VPN Solutions

Previously we mentioned OpenVPN, a solid VPN solution. Hamachi by Logmein.com is a VPN solution which uses UDP, non error correcting protocol wrapping an encryped TCP connection. This creates a large efficiency gain over other VPNs which wrap error correcting encrypted TCP protocol inside of error correcting TCP packets. From our testing, Hamachi was able to maximise our bandwidth of 2.8 MB/s without processor strain, while the best performance we received through OpenVPN was 600KB/s.

Unlike OpenVPN which is very difficult to set up, Hamachi sets up in about a minute and requires a virtual LAN name password. In this way your computer starts VPN connections as easily as one might join a chat room and you become connected not just to one machine, but every machine that has been authorised on that virtual LAN and whom the user has authorised. Included in the client is also an IP to IP non-recording encrypted chat mechanism.

Hamachi is freemium software and is actively developed. Here is a great podcast explaining the intelligent design of Hamachi.

Hamachi is the Japanese word for Yellow Fin Tuna.

Off The Record

Pidgin, Trillian and Adium are great IM softwares. Off The Record is a plugin for those programmes which enables encrypted communications with Perfect Forward Secrecy using standard clients such as Google Talk, ICQ, AIM etc.

Trillian now has an iPhone version. It is very important that an OTR application, or similar technology, is developed for mobile platforms like iPhone and Android so that people might have secure mobile communication.

*UPDATE: It recently came to our attention that Pidgin Saved Passwords are saved in plain text in an obvious location. Thus, anyone gaining access to the user's filesystem can obtain all their IM passwords, including their Google Account if they use it for Google Talk. This is a major security vulnerability. Be aware!

Digital Currency Trading Declared Illegal in China

Virtual Currencies threaten the power of governments by weakening their grip over the medium of exchange - ie Fiat Currency. In that sense, it is not surprising to see one of the more Authoritarian States definitively cracking down on Virtual Currency exchange. In practise, this will lessen the booming virtual currencies business and put many Chinese "gold farmers" out of work, but generally drive the digital currency market to ever higher levels of sophistication and security.

We have touched on this issue before.

An exposition on the topic of secure digital currencies can be found in David Friedman's Future Imperfect.

We suspect that the collapse of the value of the private US Federal Reserve Dollar will spark a real push for legalisation of competing Commodity backed digital currencies.