Personal clouds

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After one of myaxiom reluctant visits to Facebook yesterday, I posted this there:

If I were actually the person Facebook advertised to, I would be an impotent, elderly, diabetic, hairy (or hairless) philandering cancer patient, heart attack risk, snoring victim, wannabe business person, gambling and cruise boat addict, and possible IBM Cloud customer in need of business and credit cards I already have.

Sixty-eight likes and dozens of comments followed. Most were from people I know, most of whom were well-known bloggers a decade ago, when blogging was still hot shit. Some were funny (“You’re not?”). Some offered advice (“You should like more interesting stuff”). Some explained how to get along with it (“I’ve always figured the purpose of Internet ads was to remind me what I just bought from Amazon”). One stung: “So much for The Intention Economy.”

So I replied with this:

Great to see ya’ll here. Glad you took the bait. Now for something less fun.

I was told last week by an advertising dude about a company that has increased its revenues by 49% using surveillance-based personalized advertising.The ratio of respondents was 1 in a 1000. The number of times that 1 was exposed to the same personalized ad before clicking on it was 70.

He had read, appreciated and agreed with The Intention Economy, and he told me I would hate to hear that advertising success story. He was correct. I did.

I also hate that nearly all the readers all of us ever had on our own blogs are now here. Howdy.

Relatively speaking, writing on my own blog, which averages zero comments from dozens of readers (there used to be many thousands), seems a waste. Wanna write short? Do it in Facebook or Twitter. Wanna write long? Do it in Medium. Wanna write on your own DIY publication? Knock yourself out.

And, because the bloggers among us have already done that, we’re here.

So let’s face it: the leverage of DIY is going down. Want readers, listeners or viewers? Hey, it’s a free market. Choose your captor.

I’ve been working all my adult life toward making people independent, and proving that personal independence is good for business as well as for hacking and other sources of pleasure and productivity. But I wonder whether or not most people, including all of us here, would rather operate in captivity. Hey, it’s where everybody else is. Why not?

Here’s why. It’s the good ship Axiom: http://pixar.wikia.com/Axiom . Think about it.

Earth is the Net. It’s still ours: http://cluetrain.com/newclues. See you back home.

That’s where we are now.

 

 

Danese Cooper ‏(@DivaDanese) asks Czech_Wallet-300x225via tweet,

Wallet App (and 1-button pay) as “compelling demo” apparently works equally well 4 BitCoin as 4 PayPal. opinion?

Sounds cool, but I don’t know which wallet app she’s talking about. There are many. In my opinion, however, they all come up short because they aren’t really wallets. Meaning they’re not yours. They belong to the company that makes the app, and that company has its hand in your pocket.

As I explained here,

Nothing you carry is more personal than your wallet, or more essential for interacting with the marketplace. You can change your pants or your purse, but your wallet is a constant. And, while your wallet contains cards and currencies that are issued by companies and governments, your wallet is yours, not theirs. That’s why none of those entities brand your wallet as theirs, nor do you operate your wallet at their grace.

This distinction matters because wallets are becoming a Real Big Topic — partly because a lot of Real Big Companies like having their hands in our pockets, and partly because we really do need digital versions of the wallets we carry in the analog world…

Here’s the key, and my challenge…: they need to be driven by individuals like you and me, and not by Business as Usual, especially what Google, Facebook, Apple, Twitter and the rest would like to do with their hands in our pockets…

Here’s the thing: if your wallet has a brand, it’s not yours. If it’s for putting companies hands, and not just their instruments of convenience (such as cards, the boundaries of which are mostly clear), in your pockets, it’s not yours.

Let’s give the individual a way to drive here. Just like we did with the PC, the Net, email, web servers, blogging, podcasting, syndication and other instruments created with freedom rather than capture in mind.

Think of Dave Winer‘s “Ask not what the Internet can do for you, ask what you can do for the Internet,” and substitute “individual,” “customer” or “user” for Internet. (They are all the same thing, when you think about it. And Dave was the prime mover between the last three developments listed in the prior paragraph.)

