority of Bitcoin owners, it seems both groups share the same shortcomings.
First, we know both groups are speculators betting on the hot new product. But I think we can also make good assumptions to compare the investment sophistication of the Dutch tulip investors and today’s Bitcoin buyers.
Because formal futures markets were only recently developed, the Dutch tulip buyers were inherently unsophisticated investors. All of them. They simply didn’t have the
experience.
The majority of today’s Bitcoin buyers are generally younger, so they share the same inexperience. For many Bitcoin buyers, I imagine it represents their first real investment. They simply don’t have experience in risk management. And I think that’s pretty clear considering some are buying products with 100x leverage!
Bitcoin could be the tulip of the 21st century with the development of a textbook bubble. And I think could be setting itself up for an eventual crash.
Now, even though I’ve been talking about a crash in Bitcoin prices, there’s an epilogue to the Dutch tulip story that’s often overlooked… and that actually provides a bullish outlook for the technology.
Truth is, the Dutch tulip bubble never really ended… it evolved. The price of tulip bulbs collapsed in the 17th century. But the flower industry at large eventually recovered and
has never been bigger. Global floral production value is currently estimated at $55 billion.
People still pay thousands for rare flowers. In fact, an anonymous buyer paid over $200,000 for a rare orchid in 2005. And that’s not even considered the most expensive flower in the world. Rose breeder David Austin spent 15 years and $5 million to develop Juliet rose.
Juliet rose
My point is, the tulip as an individual product lost favor. But the collapse of the tulip  market didn’t completely kill the flower market. In the same way, I don’t expect a
collapse of Bitcoin prices to completely kill the blockchain-based currency market.
Bitcoin is simply one product of many blockchain-based currencies. A crash in Bitcoin would throw a wrench in the blockchain-based revolution. But there is little doubt that blockchain technologies are the future.
As we speak, every major central bank and large financial institution is researching how to implement blockchain into its own systems. It has already been proven to eliminate
verification redundancies and improve security, and new applications are
being tested every day.
So while I think Bitcoin itself could eventually be headed for a crash, the blockchain technologies that are supporting all these digital currencies seem set for unprecedented
growth.
Until next time,
luke signature
Luke Burgess
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WannaCry ransomeware attacks, how to prevent it?


Source: Intel.malwaretech.com

WannaCry has spread to Malaysia; two companies here were stricken by the ransomware virus that has infected a massive number of computers across the globe since Friday. Hackers use the virus to hold a victim’s data to ransom – pay up or lose all your information – and the victims overseas include hospital networks, businesses and government agencies.

PETALING JAYA: All governmental agencies have been told of the WannaCry ransomware outbreak and have armoured themselves against attacks.

“All government agencies at federal and state level have been alerted and ensured that their computers have been patched accordingly,” said CyberSecurity CEO Datuk Dr Amirudin Abdul Wahab.

Dr Amirudin said the WannaCry ransomware exploited vulnerabilities of the Windows operating system, especially on Windows XP which has stopped receiving updates since 2014.

“The malware exploits a flaw in the network protocol called the Server Message Block. Unlike former malware cases which is localised to a single computer, WannaCry exploits the operating system’s vulnerabilities and spreads it across PCs in the network.

“This is why it spread at such speed and range. Realising this, Microsoft came out with the MS17010 patch to stop this particular malware from working and spreading,” he said in a phone interview.

The patch was first rolled out in March this year but was not available to Windows XP, Windows 9 and Windows 2003 until May 12, after WannaCry’s outbreak.

According to the Microsoft Security Response Centre, Windows 10 users were not targeted by the attack.

To protect themselves against any malware attack, computer users were urged to back up their files, avoid clicking on suspicious links online or download attachments in e-mail messages sent by strangers.

“Apart from preventive measures, if you think you have been infected by the malware, please report to us at cyber999@cybersecurity.my or call us at 1300-882999,” he said.

In response to a question, Dr Amirudin said it was not an obligation under the law for anyone to report any security breach.

“It is not mandatory in Malaysia, unlike in some other countries,” he lamented, pointing out that when people made a report to CyberSecurity, their confidentiality would be paramount.

“We can also provide assistance,” Dr Amirudin added.

As of 6pm yesterday, CyberSecurity has yet to receive any report on infected computers in Malaysia.

“It does not mean that infection will not happen. At present, however, the situation is manageable and under control and we are always on the alert,” he said.

When contacted, the Malaysian Communications and Multimedia Commission and CyberSecurity Malaysia also said they had not received any report of a WannaCry infection in Malaysia.

Ransomware: how hackers take your data hostage

Screens of NHS computers with images demanding payment of US$300 (RM1,302) in Bitcoin (Bitcoin, digital currencies rally, caution prevails; virtual currency in property), saying: “Ooops, your files have been encrypted!”

It demands payment in three days or the price is doubled, and if none is received in seven days the files will be deleted, according to the screen message.

