There is a great imbalance in the vast internet marketplace that has yet to be addressed and is quite ripe for the picking. In fact, this imbalance is probably at the root of the astronomical stock market valuations of existing and new companies like Google, facebook, Twitter and their ilk.

It turns out that your data is valuable.  Very valuable.  And it also turns out that you are basically giving it away.  You are giving it away – not quite for free but pretty close.  What you are getting in return is personalization. You get advertisements targeted at you providing you with products you don’t need but are likely to find quite iresistable.  You get recommendations for other sites that ensure that you need never venture outside the bounds of your existing likes and dislikes. You get matched up with companies that provide services that you might or might not need but definitely will think are valuable.

Ultimately, you are giving up your data so businesses can more efficiently extract more money from you.

If you are going to get exploited in this manner, it’s time to make that exploitation a two way street. Newspapers, for instance, are rapidly arriving at the conclusion that there is actual monetary value in the information that they provide.  They are seeing that the provision of vetted, verified, thougful and well-written information is intrinsicly worth more than nothing.  They have decided that simply giving this valuable commodity away for free is giving up the keys to the kingdom.  The Wall Street Journal, the New York Times, The Economist and others are seeing that people are willing to pay and do actually subscribe.

There is a lesson in this for you – as a person. There is value in your data.  Your mobile movements, your surf trail, your shopping preferences  It  should not be the case that you implicitly surrender this information for better personalization or even a $5 Starbucks gift card.  This constant flow of data from you, your actions, movements and keystrokes ought to result in a constant flow of money to you.  When you think about it, why isn’t the ultimate personal data collection engine, Google Glass, given away for free? Because people don’t realize that personal data collection is its primary function.  Clearly, the time has come for the realization of a personal paywall.

The idea is simple, if an entity wants your information they pay you for it.  Directly.  They don’t go to Google or facebook and buy it – they open up an account with you and pay you directly.  At a rate that you set.  Then that business can decide if you are worth what you think you are or not.  You can adjust your fee up or down anytime and you can be dropped or picked up by followers. You could provide discount tokens or free passes for friends.  You could charge per click, hour, day, month or year.  You might charge more for your mobile movements and less for your internet browsing trail.  The data you share comes with an audit trail that ensures that if the information is passed on to others without your consent you will be able to take action – maybe even delete it – wherever it is.  Maybe your data lives for only a few days or months or years – like a contract or a note – and then disappears.

Of course, you will have to do the due diligence to ensure you are selling your information to a legitimate organization and not a Nigerian prince.  This, in turn, may result in the creation of a new class of service providers who vet these information buyers.

This data reselling capability would also provide additional income to individuals.  It would not a living wage to compensate for having lost a job but it would be some compensation for participating in facebook or LinkedIn or a sort of kickback for buying something at Amazon and then allowing them to target you as a consumer more effectively. It would effectively reward you for contributing the information that drives the profits of these organizations and recognize the value that you add to the system.

The implementation is challenging and would require encapsulating data in packets over which you exert some control.  An architectural model similar to bitcoin with a central table indicating where every bit of your data is at any time would be valuable and necessary. Use of the personal paywall would likely require that you include an application on your phone or use a customized browser that releases your information only to your paid-up clients. In addition, some sort of easy, frictionless mechanism through which companies or organizations could automatically decide to buy your information and perhaps negotiate (again automatically) with your paywall for a rate that suits both of you would make use of the personal paywall invisible and easy. Again this technology would have to screen out fraudulent entities and not even bother negotiating with them.

There is much more to this approach to consider and many more challenges to overcome.  I think, though, that this is an idea that could change the internet landscape and make it more equitable and ensure the true value of the internet is realized and shared by all its participants and users.

Let me start by being perfectly clear.  I don’t have Google Glass.  I’ve never seen a pair live.  I’ve never held or used the device.  So basically, I just have strong opinions based on what I have read and seen.  And, of course, the way I have understood what I have read and seen.  Sergei Brin recently did a TED talk about Google Glass during which, after sharing a glitzy, well-produced video commercial for the product, he maintained that they developed Google Glass because burying your head in a smartphone was rude and anti-social.  Presumably staring off into the projected images produced by Google Glass but still avoiding eye-contact and real human interaction is somehow less rude and less anti-social.  But let that alone for now.

The “what’s in it for me” of Google Glass is the illusion of intelligence (or at least the ability to instantly access facts), Internet-based real-time social sharing, real-time scrapbooking and interactive memo taking amongst other Dick Tracy-like functions.

What’s in it for Google is obvious.  At its heart, Google is an advertising company – well – more of an advertising distribution company.  They are a platform for serving up advertisements for all manner of products and services.  Their ads are more valuable if they can directly target people with ads for products or services at a time and place when the confluence of the advertisement and the reality yield a situation in which the person is almost compelled to purchase what is on offer because it is exactly what they want when they want it.  This level of targeting is enhanced when they know what you like (Google+, Google Photos (formerly Picasa)), how much money you have (Google Wallet), where you are (Android), what you already have (Google Shopping), what you may be thinking (GMail), who you are with (Android) and what your friends and neighbors have and think (all of the aforementioned).  Google Glass, by recording location data, images, registering your likes and other purchases can work to build and enhance such a personal database.  Even if you choose to anonymize yourself and force Google to de-personalize your data, their guesses may be less accurate but they will still know about you as a demographic group (male, aged 30-34, lives in zip code 95123, etc.) and perhaps general information based on your locale and places you visit and where you might be at any time.  So, I immediately see the value of Google Glass for Google and Google’s advertising customers but see less value in its everyday use by ordinary folks unless they seek to be perceived as cold, anti-social savants who may possibly be on the Autistic Spectrum.