Here are a couple other things I’ve written about wallets:

Those two pieces, and the one quoted above, are all three years old or more. So now I’m wondering if wallets — real wallets, of the personal kind — can be apps at all. Given that apps are basically silos, I’m wondering if wallets should be some other breed of software thing.

Maybe it’s time to think about wallets outside the app box.

door knocker, beacon hillIn the physical world we know what privacy is and how it works.

We know because we have worked out privacy technologies and norms over thousands of years. Without them we wouldn’t have civilization.

Doors and windows are privacy technologies. So are clothes. So are manners respecting the intentions behind our own and others’ use of those things. Those manners are personal, and social. They are how we clothe, shelter and conduct ourselves in the world, and how we expect others to do the same.

The Internet is a new virtual world we also inhabit. It was born in 1995 with the first graphical browsers, ISPs, email and websites. It arrived in our midst as a paradise. But, as with Eden, we walked into it naked — and we still are, except for the homes and clothing we get from companies like Google, Amazon, Facebook and Apple. They clothe us in uniforms, one for every login/password combination. Who we are and what we can do is limited by what they alone provide us. Yes, it’s civilized: like the middle ages. We toil and prosper inside the walls of their castles, and on their company lands. In many ways the system isn’t bad. In many othr ways it’s good. But it isn’t ours.

To have true privacy in the networked world, we need to be in charge of our own lives, our own identities, our own data, our own things, in our own ways.

We should be able to control what we disclose, to whom, and on what terms.

We should be able to keep personal data as secret and secure as we like.

We should be able to share that data with others in faith that only those others can see and use it.

Our digital identities should be sovereign — ours alone — and disclosed to others at our discretion.

(True: administrative identifiers are requirements of civilization, but they are not who we are, and we all know that.

Think of how identity works in the physical world. It’s not a problem that my family members call me Dave, the government calls me David, other people call me Doc — and the rest of the world calls me nothing, because they don’t know me at all.

This is a Good Thing. It is enough to recognize each other as human beings, and to learn people’s names when they tell us. Up to that point we remain for each other literally anonymous: nameless. This is a civic and social grace we hardly cared about until it was stripped from us online.

In the physical world, companies don’t plant tracking beacons on people, or follow them around to see who people are are, where they go and what they do — unless they’ve been led by the hideous manners of marketers who believe it’s good to do that.

Those manners won’t change as long as we don’t control means of disclosing our selves and our data. Until we have true privacy, all we’ll have are:

  • Crude prophylaxis, such as tracking and advertising blockers
  • Talk about which companies screw us the least
  • Talk about how governments screw us too
  • Calls for laws and regulations that protect yesterday from last Thursday

We won’t get true privacy — the kind we’ve known and understood offline since forever — until we have the online equivalents of the clothing, doors and manners.

All we’ll get from most big companies are nicer uniforms.

I look forward to what we’ll get from the Barney Pressmans of the online world. Here’s a classic ad for Barney’s (his clothing store) that ran in the 1960s: http://youtu.be/KMIgu9-zd8M. (Just watch the first one, which ends :47 seconds in.) That’s where my headline came from.

 

Civilization is a draft. Provisional. Scaffolded. Under construction. For example:

DEC. OF INDEP. 1

That’s Thomas Jefferson‘s rough draft of the Declaration of Independence. The Declaration hasn’t changed since July 4, 1776, but the Constitution built on it has been amended thirty-three times, so far. The thirteenth of those abolished slavery, at the close of the Civil War, seventy-seven years after the Constitution was ratified.

Today we are in another struggle for equality, this time on the Net. As Brian Grimmer put it to me, “Digital emancipation is the struggle of the century.”

There is an ironic distance between those first two words: digital and emancipation. The digital world by itself is free. Its boundaries are those of binary math: ones and zeroes. Connecting that world is a network designed to put no restrictions on personal (or any) power, while reducing nearly to zero the functional distance between everybody and everything. Costs too. Meanwhile, most of what we experience on the Net takes place on the World Wide Web, which is not the Net but a layer on top of it. The Web is built on architectural framework called client-server. Within that framework, browsers are clients, and sites are servers. So the relationship looks like this:

calf-cow

In other words, client-server is calf-cow. (I was once told that “client-server” was chosen because “it sounded better than ‘slave-master.'” If anyone has the facts on that, let us know.)

