Busting the myth that people don’t care about privacy

There’s a fundamental disconnect in the discussion about online privacy.  We are told that people don’t care about their online privacy.  Evidence of people not reading terms of service, blindly accepting all permissions on their apps, and even filling out detailed questionnaires in return for an actual cookie, seem to support this position.  But in the aftermath of a breach, or simply a news story pointing out how invasive the Facebook Messenger permissions are, the reaction implies a strong expectation of better privacy.  It is as if people have an expectation of privacy but a contradictory expectation of not being required to do anything to get it.  These two things seem mutually exclusive and yet they exist simultaneously.  How can that be?  As with most mysteries of the universe, the answer involves some physics.

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Identity as a weapon

Writing about the recent phenomenon that is #Gamergate, Kirk Hamilton makes some interesting points about identity:

It makes sense that doxxing—sharing someone’s address and other personal information against their will—is one of the primary instruments wielded in this battle. Doxxers use identity as a weapon, and so much of this conflict is, at its core, about identity. There’s the stated claim that the gamer identity is under attack, and also the pervading sense that this “war” is less about journalistic ethics and more about the murk of entrenched identity politics. Video games have hugely informed our generation’s cultural identity, and so cultural criticism of games feels somehow personal, like we’re the ones being criticized. I get it. I do.

He’s describing a tectonic shift in gamer culture as gaming goes from being largely white, male and young, to being increasingly diverse of race, gender and age. The cultural realignment of broadly defined identity can be expected to set off aftershocks that ripple through adjacent populations and disciplines. In this case, there was an identity quake of about 6 on the Richter scale in the gamer subculture that is rippling through journalism, hardware manufacturing, marketing, law enforcement, and on down to individual people. Among the results is a much wider public perception of the danger one’s personal details represents when in the hands of people you don’t trust.

Gaming is a very geeky subculture. It is assumed by many that the Gamergaters would have no trouble getting anyone’s personal information. Another result then is a social laboratory environment in which we get to see how that assumption affects behavior. Certainly Felicia Day held this belief when she wrote:

I haven’t been able to stomach the risk of being afraid to get out of my car in my own driveway because I’ve expressed an opinion that someone on the internet didn’t agree with.

HOW SICK IS THAT?

I have allowed a handful of anonymous people censor me. They have forced me, out of fear, into seeing myself a potential victim.

And that makes me loathe not THEM, but MYSELF.

Within moments of posting this, someone tweeted Felicia’s address.

From its beginnings, the Internet was designed and built functionality first, with security and privacy a very distant second, if at all.  SSL was an afterthought.  DNSSEC was an afterthought.  The original Internet anticipated how functions would work, not how they could be exploited.

Then we built Internet commerce on that shaky foundation and following the same template.  There is a strong parallel between the architecture of the commercial web and toxic waste dumping of the late 20th century.  Both involved the externalization of costs extracted from a manufacturing process.  The manufacturing of things based on atoms resulted in escrowing those costs as time capsules of toxic waste that would become the problem of some future people in return for larger profits today.   In the case of bits, widespread failure to implement even basic security to protect personal data generates larger profits today but also creates a situation in which the incremental cost of retrofitting security into large established systems is cost prohibitive.  Since that personal data can be used as easily to harm people as to help them, large databases of personal information which lack adequate security are akin to undiscovered pools of toxic waste – cheaper to build today, someone else’s future problem if it is abused.

We are now in the stage where the toxicity of bad security is leaking into the digital groundwater.  Those regular reports of massive breaches on high-profile web sites are today’s digital version of yesterday’s cancer clusters.  They are the early warning signs that a Security Cleanup Superfund is needed.  Except that the maps we draw will have corporate names like Hannaford, Sony, Target and Lowe’s instead of geographic names like Love Canal and Lemon Lane.

We ramping up quickly to build the Internet of Things according to the same old template.  We hear about a new “smart” version of an ordinary device just about every day.  Just as rapidly we hear about these same devices being hacked, or that the security is so bad that no hacking is required.  Since the prevailing model is that the devices are modern Trojan Horses, built first as a portal to your most intimate data and second with the functionality for which you bought it, they represent simultaneously our greatest opportunity and our greatest threat on the network to date.

So when I write about false parallels between the worlds of atoms and bits, or the need to build privacy-protecting or privacy-enhancing architectures, I feel a sense of urgency.  I am very aware that the work underway at IIW, NSTIC, OIX and elsewhere in the Identity world potentially powers the world of tomorrow.  As Dave Birch says, identity is the new money.

