Data Land Grab

FB-vs-Google

‘Good for the world’? Facebook emails reveal what really drives the site

As we can read from this article and Facebook’s internal management debates, Web 2.0 (of which the GAFA companies are the archetypes) is built on a data land grab. It’s rather similar to the actual land grab that the European powers battled over for the New World, then with the colonization of Africa and Asia.

Data is now a valuable resource that has been priced up there with land and capital. Naturally, the tech oligopolies and their startup wannabes all want to grab as much as possible. And who are they grabbing it from? The network users of course.

Web 3.0 is all about democratizing the value and monetization of personal networked data. It’s about decentralized ownership and control, much like the desire to own and control the fruits of one’s labor that ended slavery. Web 3.0 is the future, because Web 2.0 is unsustainable.

 

Data Privacy

facebook lobby

Good, thorough, and l-o-o-o-o-ng article on data privacy issues, legislation, and network value. From the NYT Magazine. Read about what’s being done to you behind closed doors…

The Unlikely Activists Who Took On Silicon Valley — and Won

Some excerpts:

Almost by accident, though, Mactaggart had thrust himself into the greatest resource grab of the 21st century. To Silicon Valley, personal information had become a kind of limitless natural deposit, formed in the digital ether by ordinary people as they browsed, used apps and messaged their friends. Like the oil barons before them, they had collected and refined that resource to build some of the most valuable companies in the world, including Facebook and Google, an emerging duopoly that today controls more than half of the worldwide market in online advertising. But the entire business model — what the philosopher and business theorist Shoshana Zuboff calls “surveillance capitalism” — rests on untrammeled access to your personal data. The tech industry didn’t want to give up its powers of surveillance. It wanted to entrench them. And as Mactaggart would soon learn, Silicon Valley almost always got what it wanted.

Through the Obama years, the tech industry enjoyed extraordinary cachet in Washington, not only among Republicans but also among Democrats. Partnering with Silicon Valley allowed Democrats to position themselves as pro-business and forward-thinking. The tech industry was both an American economic success story and a political ally to Democrats on issues like immigration. Google enjoyed particularly close ties to the Obama administration: Dozens of Google alumni would serve in the White House or elsewhere in the administration, and by one estimate Google representatives visited the White House an average of about once a week.

Mactaggart … faced an American political establishment that saw the key to its future in companies like Google and Facebook — not because of whom they supported but because of what they did. The surveillance capitalists didn’t just sell more deodorant; they had built one of the most powerful tools ever invented for winning elections. Roughly the same suite of technologies helped elect Obama, a pragmatic liberal who promised racial progress and a benevolent globalism, and Trump, a strident nationalist who adeptly employs social media to stoke racial panic and has set out to demolish the American-led world order.

In the end, not a single lawmaker in either chamber voted against the compromise.

Political power is a malleable thing, … an elaborate calculation of artifice and argument, votes and money. People and institutions — in politics, in Silicon Valley — can seem all-powerful right up to the moment they are not. And sometimes, … a thing that can’t possibly happen suddenly becomes a thing that cannot be stopped.

The promise of blockchain is to disrupt this Monopoly game.

The Creators Case for Blockchain

Social Media Connection

Nice article on Medium:

A Poet’s Case for Blockchain

I would add that the major problems for artists in the digital age stem from the explosion of new supply of content. This drives the price down and the search costs of discovery up. The failure then becomes that artists can’t find their audiences and consumers can’t find the content they desire. For poets this means finding an audience not necessarily to sell poetry; rather more important is to find readers and appreciators of their poetry.

Large centralized network servers based on algorithms can’t solve this problem without commoditizing content and delivering the most popular but mundane content churned out by those metrics.

We need to empower the human by connecting the creative.

OSN Heart

 

The Big Tech Oligopoly

GAFA

Is It Time to Break-Up Big Tech?