“Ransomware becomes particularly nasty when it infects institutions like hospitals, where it can put people’s lives in danger,” said Kroustek, the Avast analyst.

A hacking group called Shadow Brokers released the malware in April claiming to have discovered the flaw from the NSA, Kaspersky said.

Although Microsoft released a security patch for the flaw earlier this year, many systems have yet to be updated, researchers said.

“Unlike most other attacks, this malware is spreading primarily by direct infection from machine to machine on local networks, rather than purely by email,” said Lance Cottrell, chief scientist at the US technology group Ntrepid.

Some said the attacks highlighted the need for agencies like the NSA to disclose security flaws so they can be patched.

G7 finance ministers meeting in Italy discussed the attacks and were expected to commit to stepping up international cooperation against a growing threat to their economies. — AFP

Massive Ransomware Attack Hits 99 Countries

PHILADELPHIA (CNN)–Tens of thousands of ransomware attacks are targeting organizations around the world on Friday.

Cybersecurity firm Avast said it has tracked more than 75,000 attacks in 99 countries. It said the majority of the attacks targeted Russia, Ukraine and Taiwan.

What is it?

The ransomware locks down all the files on an infected computer and asks the computer’s administrator to pay in order to regain control of them.

The ransomware, called “WannaCry,” is spread by taking advantage of a Windows vulnerability that Microsoft released a security patch for in March. But computers and networks that haven’t updated their systems are at risk. The exploit was leaked last month as part of a trove of NSA spy tools.

“Affected machines have six hours to pay up and every few hours the ransom goes up,” said Kurt Baumgartner, the principal security researcher at security firm Kaspersky Lab. “Most folks that have paid up appear to have paid the initial $300 in the first few hours.”

Sixteen National Health Service (NHS) organizations in the UK have been hit, and some of those hospitals have canceled outpatient appointments and told people to avoid emergency departments if possible. Spanish telecom company Telefónica was also hit with the ransomware.

Spanish authorities confirmed the ransomware is spreading through the vulnerability, called “EternalBlue,” and advised people to patch.

“It is going to spread far and wide within the internal systems of organizations — this is turning into the biggest cybersecurity incident I’ve ever seen,” UK-based security architect Kevin Beaumont said.

Russia’s Interior Ministry released a statement acknowledging a ransomware attack on its computers, adding that less than 1% of computers were affected, and that the virus is now “localized.” The statement said antivirus systems are working to destroy it.

Megafon, a Russian telecommunications company, was also hit by the attack. Spokesman Petr Lidov told CNN that it affected call centers but not the company’s networks. He said the situation is now under control.

“We encourage all Americans to update your operating systems and implement vigorous cybersecurity practices at home, work, and school,” the U.S. Department of Homeland Security said in a statement released late Friday. “We are actively sharing information related to this event and stand ready to lend technical support and assistance as needed to our partners, both in the United States and internationally.”

Kaspersky Lab says although the WannaCry ransomware can infect computers even without the vulnerability, EternalBlue is “the most significant factor” in the global outbreak.

How to prevent it

Beaumont examined a sample of the ransomware used to target NHS and confirmed it was the same used to target Telefónica. He said companies can apply the patch released in March to all systems to prevent WannaCry infections. Although it won’t do any good for machines that have already been hit.

He said it’s likely the ransomware will spread to U.S. firms too. The ransomware is automatically scanning for computers it can infect whenever it loads itself onto a new machine. It can infect other computers on the same wireless network.

“It has a ‘hunter’ module, which seeks out PCs on internal networks,” Beaumont said. “So, for example, if your laptop is infected and you went to a coffee shop, it would spread to PCs at the coffee shop. From there, to other companies.”

According to Matthew Hickey, founder of the security firm Hacker House, Friday’s attack is not surprising, and it shows many organizations do not apply updates in a timely fashion. When CNNTech first reported the Microsoft vulnerabilities leaked in April, Hickey said they were the “most damaging” he’d seen in several years, and warned that businesses would be most at risk.

Consumers who have up-to-date software are protected from this ransomware. Here’s how to turn automatic updates on.

It’s not the first time hackers have used the leaked NSA tools to infect computers. Soon after the leak, hackers infected thousands of vulnerable machines with a backdoor called DOUBLEPULSAR.

Source: CNN’s Clare Sebastian contributed to this report.

WannaCry strikes two Malaysian companies

PETALING JAYA: Two local companies have been hit by the infamous WannaCry ransomware, three days after the malicious software was released, infecting 200,000 computers in 150 countries so far.

According to IT security services company LGMS, the first case in Malaysia involved a director of one of its clients who came across the dreaded ransomware on his personal laptop on Saturday morning.

LGMS founder C.F. Fong said the data in the laptop had to be erased as the person did not intend to pay the US$300 (RM1,300) ransom.

The same ransomware appeared in the machine of an automotive shop on Sunday morning.