But I’m also keenly aware that identity can be turned into a weapon.  I’m generally lonely in that view but the Gamergaters have demonstrated how effective even a small amount of identity information can be as a weapon.  People are taking notice.  If we embark to build Personal Clouds using the same template we’ve always used, if we assume that privacy and security are legal and policy rather than technical problems, if the individual does not have sovereign ownership of their personal data, then we might as well be honest about what it is we are building.  Research into personal data technologies without design goals of privacy, sovereignty and agency, and lacking state of the art security controls would be a digital Manhattan Project.  The commercially successful implementation of such a security-free Personal Cloud would be Cyberspace’s atomic bomb, capable of devastating millions of lives at one shot.

So, yeah, identity is the new money.  We definitely need to figure out the functionality of identity and the benefits it will bring to the digital world.  But the systems must be designed first for security, privacy, and personal sovereignty because it is from these attributes that functionality arises, not the other way around.

The latest malvertising incident and why you should care

Today’s news from Net-Security.org is that newly discovered malware was found on Google’s ad network and its purpose is to hijack your router’s DNS settings causing all devices behind your firewall to use poisoned DNS resolvers. That means even if *you* run NoScript, AdBlockPlus, HTTPS Everywhere, Ghostery, anti virus and avoid sketchy sites, a visitor on your guest network or even some anonymous neighbor leaching off your wireless signal can compromise your router.

Awesome.

Article: Attackers change home routers’ DNS settings via malicious code injected in ads

If all my ads were not so personalized and relevant, I’d be upset about this. But it’s SO worth it, right?

The funny thing is that the attackers have FAR more privileged access to your device and your data than do the malvertisers and yet so far they just want to take over your device and empty your bank account. If the attackers ever decide to go after your *data* they’ll not only find out your daughter is pregnant before you do, they’ll make her pay $100 to not tell you about it. Then you get an email asking what your conservative employer might think of your risque purchase history. They clean out your bank account and ruin you, it’s a 1-time profit. But if they blackmail you with your data they get a long-term income stream. They get a pension fund. Forget about calf-cow relationships. Start thinking ant-aphid.

But we’re good because there are lines – somewhere – that even creepy, invasive, malvertising adtech won’t cross and that will stop the spread of cybercrime over advertising infrastructure. Right? We’re good because the adtech industry is hard at work distancing themselves from organized crime and building security, accountability and user choice into the advertising system.

“Wake up T.Rob, you’re daydreaming again!”

Oh, right. I live in Bizarro World where adtech doesn’t acknowledge any responsibility for building the rails malware rides in on. They would side with us in our battle against against organized cybercrime, except they are too busy making advertising even more invasive: Targeted Online Marketing Got Creepier Again!

Note the exclamation point at the end.  Almost seems like the author is excited about this in a good way.  In fact, that’s the case.

So if you think of it – yes, it is very creepy. It goes to the extent that marketers will start knowing more about you than you do yourself.

But on the other hand we think it’s a great step forward. First of all it means that marketers are interested in finding out what we want to be offered. They are actually listening to us. Secondly this also means more targeted communications. Instead of being bombarded with advertisements you have zero interest in, you may find that eventually you start enjoy advertising as it fits seamlessly into what you are looking for.

But the Adtech folks aren’t stopping with impressively better tech, they are hitting new efficiency levels as well, as noted in Obama-Grade Ad Tech Coming to a Local Campaign Near You. “It’s been a challenge for even mid-range campaigns to be able to afford these online advertising capabilities. Today, it doesn’t matter if you’re running for city council or congress, because now you can reach voters in one of the most effective ways possible regardless of your campaign budget.”

Or if you go to Ad:Tech NYC next week, you can learn about the new frontier of tracking consumers offline in  Behavioral Breadcrumbs: New Tools to Read Digital Signals:

Most traditional digital tracking and measurement only works as long as a consumer sits in front of a browser. What happens when they disconnect? A new breed of technologies helps extend scalable insight into consumer behaviors beyond the screen. From RFID to Wifi to optical tracking, this panel will discuss methods that identify consumer behaviors, help test and ultimately measure.

Key Takeaways:

  1. Market to consumers using signals they’re pushing.
  2. Track behaviors using consumer signals.
  3. Create a type of interactivity and measurability in your campaigns.

I’m sorry, but I’m not PUSHING signal to your RFID reader, WiFi access point, or optical recognition tracker.

If you want to know what consumers pushing signals looks like, go talk to the folks at Customer Commons, whose QR-coded badges broadcast the intention to not be tracked in exactly these ways.  Does your optical tracker honor these signals?  I’m guessing not.

If you want to know what consumers pushing signals looks like, talk to the Respect Network who are building a platform specifically to exchange user-generated signal with marketers and businesses.