6:05 AM, Oct 28, 2017 | By Irwin M. Stelzer The Weekly Standard

Uber comes along and ends the rainy days and nights of waving fruitlessly at cabs with flashing “off duty” signs, and governments respond to pressures from threatened incumbents by making life difficult or impossible for the welfare-enhancing newcomer.

Amazon spares consumers the chore of driving to malls, picking through racks, and perhaps finding a tolerable substitute for what they really, really want, and the tax man and the regulator come sniffing around.

Google puts the world’s intellectual output at everyone’s disposal, Apple puts enormous communicating power in citizens’ pockets, and Facebook links far-flung people with similar interests, only to find that the power their successes convey prompts governments to search for new constraints. And a cut of the revenues.

Unfortunately for the tax collectors, they are forced to play whack-a-mole with the Internet giants who can always find another way of moving profits from the greediest of their pursuers. Until the tax men accept the fact that they will always be one step behind the lawyers and accountants who shield their clients’ well-gotten gains from the pursuers, the profit-mole will never get whacked.

The obvious solution is to tax revenues in the country in which they are earned—it is a lot easier to total up sales receipts, and tax them, than to try to estimate the reasonableness of fees an international company charges itself for use of its own intellectual property, lodged in the sunny Caribbean or rainy Ireland.

But the taxation problem is the least of the worries of what we might call this era’s Fab Four—Amazon, Apple, Google, and Facebook. (The New York Times’ Farhad Manjoo includes Microsoft in what he calls The Frightful Five). They are now seen by critics as simply too big and, with the exception of Apple (which faces stiff competition) possessing market power that exceeds that of companies that competition authorities in days past dismembered—Rockefeller’s Standard Oil being the most notable of the old giants cut down to size by regulators.

The solution being mooted in academic seminars and the halls of Congress (when its members are not busy dodging presidential tweets) is utility-style regulation of the prices and the soaring profits of these companies. That solution is still a gleam in the eye of some politicians, right and left: they are reluctant to take steps that might curb the activities of businesses enormously popular with the public. But it is now a policy goal of companies who compete with the Internet giants on what they deem an unlevel playing field. At minimum, they are turning to the courts for relief: Yelp, the site on which you can express your pleasure with, or hurl brickbats at, businesses you patronize, has filed an antitrust action against Google, making much the same claims as produced the search-engine’s creator whopping fine in Europe.

Regulation is a tempting goal for policy makers here and in the European Union who feel it essential that they gain control over how people will use the internet to shop, travel, date, learn, and interact in the future. This is especially compelling for E.U. regulators, who feel that unless they somehow control the business practices of leading Internet companies the (ugh) Americans will have too much power in Europe.

I have been involved in regulation for enough decades to know the slowing-to-deadening effect regulation can have on innovation and customer service—not as bad as unregulated monopoly, but nowhere near as good for consumers as competition. Try hard to remember when the pre-break-up AT&T would not allow you even to attach a shoulder cradle to your phone—it being classified as a “foreign attachment”—and compare that with the range of communications devices available since the monopoly’s break-up. Or consider the quality of service you get from your quasi-monopoly cable company, at bundled prices bordering on the absurd, which is why, given the chance, millions are cutting the cord as competition rears its lovely head in the entertainment business.

Better to nourish competition in these new markets than to call in the regulators. Which is what the European Commission says it is trying to do. It has decided that Google has a dominant position in search—a finding with which the company, which I once served as a consultant, disagrees—and fined it $2.7 billion for favoring its own services when consumers search for maps, or shopping sites.

That’s a rather standard application of competition policy to the activities of companies found to be using their power in one market to disadvantage competitors in others. The EC decision raised hackles at Google’s Mountain View, California headquarters, and raised eyebrows in America because of the size of the fine and because once again the Brussels crowd has targeted an American company. Whether the newly installed Trump antitrust team will agree with the EC that Google possesses sufficient market power to warrant similar action is uncertain.