Bruce Schneier gives us another metapor for this asymmetry:

It’s a feudal world out there.

Some of us have pledged our allegiance to Google: We have Gmail accounts, we use Google Calendar and Google Docs, and we have Android phones. Others have pledged allegiance to Apple: We have Macintosh laptops, iPhones, and iPads; and we let iCloud automatically synchronize and back up everything. Still others of us let Microsoft do it all. Or we buy our music and e-books from Amazon, which keeps records of what we own and allows downloading to a Kindle, computer, or phone. Some of us have pretty much abandoned e-mail altogether … for Facebook.

These vendors are becoming our feudal lords, and we are becoming their vassals.

It’s handy being a vassal. For example, you get to use these shortcuts into websites that require logins:

social-signin

To see how much personal data you risk spilling when you click on the Facebook one, visit iSharedWhat (by Joe Andrieu) for a test run. That spilled data can be used in many ways, including surveillance. The Direct Marketing Association tells us the purpose of surveillance is to give you a better “internet experience” through “interest-based advertising—ads that are intended for you, based on what you do online.” The DMA also provides tools for you to manage experiences of what they call “your ads,” by clicking on this tiny image here:

adchoicesbutton

It appears in the corners of ads from companies in the DMA’s AdChoice program. Here is one:

scottrade

The “AdChoices” text appears when you mouse over the icon. When I click on it, I get this:

scottradepopdown

Like most companies’ privacy policies, Scottrade’s says this: “Scottrade reserves the right to make changes to this Online Privacy Policy at any time.” But never mind that. Instead look at the links that follow. One of those leads to Opt Out From Behavioral Advertising By Participating Companies (BETA). There you can selectively opt out of advertising by dozens of companies. (There are hundreds of those, however. Most don’t allow opting out.)

I suppose that’s kind of them; but for you and me it’s a lot easier just to block all ads and tracking on our own, with a browser extension or add-on. This is why Adblock Plus tops Firefox’s browser add-ons list, which includes many other similar products as well. (The latest is Privacy Badger, from the EFF, which Don Marti visits here.)

Good as they are, ad and tracking blockers are still just prophylactics. They make captivity more bearable, but they don’t emancipate us. For that we need are first person technologies: ways to engage as equals on the open Net, including the feudal Web.

One way to start is by agreeing about how we respect each other. The Respect Trust Framework, for example, is a constitution of sorts, “designed to be self-reinforcing through use of a peer-to-peer reputation system.” Every person and company agreeing to the framework is a peer. Here are the five principles to which all members agree:

Promise We will respect each other’s digital boundaries

Every Member promises to respect the right of every other Member to control the Member Information they share within the network and the communications they receive within the network.

Permission We will negotiate with each other in good faith

As part of this promise, every Member agrees that all sharing of Member Information and sending of communications will be by permission, and to be honest and direct about the purpose(s) for which permission is sought.

Protection We will protect the identity and data entrusted to us

As part of this promise, every Member agrees to provide reasonable protection for the privacy and security of Member Information shared with that Member.

Portability We will support other Members’ freedom of movement

As part of this promise, every Member agrees that if it hosts Member Information on behalf of another Member, the right to possess, access, control, and share the hosted information, including the right to move it to another host, belongs to the hosted Member.

Proof We will reasonably cooperate for the good of all Members

As part of this promise, every Member agrees to share the reputation metadata necessary for the health of the network, including feedback about compliance with this trust framework, and to not engage in any practices intended to game or subvert the reputation system.

The Respect Network has gathered several dozen founding partners in a common effort to leverage the Respect Trust Framework into common use, and within it a market for VRM and services that help out. I’m involved with two of those partners: The Searls Group (my own consultancy, for which Respect Network is a client) and Customer Commons (in which I am a board member).