If you want to know what consumers pushing signals looks like, talk to me or my colleagues at Qredo who are building out the world’s first and best fully-encrypted, end-to-end communications and Personal Cloud platform that is mutually authenticated at the endpoints and yet the data and metadata are completely anonymous in the cloud servers.  We’re all about quality signal.

Most of all, if you want to know what consumers pushing signals looks like, read The Intention Economy.  Here’s a hint: when we customers push signals, it’s intentional, deliberate, and we like you for receiving them. If you have to hunt for the signal, if we don’t like that you received it, if stealth is involved, if it feels at all creepy to any of the participants, it probably isn’t being pushed.

I’m not going to reach anyone who honestly believes that signals received over passive RFID scans, Wifi hotspot scanning, and optical recognition tracking are being “pushed” by consumers.  However, there must be some marketing and advertising people who realize how incredibly wrong that characterization is and why.  To those people I plead: please side with the consumers against organized cybercrime.  Quit acting as the R&D arm of cybercrime who watch you lay the tracks, then ride them direct to your audience, poisoning the well for all involved.

We are on the verge of computerizing the consumer side of commerce.  When we computerized the supply side 30 or so years ago, it transformed the world.  But the consumer side is much larger and the transformation potentially that much richer.  Consumers want to build systems that send you signal.  Stop trying to sneak in and steal it and just partner with us.  Once we have some trust and accountability between us, organized cybercrime will have to do their own R&D.  And if you are wondering how to make those connections you’re in luck.  The next Internet Identity Workshop is next week.  The place is practically littered with common ground for us to meet on.

Marketers and advertisers, now you get to choose who you want to work with and for.  The customers, entrepreneurs, and identity geeks in the VRM community at IIW?  Or organized cybercrime?  Choose wisely because you’re running out of Mulligans on these compromised ad networks.

The Marketing/Cybercrime symbiosis

MalvertisingWhat would you do if you suddenly realized that your business model was indistinguishable from organized crime?  Or, worse, what if you realized that your business directly harmed people economically and physically?  Web Marketing has evolved to become the R&D lab for organized cybercrime and is currently in that unfortunate position.  Here is the life cycle we are stuck in at present:

  1. Users find new ways to block ads and preserve (or at least fortify) their privacy.
  2. Marketing devises new adtech to circumvent user controls.
  3. Cybercriminals exploit adtech to deliver malicious payloads.
  4. Lather, Rinse, Repeat.

News reports of people whose bank accounts are emptied or their identities stolen by cybercriminals are all too familiar.  Mostly forgotten however is that when some high-level SSL certificates were compromised a few years back, forged certificates were found proxying the communications of dissidents from inside of repressive countries to Twitter, Google, Facebook and so on.  What people thought was completely secure communication was in fact transparent to the authorities.  It is a certainty that people came to physical harm after the Certificate Authority was breached, and that breach was a result of malvertising.

 How did we get here?

The problem is that Marketing believes that it is in the business of creating content and cannot get past that worldview. The reality is that in the age of popular press, then broadcast radio and television, Marketing was reinvented as the world’s first micropayment system. Diverting a timeslice of the attention that a massive audience paid to the program content, and substituting commercial content, created a revenue stream out of thin air. With a large enough audience the aggregate value of attentional time slices could be monetized predictably and in sufficient quantity to fund both the content and the overhead of the micropayment system that generates the revenue.

What Marketing has lost sight of (or perhaps never realized) is that their primary business is distilling and aggregating micropayments to fund content, not in creation of content itself. Yes, it’s called “marketing” and that implies signal from advertisers to consumers. But marketing delivered in the context of program content is invisible if nobody likes the program content. No matter what you spend on a Superbowl ad, people who don’t like football won’t watch the game to see the ad.  Funding content is primary.  Making content is a means to that end but need not be in the age of the Internet.

How can it be fixed?

In the world of bulk print media, and of broadcast radio and TV, signal goes only one way and advertising content was required to close the signaling loop. It created an information stream from consumers in the form of increased sales and revenue.  In the world of atoms, it was actually necessary to prevent the possibility of consumers responding en masse and overwhelming the seller.

But we do not need that anymore. The Internet closes the signaling loop much more effectively. Consumers can send signal upstream without overwhelming the recipient in the process.  We are finally in a position to skip the commercial content and just pay directly for program content. But people don’t want to manage a million subscriptions and vendors don’t necessarily want to do that either.  This is especially true when the lowest practical direct payment is significantly greater than the value of the content provided.  So we still need to aggregate micro-revenue streams and distribute funds back to content creators.  The difference is that we no longer need that to be driven by marketing content.