“The company didn’t have any backup and might pay (the ransom),” said Fong.

Besides disconnecting compu­ters from the network, there was not much else they could do, he noted.

As of 3pm yesterday, a website tracking incidences of WannaCry infections started showing blips in the Klang Valley area.

The website displays a blip whenever an infected computer pings its tracking servers, thus allowing it to map out a geographical distribution of the WannaCry infection.

Fong added that any machine infected by WannaCry should not be connected to a public or cor­­porate network.

“Once you plug into any network, it will start spreading,” he pointed out.

Fong said none of LGMS’ clients, which include major banks in Malaysia, had reported any pro­blems so far, adding that he was quite confident that those who re­gularly updated their computers would not face any problems with WannaCry.

He said ransomware was not new but WannaCry had caused worldwide alarm because of how fast it was spreading.

“We have seen worse and devastating ransomware attacks before but WannaCry’s infection rate is one of the fastest ever as it exploits the vulnerability that exists in Windows,” Fong said.

Security companies all over the world are reporting an unprecedented wave of WannaCry ransomware infections since Friday when more than 150 countries were hit by it.

The ransomware encrypts the data on an infected computer, preventing users from accessing it.

According to a report in The Guardian, the ransomware uses a vulnerability first revealed as part of a leaked stash of NSA-related documents, which infects machines running Windows and encrypts their contents before demanding a ransom to decrypt these files.

The perpetrators promise to release the data once a ransom of US$300 (RM1,300) is paid.

In just two days, computer networks of Britain’s National Health Service, Russia’s interior ministry and international shipper FedEx, among others, were affected.

The website tracking incidences of WannaCry infections was created by a 22-year-old British re­sear­cher known only as MalwareTech, who was credited with being an “accidental hero” after discovering a “kill switch” that halted WannaCry’s outbreak.

Cyber security expert: WannaCry ransomware has … – The Star Online

Malaysia also hit by WannaCry ransomware – Nation

Singapore not affected by cyber attacks

How to Remove Ransomware. – Ransomware Removal Instruction

Police raid CYL office, seize items

Bitcoin, digital currencies rally, caution prevails; virtual currency in property


Bitcoins As Digital Currency's Rally Crushed Every Other Currency in 2016
A collection of bitcoin tokens. Bloomberg—Bloomberg via Getty Images

Digital currencies rally, but caution prevails

While investing in the future is the way to go, it comes with risks and rewards. The best strategy would be to not be in a rush. Do your homework.

THIS week, the rally in crypto currencies is at its all-time high.

Bitcoin, the pioneer in digital currency, surged to over US$1,700 per coin in
anticipation of a reversal in United States financial regulators’ ruling to allow for an exchange-traded fund for Bitcoin and other factors.

Bitcoin was trading at US$935 on March 24. It rose 82%, pushing its market capitalisation to over US$28bil.

Ether, another such currency, surged from US$8 on Jan 1 to US$90 this week, gaining 1,125% in five months.

The market capitalisation of the 700-over currencies is over US$50bil. The promoters believe it is the currency of the future, hence the rise, but the naysayers believe it is entering a speculative bubble.

But there are some who are ditching gold to mine Bitcoins.

It is a fact that crypto currencies are gaining traction from their inception in 2009. Now, at least 150 organisations including Apple, Walmart, Sears, eBay, Overstock.com,  Microsoft, Steam, Expedia and even Subway accept them in exchange for goods.

So, what is Bitcoin then?

It is a form of digital currency, created and held electronically, not blocked by any nation or government, not printed like dollars and ringgit but produced by people. Crypto currencies are digital currencies that use encryption to secure transactions and control how new coins are made.

You and I can get Bitcoins by “mining” computers that validate blocks of transactions using software to solve mathematical puzzles every 10 minutes. If you solve it first, you are rewarded with new Bitcoins.

Bitcoin is the mother of all crypto currencies – also known as virtual currencies, digital currencies and private currencies.

Other than Bitcoin and Ether, there is also Dogecoin, Augur, Chinacoin, Litecon, Dash, Waves and Zcash. There are over 40 exchanges globally to trade in Bitcoins.

All this came about because of fintech, the financial services technology that is  disrupting the financial services sector with faster, cheaper and so-called “reliable”
transactions for money transfers, bank exchange rates and other money-related transactions. The average clearance is a 12-hour period, which apparently the banks cannot match.

In Brazil, people use Zcash to pay for their taxes, electricity bills and purchases.

This week, Australia said there would be no double taxation for crypto currencies and to treat it just like other currencies from July 1, paving the way for greater usage.

Many are betting on crypto currencies because of the lure that they are the currency of the future. Would you?

Since 2009, there have been gainers and losers, so you decide.

All these digital currencies came about because of the Internet and data.  The value of data and digital services is becoming more apparent, and in the digital era, data is the new currency.

