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The Internet Handover Scam
The Market-Ticker ^ | 9/30/16 | Karl Denninger

Posted on 09/30/2016 11:08:42 PM PDT by Ultra Sonic 007

Ok, folks, I've had enough of Ted Cruz and a handful of others trying to fundraise on the back of the Internet handover issue.

First, this is not a surprise nor something Obama cooked up in the dead of night.  The expiration of the existing arrangement has been known for literal years and the timing of same has been known for the same amount of time.  If the US Congress wanted to intervene it has had years to do so and has intentionally not done so.  So to Ted Cruz and others (Jim DeMint anyone?) who is now claiming "emergency", go perform an anatomically-impossible act; if you were more-focused on policy and less on your own horse**** you would have dealt with this months or even years ago.

Second, on to the technical side: There are two rough components to Internet "governance."  The first is handled through domain name registration.  Originally this was all handled under government contract by a government-dished out monopoly.  During that time domains were $50/year plus whatever the ISP that registered them for you and ran your DNS charged, and it often took days (instead of seconds now) to get a domain registered.  These were COM/NET/ORG/MIL/GOV/EDU and the country code domains; in the US that was .US.  This changed through a quite-contentious (and, IMHO, a rather cronyism and lie-laced) process into what we have now with many TLDs.  I will note that the so-called cognoscenti of the time tried to claim that expanding the TLD list on a material basis was not going to work for technical reasons.  Those people, who happened to include some of the self-claimed "brightest minds" in the Internet space who even today are lauded as "the inventors" and "bright minds" were lying -- not mistaken, lying.  I proved this (after much experimentation so I knew I was right) back in the 1990s with a handful of other ISPs when we set up our own private root and started opening up TLDs on a non-collision basis -- it was called eDNS.  The project collapsed when one of the participants did a handful of things that were quite-arguably illegal and definitely (from my point of view) anti-social -- but in terms of the technical side of things it was a complete -- 100% -- success.

In short there is utterly no technical reason to limit top-level domains with any rational number of suffixes (that is, the right-most part of the name before the first dot proceeding left.)  "Rational" has an upper limit somewhere, but it's in the thousands if not tens of thousands.

Note that running an actual root nameserver is a quite-low overhead thing.  The reason is that the top-level zone names change infrequently, so the "time to live" field is set long on them.  This means they're queried infrequently; a new host coming up on the Internet that provides name resolution for users must ask at least one of those root servers on a "time to live" basis for the nameserver for each top-level domain it wishes to resolve (so it knows where to send the query.)  But once you have the nameserver list for .COM you have it, no matter how many .COM domains you then resolve -- until the time-to-live comes up.  Because this data is infrequently changed data and the request is only for the place to ask for the next level down the bandwidth and CPU requirements are extremely modest, even with a very large TLD list.

The bigger and more-silent issue in terms of public attention is the allocation of IP addresses.  These are the actual numbers that denote the address of a site.  Legacy addresses are called IpV4, which are in the form x.x.x.x, with each of the "x"s being between 0 - 255 (8 bits.)  All zeros and all ones are reserved (for local network broadcast) and there are some other specials as well (127.x.x.x being a notable one.)  This used to be strictly delineated by the prefix (the first digit) into classes but by the mid 1990s a specification called CIDR made that more-or-less obsolete.  There were, and probably still are, quite nasty practices, all political and arguably in many cases anti-competitive, that revolve around allocations of addresses.  Part of the problem stems from the fact that a handful of extremely large firms got ridiculously large allocations (16 million addresses, for example) that they'd never need uniquely-visible from the outside yet they considered them an "asset" (think places like IBM and AT&T) and with only 4 billion possible addresses there was a very real issue with running out -- especially when some people were only using a fraction of a percent of what they had been allocated!

This was "solved" years ago with the introduction of IpV6 (or IPng), which contains eight octets instead of four.  This allows what amounts to an effectively-inexhaustible resource since you could have (for example) 4 billion internet providers (in the left 4 octets) each of which with 4 billion end addresses (in the right 4.)  A customer who moved from one to another would not have to change any of the right side addresses at all because he could change the prefix instead.  In practice it doesn't work quite this way, but that's the essence of it.