In a world where it is possible to track every second of content performance, directly funding content through subscription aggregation should be easy to do transparently, accountably, and without the invasive malicious technology. Marketing owns this space but that’s due only to historical legacy.  Unless they remove the blinders with “content creator” printed on the inside they’ll soon cede it to someone else. Content creators just need funding and if they can get it without annoying the crap out of their patrons, and especially without delivering malvertising along with their content, they would be happy to do so. Content creators do not need to sell Bud Light.  They just need funds.

Will Marketing step up?

When it comes to building a subscription aggregation ecosystem, Marketing currently holds a marginal advantage in its existing relationships with content creators and distribution outlets.  This would help in the construction of a subscription bundling ecosystem if only Marketing realized they need to build it. But that advantage is eroding quickly as the Internet commoditizes those advantages so time is of the essence. Direct funding of program content is coming whether Marketing builds it or not. If they wait too long, they lose their main delivery channel as content goes ad-free.

Isn’t Marketing also content?

Creation of content, that thing Marketing seems to believe is their primary business model, is still required but as a subordinate function. It has been pointed out many times that sellers have a need to get information about their products out to the buying public and Marketing fills that need. Fair enough. But if you are in the market for a widget then marketing information about widgets is the program content and it will be sought out on that basis.

Anyone surfing the web ad-free who is in the market for widgets will – surprise! – want to compare widget features, read reviews on widgets, check widget prices, look for things that might fit their needs better than widgets, etc. The role of Marketers for these people will be to make sure that the information exists and is easy to find. Their role will not be to invade the privacy of potential consumers, attempting to claim every possible attentional timeslice by bombarding the consumer from all sides every waking second with brand messages.  In an ad-free environment consumers will self-select to receive Marketing content at the point in time that it is relevant to them.

 When advertising is voluntary and opt-in, *all* advertising is precisely targeted and extremely valuable.

Let me repeat that for Marketers whose attention timeslice I didn’t get the first time:

When advertising is voluntary and opt-in, *all* advertising is precisely targeted and extremely valuable.  No Big Data crunching required. No invasive ad-tech required. No need to cover every visual or auditory blank space with branding.  Furthermore, assuming the system monetizes sales rather than clicks or impressions, Every. Single. View. Or. Click. Is. Legitimate. Full stop.

Our current opt-out approach and consequent oversupply of marketing messages drives the incremental value of individual ads ever lower.  But it is a mistake to believe that the value of an ad can never be less than zero.  An oversupply of ads can in fact create negative value, especially when delivered coercively as is explained in the next section.

An autistic point of view

There is a relatively new model of autism called the Intense World Theory.  Past theories of autism have assumed it arises from functional deficits in the human brain.  But Intense World Theory posits that much of typical autistic behavior results from over-stimulation.  This model explains so much better things such as texture sensitivity, physical agitation such as hand flapping or head banging in response to strong stimuli, and situational escalation leading to autistic meltdowns.

Marketing when and where a consumer requests it is an essential service.  Marketing as it is practiced today on the web is more like a zombie apocalypse.  Nobody actually wants to be attacked from all sides, relentlessly, by mindless things that just want a piece your brain, but Marketing refuses to believe that and plows ahead undeterred.  When we put up defenses, Marketing invents new tech to circumvent them and tells us it has an absolute right to do so.  This is an “essential truth” as one marketer recently put it.  When we get infected and come to harm through malvertising, Marketing disclaims any responsibility.

Ask anyone familiar with autism and Intense World Theory what they would predict consumer response to be to Marketing’s current approach of carpet-bombing the consumer’s attentional landscape.  Marketers tell us that the web depends on this model, that everyone involved is better off for it, and that they have a right to get their branding messages into our field of attention.  But Intense World Theory tells us that beyond a certain point, people begin to feel violated, overwhelmed and out of control.  They withdraw from the stimulation or find ways to defeat it, even to the point of self-destructive behavior if the stimulus is intense enough.

Head banging, hand flapping and body tics are how an autistic increases signal in order to drown out noise.  Ad-Block+, Ghostery and other consumer-side controls perform the same function with respect to Marketing.  Escalation of confrontation leads to a meltdown in the case of an autistic person, or to Congressional hearings in the case of invasive adtech.  The parallels are obvious and the outcomes predictable.

You don’t need to be autistic to respond this way.  Dial up the unwanted stimulus enough and everyone eventually gets to this point.  Don’t believe me?  Watch the reactions to the sound of fingernails on a blackboard.  This is the first time in history that it has been possible to so thoroughly invade an individual’s cognitive space so we have not previously driven neurotypical people to autistic defensive behavior.  Now that we are beginning to do so, we should recognize the response as predictable given the level of stimulus and move to change the approach. At the very least Marketing needs to dial down the stimulus.  Better yet, Marketing should relate to people as respected peers rather than as subjects.  Our attention is a privilege, not a right.

