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Encryption Books Media Security Book Reviews

Translucent Databases 70

Hettinga writes: "Through many popular books and articles in the New York Times, Peter Wayner has done more to promote the field of applied financial cryptography, and in particular open source financial cryptography, than any other author writing today. His new book, Translucent Databases, from Flyzone Press, is no exception." Read on for the rest of the review.
Translucent Databases
author Peter Wayner
pages 185
publisher Flyzone Press
rating Outstanding. 5 Stars. Buy this Book.
reviewer Robert Hettinga
ISBN 0-9675844-1-8
summary Translucent Databases cure "Database Nation" and the "Transparent Society"?

Translucent Databases has all the hallmarks of Wayner's books: clear, easy to read exposition of the main issues, why they're important, and, in his technical books, excellently documented code written for the most popular platforms for the technology in question.

This book in particular should be an instant classic because like all great books, it takes what should be a very simple idea, encrypted databases, and expands it to some amazing conclusions.

For a long time now, I've been interested in what I call the geodesic economy, where all information, including information controlling financial assets, is fractally "surfacted", like so much grease in soapy dishwater, as far out into the edges of a ubiquitous internetwork as Moore's Law will allow, using financial cryptography protocols to secure transactions and markets on a nominally insecure, but ubiquitous, public internetwork.

People who are familiar with my thinking about such things over the past 8 years will see quite quickly why I think Peter's new book is so important. Transparent databases represent a way not only to link the batch-settled, book-entry debit-for-credit world of modern financial operations with a more simply founded, but much more sophisticated world which uses cryptographic tokens representing control of various financial and real assets. They also show us how to actually account for those tokens in such a fashion that every financial actor in that market, man or machine, can trust that their bearer certificates are authentic ones, and done in such a fashion that a given token retains its cryptographic integrity, including the functionally anonymous characteristics that made it so cheap to use in the first place.

The singular feature of Wayner's translucent databases is that, like internet bearer transactions themselves, the cryptography securing data in them can happen in the client, and not a centrally vulnerable server. More to the point, by using data stored in this fashion, the data can be dispersed as far out in the network as... well, Moore's Law allows, in extremely fast and lightweight files, and, instead of creating summaries of data for reports, the data can be polled for as close to its source as possible, instantaneously, in realtime, instead of being rolled up into increasingly larger batch-processed summaries taking weeks, sometimes months, to produce and audit.

There are obvious implications for my own particular hobby-horses, like anonymous but accurate double spend databases for bearer transactions, where only a simple blinded m-of-n cryptographic hash of a given promise to pay is necessary to prevent the duplication of that promise to more than one person at a time. However, for the rest of us :-), Wayner also points to a whole host of much less esoteric applications in the lots of the usual places where absolute privacy and extremely authentic information, is at a premium. Examples for military, medical, and anti-rape databases, for accounting systems and securities transactions, and even for internet poker -- the paradigm of completely untrusted parties cooperating for what each player hopes will be his own, preferrably cash, benefit -- are all presented in clear writing and running code.

There has been a lot of lip-service in the privacy community about "owning" your own data. Unfortunately, by involving the state at all, these "advocates" almost always favor inadvertantly draconian political solutions to the problem presented by the ubiquity of database technology and its otherwise beneficial presense in our lives. They ususally present this nonsense as a "sacrifice" for the "greater good" that would make Hayek's Road to Serfdom look like Lilac Sunday at the local arboretum.

In Translucent Databases, Wayner shows, in precise detail, with code, how to solve that problem, without trusting lawyers, much less guys with guns.

Though quite a short read, the scope of the book itself is quite considerable. Wayner starts from simple hashes of data to merely obscure it, through various kinds of encryption, quantization of data, and even accounting with encrypted data using what amounts to virtual cumulative crossfoots like the kind you would see on all good accounting reports. In so doing, Wayner explains, quite simply, something that people like Eric Hughes made great, complicated hay out of years ago with gangling theories of encrypted "open" books.

Ultimately, Wayner really does end up where a lot of us think databases will be someday, particularly in finance: repositories of data accessible only by digital bearer tokens using various blind signature protocols, neatly, and quite literally, "dis-integrating" the ability of databases to be used against us as a tool of totalitarianism, exemplified most recently by Simpson Garfinkel in his book Database Nation , and, oddly enough, not because someone or other wants to strike a blow against the empire, but simply because it's safer -- and cheaper -- to do that way.

