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    <title>Outside Innovation</title>
    
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    <id>tag:typepad.com,2003:weblog-248598</id>
    <updated>2013-05-11T15:44:34-04:00</updated>
    <subtitle>New ways to engage customers in co-designing your company's future - a weblog to complement the book, Outside Innovation, by Patty Seybold</subtitle>
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    <atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="self" type="application/atom+xml" href="http://feeds.feedburner.com/OutsideInnovation" /><feedburner:info uri="outsideinnovation" /><atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="hub" href="http://pubsubhubbub.appspot.com/" /><entry>
        <title>Why Don't Customers (and Voters) Count in Healthcare?</title>
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        <id>tag:typepad.com,2003:post-6a00d8341bfcb953ef01901be3d756970b</id>
        <published>2013-05-11T15:44:34-04:00</published>
        <updated>2013-05-13T11:00:46-04:00</updated>
        <summary>The votes are in: In Southport, Maine, 95% of voters want to keep St. Andrews Hospital's Critical Access Status (24x7 ER + up to 25 beds); In Boothbay Harbor, 83% of voters said Yes to the same vote. In Boothbay,...</summary>
        <author>
            <name>Patty Seybold</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Community Hospital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Grass Roots" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Healthcare" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://outsideinnovation.blogs.com/pseybold/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: verdana,geneva; font-size: 10pt;">The votes are in:</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">In Southport, Maine, 95% of voters want to keep St. Andrews Hospital's Critical Access Status (24x7 ER + up to 25 beds);</span><br /><br /><span style="font-family: verdana,geneva; font-size: 10pt;"> In Boothbay Harbor, 83% of voters said Yes to the same vote.</span><br /><br /><span style="font-family: verdana,geneva; font-size: 10pt;"> In Boothbay, 86% of voters said Yes.</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Even in Edgecomb, the town
furthest away from St. Andrews Hospital and closest to the closest competitor, Miles Memorial in Damariscotta, the vote to retain St. Andrews’ critical access status was
still 81%!</span></p>
<span style="font-family: verdana,geneva; font-size: 10pt;">
According to the Selectmen in all 4 towns, voter turnout was double that of
last year. Saving St. Andrews brought out the vote, big time! This is quite a
mandate. What does it mean? That a SUBSTANTIAL MAJORITY of the voters on our
peninsula want to keep our St. Andrews’ 24-hour emergency room along with acute
care beds and recuperation beds for those who are too sick to stay home, who
need nursing care and want to be near their families.
</span>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">If 87% of your customers
tell you they want a certain product, do you turn them away and close your
doors? That’s not very good business, is it?</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">
</span></p>
Yet, that mandate is being
ignored by the executives at Lincoln County Healthcare (LCH) and the Board Members on
the LCH/Miles/St. Andrews Boards (who sit and vote as a single body—a Board
that is dominated by LCH executives and their doctors).
<span style="font-family: verdana,geneva; font-size: 10pt;">
But the majority of voters (which means the hospital's year round CUSTOMERS)
say they want the hospital to continue serving them--A hospital which has been
viable, and profitable, for the past 11 years (with an average of $450,000
SURPLUS every year except for the last 4 years under LCH “management,” when
that dropped to $150,000/year.)