Suggestions

Marketing needs to reinvent itself as a funding aggregator for content first, and as the delivery of brand messages second.

  • Create content subscription bundles so a single subscription reduces or eliminates ads across most or all web properties.  Cybercrime cannot ride in on your rails once you rip up the track.
  • Remunerate providers proportionally.
  • Make sure independent content providers can get paid on par with large providers.  Some might even say indie content is more valuable.
  • Stop with the invasive adtech already.  We hate it and we hate you for it.
  • Make it easy for prospective consumers to find your brand messages when they are actually in the market for something.
  • Turn your commercial content into program content.  Remember the people who aren’t football fans who don’t watch the game to see the ads?  They do go watch them on YouTube and vote on them in contests.  We don’t mind brand messages if the content is compelling.  (Clue!)
  • Finally, and this applies to pretty much any business, if your business model is indistinguishable from and directly enables organized crime, don’t spend a minute rationalizing the harm caused.  CHANGE THE MODEL.

Marketers, the countdown clock is ticking.  Will you continue on the current path, eventually driving the public to a meltdown?

Bacon, eggs and pie: the problem with #VRM

The VRM email list is once again suffering a bout of name angst.  There are many identity geeks on the list and an existential question of the extent to which identity flows from the name and vice versa so it’s always an interesting discussion, regardless of whether headway is made.  I’m of the opinion that the name tends to define the thing and that this is in fact part of the problem with VRM up to now.  It has become defined, to the point of being confined, by it’s own name.

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Is it bigger than a lolcat?

1551781_561186843966658_361670759_nOne of the currently popular Internet memes poses the question of what would be most difficult about today’s society to explain to a time traveler from the 1950’s.  The reply calls us all out on our frivolous use of the massive amount of computing power available to all of us.  The sentiment mirrors my VRM Day presentation at IIW where I lamented that we could have built consumer-side apps to transform commerce but instead we created Angry Birds.

We’ve all heard that the the amount of computing power it took to support the manned moon missions is now available in a calculator, or we have at least heard some similar comparison.   There is justifiable incredulity that computing power is now so cheap and plentiful that not only can we afford to squander it, but squandering it has become our very highest expression of that power.

Consider for a moment the example used in the meme to make the point.  While the vision of putting that wasted capacity to work doing research is noble (I’m an enthusiastic supporter of World Community Grid), it seems rather uninspired. Basically, we should be looking at Wikipedia instead of lolcats, according to the meme.  Despite that rather pedestrian example, the point is so compelling as to go viral. I wonder what impact it would have if there were an even better example of personal empowerment than Wikipedia.

You might rightly ask, as a friend recently did, “If consumer-side business apps are so compelling, how come nobody builds them the right way?  How come nobody buys the ones we have, crappy though they might be?”  Good questions, and ones I believe we know some of the answers to.  I’ve identified two root causes.

Architecture

The biggest problem is the prevailing architecture.  When we first applied computing to commerce on the vendor side, the hardware and software cost millions of dollars.  Financing the systems was possible only by spreading the cost across very large customer populations.  At the time, customer data was not inherently valuable, but rather was a byproduct of the system.  When I worked as a computer operator for an insurance company in the 1980’s you may have had a decade-old policy but I guarantee we weren’t keeping all that data online.  Data was expensive and we kept online only that which was required to conduct day-to-day business and we only archived that which was required to meet compliance obligations.  If it wasn’t required for daily operations or compliance we destroyed it.  Data was an expensive cost of doing business but it was less expensive than manual processing so it was tolerated as a necessary evil.

Eventually, the growth of computing power and shrinking cost of storage gave us the ability to analyze all that data and suddenly it was no longer an expense but a new source of profit.  Companies found they had untapped gold mines in their vaults and set out to unblock all that value.  But it wasn’t enough.  Soon they began to tweak systems to proactively collect ever more data, from every possible point of interaction with the customer.  Save it all, let SAS sort it out.  Unfortunately, the moment in time when we collectively realized that data is valuable was also the moment when corporations had more of it than ever before and consumers had none.  This locked in the proportions and model for distribution of data. Which is to say there is no distribution per se, just vendors with all your data and you with none.  All variations on this model start from this default position.

The corporations have come to believe that consumer data is their birthright.

