Rod Beckstrom's keynote address slides for BlackHat Las Vegas 2009. To see presentation, visit YouTube.com or http://tinyurl.com/c76r97. Presentation includes global dimensions of cyber including strategy, game theory, economics, IP protocols, etc. Is intended to be a good overview of topic. For a review of presentation see TechInsider: http://tinyurl.com/cbvlpx.

1. Black Hat Black Hat Rod Beckstrom Director

2. WIRED Black Hat Rod Beckstrom Director

3. The Prisoners Dilemma

5. Insider threats and hackers…

7. Who reengineered the system?

9. A great challenge today Let’s work together to Create something new

10. Where do we want to go with this system? What is the end state we seek?

11. Slight problem… We don’t know the rules

13. Physics of networking? Economics of networks? Economics of security? Risk management?

14. Economics of Security

15. where C = total cost S = cost of security L = expected cost of loss Economics of Security MINIMIZE C = S + L

16. Loss $ Security $ Economics of Security

17. Loss $ Security $ Economics of Security

18. IPV6, BGP, DNS, SMS/IP, POTS … Economics of Protocols

19. Loss $ Security $ Economics of Protocols Better Protocols Drive Loss Function Down

20. Privacy/Security/Convenience Economics of Privacy

21. Cyber democracy Cyber governance Cyber quarantines Cyber justice Cyber diplomacy New Cyber Frontiers

22. The Prisoners Dilemma

23. The Prisoners Dilemma W/W W/L L/W W/W L/L

24. The Prisoners Dilemma W/W W/L L/W W/W L/L

25. The Prisoners Dilemma W/W W/L L/W W/W L/L

26. Iterated Prisoners Dilemma W/W W/L L/W W/W L/L 200 X

27. Iterated Prisoners Dilemma W/W W/L L/W W/W L/L 200 X

28. Iterated Prisoners Dilemma W/W W/L L/W W/W L/L 200 X

29. E Pluribus Unum

30. Constitutional code New cyber rules New economics New protocols Develop cyber diplomacy… Global collaboration… Summary

31. Where do we wish to plant our flag in cyberspace?