Amazon presents a different problem. It is big and getting bigger. The new $5 billion ancillary headquarters for which it is site-searching will employ a staff of 50,000 workers, supplemented at Christmas by some of the 120,000 Amazon recruits to cope with the Christmas rush. Some 238 cities and regions are offering gifts of taxpayer cash in the hope of persuading Jeff Bezos that his company will live happily ever after in their domain. Amazon now controls half of all internet retail business. But only 8 percent of all retail sales are transacted over the Internet, meaning that Bezos’ half represents only 4 percent of all retail sales. As Manjoo puts it, “Amazon . . . is still a minor satellite compared with Walmart’s sun.” So what’s the problem?

For one thing, that 4 percent share of the total retail market can mask Amazon’s devastating effect on specific market segments: think what has happened to bookstores faced with Amazon’s huge inventory and low prices. More worrying, Amazon has the power to strangle a potential rival in their cradles. Shortly after Blue Apron took its food-kit service public, Amazon filed to trademark a copycat service. Blue Apron shares immediately plunged 12 percent on investor fears that Amazon would eat Blue Apron’s lunch. A possible remedy would be to consider an established antitrust interdiction that, in certain circumstances, prohibits pre-announcements that contribute to the maintenance of market power.

Better that than having a utility-style regulatory commission deciding whether Prime service is fairly priced, or whether plans to provide customers with a special lock and Amazon employees with a camera-monitored key so they can deliver packages when the customer is not home is a good idea, rather than leaving it to customers to decide.

For now, I leave it to the political class to cope with the power these companies seem to have over the nature and reliability of the news they purvey. And to the sociologists to take on Facebook, and the cultural effects of all those friendships formed without even so much as a face-to-face hello, air kiss, or man hug.

The Logic of tuka

Many people, introduced to the concept developed here under the tuka ecosystem model, have asked, “So, what makes tuka different?”

Cribbing from Socrates, we would answer that question by posing two of our own:

  1. Why do people use the Internet?

I believe we can come up with a lot of different reasons people have embraced the Internet, despite the fact that sitting in front of a computer screen or thumbing a smartphone for hours is bad for the eyes, the hands, the posture and the back! But, one gains access to the world’s information at one’s finger-tips. We can be much more efficient and productive by having access to more information at much lower cost than in the past.

But those reasons just beg the question as to why having access to more and more information is important. Well, yes, information can be valuable, especially if it makes us more productive with our scarce resources of time and energy. In other words, information is valuable because informed knowledge empowers us to do more of the things we want to do, at less cost.

So, what is it we want to do? [That’s really a rhetorical question because there are literarily billions of valid answers.]

Let’s move on to question #2 and maybe it will become clear what we’re getting at.

2. Why do so many people use Facebook?

I think the answers to this question are quite different from the answers to the previous question. I doubt Facebook makes anybody more productive, unless one is running viral ad campaigns. Facebook and its fellow social media platforms actually seem to be the biggest time-wasters since the advent of the Internet! But apparently users are not only attracted to social media, they become addicted to it. How and why?

I believe the answer is found in psychology and the human need to be connected to others. As Aristotle wrote, “Man is a social animal,” (and woman perhaps even more so?). And we connect by sharing information with each other that ranges from silly gossip to important and relevant knowledge (like how to survive a natural disaster).

And the connection is as, if not more, important as the information being shared. This is a key insight into information technology because it tells us what’s really going on behind all this BIG DATA.

If we work backward from this goal of connection we see that connection is driven by the human instinct to connect by sharing, which is rooted in some initial step to create whatever it is we wish to share. Connection <- Sharing <- Creating. Here we have reverse engineered the internal logic of the tuka creative social media ecosystem: Create -> Share -> Connect, which repeats in an endless feedback loop.

So, the point of this post is to show that tuka is not really about what a new technology tool can do for us, but about what we can do with technology to be more like who we really are.