NFTs?

NFTs (Non-fungible tokens) are the newest rage in blockchain development. These tokens are issued by the creators of digital assets and then registered on the Ethereum blockchain. The smart contracts associated with the tokens can award ownership rights to the asset with the rights to royalty payments for the marketing or sale of the asset. NFTs seem particularly suited to collectors’ items and can also be applied to physical assets. The sale of the tokens prepays the creator for the value created through his creation. Preselling NFTs for songs could deliver a revenue flow to musicians before the music became a commercial hit. Think of having a digital right of ownership to Happy Birthday or Yesterday or The Mona Lisa. The problem, of course, is that predicting the future value of a creative piece of art today is almost impossible. Remember, Van Gogh couldn’t sell any of his paintings!

This makes NFTs a very speculative asset play.

Click below to view the idea of an NFT art gallery:

The Gallery NFT

How To Fix Social Media (Facebook!)

How to Fix Social Media.

The Wall Street Journal has published a series of articles they call The Facebook Files. One article recently queried a dozen “experts” to discuss their ideas of how to fix social media. We at tuka have been focused on this challenge from the beginning, several years ago, and what these commentators reveal is a converging consensus that the problem with social media is scale and emotional triggering based on the speed of information flow. As Winston Churchill was said to quip, “A lie gets halfway around the world before the truth has a chance to get its pants on.” Social media connections have just made this pathology worse.

Our take has always been summed up with one line: A global gossip network makes no sense. So large, centralized networks of 3 billion users make no sense (i.e, FB). Social networking is person-to-person sharing based on mutual trust. So smaller newworks focused on shared interests make sense. This is what tuka is. Technology can then be harnessed to coordinate these networks in ways that reduce the siloing effect so we can all end up sharing more information based on our trusted networks. So what is needed are policies that break down the network effects of scale to open up the social media space to thousands of competitors, all focused on different community interests. Then the interactions across networks help bring us together willingly.

The other problem we at tuka have cited is the centralization and control of information networks and the immense value they create. Data is gold, and we cannot have a handful of private companies own and control the personal data users create. This is akin to giving your labor away, or slavery. The required changes are to decentralize the network using blockchain technologies so that value created can be measured and distributed accordingly to users.

Several of the experts have accurately recognized the problem and what to do about it. The better ideas have been cut and pasted below.

….

Clay Shirky: Slow It Down and Make It Smaller

We know how to fix social media. We’ve always known. We were complaining about it when it got worse, so we remember what it was like when it was better. We need to make it smaller and slow it down.

The spread of social media vastly increased how many people any of us can reach with a single photo, video or bit of writing. When we look at who people connect to on social networks—mostly friends, unsurprisingly—the scale of immediate connections seems manageable. But the imperative to turn individual offerings, mostly shared with friends, into viral sensations creates an incentive for social media platforms, and especially Facebook, to amplify bits of content well beyond any friend group.

We’re all potential celebrities now, where anything we say could spread well beyond the group we said it to, an effect that the social media scholar Danah Boyd has called “context collapse.” And once we’re all potential celebrities, some people will respond to the incentives to reach that audience—hot takes, dangerous stunts, fake news, miracle cures, the whole panoply of lies and grift we now behold.

The faster content moves, the likelier it is to be borne on the winds of emotional reaction.

The inhuman scale at which the internet assembles audiences for casually produced material is made worse by the rising speed of viral content. As the behavioral economist Daniel Kahneman observed, human thinking comes in two flavors: fast and slow. Emotions are fast, and deliberation is slow.

The obvious corollary is that the faster content moves, the likelier it is to be borne on the winds of emotional reaction, with any deliberation coming after it has spread, if at all. The spread of smartphones and push notifications has created a whole ecosystem of URGENT! messages, things we are exhorted to amplify by passing them along: Like if you agree, share if you very much agree.

Social media is better, for individuals and for the social fabric, if the groups it assembles are smaller, and if the speed at which content moves through it is slower. Some of this is already happening, as people vote with their feet (well, fingers) to join various group chats, whether via SMS, Slack or Discord.

We know that scale and speed make people crazy. We’ve known this since before the web was invented. Users are increasingly aware that our largest social media platforms are harmful and that their addictive nature makes some sort of coordinated action imperative.

It’s just not clear where that action might come from. Self-regulation is ineffective, and the political arena is too polarized to agree on any such restrictions. There are only two remaining scenarios: regulation from the executive branch or a continuation of the status quo, with only minor changes. Neither of those responses is ideal, but given that even a global pandemic does not seem to have galvanized bipartisanship, it’s hard to see any other set of practical options.