IPng also can, with properly management, make the Internet routing table (much) simpler and smaller.  Right now there is a huge problem with route table bloat and it has been a problem since the early 1990s!  In fact in the early days of the Internet it literally forced obsolescence of $100,000+ routers at a large number of ISPs, including mine, because their architecture did not support adding any more RAM and the table got big enough to run them out of room, causing them to crash.  The nature of fragmented address assignment in IPv4 makes for a serious problem because a given ISP might have dozens of address assignments each of which requires a route table entry; under IPv6, reasonably managed, this drops to one.

So why isn't "everyone" on IPng?  Mostly because there is a lot of equipment and software out there that cannot handle IPv6.  There are entire ISPs that even today can't handle it network-wide including some of the large consumer providers such as Cox.  While there are potential technical solutions to this in the form of tunnels the political implications between ISPs of ramming that down people's throats has not gained traction.

Ok, enough backstory.

Now to the practical side of things.

It is important to understand that so long as you do not create collisions in the namespace (e.g. DNS) you harm nobody by setting up your own domain service.  This means that if, for example, China wishes to "censor" .****china as a top-level domain it can do so, but anyone else does not have to adhere to that and so long as nobody "collides" by defining different ".****china" TLDs in their configuration nothing will break.

In addition it important to note that even under the current, pre-handover paradigm a nation-state has always been able to mandate such censorship and in fact any private entity has been able to enforce same for their users as well!  In other words there has never been anything preventing China from (for example) declaring as a matter of law that any ISP inside their nation must use a 'root' server set inside China that omits the declarations for ".****china".  An ISP that does not want ".xxx" or ".sex" available can run its own root, enforce that for its clients by refusing to pass port 53 traffic outside of its network for internal clients and omitting it from its own private root.  Note that whether those root servers are "official" or not (as declared by ICANN) is immaterial; again, so long as there is no "collision" it has exactly zero impact on the functioning of the Internet, except for "black holing" those "forbidden" spaces.

This is not new; it has been this way literally forever since the dawn of DNS when the Internet transitioned in its earliest days from an /etc/hosts file to DNS.

The other half, that of allocating IP address space, appears to be more serious but again it really isn't.  Why?  Because the wisest use of the prefix length is to segregate traffic anyway. It's arguable, in fact, that geographic segregation might be the most-efficient (e.g. by country) although that is not necessarily true anymore with so many trans-national firms.  Nonetheless the handing out of high-level, that is, large prefixes is not really impacted here and yet it is the only function of ICANN in this regard.  It is the regional or national registries beyond that top level that manage address space internal to a given region or nation.

In Europe for IPv4 this has been done by RIPE.  In Asia, APNIC, and so on.  This hasn't changed and won't.  What changes is who hands off blocks to RIPE, APNIC, etc.  While there is a very real risk in the IPv4 space of interference due to scarcity such is not realistically a factor for IPng simply due to its size.

What does this all mean in terms of the alleged "handover" and thus what is the risk of "censorship" and similar, beyond what can and does already happen?

Damn little.

With that said I happen to support blocking this move, simply because I'm not convinced that anyone has done the homework to prevent this from turning into yet another multinational boondoggle.  UN anyone?  UN "peacekeepers" raping and pillaging those they are claiming to help anyone?  Yeah, that's a problem, but it's a different class of problem than "oh my God, the Internet will die and be censored if some bad person does X."

Uh, no it won't.  But in my opinion corruption has already been an issue when it comes to DNS and IP addresses, and that was with a monopoly contract as we have now, albeit in an earlier form -- 20+ years ago!  To potentially enlarge that corruption is bad.  To lessen it would be good, but thus far nobody has managed to convince me that this transition would lessen it or even keep it at the present level.  For this reason I'm opposed, but note that the current screamfest has exactly nothing to do with corruption and everything to do with imaginary bogeymen that do not exist.

Finally, unlike most of the so-called "pundits" and all of the politicians I actually have plenty of relevant experience in this area and know what I'm talking about.


TOPICS: Business/Economy; Editorial; News/Current Events; Politics/Elections
KEYWORDS: icann; internet; internethandover; karldenninger
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To: Ultra Sonic 007

Have they empowered the UN to tax the internet and have they empowered foreign nations to censor it? If so, this is a disaster and must be undone by any means possible.


41 posted on 10/01/2016 5:51:42 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Ultra Sonic 007

“... domains were $50/year plus whatever the ISP that registered them for you and ran your DNS charged”

So what will they now start charging to register a simple domain?

This is the question no one is asking.