</span>
<p><br /><span style="font-family: verdana,geneva; font-size: 10pt;"><a class="asset-img-link" href="http://outsideinnovation.blogs.com/.a/6a00d8341bfcb953ef019101d9d861970c-pi"><img alt="SM SA Sign from Pam" border="0" class="asset  asset-image at-xid-6a00d8341bfcb953ef019101d9d861970c" src="http://outsideinnovation.blogs.com/.a/6a00d8341bfcb953ef019101d9d861970c-800wi" style="display: block; margin-left: auto; margin-right: auto;" title="SM SA Sign from Pam" /></a></span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">So tell us why a
nonprofit charitable corporation that was incorporated specifically to provide
a hospital with a 24 hr. emergency room for the people on this rural peninsula
should ignore what its customers want?</span><br />
<br /><span style="font-family: verdana,geneva; font-size: 10pt;">
Tell us again why a larger nonprofit corporation gets to swoop in and close our
hospital down and move most of its services, equipment, and its higher Medicare
rural Critical Access reimbursement benefits to another hospital they own--one
that is 40 minutes away from us on a bad road??</span><br />
<br /><span style="font-family: verdana,geneva; font-size: 10pt;">
Tell us again why closing our hospital makes economic sense when its absence
will very likely cause our real estate taxes to increase, our jobs to decrease, and cause
the number of retirees who have been moving here in droves to go elsewhere and
to take their $6 million/year of philanthropy with them, as well as all their
local spending in shops, restaurants and home repairs and landscaping. </span><br />
<br /><span style="font-family: verdana,geneva; font-size: 10pt;">
Most important, what about the many lives that have been saved of people who
live and work and vacation on our peninsula and its scores of surrounding
islands? What are those lives worth? Our voters obviously give quick, LOCAL
emergency care a high priority. </span><br />
<br /><span style="font-family: verdana,geneva; font-size: 10pt;">
Maybe the doctors on our physician-led Board who made the decision to close our
ER should move to the city. They would obviously feel more “comfortable”
working in less “frontier” conditions. Their talents and expertise are clearly
being wasted in our rural communities. These medical experts insist that a
small rural community hospital can't save lives because we don't have enough
emergencies, and therefore can’t afford to staff a full trauma center with 5 or
6 specialty doctors. </span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">They’re right. We can’t
afford to staff a big city trauma center. And, we don’t need one. We need
caring professionals who are our first line of defense when we’re hurting and
scared in the middle of the night. </span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">
There are many doctors who WANT to practice rural medicine. Many of them
have been serving us well for years--as well as scads of Physicians'
Assistants, RNs, Nurse Practitioners, Respiratory Therapists, Physical
Therapists, and mental and behavioral health professionals. We thank those of
you who are already serving us and we welcome more of you! We’d like to become
a magnet for training physicians in rural care—particularly during the summer
months when we have 22,000 potential patients. That’s what the hospital in Bar
Harbor does. Why not Boothbay Harbor? </span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">The question really isn't whether or not having an emergency room and a small hospital in a rural retirement community and booming summer vacation mecca makes sense. The question is who should DECIDE whether or not a rural community can support its own local health and wellness institution? The people in the affected communities? Or the larger corporation that took over the community hospital with a stroke of a pen, never paid a dime for the $20 million asset, and is ignoring the needs and wishes of the people this nonprofit was chartered to serve?</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">What’s the Bottom Line? We –the voters, the year round residents, the summer
residents, the healthcare CUSTOMERS on this peninsula—aren’t giving up. We’re
going to win the right to run our own community hospital again. </span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">The beat goes
on.</span></p></div>
</content>



    <feedburner:origLink>http://outsideinnovation.blogs.com/pseybold/2013/05/why-dont-customers-count-in-healthcare.html</feedburner:origLink></entry>
    <entry>
        <title>Who Should Buy the Boston Globe?</title>
        <link rel="alternate" type="text/html" href="http://feedproxy.google.com/~r/OutsideInnovation/~3/zSH2NoRmGo0/who-should-buy-the-boston-globe.html" />
        <link rel="replies" type="text/html" href="http://outsideinnovation.blogs.com/pseybold/2013/05/who-should-buy-the-boston-globe.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341bfcb953ef019101d29747970c</id>
        <published>2013-05-06T23:21:40-04:00</published>
        <updated>2013-05-06T23:21:40-04:00</updated>
        <summary>I find it rather ironic that the Boston Globe, which is an amazing asset, with an incredibly well-oiled and hard-working team, is still on the block, being offered for sale again by the NY Times, the current owner. And my...</summary>
        <author>
            <name>Patty Seybold</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Boston Globe" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Brand Loyalty" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Fidelity" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="M&amp;A" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Newspapers" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://outsideinnovation.blogs.com/pseybold/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">I find it rather ironic that the Boston Globe, which is an amazing asset, with an incredibly well-oiled and hard-working team, is 
still on the block, being offered for sale again by the NY Times, the 