The result is that the discussion around consumer’s access to their own data is framed in terms of “releasing” it to consumers, but only subsets, under strict terms, and usually under tight constraints on what the consumer can do with it.  The consumer is expected to be thankful for whatever access to their data they are granted.  The corporation is, after all, doing the consumer a favor, right?  (Say “yes” or we revoke your API key.)

In the absence of a better model, all new designs are based on businesses synthesizing new sources for ever more valuable consumer data.  These include your browser, your phone, your car, and so on.  But if you were to build out commercial software platforms from scratch in an environment with cheap, ubiquitous computing devices and high-quality open-source software, would this vendor-owns-all-data architecture even be possible?  If you tried to build Amazon from scratch today and a competitor said “we’ll give you the same market place, the same inventory and the same prices, but we’ll also give you machine-readable copies of all transactional data” someone would build apps to capture and analyze all that data, the app builder would get rich, the competitor market vendor would get rich, the loyal customer would get functionality, and Amazon would be forced to also give you your data or go extinct.  Unfortunately, Amazon achieved dominance without any competitive pressure to give you access to your own data, and so they don’t do that.  The same is true of every other large vendor.

The premise of Vendor Relationship Management, or VRM, is that with access to their own data, consumers could apply computing power to problems of commerce and of managing their lives.  We do this now to some extent, but we have a million different vendors holding our data and charging a million different subscriptions for the privilege.  We can’t integrate across these silos and we are locked into specific vendors because the accumulated data is not portable.  The vision of VRM is to consolidate all that data into a personal cloud.  I may still buy a book from Amazon but my personal cloud lists that book in a collection that also includes books I purchased from my local independent bookstore..  Receipts for all these purchases are captured at the time of sale and loaded into my personal cloud without any manual intervention on my part.  The same is true of all my other purchases, utility bills, mortgage or rent payment, car payment, etc.  Having captured all this data, I can analyze my own family’s spending and consumption patterns over time.  If the consumer-side analytics software is good enough, I might even discover that my daughter is pregnant before Target does.

So, the first big issue we need to overcome is the inertia present in the prevailing big-data, corporate silo architectures.  In the absence of a viable competing architecture, corporations have little incentive to change, and why should they?  That data is valuable and any accountant will tell you that giving away valuable, income-producing assets means less profit.  Of course, it’s actually not a zero-sum game like a balance sheet.  Digital data can be copied without diminishing the value of the original copy and if giving it away makes consumers more loyal then the result is more, not less, profit.  Convincing data-hoarding corporations to exploit abundance rather than scarcity is the first step.

Cost/Benefit

The second problem is the cost/benefit equation.  One of the reasons we look at lolcats and play Angry Birds is because these activities do not require constant vigilance of us.  Just the opposite, in fact.  Leisure pursuits have become the highest expression of computing power because they relieve us of the stress of daily life.  We need software business tools that behave the same way.  The lack of enthusiasm for the current and previous crops of Internet of Things “smart” devices and business software designed for lay persons is due in large part to the danger inherent in the usual implementations of these things.

Online banking, for example, requires of the user a much higher level of security hygiene than does Angry Birds.  Worse, you mist practice this vigilance not just while signed onto the bank, but at all times when using a device that might someday be used to sign onto your bank.  Online banking comes with the advertised functionality, but also incurs the cost of acquiring and practicing online safety habits.  If the banking app is reasonably good the cost/benefit nets to the positive side but it can be a close call.  On the other hand, it’s almost all upside and virtually no downside to seeing a cat not quite make that leap to the counter top. (The cat may beg to differ.)

One of the most important reasons today’s software is so unsecure is that all the incentives in the system reward lax security.  If you spend $1M on security, your competitor who spends nothing is much more profitable, as reflected in their superior financial performance.  In order to compete, you too must skimp on security.  You’ll regret it if you suffer a breach but, despite the headlines, that’s actually a relatively rare event. Predictably, this drives a race to the bottom.  Investment in software security is now mostly a post-breach phenomenon and eternal vigilance is your cost of online banking, or any other non-leisure activity that involves even a modest amount of personal risk.

A different sort of cost/benefit issue exists in so-called “smart” devices, the best (i.e. worst) example of which is lighting.  The first requirement of any “smart” device is to act like the thing it replaces.  What the first crop of device manufacturers failed to realize is that a bulb and a switch are different parts of the same system.  You should therefore improve them as a system.  Making either of these operate from your phone is cool, but not something you’d actually want to use – as the mechanical switch and dumb bulbs installed in your house today probably attest.  What manufacturers like Philips and Belkin brought to market are a bunch of “smart” switches that operate dumb bulbs, and a bunch of “smart” bulbs which require you to duct tape the dumb wall switch to the ‘ON’ position.  Nobody offers a smart bulb/switch set.  After the novelty of controlling the light from the phone wears off many people decide “smart” devices are actually pretty stupid and then uninstall them.  The requirements to use the phone handset to control the lights, of having to duct-tape the wall switch to the ‘ON’ position to make it all work, the loss of basic lighting control functionality when the Internet is down, combined with the extravagant retail price of the hardware, all add up to an operational cost which far outweighs the benefit of “smart” lighting.