42 posted on 10/01/2016 5:56:35 AM PDT by Flavious_Maximus
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To: Flavious_Maximus

It’s a Registrar (Internic and other web hosts) that registers and charges for domain names, not ICANN. Your ISP does not register your domain. Some ISPs are possibly also Registrars but they are 2 separate things.


43 posted on 10/01/2016 6:06:36 AM PDT by visualops (It's the majority of the American people and Trump against the enemies of the republic - Windflier)
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To: Ultra Sonic 007
If you ask me, it seems like McConnell and Ryan made a deal with the Dems. They wouldn't challenge this treasonous act if the Dems supported the veto override. Both happened the same week. Coincidence, I think not.
44 posted on 10/01/2016 6:16:34 AM PDT by chopperman
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To: Ultra Sonic 007

What an awesome article. With the little I knew and the nature of the beast (the ISP Network) The question was: Who could ever plug it? We don’t even need wires anymore.


45 posted on 10/01/2016 6:30:19 AM PDT by BornToBeAmerican (Dont forget Love)
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To: Baldwin77

It’s almost always about tax and or control. birds of a feather.
Don’t pay your taxes = even worse penalties.
So, do your duty and pay those taxes!
Pay for obamacare.
Pay for failed solar companies.
Pay for Planned Parenthood
Pay for public tv
And god only knows what we are paying for.
Pay for that 20 trillion debt..which is money already spent.

Rant over.


46 posted on 10/01/2016 6:59:33 AM PDT by Leep (Just say no to half dead hillary and wrong lane kaine!)
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To: ifinnegan

“With that said I happen to support blocking this move...”

So he writes a bunch of blowhard fluff before saying he agrees with Cruz and Trump.
____________________________________

Exactly what I thought when I read it.


47 posted on 10/01/2016 7:06:31 AM PDT by fortes fortuna juvat (The Democrats are so lacking in class, especially the avant-garde.)
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To: visualops

I have had a computer forever, but I still do not understand how the internet works.

But out of that ignorance has grown a suspicion that we are already getting fleeced.

When I started long ago it was DOS, Compu-Serve and the big floppy disk.

So I progressed from there to Windows and AOL etc.

Eventually I got fed up with windoze and moved to linux.

Linux at that time was so totally different that I was lost. You had to do everything for yourself.

So when I set up my email I had no idea what I was doing.

I could send and receive emails with no problem, and as I was in a business that required either lots of phone calls or emails, there were a lot of emails. No problem.

After some time period, I would have a problem sending emails to companies that I had previously had no problems with.

And Spamhaus reared its ugly head.

I learned that one must have an ISP. The reason? Spamhaus was going to end spam. To end spam, they had to end the idea that just anyone could log on to the internet. Heaven forbid that you could sign up without Spamhaus knowing that you were an honorable person.

So I paid my money to join up with an ISP.

The point is that by accident I found out that you really do not need an ISP except that the internet has been rigged to force you to use an ISP. Google, AOL Yahoo and all of them would be unnecessary except for the need for someone to give you credentials attesting that you are not a spammer.

Isn’t it nice that they stopped spam?

The internet will always be there because it has become a huge marketing tool..

But I believe that it has also become a rip-off as far as email, news groups and web page management is concerned.

Now some tech will explain how ignorant I am, and I admit it, but the fact remains that I sent hundreds of emails without an ISP. They went out over my home phone line to ATT and from there to the internet and I always got replies.

The days of the cable modem and 12 Kps.

And the fact remains that spam has not been eliminated. It is much more efficient and effective to build your own spam filter into your machine.

If the UN ruins the internet as we now know it, I am sure someone will design software that will allow us to communicate in much the same way as we do now.


48 posted on 10/01/2016 7:08:02 AM PDT by old curmudgeon
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To: stars & stripes forever

Hopefully a better, honest, and freer system will take this one’s place in the near future.
______________________________________

Talk about naivete! I hope you just forgot to use the sarcasm symbol.


49 posted on 10/01/2016 7:15:20 AM PDT by fortes fortuna juvat (The Democrats are so lacking in class, especially the avant-garde.)
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To: fortes fortuna juvat

Wishful thinking. I’d hate to see a black screen when I log into Free Republic someday.


50 posted on 10/01/2016 7:20:22 AM PDT by stars & stripes forever (Blessed is the nation whose God is the Lord. Psalm 33:12)
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To: Caipirabob
Have they empowered the UN to tax the internet and have they empowered foreign nations to censor it?