current owner. And my message is, whoever buys the Globe should move 
quickly to snatch up this media innovator with a team of people who know
 how to pull together in a crisis, are capable of extraordinary 
performance, and that have the experience of being masters in the 
difficult world of social and digital media. </span></p>
<span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">I believe
 that whoever buys the Globe—whether an individual or an 
organization—should be Boston-based and should be in it for the long 
haul. The acquisition should be about the brand and the customers, not just about the money. Sure, the Globe
 needs to be profitable. But buying the Boston Globe is like buying the Red Sox; you are 
buying a team, an institution, and a franchise, with millions of loyal 
(fans) customers. The buyer should be someone who understands the local 
climate, the culture, the customer base, and the area personality.</span><br />
<p><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
			In a February <a href="http://www.smartertimes.com/790/25-potential-buyers-of-the-boston-globe" target="_blank">article</a>
 on Smartertimes.com, writer Ira Stoll suggested a list of 25 potential 
buyers. Of those perspective suitors, we like the idea of the following 
(as described in Ira Stoll’s article):</span></p>
<blockquote><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">“<strong>Gatehouse Media: </strong>owns
 a bunch of small dailies, weeklies, and Web sites in the cities and 
towns surrounding Boston. But with its stock trading in the pennies, 
it's not at all clear that the company has the balance sheet to complete
 an acquisition the size of the Globe.” 
</span></blockquote>
<span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">We say 
that the money could be found, the company knows the Boston area culture
 and climate, as well as the publishing/media business.
</span>
<blockquote><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">“<strong>John Henry: </strong>A
 stake in the Boston Red Sox and its associated sports cable channel was
 part of the Times Company's Boston operation for some time. If Mr. 
Henry, who owns the Red Sox as part of a broader group, bought the 
Globe, it would reunite the newspaper with the sports operation. The 
rationale here is similar to the idea of selling the Globe to ESPN; a 
large part of the value is the sports coverage, and the advertisers who 
want to buy signs at Fenway Park or television commercials during Red 
Sox games are presumably the same ones who would want to reach Globe 
readers. On the other hand, other than the sports network that covers 
the Red Sox, he doesn't have much in the way of experience in the news 
business.”
</span></blockquote>
<span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">But he does understand a franchise with a legion of fans!
</span>
<blockquote><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">“<strong>Abigail Johnson</strong>,
 with a net worth estimated by Forbes at $11.8 billion, could certainly 
afford to buy the Globe. She and her family own and run the Fidelity 
mutual fund empire. They were in the Boston-area suburban newspaper 
business at one time, but got out of it.”
</span></blockquote>
<span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">Fidelity 
is a Boston mainstay with deep pockets. And they have a background in 
the newspaper business. This could be a great match!</span></div>
</content>



    <feedburner:origLink>http://outsideinnovation.blogs.com/pseybold/2013/05/who-should-buy-the-boston-globe.html</feedburner:origLink></entry>
    <entry>
        <title>What We Can Learn from How the Boston Globe Covered the Marathon Bombings</title>
        <link rel="alternate" type="text/html" href="http://feedproxy.google.com/~r/OutsideInnovation/~3/tv2wQbzCdRw/what-we-can-learn-from-how-the-boston-globe-covered-the-marathon-bombings.html" />
        <link rel="replies" type="text/html" href="http://outsideinnovation.blogs.com/pseybold/2013/05/what-we-can-learn-from-how-the-boston-globe-covered-the-marathon-bombings.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341bfcb953ef017eeada0784970d</id>
        <published>2013-05-05T23:23:11-04:00</published>
        <updated>2013-05-05T23:23:11-04:00</updated>
        <summary>Last week we published an article about the Boston Globe's coverage of the Boston Marathon bombings and aftermath. I commended the Boston Globe for doing an exceptional job of keeping the public informed with real-time, and accurate, information as the...</summary>
        <author>
            <name>Patty Seybold</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Business Strategy" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="digital content" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Mobile ecosystem" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Newspapers" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="publishing" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Social Media" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Social Networking" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="twitter" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://outsideinnovation.blogs.com/pseybold/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: verdana,geneva; font-size: 10pt;">Last week we published an <a href="http://dx.doi.org/10.1571/bp04-25-13cc" target="_blank">article</a> about the <a class="zem_slink" href="http://www.boston.com/bostonglobe/" rel="homepage" target="_blank" title="The Boston Globe">Boston Globe</a>'s coverage of the Boston Marathon bombings and aftermath. I commended the Boston Globe for doing an exceptional job of keeping the public informed with real-time, and accurate, information as the Marathon bombings and aftermath unfolded. Here are the highlights of what the Boston Globe not only did right, but did outstandingly, and should be a model for other media outlets, whether print, broadcast, or digital.