But a truly smart switch is really the user interface to send a signal, and a truly smart bulb is a receiver and actuator of such signals.  If the switch passes power through to the bulb at all times, if flipping it sends the required signal, and if the bulb then receives the signal and performs simple on/off actions, then the pair of devices can directly replace the equivalent dumb versions of a switch and bulb.  Anyone who has ever operated a standard toggle switch and bulb will be able to operate this smart lighting system without any training or the need to whip out a phone. The truly smart lighting works without Internet connectivity because the signalling is all local, which means the device talks to you first rather than to the manufacturer.  If you can replace the dumb switch and bulb with smart versions and cannot tell the difference in normal operation, then there is no incremental cost but considerable benefit in doing so.

Of course, such a system must be capable of local signaling which in turn implies you get the data before the device manufacturer.  In fact, there’s a possibility you might block the data from getting back to the manufacturer and just keep it local if you know a bit about networking.  The notion that you might be the first and only user of your own data is called personal sovereignty.  Where I live in the United States, the Constitution was supposed to guarantee the sovereignty of citizens.  The constitution never anticipated digital technology, though.  Not only does the prevailing software architecture not recognize your sovereignty as the first owner of your own data, it is more accurate to say that your sovereignty is a direct and urgent threat to the prevailing architecture.

In the absence of personal clouds, consumers as first owners of their own data is unthinkable.
In the presence of personal clouds and cloud apps, consumers as first owners of their data is inevitable.

Think about that for a moment. Nearly all of the computing infrastructure on the planet is designed on the dual premises that 1) data is valuable; and 2) whoever builds the device or service has an absolute right to the data, even to the exclusion of the person to whom the data applies.  So it’s my TV but LG’s data.  It’s my home automation but it’s Insteon’s data.  It’s my cart full of groceries, but even though I was there physically participating in the sale, it’s still the store’s data and only the store’s data.

Changing this situation is the reason for Personal Clouds.  Putting all that spare computing power to better use will require all those vendors to provide not just an e-receipt, but specifically a machine-readable e-receipt, or an API that we can use to fetch our data on demand.  The chicken-and-egg of this situation is that without apps, there is little demand to squirrel away our transaction data, and without a bunch of data there is little interest from developers.  However, it only takes a few seeds to make an alternative architecture take off.   It takes someone who believes enough to build the platform and trust that people, data and apps will come.

For example, imagine being the first grocery loyalty company to make the line-item purchase data available to consumers.  The moment we have a basic app to display, search, and summarize line-item grocery data, that company will instantly become the most profitable loyalty program vendor on the planet.  Other loyalty program vendors will wonder why they ever thought customer data was a zero-sum asset and they too will start giving it away just to remain viable.  The more consumers take custody of their own data and extract value from it, the more value corporations will realize in sharing transaction data directly with the other transaction participants.

Similarly, in a world where consumers get to choose whether device data gets out of their home network and back the device vendor, devices that require a connection to the vendor to function will find few buyers and eventually end up on the discount rack at the back of the store.  In that environment, device manufacturers will change their business model to provide value-added services, friendly dashboards and/or great analytics in order to earn the customer’s trust and a share of the data.  They’ll need to give you a good reason to let it out because the cloud is by default private and it will take some affirmative action on your part before they see that data.

What’s next

The good news is that the only thing keeping us locked into the current architecture is inertia.  There’s a lot of infrastructure built around what Doc Searls calls the calf-cow model but one or two good applications built on a new person-centric architecture can be the trickle that becomes a flood and eventually displaces the old model.  I spent last week with a group of people dedicated to doing exactly that.  The technology needed to build a person-centric platform has been around for a while.  The only thing missing was someone with sufficient faith in the new business model to plug the pieces together with the controls facing the user and then trust the user to drive it.  Because this threatens the existing model and potentially shakes up entire industries, there will be considerable push back.  Those who benefit from the current system want to keep that calf-cow relationship in place.  They want you to be wholly dependent on them for all your information needs, even information that you generate.  They won’t like a new architecture in which you get to keep as private some of the data they now take for granted.

