Article on Bitcoins

[SirRoss1488303619]

I read this article about 'bitcoins' and how there is a potential vulnerability with hackers using the open source to get their hands on 'virtual tokens', as well as other tidbits, scamers can do with this type of currency exchange. i.e Money Laundry

 

Link:

http://www.fastcompany.com/1760895/bitcoin-digital-currency-scam-or-future-of-money?partner=gnews

 

Is this old news? Has LL put safe guards in place? Does this have an affect on the exchange rate?

*Not one screaming Fire*  Just a curiousity brought up by this article.

 

Mathurin

[Storm Clarence]

Bitcoins are a much different 'currency' than that of Lindens.  Actually, bitcoins are traded for services - not a currency.  Their value appreciates and depreciates accordingly, but the world they live in is very different than that of L's.

[Lady Sumoku]

Things like money aren't actually in the viewer, it just displays what the server tells them.  It wouldn't be able to make Lindens out of thin air.  The part that is open source isn't the part where the money 'lives'.  

However, someone could make a new viewer that tells the server "Give my money to someone else" when you use it, in which case the money you have is actually moved somewhere else without your knowing or consent...  Which is why it's a pretty good idea to only use the viewers from the "trusted" page.

 

[Glory Takashi]

Since Second Life uses Lindens and not Bitcoins not sure what you are expecting Linden Lab to do about a currency that has nothing to do with Second Life and is traded on other websites not even remotely affiliated with Linden Lab.

[Ishtara Rothschild]

Linden Lab uses a so-called Exchange Risk API that monitors all L$ transactions and scans for suspicious activities. More info can be found here: http://wiki.secondlife.com/wiki/Linden_Lab_Official:Exchange_Risk_API

Of course account hacking is always a concern, no matter on what platform. All you can do to protect yourself is to pick a secure password that includes numbers as well as special characters and change it occasionally. And of course by never giving your account information to a third party.

Another concern are L$ that have been purchased through credit card fraud, which makes it dangerous to buy L$ on sites like eBay. You can best protect yourself from this kind of fraud by only trading L$ on the LindeX and the official third party exchange sites listed here: http://wiki.secondlife.com/wiki/Linden_Lab_Official:Linden_Dollar_Marketplace

[SirRoss1488303619]

Why thank you Glory for your insight Yes it is evidant that bitcoins and lindens are not the same. This article I found stimulating enough to post for discussion say, like a 'think tank' discussion.

Within this article it mentions two points that I thought where valid to talk about (Whether true or false-that is what this thread is for)

First point: Article mentions 'Infostealer.Coinbit malware' If there is such a malware for coinbit, could it be feasible for a code to be wrriten for the linden lab lindens or to the linden exchange? (wishing for this not to be feasible)

 

Second point: Article mentions Linden dollar(currency) in respect to the exchange rate/value in regards to another criminal enterprise-money laundry.

Both pts mentioned in OP.

 

With regards to second point, here is the paragraph from said article:

Any new form of currency inevitably ignites controversy on a number of fronts. The Linden Dollar, a virtual currency that drives the economy of virtual world Second Life, has attracted some of its own bad news--particularly when moves by Second Life owner Linden Labs forced tiny adjustments or even big swings in the relative value of the currency, causing real-world effects since Linden Dollars trade on an exchange for real dollars. It's also been alleged that criminals use Linden Dollars as one step in a money laundering process that makes tracing the crime that much harder.

 

*Note This second talking point is interesting but I've seen no hard facts that this type of activity occurs on the Linden exchange*

Also one of the links within article has talking points on the VAT and how it is applied to the linden exchange.

 

As in any money market exchange there are varibles that can influence the value of the currency.

Be it the value of RL currency.

The buying of Lindens and the selling of lindens into hard cash.

Speculations.

Even potential unwanted criminal activities-two mentioned in this article.

 

As mentioned in my OP, this article is a curiousity, I thought was valid to talk about.

If 'Bitcoins' can be hacked, I pose a question, are there safe guards in place within LL, with regards to a maleware code that could potentaily target the linden dollar or the linden exchange?

Obvious on the Client side, we can protect ourselves and be proactive with our own security.

 

My thought with this thread was for a stimulating intellectual disccusion on the misdeeds of others that could potentially artificaly affect the value of the linden dollar. 

As well as how does the VAT affect the value of the linden dollar as a seconday discussion to this thread.

Just a plateform. Neutral in position.

 

 

Peace

[SirRoss1488303619]

Good info in that link about LL Official exchange risk API, Ishtara Thank you!!

Link: http://wiki.secondlife.com/wiki/Linden_Lab_Official:Exchange_Risk_API