I recently read an article about the XO laptop and how they are going to implement the security on these machines. The operating system of the laptop is based off of the Linux, but the security aspects and the functionality are different. The article is from Wired News and is called, "High security for $100 Laptop" and was written by Ryan Singel. The article discusses the functionality of the XO laptop and the security of the laptop. The security system of the laptop is controlled by Bitfrost developed by Ivan Krstic. The UI or user interface is controlled by Sugar and can be explained in more detail here.
First, the goal of the $100 dollar laptop is to be able to supply a computer to every one, all over the world at a price that everyone can afford. With this being said, security is tough because the operator's variety is tremendous. Children and adults alike from all over the world without much or any previous computer experience will be the operators of these machines.
What Bitfrost is trying to do is to make the design so that there are not any initial flaws that will plague the system from the beginning. Hopefully, when the XO laptop is shipped and then opened, the laptop is ready for use without having or needed to install a bunch of updates and patches.
Another feature of Bitfrost is to prevent pop-ups security questions to the user. The security rules for the operating system are already pre-set so the user does not have any interaction in setting up the security of the system. If more security is needed, then the user can go into the system and manually set the needed permissions. Another aspect of Bitfrost is that each of the programs run independently somewhat like on its own VM. This is another layer of security that tries to prevent breaches.
Bitfrost also will distribute public keys that require activation through the internet. If the internet is not available, then dongles will be used to keep the laptop operational. This might sound good in practice, but what is there to prevent the creation mass illegal dongles. If someone steals a XO laptop, they are going to know that without the activation maintenance, then the laptop is useless. I give thieves a little more credit in finding a way to get around the periodic public key maintenance.
Although I would like to believe that Bitfrost can provide adequate protection to the users, I find their optimism foolish. If the OLPC project goes to plan, and even half of the children receive laptops, hackers will find a way to manipulate the XO laptop.