Mr. Shirky is Vice Provost for Educational Technologies at New York University and the author of “Cognitive Surplus: Creativity and Generosity in a Connected Age.”

….

Jaron Lanier: Topple the New Gods of Data

When we speak of social media, what are we talking about? Is it the broad idea of people connecting over the internet, keeping track of old friends, or sharing funny videos? Or is it the business model that has come to dominate those activities, as implemented by Facebook and a few other companies?

Tech companies have dominated the definition because of the phenomenon known as network effects: The more connected a system is, the more likely it is to produce winner-take-all outcomes. Facebook took all.

The domination is so great that we forget alternatives are possible. There is a wonderful new generation of researchers and critics concerned with problems like damage to teen girls and incitement of racist violence, and their work is indispensable. If all we had to talk about was the more general idea of possible forms of social media, then their work would be what’s needed to improve things.

Unfortunately, what we need to talk about is the dominant business model. This model spews out horrible incentives to make people meaner and crazier. Incentives run the world more than laws, regulations, critiques, or the ideas of researchers.

The current incentives are to “engage” people as much as possible, which means triggering the “lizard brain” and fight-or-flight responses. People have always been a little paranoid, xenophobic, racist, neurotically vain, irritable, selfish, and afraid. And yet putting people under the influence of engagement algorithms has managed to bring out even more of the worst of us.

The current incentives are to ‘engage’ people as much as possible, which means triggering the ‘lizard brain.’

Can we survive being under the ambient influence of behavior modification algorithms that make us stupider?

The business model that makes life worse is based on a particular ideology. This ideology holds that humans as we know ourselves are being replaced by something better that will be brought about by tech companies. Either we’ll become part of a giant collective organism run through algorithms, or artificial intelligence will soon be able to do most jobs, including running society, better than people. The overwhelming imperative is to create something like a universally Facebook-connected society or a giant artificial intelligence.

These “new gods” run on data, so as much data as possible must be gathered, and getting in the middle of human interactions is how you gather that data. If the process makes people crazy, that’s an acceptable price to pay.

The business model, not the algorithms, is also why people have to fear being put out of work by technology. If people were paid fairly for their contributions to algorithms and robots, then more tech would mean more jobs, but the ideology demands that people accept a creeping feeling of human obsolescence. After all, if data coming from people were valued, then it might seem like the big computation gods, like AI, were really just collaborations of people instead of new life forms. That would be a devastating blow to the tech ideology.

Facebook now proposes to change its name and to primarily pursue the “metaverse” instead of “social media,” but the only changes that fundamentally matter are in the business model, ideology, and resulting incentives.

Mr. Lanier is a computer scientist and the author, most recently, of “Ten Arguments for Deleting Your Social Media Accounts Right Now.”

Clive Thompson: Online Communities That Actually Work

Are there any digital communities that aren’t plagued by trolling, posturing and terrible behavior? Sure there are. In fact, there are quite a lot of online hubs where strangers talk all day long in a very civil fashion. But these aren’t the sites that we typically think of as social media, like Twitter, Facebook or YouTube. No, I’m thinking of the countless discussion boards and Discord servers devoted to hobbies or passions like fly fishing, cuisine, art, long-distance cycling or niche videogames.

I visit places like this pretty often in reporting on how people use digital tools, and whenever I check one out, I’m often struck by how un-toxic they are. These days, we wonder a lot about why social networks go bad. But it’s equally illuminating to ask about the ones that work well. These communities share one characteristic: They’re small. Generally they have only a few hundred members, or maybe a couple thousand if they’re really popular.

And smallness makes all the difference. First, these groups have a sense of cohesion. The members have joined specifically to talk to people with whom they share an enthusiasm. That creates a type of social glue, a context and a mutual respect that can’t exist on a highly public site like Twitter, where anyone can crash any public conversation.

Smallness makes all the difference. These groups have a sense of cohesion.

Even more important, small groups typically have people who work to keep interactions civil. Sometimes this will be the forum organizer or an active, long-term participant. They’ll greet newcomers to make them feel welcome, draw out quiet people and defuse conflict when they see it emerge. Sometimes they’ll ban serious trolls. But what’s crucial is that these key members model good behavior, illustrating by example the community’s best standards. The internet thinkers Heather Gold, Kevin Marks and Deb Schultz put a name to this: “tummeling,” after the Yiddish “tummeler,” who keeps a party going.

None of these positive elements can exist in a massive, public social network, where millions of people can barge into each other’s spaces—as they do on Twitter, Facebook, and YouTube. The single biggest problem facing social media is that our dominant networks are obsessed with scale. They want to utterly dominate their fields, so they can kill or absorb rivals and have the ad dollars to themselves. But scale breaks social relations.