</span></p>
<p>
			<a href="http://www.customers.com/media/uploads/images-2013/boston-globe-coverage-of-boston-marathon-bombing_large.jpg" target="_blank" title="The Boston Globe covering the Boston Marathon bombing"><img alt="The Boston Globe covering the Boston Marathon bombing" src="http://www.customers.com/media/uploads/images-2013/boston-globe-coverage-of-boston-marathon-bombing_big.jpg" title="The Boston Globe covering the Boston Marathon bombing" /></a></p>
<ol>
<li>
				<span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">Provide a
 real-time stream of updated info—most news sources already do that for 
paying or registered customers. The Boston Globe extended that service 
to everyone—for free!<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Fact-check everything! Unlike many other sources (and, especially, social media outlets) the Globe refused to spread rumors.<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				If you 
find that you posted or retweeted something that is wrong, correct it 
immediately even if you weren’t the source. (The one time the Globe 
passed on erroneous info from CNN, they fact-checked and corrected it 
quickly.)<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Make it easy for others to share your updates or retweet what you send so that you become the trusted source.<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Use all 
media, including short text posts, photos, video clips, and links to 
longer articles. In this way, the Boston Globe reached people on all 
devices with information that they could access in a media that spoke to
 them.<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Get all 
hands on deck. Don’t leave this type of major coverage to a small team 
that deals with social media; everyone needs to be involved. At the 
Globe, every employee (who was safe doing so) was involved in some 
related activity, from live reporting to fact checking.<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Have hot
 backup or a shadow system that can scale to the increased traffic 
resulting from everyone wanting information NOW! When the Boston Globe 
sites were saturated, the paper not only added additional servers, but 
shifted the real-time blogging to a single live blog hosted by 
ScribbleLive. Make sure you have an infrastructure in place to ensure 
the message gets out.<br />
				<br />
				</span></li>
<li><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
				Let your
 people and your customers know how much you care. The Globe made 
employee safety a priority over news reporting, urging those who 
couldn’t come in for safety reasons to stay home and not worry. And the 
executives at the Globe made sure that the hard working staff knew how 
much they were appreciated.</span></li>
</ol>
<hr />
<a name="13e4717744795127_TOC4" /><br />
<p><span style="color: #009900; font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
			<a href="http://sol.sparklist.com/t/6969750/28483264/79877/0/" target="_blank"><span style="color: #009900; font-family: Verdana,Arial,Helvetica,sans-serif;"> <strong>Boston Globe Masters Social Media in a Crisis</strong></span></a><br />
			<em>How the Boston Globe Covered the Boston Marathon Bombing<br />
			</em>By Patricia B. Seybold, CEO &amp; Sr. Consultant, Patricia Seybold Group, April 26, 2013</span></p>
<p><span style="font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;">
			What does
 it take to beat all the major news and cable networks in news coverage?
 An amazing team and a commitment to getting it right! The Boston Globe 
took the time to fact check every piece of information, yet keep 
up-to-the-minute with a continuing real-time blogging. And it opened up 
all its paid online services to everyone for free information all week. 