Amid all this is blockchain, which is simply a digital ledger that keeps track of Bitcoin transactions and transfers it globally. It boasts of instantaneous transactions, transparent and cheaper than the traditional ways. This is why banks are hurriedly getting their acts together in the area of fintech so as to not miss the boat.

There is a growing number of mergers and acquisitions and crowdfunding for blockchains. Last month, music-podcast-video streaming service Spotify  bought over blockchain technology company Mediachain Labs to help reward  online content owners with royalty payments.

Other telcos and IT firms are getting into blockchain because they don’t want to miss out on anything. Other payment companies are getting into the act too. There is just too much interest in this new wave of doing things.

The journey of crypto currencies, however, is not without hurdles, and there are plenty out there that cannot be ignored. Even blockchain’s growth cannot be ignored, especially since it is being positioned by those championing it as the de facto technology of the future.

But will it really be all that or will it just add another layer to the overall cost?

All these transfers do not need regulation as yet, something that central bankers don’t like. In fact, Bank Negara is already in the thick of things where fintech is concerned.

While investing in the future is the way to go, it comes with risks and rewards. The best
strategy would be to not be in a rush. Do your homework, as there is also the other side of Bitcoin – fake websites, fake online gaming sites, trading, etc.

I bet you would know of someone who has lost money mining Bitcoin or Ether. You honestly wouldn’t want to be put in a spot like those caught up in the recent forex scam and the earlier gold scam.

It would be good too to bear in mind that the sweet spot of crypto currencies has been linked to terrorism financing, money laundering, tax evasion and fraud.

Trust and transparency have been the bedrock of financial institutions all these years. Ensure your bedrock is solid, but at the same time, remember what the former US Federal Reserve chairman Ben Bernanke had said in a letter to US senators about virtual currencies, that they “may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system”.

Do you think blockchain will bring trust and transparency to the world of crypto currency? Share your thoughts with me at bksidhu@thestar

Source: The Star by b.k. sidhu

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Property in a digital era

WITH digital technology all the rage and taking the world by storm, we look at how science and automation has managed to change and revolutionise the way we do things, in this section, property.

While the internet has changed the way we receive information and connect with others and the smart phone transformed the whole concept of a phone, we now look at the evolution of finance and how purchasing items, including a house, is going through reform with the introduction of bitcoin.

Introducing bitcoin

When people hear terms like “bitcoin” and “blockchain”, many are vague while some may not even be familiar with these words. But for the technology industry adept, bitcoin and blockchain is common as these new-age technology concepts and modus operandi have been around, perhaps less widely known in Southeast Asia as it is in the West and China.

For the uninformed and in the dark, bitcoin is a technology that has established a new electronic payment method using “digitised money” made with digital cryptography, otherwise known as cryptocurrency.

This system of payment is carried out when a user uses “bitcoin currency” (or cryptocurrency) to pay for goods by transferring the currency to another user (seller) within the bitcoin community.

Each transaction is recorded in a public data ledger known as “blockchain” and it is here where all the transactions that have taken place within the bitcoin community are stored.

The amazing thing about this system is that anyone in the bitcoin community is able to validate transactions that take place without the need of an intermediary.

Sound too good to be true and a little risky? Well, the reason there is no intermediate party necessary is due to the network bitcoin technology is regulated on.


Modus operandi and more

The bitcoin network is founded on a “peer-to-peer network system (P2P network)” which is explained as “a network of computers/ mobile configured to allow certain files and folders to be shared with everyone or with selected users”.

As a result, the “participants” are in control of their transactions, making everyone equal within the bitcoin community, which is also transparent.

It is said that bitcoin technology was first created in 2008 by a person or a group of persons under the pseudonym “Satoshi Nakamoto” in a research paper. The research stated that there was need for a new electronic payment method, one using digitised money. The analysis also included the future of bitcoin, its benefits, capabilities and potential.

The system was implemented on Jan 3, 2009. And after just a few years, bitcoin grew to become a whopping US$12 billion (RM52.7 billion) globalised economy.

Bitcoin attributes

While not much has been said about bitcoin in this part of the region, the system has been around, slowly developing and growing. Like many things that are cloudy and not often talked about, people are weary hence, there will be sceptics who dissuade others about the system they themselves are unclear about.

With that, theSun’s Brian Chung shares what he learnt of this new method of transaction and currency when he attended a talk by renowned entrepreneur, author and expert on bitcoin Andreas M. Antonopoulos.

Below, Antonopolous shares important information on bitcoin.

1) Bitcoin is an open system of payment: It is a system that anyone can access, participate and innovate, and does not require permission. Bitcoin allows anyone to join in and use the system, validate the transaction and create different kinds of cryptocurrency.

2) Bitcoin is borderless: Like the internet, bitcoin is not restricted to a country’s rules and regulations as it has its own protocol with no distinction across countries.