Is there any way to mitigate this problem? I’ve never heard of any simple solution. Strong antitrust enforcement for the big networks would be useful, to encourage a greater array of rivals that truly compete with one another. But this likely wouldn’t fully solve the problem of scale, since many users crave scale too. Lusting after massive, global audiences, they will flock to whichever site offers the hugest. Many of the proposed remedies for social media, like increased moderation or modifications to legal liability, might help, but all leave intact the biggest problem of all: Bigness itself.

Mr. Thompson is a journalist who covers science and technology. He is the author, most recently, of “Coders: The Making of a New Tribe and the Remaking of the World.”

Time to Exit the FB Metaverse

Facebook is planning to rebrand…

…while Facebook has been heavily promoting the idea of the metaverse in recent weeks, it’s still not a concept that’s widely understood. The term was coined originally by sci-fi novelist Neal Stephenson to describe a virtual world people escape to from a dystopian, real world. Now it’s being adopted by one of the world’s largest and most controversial companies — and it’ll have to explain why its own virtual world is worth diving into.

Project Liberty

Frank McCourt Wants to Build a New Model for Social Media

WSJ

By Emily Bobrow Oct. 8, 2021 12:28 pm ET

It bothers Frank McCourt, the billionaire real estate mogul and former Los Angeles Dodgers owner, that his data—his contacts and search history, his shopping preferences and driving habits—is being harvested and used in ways he can’t control. “Big tech knows more about me than my wife, and I didn’t give them that permission,” he says over Zoom from his home in Wellington, Fla., where he lives with his wife Monica and their two young children.

The fact that a few powerful internet players are “hoarding and exploiting” the personal details of users is not only “inherently unfair,” Mr. McCourt argues, but also socially corrosive. He blames the rise in extremist views in the U.S. and around the world on social-media companies that prioritize “audience engagement” over the welfare of customers.

McCourt has pledged $250 million to Project Liberty, an initiative to reclaim the internet as a force for good.

In response, Mr. McCourt, 68, a self-styled “civic entrepreneur,” has pledged $250 million to create and advance Project Liberty, a grandly named initiative to reclaim the internet as a force for good. The plan includes $75 million to establish an interdisciplinary McCourt Institute to research and develop an ethical framework for new technology, in partnership with Georgetown University, his alma mater, and Sciences Po of Paris. Mr. McCourt has also promised $25 million to help develop a “Decentralized Social Networking Protocol” or DSNP, a new open-source, blockchain-enabled protocol for managing data on the internet.

It’s a new kind of infrastructure project for Mr. McCourt, who hails from a long line “of builders, of problem-solvers,” he says. His great-grandfather, an Irish immigrant, created a Boston road-building company. His grandfather, a part-owner of the Braves—the baseball team that played in Boston before moving to Atlanta—got into highway construction just as automobiles were becoming popular. His father took on a wider variety of big infrastructure projects, including expanding Boston’s Logan International Airport.

Mr. McCourt launched his own first business at 12, collecting garbage from neighbors near his family’s summer home in Deerfield, N.H., and entered the family business at 16. His family, in touting the value of hard work, would quote a Gaelic saying that translates loosely as “Where there’s muck, there’s brass.”

Mr. McCourt followed in his father’s footsteps at Georgetown, where he got a degree in economics in 1975 and met his first wife, Jamie, with whom he had four sons. But in business, he had a greater taste for risk and sought a different path, developing real estate instead of infrastructure. He helped convert Boston’s Union Wharf into a bustling mixed-use area in the late 1970s, then bought 24 acres on the waterfront from the defunct Penn Central Transportation, which soon generated millions in annual income as parking lots.

This was the property Mr. McCourt sold to help buy the Los Angeles Dodgers from Rupert Murdoch’s News Corp (the parent company of The Wall Street Journal) in 2004, in a highly leveraged deal valued at around $430 million. Mr. McCourt’s ownership of the Dodgers proved controversial, particularly when his messy, costly divorce from Jamie became public in 2009. To prevent the team from being seized by Major League Baseball, which accused him of “looting” team assets to fund his lavish lifestyle, Mr. McCourt declared the Dodgers bankrupt in 2011. He then sold the team in 2012 to a consortium led by Magic Johnson for a record $2.15 billion.

“When you go through something that’s humiliating, it changes you,” Mr. McCourt says of his time in Los Angeles. He admits, with hindsight, that he “could’ve done a better job” as a steward of the franchise. But the experience helped clarify his priorities. In 2013 he donated $100 million to establish the McCourt School of Public Policy at Georgetown, and then gave another $100 million earlier this year to help cover financial aid and scholarships. In 2018 he gave $45 million to help build The Shed, an arts center in Manhattan.