This summer Respect Network launched a crowd-funding campaign to get this new social login button rolling:

respect-connect-button

It’s called the Respect Connect button, and it embodies all the principles above; but especially the first one: We will respect each others’ digital boundaries. This makes itthe first safe social login button.

Think of the Respect Connect button project as a barn raising. There are lots of planks (and skills) you can bring, but the main ones will be your =names (“equals names”). These are sovereign identifiers you own and manage for yourself — unlike, say, your Twitter @ handle, which Twitter owns. (Organizations — companies, associations, governments — have +names and things have *names.)

Mine is =Doc.

Selling =names are CSPs: Cloud Service Providers. There are five so far (based, respectively, in Las Vegas, Vienna, London, New York/Jerusalem and Perth):

bosonweb-logo danube_clouds-logo paoga-logo emmett_global-logo onexus-logo

Here’s a key feature: they are substituable. You can port your =name from one to the other as easily as you port your phone number from one company to another. (In fact the company that does this in the background for both your =name and your phone number is Neustar, another Respect Network partner.)

You can also self-host your own personal cloud.

I just got back from a world tour of places where much scaffolding work is going up around this and many other ways customers and companies can respect each other and grow markets. I’ll be reporting more on all of it in coming posts. Meanwhile, enjoy some photos.

 

This speed test was done in London, but it’s typical of everywhere:
speedtest in london

It shows a Net biased for downstream, and minimized for upstream.

If we’re going to do any serious personal work in clouds, we need better upstream than this.

I wrote about the problem, and the reason for it, in France, four years ago. Not much has changed.

One would think that Amazon, Apple and Microsoft, all of which offer cloud services for people (check those links), would make a stink about awful upstream speeds. But I haven’t heard a peep. Why not?

 

 

rn1There was a time when personal computer was an oxymoron: a contradiction in terms. That ended when personal computing got real in the ’80s.

There was a time when personal networking, where every person has status, reach and power equal to that of corporations and governments, was unthinkable. That ended when the Internet got real in the ’90s.

There was a time when putting both those powers, plus a zillion mobile apps, in everybody’s pocket, was a pie in the distant sky. That pie reached Earth in the ’00s.

There was a time when clouds were only corporate, and personal cloud was an oxymoron — or worse, just a new term for more data storage. That ends today.

Personal clouds level the market’s playing field by giving full agency to each of us: a place to stand where we can deal as equals with companies, governments, health care providers, lawyers, schools and everything and everyone else in the connected world. In your own ways, and on your own terms. They begin what @Petervan calls The Revolution of the Data Slaves.

You can self-host your cloud (which some also call a vault or a store), or use a Cloud Service Provider (CSP) that hosts your cloud it in an encrypted form that even they can’t see. Either way, your personal cloud (hashtags: #pcloud, #TakeBackControl) is an ideal box for any number of current and future VRM tools, including ones for:

Respect Network is has gathered together a bunch of Cloud Service Providers, along with other companies, development projects, organizations and individuals, for a world-circling launch tour that begins today in London. Tomorrow is an Immersion Day, for digging down into how personal clouds solve problems of privacy and personal empowerment. I’ll be at both, and giving the opening keynote tomorrow.

Next stops on the tour:

  • San Francisco — 30 June and 1 July
  • Sydney — 7 and 8 July
  • Tel Aviv — 14 July
  • Berlin — 21 July

The tour is also a campaign to sign up a million members, each claiming their own cloud name — a sovereign identity that’s yours alone. They explain:

The Respect Network is a collaboration of over 70 companies and open source projects from around the world who share this commitment:

  1. On the Respect Network, every member owns his/her private cloud and cloud name (your =name) that is completely portable for life and not dependent on any single CSP (cloud service provider).
  2. On the Respect Network every personal and business member agrees to respect each other’s privacy and digital freedom.
  3. On the Respect Network, you control your digital identity and relationships. You have the right to be forgotten—or remembered—by any other member.
  4. On the Respect Network you control when and where your personal data is shared and benefit directly from the value earned.
  5. On the Respect Network you are not the product, you are the partner—the network is supported directly by members investing in privacy for life.

I’ll add more here as the day goes on. It’s going to be an exciting one.