3) Bitcoin is neutral: Bitcoin does not take the identity of the participant into any consideration. It only validates the transaction that takes place between participants. This attribute also allows participants to remain anonymous.

4) Bitcoin is censorship resistant: Every transaction in the bitcoin network cannot be frozen, censored or canceled. Like the internet, the bitcoin system is a global digital economy with one currency.

5) Bitcoin is a decentralised system: The bitcoin network has no central institution or centre point of control. This trait ensures that there is no one major target for hackers to concentrate their attacks on. Instead, hackers have to create attacks on every single participant’s software with different forms of virus and codes to hack into one computer.

6) Bitcoin is scarce and limited: Bitcoin is a system of value like gold but in digital form. This makes it a system that is not based on credit and debit. It also makes bitcoin a singular global currency with no exchange rate between countries.

7) Every bitcoin transaction is permanent and immutable: The transaction of everyone in the community is verified by everyone in the system. Once it is verified, the transaction will be permanently recorded in the blockchain.

8) Bitcoin is a constantly innovative technology: The open source nature of the bitcoin technology allows other people to further improve on it. There are many other cryptocurrencies based on the bitcoin technology. Moreover, the bitcoin technology is dependent on the internet, which makes improvement and innovation necessary.

Bitcoin transactions can be done via smart phones and computers by downloading the application and software. Users do not need to register themselves to be part of the bitcoin network as all “participants” are referred to by codes and “signature of one’s device”.

However, iPhone users need to remember their iTunes password to download the application. In addition, the device that one has downloaded the bitcoin software on must remain connected to the internet in order for one to use the bitcoin method of payment.

Follow our column next week on the application of bitcoin in property.

[Note: All charts courtesy of Bitcoin Malaysia.]

 

The application of bitcoin in property

 

WHILE last week, we introduced the term bitcoin to those oblivious of this new age cryptocurrency and system of payment, this week, we share bitcoin whiz Andreas M. Antonopoulus’ insights on how this technology is applied in property. Here is what he had to say:

Permanent records

“One very common application is the registration of assets or ownership of tangible and
non-tangible things like the registration of title over land and the ownership of assets
like homes.

When you record something on blockchain, it cannot be modified … it is immutable. Once recorded on the blockchain, the system of trust prevents anyone from reversing or overwriting it. That makes a record on blockchain permanent, an immutable record which is really important in real estate transaction as it allows one to pass the title of a piece of land from person to person independently with no one being able to falsify the record or steal land through paper,” Antonopoulos said.

Moreover, he mentioned that this technology can benefit the industry tremendously as it is able to resolve a huge problem in real estate and property transactions – the falsification of strata titles and property documents.

His view is further enhanced with the emergence of another bitcoin-based system, ethereum. Like bitcoin, ethereum has its own cryptocurrency known as ether. However, ethereum adopts a different technology that is based on the blockchain public ledger system known as Smart Contract.

According to Antonopoulos, a smart contract is an electronic contract with all the contractual obligations of the buyer and seller. The contract is written and coded into an application, which will ensure both parties fulfill their obligations.

Like blockchain technology that is built on trust and verification, these contracts are encoded in a public ledger in the ethereum community. If anyone tries to forge the contract, the ledger will reject it. As such, this smart contract cannot be rewritten and altered as it is a permanent and immutable contract.


Direct transactions

Besides the use of a contract, the technology will make transactions direct, fast and secure.

Antonopoulos also shared about the removal of third parties and its altered role. He said, “Another example relevant to real estate application is the function of escrow. In order to do make transactions for real estate today, people have to use a third party agent, an escrow agent. This escrow agent charges a significant amount of money in most countries. During the process, that agent holds custody of the entire fund, which is dangerous. This means that the escrow agent has to be carefully vetted and have foresight.

Bitcoin can replace all of this by using multi-signature, which allows the seller and buyer to transact escrow programmatically, with the third party acting as mediator only in the case of a dispute.

Buyer and seller will be able to execute a transaction on their own without the need of an escrow agent and without any of the parties having custody of the entire fund. Through bitcoin, you do not need to spend that additional one percent of the sale of the house – the escrow agent is no longer necessary.

It can also change the speed of escrow by doing it in hours instead of a month and changes the security because no one of the three parties can run away with the money. It is faster, cheaper and secure. It can be done in other industries related to real estates like purchasing assets, corporation, mergers and acquisitions.

International property purchase

With the use of decentralised digital currency, one can assume that purchasing items and properties is a little easier, and it is.

The chance of purchasing international property is further reinforced by the fact that bitcoin is not controlled by anyone, not even political and banking institutions. This attribute of bitcoin makes it easier for people buying property from another country. Although each country has its regulations, the use of bitcoin to purchase property abroad saves time and money as one does not need to change currency.

The Australia Real Estate website has stated that there are properties in the United States and Latin America being sold using bitcoin. The Wall Street Journal wrote an article in 2014 regarding a Lake Tahoe property, which was sold for US$1 million in bitcoin.