As a result, the Boston Globe became the trusted source of information 
during the Boston Marathon crisis.</span></p>
<p><span style="font-size: 10pt;">
			<a href="http://sol.sparklist.com/t/6969750/28483264/79877/0/" target="_blank"><br />
			<span style="color: #009900; font-family: Verdana,Arial,Helvetica,sans-serif;"> <em> Read a sample and download the full article in PDF.</em></span></a></span></p></div>
</content>



    <feedburner:origLink>http://outsideinnovation.blogs.com/pseybold/2013/05/what-we-can-learn-from-how-the-boston-globe-covered-the-marathon-bombings.html</feedburner:origLink></entry>
    <entry>
        <title>Students Co-Design African Rural University</title>
        <link rel="alternate" type="text/html" href="http://feedproxy.google.com/~r/OutsideInnovation/~3/58eTw9JUul4/students-co-design-african-rural-university.html" />
        <link rel="replies" type="text/html" href="http://outsideinnovation.blogs.com/pseybold/2013/04/students-co-design-african-rural-university.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341bfcb953ef017eea2f0741970d</id>
        <published>2013-04-13T11:24:00-04:00</published>
        <updated>2013-04-13T11:24:00-04:00</updated>
        <summary>I have been a part of the gestation, birth, and early childhood of this fledgling university as a member of the University Council (its governing body) since its inception. This truly is a unique undertaking—an all women’s university, designed to...</summary>
        <author>
            <name>Patty Seybold</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Education" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Empowering Women" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Grass Roots" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Innovation" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://outsideinnovation.blogs.com/pseybold/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: verdana,geneva;">
            <a href="http://www.customers.com/media/uploads/forum-blog-images-2013/learning-circle_large.jpg" title="ARU Learning Circle"><img align="right" alt="ARU Learning Circle" height="105" src="http://www.customers.com/media/uploads/forum-blog-images-2013/learning-circle_small.jpg" title="ARU Learning Circle" width="140" /></a><span style="font-size: 10pt;"> I have been a part of the gestation, birth, and early childhood of this fledgling
university as a member of the University Council (its governing body) since its
inception. This truly is a unique undertaking—an all women’s university,
designed to train the women who will help transform the African bush, bringing
impoverished and illiterate people into the 21st century in a manner that preserves
the best in their cultural traditions and in their natural environment, but lets
them create prosperous livelihoods in their own rural communities.</span></span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">
  The story I chose to tell in this case study includes some of the highlights
    in this organization’s journey from a seed planted in 1987 by its founders,
    Mwalimu Musheshe, Ephrem Rutaboba, and Silvana Franco, to its current status
    as a newly minted University with students two years into a four-year program.
    But the journey to this point is fascinating. Because, in order to co-design
    the University, all of the constituencies—students, faculty, people
    in hundreds of communities, local government officials—ran a 7-year
    pilot program—starting with 29 “researcher-students” who
    piloted a 5-year curriculum (3 years of courses and 2 years of internship
    in the field), and winding up with 17 graduates who are now working as professionals
    in 17 different sub-counties, helping hundreds of thousands of villagers
    create and actualize their dreams. 