I’ve been asked how EULAs — End User License Agreements — might affect the Internet of Things, now becoming better known as the IoT. Good question. The topic is hot:

google-iot-trend

Development, however, is another story. There we are headed straight into a log-jam that Phil Windley calls the Compuserve of Things. In the 80’s and early ’90s, Compuserve was as close as any of us could get to experiencing the real Internet (which was available only to a limited selection of governments, universities and big companies). Compuserve’s competitors were AOL (originally America OnLine), Prodigy, MSN and a few others not worth mentioning.

The problem was that all online services were closed and proprietary. Communication between them was difficult or impossible. Your Compuserve email only worked with other Compuserve members. Same with your Prodigy and AOL mail. Same with instant messaging (which retains its old proprietary problems even to this day.)

Where we are headed today is not the Internet of Things, but the Google of Things, the Apple of Things, the Microsoft of Things, and low-effort sports and war stories in the media misdirecting attention away from the real Internet and toward fights between giants.

Also evolving away from the Net will be the Every-BigCo-of-things, and their suppliers of proprietary platforms. (Let’s call that one EBCoT.) Every one of these, of course, will have its own EULA.

The Internet has no EULA. It just has an A, for Agreement. That’s because the Internet is defined by protocols, which are manners — agreements — among the things it connects.

For the trillions of things in the world to work in the actual Internet, they need be subject to that same agreement (and others like it, tuned for things other than computers), but not licenses from controlling parties, because that would not be the Internet.

EULAs suck already anyway, for two legacy reasons: 1) they are one-sided and coercive; and 2) nobody reads them other than the lawyers who write them. Let’s unpack both problems.

Most EULAs are what legal folk call “contracts of adhesion.” That term was coined by Friedrich Kessler in 1943, at the apex of the Industrial Age (when Industry was causing, fighting and winning WWII). Adhesive contracts, Kessler said, were the only way any one company could achieve legal scale with masses of customers and users.

But what worked as an upside for industry had a downside for everybody else, because adhesive contracts came at a cost. Freedom of contract, long a form of vernacular law in everyday life, was shoved aside by industrial expedience.

What Kessler saw as both an efficient hack and a moral drag became more of both in the Information Age in which we live today. And it be a far bigger drag if it encumbers every Thing we want to put on the Internet.

Most of us don’t read EULAs, or the privacy policies that often accompany them, because to do so is both useless and time consuming. They are useless because they exist mostly to scrape off liability and other inconveniences on the customer or user. And they suck up time because they are written in legalese, by and for lawyers, rather than the rest of us.

So: what can we do? I’ll take that up in the next post.

Bonus link: Tony Faddel on Nest’s independence from Google and why he doesn’t like “Internet of Things” as a label.

From Merriam-Webster:

cru·ci·ble

noun\ˈkrü-sə-bəl\

  1. : a pot in which metals or other substances are heated to a very high temperature or melted
  2. : a difficult test or challenge
  3. : a place or situation that forces people to change or make difficult decisions

This is what cars will become.

The difficult decision is where to draw the line between what the owner/driver controls and what the maker/seller controls.

On one side is the owner/driver’s sovereignty over his or her own vehicle (more about this below). This includes the right to hack or customize that vehicle, to obtain and manage data that vehicle throws off, and to relate to other drivers with other vehicles (see Robin Chase), outside the control of the manufacturer or any other commercial “provider.” This is what we get, Cory Doctorow says, from general purpose computers.

On the other side is the manufacturer’s urge to provide that vehicle as a kind of IT service, like Tesla does, and to manage that vehicle much as, say, an iPhone is managed by Apple. This is also what we get from cable company set top boxes.

In the industrial Matrix we have built so far, the latter prevails increasingly, and that is limiting the ability of the former to flourish. For more on why this is a problem, visit the Lessig Library (notably Remix, Code, Code 2.0, The Future of Ideas and Free Culture), Cory Doctorow, Eben Moglen, the EFF and other fighters for personal freedom.