Every database programmer should have a copy of this simple and elegant book on his reference bookshelf. Particularly if he cares about the integrity of his data, the liability to the database's owner should information be misappropriated, and, not least, about freedom itself in a world of ubiquitous, and, frankly, necessary, stored detail: details about practically every person on earth, their property and finances, and, ultimately, everything they do.

Translucent Databases presents a simple, frankly beautiful, solution to David Brin's world of ubiquitous surveillance, one not requiring, as Brin seems to want, "trust" of state force-monopolists, much less their lawyers and apparatchiks.

In fact, it's such an elegant solution that, as Schopenhauer liked to say about the public acceptance of important new ideas, soon enough, people will say it was obvious all along.


Robert Hettinga is founder of IBUC, the Internet Bearer Underwriting Corporation, which will, hopefully, someday, :-), use translucent databases full of internet bearer certificates to reduce transaction costs by three orders of magnitude. You can purchase Translucent Databases through the publisher. Slashdot welcomes readers' book reviews -- to submit yours, read the book review guidelines, then visit the submission page.

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Translucent Databases

Comments Filter:
  • Re:My $0.02 (Score:4, Informative)

    by BRO_HAM ( 543601 ) <brah777NO@SPAMyahoo.com> on Thursday June 27, 2002 @11:28AM (#3779361) Homepage
    If you're gonna just stal a review from amazon.com, at least change it around a little.

    http://www.amazon.com/exec/obidos/ASIN/0967584418/ ref=pd_ecc_rvi_2/104-3271084-7717539
  • Re:Nice License :-) (Score:3, Informative)

    by peterwayner ( 266189 ) <p3@@@wayner...org> on Thursday June 27, 2002 @11:43AM (#3779483) Homepage
    Or maybe only one if the code only runs on the server. It kind of depends where you run it. And to tell you the truth, you can recode it quickly and avoid all license costs. The examples are meant to be simple.
  • Brin went ballistic! (Score:5, Informative)

    by SiliconEntity ( 448450 ) on Thursday June 27, 2002 @02:14PM (#3780640)
    Robert Hettinga's review described the new techniques as a solution to "David Brin's world of ubiquitous surveillance". Someone forwarded the review to Brin and he went ballistic!

    Read his response here. [inet-one.com] The last thing David Brin wants to see is "translucent databases". He wants more openness and transparency, not less.

  • by peterwayner ( 266189 ) <p3@@@wayner...org> on Thursday June 27, 2002 @04:28PM (#3781742) Homepage
    I can see why Hettinga wants to tweak Brin, but that wasn't the point of the book. The solutions are, according to the metaphor, translucent , so that makes them half-transparent. I think these are pretty good compromises that, in the right circumstances, let DBAs have their cake and eat it too. The personal information is scrambled, but the rest is left in the clear. Some forms of scrutiny are possible even if the personal information is cloaked. There are, for instance, some interesting algorithms for electronic voting that preserve secrecy while avoiding all of the problems we recently encountered in FLA.

    It's a deep field and there's plenty of room for interpreting and reinterpreting the right amount of light to let through the window.
  • by peterwayner ( 266189 ) <p3@@@wayner...org> on Thursday June 27, 2002 @06:44PM (#3782591) Homepage
    One of the main ideas of the book is to just scramble the personal information but leave the impersonal information in the clear. So a store database might scramble the name and credit card number but leave the purchase information in the clear. The regular database operations work quickly on the items. The marketing department can figure out who bought how much of what. They can compute great stats. But they can't tell how much Bob Smith spent last month. So we get privacy and some efficiency. This is why it's translucent not opaque or transparent.

    One of the other ideas explored in the book is blurring the data just the right amount. When this works, the sensitive data disappears but there's still enough information left around to do useful work. You can think of rounding off a person's age to be 30's, 40's or 50's instead of spelling it out. There are some better examples in the book about naval ships.

    The techniques are far from perfect. Many of them aren't very new. They don't work for all situations. But I think they represent a different way of looking at the problem. The viewpoint may be the most novel part of the book.

    -Peter

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