Follow our column next week for more interesting information on bitcoin, its challenges and how stable a cryptocurrency it is.

By rian Chung

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The Death of the iPhone


 

When I first predicted the “death of the iPhone” in January 2016, most people just laughed.

But when Apple reported its first-ever decline in iPhone sales just three months later, many began to quiet down and listen.

Now, even Tim Cook is recognizing the slowdown, after posting a surprise sales decline in second-quarter earnings this week.

According to Apple’s own CEO:

“We’re seeing what we believe to be a pause in purchases on iPhone.”

Cook has his own theories, but he’s missing the bigger picture. Apple has failed to innovate, and it’s costing the company a fortune.

Many are banking on the iPhone 8, but the truth is even it won’t stand up to what’s coming next::

Simply put, the age of the iPhone is coming to an end…

And the age of augmented and virtual reality is just around the corner.

For investors, that means a once-in-a-lifetime opportunity you don’t want to miss.

 

Good Investing,
Stutman sig

Chinese scientists make quantum leap in computing; jumbo passenger jet C919 liftoff !


Chinese leading quantum physicist Pan Jianwei, an academician of the Chinese Academy of Sciences, and his colleagues announced they have built world’s first quantum computing machine at a press conference in the Shanghai Institute for Advanced Studies of University of Science and Technology of China on Wednesday. — People’s Daily

CHINESE scientists have built the world’s first quantum computing machine that goes far beyond the early classical — or conventional — computers, paving the way to the ultimate realization of quantum computing.

Scientists announced their achievement at a press conference in the Shanghai Institute for Advanced Studies of University of Science and Technology of China on Wednesday.

Scientists believe quantum computing could in some ways dwarf the processing power of today’s supercomputers. One analogy to explain the concept of quantum computing is that it is like being able to read all the books in a library at the same time, whereas conventional computing is like having to read them one after another.

Pan Jianwei, an academician of the Chinese Academy of Sciences and a leading quantum physicist, said quantum computing exploits the fundamental quantum superposition principle to enable ultra-fast parallel calculation and simulation capabilities.

In normal silicon computer chips, data is rendered in one of two states: 0 or 1. However, in quantum computers, data could exist in both states simultaneously, holding exponentially more information.

The computing power of a quantum computer grows exponentially with the number of quantum bits that can be manipulated. This could effectively solve large-scale computation problems that are beyond the ability of current classical computers, Pan said.

For example, a quantum computer with 50 quantum bits would be more powerful in solving quantum sampling problems than today’s fastest supercomputer, Sunway TaihuLight, installed in the National Supercomputing Center of China.

Due to the enormous potential of quantum computing, Europe and the United States are actively collaborating in their research. High-tech companies, such as Google, Microsoft and IBM, also have massive interests in quantum computing research.

The research team led by Pan is exploring three technical routes: systems based on single photons, ultra-cold atoms and superconducting circuits.

Recently, Pan Jianwei and his colleagues — Lu Chaoyang and Zhu Xiaobo, of the University of Science and Technology of China, and Wang Haohua, of Zhejiang University — set two international records in quantum control of the maximal numbers of entangled photonic quantum bits and entangled superconducting quantum bits.

Pan explained that manipulation of multi-particle entanglement is the core of quantum computing technology and has been the focus of international competition in quantum computing research.

In the photonic system, his team has achieved the first 5, 6, 8 and 10 entangled photons in the world and is at the forefront of global developments.

Pan said quantum computers could, in principle, solve certain problems faster than classical computers. Despite substantial progress in the past two decades, building quantum machines that can actually outperform classical computers in some specific tasks — an important milestone termed “quantum supremacy” — remains challenging.

In the quest for quantum supremacy, Boson sampling, an intermediate (that is, non-universal) quantum computer model, has received considerable attention, as it requires fewer physical resources than building universal optical quantum computers, Pan said.

Last year, Pan and Lu Chaoyang developed the world’s best single photon source based on semiconductor quantum dots. Now, they are using the high-performance single photon source and electronically programmable photonic circuit to build a multi-photon quantum computing prototype to run the Boson sampling task.

The test results show the sampling rate of this prototype is at least 24,000 times faster than international counterparts, according to Pan’s team.

At the same time, the prototype quantum computing machine is 10 to 100 times faster than the first electronic computer, ENIAC, and the first transistor computer, TRADIC, in running the classical algorithm, Pan said.

It is the first quantum computing machine based on single photons that goes beyond the early classical computer, and ultimately paves the way to a quantum computer that can beat classical computers. This achievement was published online in the latest issue of Nature Photonics this week.

In the superconducting quantum circuit system, a research team from Google, NASA and the University of California at Santa Barbara announced a high-precision manipulation of 9 superconducting quantum bits in 2015.