The latter question has been discussed here. There is no complete answer but my opinion is that they will be able to conspire with Google, Facebook and other like-minded companies to allow more censorship by anyone who wants to censor. For example let's say a school wants to censor, for good reasons. Currently they use cyber patrol or a dozen other products. Those log everything, analyze content, filter on content or names, blacklist names, and do man-in-the-middle to break HTTPS privacy.

That's bad enough and it takes a pretty smart kid to get around them, until the product blocks that avenue. The problem with turning over ICANN is that it will allow them to blacklist entire swaths of internet names. I call it balkanization although I'm not sure that is an accurate description. It will regularize stuff like this https://en.wikipedia.org/wiki/DNSBL which creates openings for censors. Censorship will always just be damage that gets routed around, but it will require more and more workarounds making everything messy and complex. The biggest problem with international control over naming IMO is that they can open the namespace wide open and blackmail legitimate names into buying endless synonymous names. Also will give power to google, Facebook and others to collude for the same reason (money).

51 posted on 10/01/2016 7:53:18 AM PDT by palmer (turn into nonpaper w no identifying heading and send nonsecure)
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To: palmer

What’s clear to me, is if this happens the Internet will as you say “balkanize” if not nationalize! Large sections of it will become tightly controlled if not for government tolls, custom duties and other forms of taxation as well as to control information flow for internal security purposes. It’s already happening to some extent in China. This will accelerate it and encourage such behavior to spread.
This deliberately introduced “inefficiency” changes the economics of business Internet use, damage e-commerce, etc.
It’s not surprising that the Internet giants such as Google, Amazon are good with this. They in typical monopolist fashion think ‘ We now have the “market” let’s close it off to any competition. We have the cash reserves and market control to handle any government regulation that’s imposed on the “business” ‘!

The days of the “Internet-Hacker Cowboy” are at end, brought on them by the left wing politicos - elitists they insisted on supporting.


52 posted on 10/01/2016 8:14:39 AM PDT by Reily
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To: Ultra Sonic 007

I think I got hit with them. I tried to save an email, document with the word “devotion” in the subject line. Tried it twice. Never got it.


53 posted on 10/01/2016 8:22:08 AM PDT by Salvation ("With God all things are possible." Matthew 19:26)
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To: Reily
That's all true. The internet-hacker cowboy will get pushed underground. But the other disappearing type will be the internet geeks who still run usenet, run the root servers, run the thousands of websites related to internet infrastructure at places like AT&T labs, the former Bell labs, and new places like Google. They will be exiled and replaced with MBAs to monetize everything.

As for the underground, that will always be there and there will be people who make it easier for ordinary folks to access it. But it will be messy and you will be accessing what you want from the same server that serves up illicit trash.

54 posted on 10/01/2016 8:23:35 AM PDT by palmer (turn into nonpaper w no identifying heading and send nonsecure)
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To: palmer

Yes I agree!

It also may reduce the “value” of the big Internet companies. If it does I will laugh & yell ‘Schadenfreude!’


55 posted on 10/01/2016 8:31:16 AM PDT by Reily
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To: goldbux

* * *


56 posted on 10/01/2016 9:02:59 AM PDT by goldbux (When you're odd the odds are with you.)
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To: SkyPilot

Mark. of. the. Beast.


57 posted on 10/01/2016 10:44:05 AM PDT by themidnightskulker (And then the thread dies... peacefully, in it's sleep....)
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To: Ultra Sonic 007; bushwon; The Westerner

If you don’t oppose one of Obama’s schemes, you own it.


58 posted on 10/01/2016 11:22:05 AM PDT by Arthur Wildfire! March (ICANN giveaway complete any day now. Call Congress. Yes to SB3031 HR5418)
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To: Reily

“Without that check, ICANN risks becoming an unregulated monopoly with no effective outside oversight and control.”

http://www.freerepublic.com/focus/f-news/3469586/posts

http://www.judiciary.senate.gov/download/09-14-16-rosenzweig-testimony.


59 posted on 10/01/2016 11:25:15 AM PDT by Arthur Wildfire! March (ICANN giveaway complete any day now. Call Congress. Yes to SB3031 HR5418)
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To: themidnightskulker

ICANN, a Pack of Liars [Internet Giveaway]
http://www.freerepublic.com/focus/f-chat/3469994/posts


60 posted on 10/01/2016 11:25:37 AM PDT by Arthur Wildfire! March (ICANN giveaway complete any day now. Call Congress. Yes to SB3031 HR5418)
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