But we can’t keep walking around with the power of a 1980’s mainframe on our hip reserved exclusively for cartoon games and crazed cats.  Even in the absence of some better alternative, we have this vague uneasiness and a bit of guilt that those wasted MIPs could have been put to good use.  We want the Internet of Things but we want it to serve people.  We want the Internet of People and Things. (Hence the name of my company, IoPT Consulting.) When we transact business, we want our own copy of that transaction automatically delivered to our personal cloud.  We want applications to help us index, search, sort, summarize and analyze all our new-found data.  And when we get all that, vendors clinging to the calf-cow model will have to get on board or get put out to pasture.  Then that spare computing power will provide some real benefit beyond distracting us from the real world.  We’ll use it to make the real world better.

This is the mission of the group I’m calling “The Santa Barbara Crew” until I’m out from under non-disclosure:  providing serious, business-grade software, built on VRM principles, using personal clouds as the data store, with least possible risk and maximum benefit to users.  This will transform commerce even more than it did when we computerized the vendors.  The Internet of Things, if built correctly with people at the center, will transform the world more than commerce ever did. We (I say “we” because I’m participating in this project) plan to deliver all those things.  It won’t be compromised based on what we think some or other vendor will or won’t accept.  It’s designed based on what you or I would insist on if we were building out commercial IT infrastructure today from scratch.  More importantly, it’s the thing I think you’d want to use if given the choice.  Get ready because that choice is coming your way soon.

What will you do when that opportunity comes?
Will you remain a calf, forever stuck in the vendor’s pasture?
Or will you claim your own sovereign future?

 

What’s Holding Up The Internet Of Things?

What’s Holding Up The Internet Of Things? This question was posed by in a blog post where he concludes IoT’s problem is that there is “no lingua franca.” The blog post mentions several competing protocols and scores big points for mentioning Pub/Sub at all and for generally getting IoT issues almost right. But he concludes the turning point will be “will be when economic incentives push device makers to share access to their controls and to the data their gadgets generate.” That’s not entirely accurate. Those economic incentives exist today.Here and now. The question is “on whose terms?” It isn’t that the economics need to change. It is that device manufacturers let go of the idea that they, and not the device user, are the first owners of the device data.

What is holding up the Internet of Things is that people do not want to buy devices that deeply penetrate their veil of personal privacy and then send fine-grained data about them back to device manufacturers.

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Shedding the light on the “going dark” problem

My theory about the “going dark” problem is the opposite of the official government explanation. They claim that they need to be able to read the communications of bad actors. (“Bad actors” in the security sense here, not the Hollywood sense.) But the back doors they’ve engineered have more to do with weakening the keys than with breaking the algorithms.  Mitigations are simple: introduce additional entropy while generating the key, use uncommonly long keys, use protocols with Perfect Forward Secrecy.  Anyone serious about preventing eavesdropping can reasonably expect to do so with a bit of work.

If that’s true, then what’s the big deal about lots of ordinary people who are *not* surveillance targets also using encryption?

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Inattention deficit disorder

In his series of blog posts about why context matters, Jamie Smith writes:

I believe that personalisation goes wrong when no one’s asking about the customer’s context, or no one’s listening. It’s being sent a ‘targeted’ advert for a car, not knowing you just joined a car club. It’s being recommended a book on Amazon based on your shopping history, not knowing you actually hate the author (your previous purchase was for a friend). It’s being sent coupons for pregnancy products based on your shopping history, when you haven’t yet told your family you are expecting a baby.

The best reason I can think of as to why context matters is that the highest aspiration of technology is to recede into the fabric of life.  Companies competing for our attention will soon find that we value much more those who compete for our inattention.  Philips made a really cool smart LED light bulb but it cannot be operated from the switch in the wall.  You must use an app to make it work.  The bulb is great but the implementation is exceedingly dumb.  At the very least, a new smart LED bulb should work exactly the same as a regular bulb because that’s how people know and expect to operate lighting.  What’re we supposed to do?  Duct-tape all our old iPhones to the wall next to a switch that has itself been duct-taped over?

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The ‘R’ in VRM

I’ve never really liked the laser-like focus on “intent to buy” as the primary VRM signal.  It seeks to intervene just prior to the exchange of value and makes too many limiting assumptions about what value actually is.  My usual example is that I’d like to communicate intent through policy settings such as “don’t show me DRM-enabled content when I search” or “show me DRM-enabled content only if nothing else is available.”  If people set these policies in sufficient numbers, it could send a clear signal to vendors.  When it comes to “smart” appliances and Internet of Things, vendors have been putting out crap and assume the lack of signal means we aren’t interested.  The MASSIVE success of crowdfunding IoT devices demonstrates that absence of interest signal is not signal of interest absence.

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