Now the Chinese team led by Pan, Zhu Xiaobo and Wang Haohua have broken that record. They independently developed a superconducting quantum circuit containing 10 superconducting quantum bits and successfully entangled the 10 quantum bits through a global quantum operation.

Chinese scientists aim to realize manipulation of 20 entangled photons by the end of this year, and will try to design and manipulate 20 superconducting quantum bits. They also plan to launch a quantum cloud computing platform by the end of this year.

Source: Xinhua

Related post:

China successfully launched world’s first quantum communication satellite ‘very exciting’ !

Related

It’s liftoff! C919 takes to the sky on debut flight

The long-awaited China’s homegrown passenger plane C919 lifts off on
its maiden flight at Shanghai Pudong International Airport on Friday.

1st large Chinese-made passenger jet C919 takes flight

Fake news, piracy and digital duopoly of Google and Facebook


“FAKE NEWS” has seemingly, suddenly, become fashionable. In reality, the fake has proliferated for a decade or more, but the faux, the flawed and the fraudulent are now pressing issues because the full scale of the changes wrought upon the integrity of news and advertising by the digital duopoly — Google and Facebook — has become far more obvious.

Google’s commodification of content knowingly, wilfully undermined provenance for profit. That was followed by the Facebook stream, with its journalistic jetsam and fake flotsam. Together, the two most powerful news publishers in human history have created an ecosystem that is dysfunctional and socially destructive.

Both companies could have done far more to highlight that there is a hierarchy of content, but instead they have prospered mightily by peddling a flat-earth philosophy that doesn’t distinguish between the fake and the real because they make copious amounts of money from both.

Depending on which source you believe, they have close to two-thirds of the digital advertising market — and let me be clear that we compete with them for that share. The Interactive Advertising Bureau estimates they accounted for more than 90% of the incremental increase in digital advertising over the past year. The only cost of content for these companies has been lucrative contracts for lobbyists and lawyers, but the social cost of that strategy is far more profound.

It is beyond risible that Google and its subsidiary YouTube, which have earned many billions of dollars from other people’s content, should now be lamenting that they can’t possibly be held responsible for monitoring that content. Monetising yes, monitoring no — but it turns out that free money does come at a price.

We all have to work with these companies, and we are hoping, mostly against hope, that they will finally take meaningful action, not only to allow premium content models that fund premium journalism, but also to purge their sites of the rampant piracy that undermines creativity. Your business model can’t be simultaneously based on both intimate, granular details about users and no clue whatsoever about rather obvious pirate sites.

Another area that urgently needs much attention is the algorithms that Silicon Valley companies, and Amazon, routinely cite as a supposedly objective source of wisdom and insight. These algorithms are obviously set, tuned and repeatedly adjusted to suit their commercial needs. Yet they also blame autonomous, anarchic algorithms and not themselves when neofascist content surfaces or when a search leads to obviously biased results in favour of their own products.

Look at how Google games searches. A study reported in The Wall Street Journal found that in 25,000 random Google searches ads for Google products appeared in the most prominent slot 91% of the time. How is that not the unfair leveraging of search dominance and the abuse of algorithm? All 1,000 searches for “laptops” started with an ad for Google’s Chromebook — 100% of the time. Kim Jong Un would be envious of results like that at election time.

And then there are the recently launched Google snippets, which stylistically highlight search results as if they were written on stone tablets and carried down from the mountain. Their sheer visual physicality gives them apparent moral force. The word Orwellian is flagrantly abused, but when it comes to the all-powerful algorithms of Google, Amazon and Facebook, Orwellian is underused.

As for news, institutional neglect has left us perched on the edge of the slippery slope of censorship. There is no Silicon Valley tradition, as there is at great newspapers, of each day arguing over rights and wrongs, of fretful, thoughtful agonising over social responsibility and freedom of speech.

What we now have is a backlash with which these omnipotent companies are uniquely ill-equipped to cope. Their responses tend to be political and politically correct. Regardless of your own views, you should be concerned that we are entering an era in which these immensely influential publishers will routinely and selectively “unpublish” certain views and news.

We stumble into this egregious era at a moment when the political volume in many countries is turned to 10. The echo chamber has never been larger and the reverb room rarely more cacophonous. This is not an entirely new trend, but it has a compounding effect with the combination of “holier than thou” and “louder than thou.”

Curiously, this outcome is, in part, a result of the idealism of the Silicon Valley set, and there’s no doubt about the self-proclaimed ideals. They devoutly believe they are connecting people and informing them, which is true, even though some of the connections become conspiracies and much of the information is skimmed without concern to intellectual property rights.

Ideas aside, we were supposed to be in a magic age of metrics and data. Yet instead of perfect precision we have the cynical arbitraging of ambiguity — particularly in the world of audiences. Some advertising agencies are also clearly at fault because they, too, have been arbitraging and prospering from digital ambiguity as money in the ad business has shifted from actually making ads to aggregating digital audiences and ad tech, better known as fad tech.