The Dodgers sale also enabled Project Liberty. Mr. McCourt doesn’t run a tech company and doesn’t use social media himself, but he is troubled by what he calls “a polluted ecosystem of information where you can’t distinguish between fact or fiction, information or disinformation.” He points to recent revelations in The Wall Street Journal that Facebook executives knew the company’s algorithms increase “misinformation, toxicity and violent content” on the site, but did nothing to rein in these problems for fear of alienating users.

He still has his mother’s voice in his head asking, ‘Yeah, but what are you going to do about it?’

Mr. McCourt decided to enter the field, he says, because growing up as one of seven siblings in his Irish Catholic family, he learned it was never enough to simply articulate a problem. He still has his mother’s voice in his head asking, “Yeah, but what are you going to do about it?”

With Project Liberty, his goal is to spur the creation of new social networks in which users, not platforms, have control over their own data. He notes that the official protocols used to send and receive information online—known as Web 2.0—were designed without accounting for how digital monopolies like Facebook and Google might use data and algorithms to sow discord, suppress innovation and compromise privacy. These developments, he says, have transformed the internet “from something that was designed to create value for society to something that creates value from it.”

Because technology moves so swiftly, Mr. McCourt says the solution to its ills is not more regulation, but innovation. Other developers share this view. Jack Dorsey, Twitter’s CEO, is in the early stages of creating an “open decentralized standard for social media” called Bluesky. Some smaller social-media companies, such as Steemit, Mastodon and Peepeth, already use blockchain or alternative technologies to challenge the likes of Facebook and Twitter.

That these companies are not yet household names does not concern Mr. McCourt. Nor does the fact that blockchain technology tends to be slower and more complicated for developers than the conventional web. He suggests the appeal of his protocol will soon be plain: “If I said to you, ‘You can have everything you have, but you will also own and control your data, you will own and control your privacy, you will be dealing with actual people and not machines, and if you engage in ad-tech you will be credited for your data,’ would you use it?”

“The guiding principle in Silicon Valley was ‘move fast and break things,’ which they achieved,” Mr. McCourt says. “Now we need to move fast and fix things so that we can restore trust, strengthen our democracy and make our economy much more fair.”

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Does Facebook Really Make Sense?

An essay on social networks and regulation, published by Project Syndicate.

A Facelift for Facebook

One can agree with the explanation of the problem – centralized control of an increasingly valuable asset: information data. I’m not sure a real solution has been proposed yet. When I explain how platforms exploit the collection of users’ personal data for great material gain, I usually get a shoulder shrug. People still fail to appreciate that their data is as valuable as their labor, if not more so. They would not give away their labor for free, so why give away one’s valuable data for a free user page and some simple tools?

At a macro level, a social network like FB makes almost no sense, except as a data mining tool. FB thrives on little more than gossip networks and if one looks at the function of social gossip across time and cultures one realizes a global gossip network makes no sense from a human pov. All the negative effects and few of the positive. As Hill points out, Online Social Networks make sense for small assemblies of friends, families, and interest groups. This is the goal for OSNs of the future. FB “Groups” might resemble the type of content-focused social network that is valuable to users, but, of course, on FB these are exploited exclusively for FB or the administrator of the group. The users get free participation, but little of the value created. A small club of influencers is not the future of OSNs.

A digital license could impose some necessary public goods features, but for regulating audience size, the potential for abuse and centralized control probably outweighs the benefits. Better for the market to solve this problem with competition, but that will probably require some government policy that reduces or eliminates the existing natural monopolies due to network effects. (“Search” needs to be a public regulated utility, while Amazon needs to spin-off its vertical integration. I’m still of the opinion that large social networks like FB will be competed away.)

I would imagine the future would look like many social networks that are decentralized but coordinated in some way so that one doesn’t get siloed. And personal data must be under the control of users with the value of the social network created shared among them. For that one probably needs some kind of a decentralized blockchain solution. Most large, complex systems only become manageable through coordinated decentralization of control. Think representative democracy and Federalism.

Own Your Data

This platform turns data into cryptocurrency

This platform turns data into cryptocurrency

An ownership economy concept is a system where all individuals hold a financial stake or value from participation in an ecosystem.

“Big Data is broken. Users are not being compensated for an asset they create. Data is now the world’s largest digital asset, and Cirus puts control of it back into the hands of the user. Turning data into cryptocurrency, Cirus unlocks data as an asset for the user, opening the doors into Web 3.0 and unleashing its long term potential as a new bankable asset,” says the Cirus team.

Cirus Foundation plans to build an ownership-led economy, giving individuals control over their data and how it is used, enabling any person with a Cirus device in their home to transact with cryptocurrencies and decentralized assets.