</span></p>
<p>
			<span style="color: #009900; font-family: Verdana,Arial,Helvetica,sans-serif; font-size: 10pt;"><a href="http://dx.doi.org/10.1571/cs04-11-13cc" target="_blank" title="The Evolution of African Rural University"><span style="color: #009900; font-family: Verdana,Arial,Helvetica,sans-serif;"><strong>The Evolution of African Rural University</strong></span></a><br />
			<em>Co-Designed by Its Faculty, Students, and End-Customers (People the Grads
			Will Serve)<br />
		  </em>By Patricia B. Seybold, CEO &amp; Sr. Consultant, Patricia Seybold
		  Group, April 11, 2013</span></p></div>
</content>



    <feedburner:origLink>http://outsideinnovation.blogs.com/pseybold/2013/04/students-co-design-african-rural-university.html</feedburner:origLink></entry>
    <entry>
        <title>Bitcoin Hacked Again and Again</title>
        <link rel="alternate" type="text/html" href="http://feedproxy.google.com/~r/OutsideInnovation/~3/qkfyaQlAVsk/bitcoin-hacked-again-and-again.html" />
        <link rel="replies" type="text/html" href="http://outsideinnovation.blogs.com/pseybold/2013/04/bitcoin-hacked-again-and-again.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341bfcb953ef017c388b782c970b</id>
        <published>2013-04-12T10:56:00-04:00</published>
        <updated>2013-04-11T23:00:47-04:00</updated>
        <summary>Last week we joined the media frenzy that seemed to suddenly swirl around the odd digital currency known as Bitcoin. That same day, one of the top Bitcoin exchanges, Mt. Gox, suffered a denial of service attack, sending the value...</summary>
        <author>
            <name>Patty Seybold</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Business Models" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Business Strategy" />
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        <category scheme="http://www.sixapart.com/ns/types#category" term="Ebusiness" />
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        <category scheme="http://www.sixapart.com/ns/types#category" term="Internet security" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Internet/Online Strategy" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Web/Tech" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://outsideinnovation.blogs.com/pseybold/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: verdana,geneva; font-size: 10pt;">Last week we <a href="http://www.customers.com/forum/what-you-should-know-about-the-bitcoin-revolution/" target="_blank">joined</a> the media frenzy that seemed to suddenly swirl around the odd digital currency known as Bitcoin. That same day, one of the top Bitcoin exchanges, Mt. Gox, suffered a denial of service attack, sending the value of Bitcoins down as investors began panic selling.</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;"><strong>Value of one bitcoin in U.S. dollars one-minute intervals chart</strong></span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;"><a class="internal" href="http://www.customers.com/media/uploads/forum-blog-images-2013/value-of-one-bitcoin-in-us-dollars-one-minute-intervals-_chart_large.png" target="_blank" title="Value of one bitcoin in U.S. dollars one-minute intervals chart"><img alt="Value of one bitcoin in U.S. dollars one-minute intervals chart" height="169" src="http://www.customers.com/media/uploads/forum-blog-images-2013/value-of-one-bitcoin-in-us-dollars-one-minute-intervals-_chart_medium.png" title="Value of one bitcoin in U.S. dollars one-minute intervals chart" width="300" /></a></span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Last night, Mt. Gox was out of commission again. Another denial of service attack? Not at first. Mt. Gox posted a different explanation on its Facebook page:</span></p>
<blockquote>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">“First of all we would like to reassure you but no, we were not, last night victim of a DDoS but instead the victim of our own success!</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Indeed the rather astonishing amount of new accounts opened in the last few days added to the existing ones, plus the number of trades, made a huge impact on the overall system that started to lag. As expected in such a situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">
</span></p>
</blockquote>

To give you an idea of how impressive things were here are some numbers that we would love to share with you guys: 
<ul>
<li><span style="font-family: verdana,geneva; font-size: 10pt;">The number of trades executed tripled in the last 24hrs. </span></li>
<li><span style="font-family: verdana,geneva; font-size: 10pt;">The number of new accounts opened went from 60k for March alone to 75k new accounts created for the first few days of April!</span></li>
</ul>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">We now have roughly 20,000 new accounts being created each day.</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Due to these facts we have been busy working on improving things since last week and our team has been working around the clock to improve Mt. Gox to catch up with the demand. We will continue to release several updates today and in the coming few days to improve our system’s overall performance.</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Also please note that we may have to close the exchange for two hours in the next 12 to 24hrs to add several new servers to our system.</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">Thank you for your understanding and continuous support!”</span></p>
<p><span style="font-family: verdana,geneva; font-size: 10pt;">No sooner had the Mt. Gox exchange come back online, when it was hit with a Denial of Service attack. There are apparently a lot of computer-savvy Bitcoin miners, holders, and traders who are happy to see the price drop from its high of $250 per Bitcoin to about half that now. So they can create chaos, and then profit from the panic selling, selling high and buying low. And, as Pioneer Peter Horne cautions, "I can only imagine what the drug lords, Chinese hackers, Eastern European money launderers and African scamsters are doing in this rush with unregulated Bitcoin money." So our advice: watch this phenomenon from afar.</span></p></div>
</content>



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