Cars will be crucibles because they have been, for more than a century, instruments of personal freedom and independence. (Not to mention the biggest-ticket retail item any of us will ever buy.) It is not for nothing that we speak of our car and its parts in the first person possessive: my tires, my dashboard, my fender, my seats. We even do this with rental cars, because, as drivers, our senses extend outward through the whole vehicle. In expert use our tools and machines become extensions — enlargements — of ourselves.

There is nothing wrong with having help in this from the Apples, Googles and Teslas of the world, provided our sense of where we end and where those companies begin is maintained, along with our full sense of autonomy and independence as individual human beings who can be social in our own ways, and not just in the controlling ways provided by commercial entities.

But today that line is very blurred, and may not be a line at all. As long as that blur persists, and superior power lies on the corporate side, we will have problems with compromised autonomy for individuals and their things. Those problems will only get worse as cars get “better” the (current) Tesla way. (Tesla can change, of course, and I hope they do.)  And the entire market greenfield that grows naturally on personal independence and autonomy will fail to materialize. We can drive all we want around walled gardens.

Cory calls this crucible a “civil war”. I don’t think he overstates the case.

An early shot fired in that war is Fuse, which plugs into the ODB2 port under your dashboard and gives you data your car throws off, and ways to use that data any way you please. Can’t wait to get mine.

By the way, I believe one reason Mozilla is in its current fix is that browsers and email — its founding apps — were born as instruments of personal autonomy. That’s what Mosaic and Netscape Navigator were: cars on the “information superhighway.” Now, too much of the time, they are just shopping carts. More about that in the next post.

(HT to Hugh McLeod for the car-toon.)

A couple days ago I went to an Apple store with my iPhone 4, which was running down its battery for no apparent reason. I forget the diagnosis, which didn’t matter as much as the cure: wiping the phone and restoring its apps. I would lose settings, I was told, and whatever data wasn’t stored with the apps’ cloud services. There was really no choice. So I did it.

As a result, I seem to have lost at least all of the following:

  • Everything I’ve recorded with the Moves activity tracker since I got it early this year.
  • Every tune I’ve ever tagged with Shazam, going back to 2007. The screen shot on the left are two songs I tagged today. That’s all I’ve got
  • All data from all my games
  • All my settings, whatever they were
  • Other data I don’t even want to know at this point

Why can’t this data be restored? For example,

  • Why will Angry Birds Seasons welcome me back by name and not remember that I had already cleared nearly every game in every season? (Mostly riding in subways, by the way.)
  • What’s the point of having a login with Moves if it’s not to have a cloud that remembers my data? I can’t see data in Moves if I’m not online anyway, so I know the data is in a cloud somewhere.
  • Why should I lose every text and all records of recent phone calls?

I mean, if all this data is kept somewhere, why not in a place from which the data can be recoverad by users?

At this point, far as I know (which isn’t far enough), the only way to get my data back is to do this:

  1. Wipe the phone again
  2. Restore it from the last backup
  3. Take shots of screens with data in them, for every app I care about

Then I’ll have data in screen shots, rather than in a more useful form. But at least I’ll know what I lose when I “restore” the phone completely.

Obviously neither Apple nor the app makers care much about this. But users do. And where there is a will, there should be a way.

I believe the way is personal clouds for users, and APIs for the app makers.

Personal clouds are clouds that individuals have, for their own data. We should be able to make logical connections between our apps, the APIs of the app vendors, and our own clouds, facilitating automatic data backup to our own spaces, rather than just those of Apple, Google or the app makers.

Lots of companies and development projects doing that are listed here. If you know others that belong there, tell me.

[Later (24 December)]… Items:

Fred WilsonI’m bummed that I missed LeWeb, but I’m glad I got to see and hear Fred Wilson’s talk there, given on Tuesday. I can’t recommend it more highly. Go listen. It might be the most leveraged prophesy you’re ever going to hear.

I’m biased in that judgement, because the trends Fred visits are ones I’ve devoted my life to urging forward. You can read about them in Linux Journal (starting in 1996), The Cluetrain Manifesto (1999, 2000, 2011), this blog (starting in 1999), ProjectVRM (starting in 2006) and The Intention Economy (2012). (Bonus links: What I said at Le Web in 2007 on stage and in an interview.)

