The past 20 years have been a TREMENDOUS leap for technology as we know it. Twenty years ago we had single core cpus with 100mhz processing, and in this short amount of time we have 80 core cpus with 3.1ghz processing power. We have been able to make better, smaller more efficient devices in such a short amount of time.
Currently password and personal information on the internet is encrypted information, however "Man has made, Man can break". With enough motivation, knowledge and skill, those encrypted documents can be decrypted. Which has been occurring more and more in the recent years. Just even a week ago, a famous company, Sony had its files hacked by a group called Anonymous. This lead Sony to shutting down their entire online network for over a week and still counting. Even a company as powerful as Sony can become susceptible to hackers, which is why I believe that passwords will be replaced by a different type of identification, ranging from Vocal, Retinal and/or Fingerprint Recognition.
Because of all these recent attacks over the internet it won't be surprising if some laws were passed to help regulated online business and just overall regulations on the internet. Too many people get away with online theft, and deception, additionally Denial of Service is becoming more and more frequently used. It's just a matter of time before something really big happeneds that will "force" a higher authorities hand in passing some laws.
Sources:
http://www.zdnet.com/blog/government/more-sony-bad-news-sony-online-also-compromised-this-goes-beyond-the-playstation-network/10339
http://news.cnet.com/Intel-shows-off-80-core-processor/2100-1006_3-6158181.html
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