The alternative is crypto-anarchy --- utilizing capitalist networks to embark in espianoge against the state

"The Net is an anarchy." This truism is the core of crypto anarchy. No central control, no ruler, no leader (except by example, reputation), no "laws." No single nation controls the Net, no administrative body sets policy. The Ayatollah in Iran is as powerless to stop a newsgroup--alt.wanted.moslem.women or alt.wanted.moslem.gay come to mind-he doesn't like as the President of France is as powerless to stop, say, the abuse of French in soc.culture.french. Likewise, the CIA can't stop newsgroups, or sites, or Web pages, which give away their secrets. At least not in terms of the Net itself...what non-Net steps might be taken is left as an exercise for the paranoid and the cautious. This essential anarchy is much more common than many think. Anarchy--the absence of a ruler telling one what to do--is common in many walks of life: choice of books to read, movies to see, friends to socialize with, etc. Anarchy does not mean complete freedom--one can, after all, only read the books which someone has written and had published--but it does mean freedom from external coercion. Anarchy as a concept, though, has been tainted by other associations. First, the "anarchy" here is not the anarchy of popular conception: lawlessness, disorder, chaos, and "anarchy." Nor is it the bomb-throwing anarchy of the 19th century "black" anarchists, usually associated with Russia and labor movements. Nor is it the "black flag" anarchy of anarcho-syndicalism and writers such as Proudhon. Rather, the anarchy being spoken of here is the anarchy of "absence of government" (literally, "an arch," without a chief or head). This is the same sense of anarchy used in "anarchocapitalism," the libertarian free market ideology which promotes voluntary, uncoerced economic transactions. [6] I devised the term crypto anarchy as a pun on crypto, meaning "hidden," on the use of "crypto" in combination with political views (as in Gore Vidal's famous charge to William F. Buckley: "You crypto fascist!"), and of course because the technology of crypto makes this form of anarchy possible. The first presentation of this was in a 1988 "Manifesto," whimsically patterned after another famous manifesto. [7] Perhaps a more popularly understandable term, such as "cyber liberty," might have some advantages, but crypto anarchy has its own charm, I think. And anarchy in this sense does not mean local hierarchies don't exist, nor does it mean that no rulers exist. Groups outside the direct control of local governmental authorities may still have leaders, rulers, club presidents, elected bodies, etc. Many will not, though. Politically, virtual communities outside the scope of local governmental control may present problems of law enforcement and tax collection. (Some of us like this aspect.) Avoidance of coerced transactions can mean avoidance of taxes, avoidance of laws saying who one can sell to and who one can't, and so forth. It is likely that many will be unhappy that some are using cryptography to avoid laws designed to control behavior. National borders are becoming more transparent than ever to data. A flood of bits crosses the borders of most developed countries--phone lines, cables, fibers, satellite up/downlinks, and millions of diskettes, tapes, CDs, etc. Stopping data at the borders is less than hopeless. Finally, the ability to move data around the world at will, the ability to communicate to remote sites at will, means that a kind of "regulatory arbitrage" can be used to avoid legal roadblocks. For example, remailing into the U.S. from a site in the Netherlands...whose laws apply? (If one thinks that U.S. laws should apply to sites in the Netherlands, does Iraqi law apply in the U.S.? And so on.) This regulatory arbitrage is also useful for avoiding the welter of laws and regulations which operations in one country may face, including the "deep pockets" lawsuits so many in the U.S. face. Moving operations on the Net outside a litigious jurisdiction is one step to reduce this business liability. Like Swiss banks, but different. 6 True Names and Anonymous Systems Something needs to be said about the role of anonymity and digital pseudonyms. This is a topic for an essay unto itself, of course. Are true names really needed? Why are they asked for? Does the nation-state have any valid reason to demand they be used? People want to know who they are dealing with, for psychological/evolutionary reasons and to better ensure traceability should they need to locate a person to enforce the terms of a transaction. The purely anonymous person is perhaps justifiably viewed with suspicion. And yet pseudonyms are successful in many cases. And we rarely know whether someone who presents himself by some name is "actually" that person. Authors, artists, performers, etc., often use pseudonyms. What matters is persistence, and nonforgeability. Crypto provides this. On the Cypherpunks list, well-respected digital pseudonyms have appeared and are thought of no less highly than their "real" colleagues are. The whole area of digitally-authenticated reputations, and the "reputation capital" that accumulates or is affected by the opinions of others, is an area that combines economics, game theory, psychology, and expectations. A lot more study is needed. It is unclear if governments will move to a system of demanding "Information Highway Driver's Licenses," figuratively speaking, or how systems like this could ever be enforced. (The chemistry of opaque nodes and links, again.) 7 Examples and Uses It surprises many people that some of these uses are already being intensively explored. Anonymous remailers are used by tens of thousands of persons-and perhaps abused. [13] And of course encryption, via RSA, PGP, etc., is very common in some communities. (Hackers, Net users, freedom fighters, white separatists, etc....I make no moral judgments here about those using these methods). Remailers are a good example to look at in more detail. There are two current main flavors of remailers: "Cypherpunk"-style remailers, which process text messages to redirect mail to another sites, using a command syntax that allows arbitrary nesting of remailing (as many sites as one wishes), with PGP encryption at each level of nesting. "Julf"-style remailer(s), based on the original work of Karl Kleinpaste and operated/maintained by Julf Helsingius, in Finland. No encryption, and only one such site at present. (This system has been used extensively for messages posted to the Usenet, and is basically successful. The model is based on operator trustworthiness, and his location in Finland, beyond the reach of court orders and subpoenas from most countries.) The Cypherpunks remailers currently number about 20, with more being added every month. There is no reason not to expect hundreds of such remailers in a few years. One experimental "information market" is BlackNet, a system which appeared in 1993 and which allows fully-anonymous, two-way exchanges of information of all sorts. There are reports that U.S. authorities have investigated this because of its presence on networks at Defense Department research labs. Not much they can do about it, of course, and more such entities are expected. (The implications for espionage are profound, and largely unstoppable. Anyone with a home computer and access to the Net or Web, in various forms, can use these methods to communicate securely, anonymously or pseudonymously, and with little fear of detection. "Digital dead drops" can be used to post information obtained, far more securely than the old physical dead drops...no more messages left in Coke cans at the bases of trees on remote roads.) Whistleblowing is another growing use of anonymous remailers, with folks fearing retaliation using remailers to publicly post information. (Of course, there's a fine line between whistleblowing, revenge, and espionage.) Data havens, for the storage and marketing of controversial information is another area of likely future growth. Nearly any kind of information, medical, religious, chemical, etc., is illegal or proscribed in one or more countries, so those seeking this illegal information will turn to anonymous messaging systems to access--and perhaps purchase, with anonymous digital cash--this information. This might include credit data bases, deadbeat renter files, organ bank markets, etc. (These are all things which have various restrictions on them in the U.S., for example....one cannot compile credit data bases, or lists of deadbeat renters, without meeting various restrictions.