He unpacks three megatrends, with an additional focus on four sectors. Here are my notes from the talk. Some of it is quotage, but little of it is verbatim. If you want to quote Fred, go to the source and listen.

1) We are making a transition from bureaucratic hierarchies to technology-driven networks. The former is the way the world has been organized for the last two hundred years. Markets, government, businesses are all pyramids. Transaction and communication costs were so high in the industrial era that these pyramids were the best way to organize work and run systems. But now technology-driven networks are replacing bureaucracies. Examples…

Twitter. Replaces the newspaper. The old army of reporters that reported to divisional editors who chose what would appear in limited spaces and distribute through printing mills and trucked to your doorstep was slow moving and bureaucratic. Now all of us are reporters. The crowd determines what’s important. This is an example of a tech-driven network.

YouTube. TV was hierarchical. Now all of us are video creators.

SoundCloud. Anybody can create audio or music. No labels. No radio or music industry required.

We first saw this trend in media and entertainment. Now we’re seeing it in AirBnB, One Fine Stay. Creative industries like Kickstarter and VHX. Learning with Codecademy and DuoLingo for languages.

We are very early with all of these and more to come.

2) Unbundling. This has to do with the way services are packaged and taken to market. In the traditional world, you only got to buy the thing that had everything in it. Now tech is changing that. More focused, best of breed, delivered a la carte. Now on mobile and internet you get better everything. Best of sports, fashion, classified advertising.

Banking is being unbundled. Banks used to do everything. Now entrepreneurs are picking off services. Lending Club. Funding Circle. auxsmoney in Germany. Taking profitable lending franchises away. Working capital. c2fo. Management services. All new, all based on networks.

Education. It’s expensive to put a lot of students in a building with a professor up front of every class. You needed a library. Administration. Very inefficient, costly, pyramidal and centralized. Now you can get books instantly. Research is no longer as highly centralized and capital dependent. See Science Exchange: collaboration on an open public network.  All this too is also early.

Entertainment. Used to be that you’d get it all on cable. Now we get Netflix and YouTube on our phones. Hulu. A la carte. Airplay, Chromecast.

3) We are all now personally a node on the network. We are all now nodes on the network, connected all the time. Mobiles are key. If forced to make a choice between phone and desktop, we go with the phone. (About 80% of the LeWeb audience did, along with Fred.) In the larger world, Android is being adopted massively on cheap phones. Uber, Halo.

This change is profoundly impacting the world of transportation. Rental cars. Delivery. Payments. Venmo, Dwolla, Square. Peer to peer. You can send money to anybody. For dating there’s Tinder. Again, this is new. It’s early.

The four sectors…

a) Money. Not just Bitcoin. At its core Bitcoin is a protocol: the financial and transactoinal protocol for the Net. We haven’t had one until now. As of today it is becoming a layer of internet infrastructure, through a ledger called the blockchain that is global. All transactions are cleared publicly in the blockchain. Entrepreneurs will build tech and services on this. Payments and money will flow the way content now flows. No company will control it. Others’ lock on our money will be gone.

b) Health and wellness. Health care is regulated and expensive. Health and wellness is the opposite. It’s what keeps you out of the hospitals. (QS is here.) The biologies of our bodies will be visible to us and connected. Some communications will be personal and private, some networked, some with your doctor and so on. Small example: many people today gamify their weight loss.

c) Data leakage. When the industrial revolution came along, we had polluting. It took a century to even start dealing with it. In the information revolution, the pollution is data. It’s what allows Google, Facebook and the government spy on us when we don’t want them to. We have no control over that. Yet.

d) Trust and identity. We have allowed Google, Facebook, Amazon and Twitter to be our identity services. It’s very convenient, but we are giving them access to all we do. This isn’t good. Prediction: a bitcoin-like service, a protocol, that is distributed and global, not controlled by anybody, architected like the Internet, that will emerge, that will give us control over identity, trust and data. When that emerges I’ll let you know. I haven’t seen it yet.

Talk to me, Fred. 🙂

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