And so, as the Times of London has reported, socially aware, image-conscious advertisers find themselves in extremely disreputable places — hardcore porn sites, neofascist sites, Islamist sites. The embarrassment for these advertisers juxtaposed with jaundice is understandable, but the situation is far more serious than mere loss of face.

If these sites are getting a cut of the commission, the advertisers are technically funding these nefarious activities. Depending on the type of advertising, it is estimated by the ad industry that a YouTube partner could earn about 55% of the revenue from a video. In recent years, how many millions of dollars have been channelled to organisations or individuals that are an existential threat to our societies?

Provenance is profound, and in this age of augmented reality and virtual reality, actual reality will surely make a comeback. Authenticated authenticity is an asset of increasing value in an age of the artificial — understanding the ebb and flow of humanity will not be based on fake news or ersatz empathy, but on real insight.

BY ROBERT THOMSON

Robert Thomson is the chief executive of News Corp, which owns The Australian and The Wall Street Journal. This is adapted from a speech he delivered on March 29 to the Asia Society in Hong Kong.

PETALING JAYA: The proliferation of fake news on social media has benefited publishers like Google and Facebook in terms of digital advertising market share at the expense of other media companies. News Corp chief executive Robert Thomson recently in his speech noted that Google and Facebook, for example, have close to two-thirds of the digital advertising market.

The Interactive Advertising Bureau estimates they accounted for more than 90% of the incremental increase in digital advertising over the past year, he said.

The only cost of content for these companies has been lucrative contracts for lobbyists and lawyers, he added, noting that the social cost of that strategy is far more profound.

Thomson said this during his speech to the Asia Society in Hong Kong on March 29.

News Corp is also the owner of The Australian and The Wall Street Journal. “Google’s commodification of content knowingly, wilfully undermined provenance for profit. That was followed by the Facebook stream, with its journalistic jetsam and fake flotsam.

Together, the two most powerful news publishers in human history have created an ecosystem that is dysfunctional and socially destructive,’’ he said.

Both companies, he said could have done far more to highlight that there is a hierarchy of content, but instead they have prospered mightily by peddling a flat-earth philosophy that doesn’t distinguish between the fake and the real because they make copious amounts of money from both.

“It is beyond risible that Google and its subsidiary YouTube, which have earned many billions of dollars from other people’s content, should now be lamenting that they can’t possibly be held responsible for monitoring that content. Monetising yes, monitoring no – but it turns out that free money does come at a price.

“We all have to work with these companies, and we are hoping, mostly against hope, that they will finally take meaningful action, not only to allow premium content models that fund premium journalism, but also to purge their sites of the rampant piracy that undermines creativity,” Thomson said.

In his speech, he also said although “fake news” has seemingly, suddenly, become fashionable but in reality, the fake has proliferated for a decade or more.

But the faux, the flawed and the fraudulent are now pressing issues because the full scale of the changes wrought upon the integrity of news and advertising by the digital duopoly — Google and Facebook — has become far more obvious, he said.

Thomson also highlighted on the urgency of algorithms. Another area, he said that urgently needs much attention is the algorithms that Silicon Valley companies, and Amazon, routinely cite as a supposedly objective source of wisdom and insight.

“These algorithms are obviously set, tuned and repeatedly adjusted to suit their commercial needs.

“Yet they also blame autonomous, anarchic algorithms and not themselves when neofascist content surfaces or when a search leads to obviously biased results in favour of their own products,’’ he said.

A study reported in The Wall Street Journal found that in 25,000 random Google searches ads for Google products appeared in the most prominent slot 91% of the time.

“How is that not the unfair leveraging of search dominance and the abuse of algorithm?” he asked. All 1,000 searches for “laptops” started with an ad for Google’s Chromebook – 100% of the time.

And then there are the recently launched Google snippets, which stylistically highlight search results as if they were written on stone tablets and carried down from the mountain. Their sheer visual physicality gives them apparent moral force, he said.

“The word Orwellian is flagrantly abused, but when it comes to the all-powerful algorithms of Google, Amazon and Facebook, Orwellian is underused,’’ he said.

Thomson said: “What we now have is a backlash with which these omnipotent companies are uniquely ill-equipped to cope. Their responses tend to be political and politically correct.

Regardless of your own views, you should be concerned that we are entering an era in which these immensely influential publishers will routinely and selectively “unpublish” certain views and news.

He also faulted ad agencies as they have been arbitraging and prospering from digital ambiguity as money in the ad business has shifted from actually making ads to aggregating digital audiences and ad tech, better known as fad tech.

“Provenance is profound, and in this age of augmented reality and virtual reality, actual reality will surely make a comeback. Authenticated authenticity is an asset of increasing value in an age of the artificial – understanding the ebb and flow of humanity will not be based on fake news or ersatz empathy, but on real insight,’’ he added.

Sources: Starbiz

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