I don’t want to predict that Google Glass will be a marketplace disaster but the value statement for it appears to be limited.  A lot of the capabilities touted for it are already on your smartphone or soon to be released for it.  There is talk of image scanning applications that immediately bring up information about whatever it is that you’re looking at.  Well, Google’s own Goggles is an existing platform for that and it works on a standard mobile phone.  In fact, all of the applications touted thus far for Google Glass rely on some sort of visual analysis or geolocation-based look-up that is equally applicable to anything with a camera. It seems to me that the “gotta have the latest gadget” gang will flock to Google Glass as they always do to these devices but appealing to the general public may be a more difficult task.  Who really wants to wear their phone on their face?  If the benefit of Google Glass is its wearability then maybe Apple’s much-rumored iWatch is a less intrusive and less nerdy looking alternative.  Maybe Apple still better understands what people really want when it comes to mobile connectivity.

Ultimately, Google Glass may be a blockbuster hit or just an interesting (but expensive) experiment.  We’ll find out by the end of the year.

A spate of recent articles describes the proliferation of back doors in systems.  There are so many such back doors in so many systems, it claims, that the idea of a completely secure and invulnerable system is, at best, a fallacy.  These back doors may be as result of the system software or even designed into the hardware.  Some back doors are designed in to the systems to facilitate remote update, diagnosis, debug and the like – usually never with the intention of being a security hole.  Some are inserted with subterfuge and espionage in mind by foreign-controlled entities keen on gaining access to otherwise secure systems.  Some may serve both purposes, as well. And some, are just design or specification errors.  This suggests that once you connect a system to a network, some one, some how will be able to access.  As if to provide an extreme example, a recent break-in at the United States Chamber of Commerce was traced to an internet-connected thermostat.

That’s hardware.  What about software?  Despite the abundance of anti-virus software and firewalls, a little social engineering is all you really need to get through to any system. I have written previously about the experiment in which USB memory sticks seeded in a parking lot were inserted in corporate laptops by more than half of employees who found them without any prompting. Email written as if sent from a superior is often utilized to get employees to open attached infected applications that install themselves and open a hole in a firewall for external communications and control.

The problem is actually designed in.  The Internet was built for sharing. The sharing was originally limited to trusted sources. A network of academics. The idea that someone would try to do something awful to you – except as some sort of prank – was inconceivable.

That was then.

Now we are in a place where the Internet is omnipresent.  It is used for sharing and viewing cat videos and for financial transactions.  It is used for the transmission of top secret information and buying cheese.  It connected to servers containing huge volumes of sensitive and personal customer data: social security numbers, bank account numbers, credit card numbers, addresses, health information, etc.  And now, not a day goes by without reports of another breach.  Sometimes attributed to Anonymous, the Chinese, organized crime or kids with more time than sense, these break-ins are relentless and everyone is susceptible

So what to do?

There is a story, perhaps apocryphal, that, at the height of the cold war, when the United States captured a Soviet fighter jet and were examining it, they discovered that there was no solid state electronics in it.  The entire jet was designed using vacuum tubes.  That set the investigators thinking.  Were the Soviets merely backward or did they design using tubes to guard against EMP attacks?

Backward to the future?

Are we headed to a place where the most secure organizations will go offline.  They will revert to paper documents, file folders and heavy cabinets stored in underground vaults?  Of course such systems are not completely secure, as no system actually is.  On the other hand, a break in requires physical presence, carting away tons of documents requires physical strength and effort.  Paper is a material object that cannot be easily spirited away as a stream of electrons. Maybe that’s the solution. But what of all the information infrastructure built up for convenience, cost effectiveness, space savings and general efficiency? Do organizations spend more money going back to paper, staples, binders and hanging folders? And then purchase vast secure spaces to stow these materials?

Will there instead a technological fix in designing a parallel Internet infrastructure from the ground up redesigned so that it incorporates authentication, encryption and verifiable sender identification? Then all secure transactions and information could move to that newer, safer Internet? Is that newer, safer Internet just a .secure domain? Won’t that just be a bigger, better and more value laden target for evil-doers? And what about back-doors – even in a secure infrastructure, an open door or even a door with a breakable window ruins even the finest advanced security infrastructure.  And, of course, there is always social engineering of people that provides access more easily that any other technique. Or spies. Or people thinking they are “doing good”.

The real solution may not yet even be defined or known.  Is it Quantum Computing (which is really just a parallel environment of a differently-developed computing infrastructure)? Or is it really nothing – in that there is no solution and we are stuck with tactical solutions?  It’s an interesting question but for now, it is clear as it was some 20 years ago when Scott McNeally said it “The future of the Internet is security”.

Back at the end of March, I attended O’Reilly‘s Web 2.0 Expo in San Francisco. As usual with the O’Reilly brand of conferences it was a slick, show-bizzy affair. The plenary sessions were fast-paced with generic techno soundtracks, theatrical lighting and spectacular attempts at buzz-generation. Despite their best efforts, the staging seems to overhwelm the Droopy Dog-like presenters who tend to be more at home coding in darkened rooms whilst gorging themselves on Red Bull and cookies. Even the audience seemed to prefer the company of their smartphones or iPads than any actual human interaction with “live tweets” being the preferred method of communication.

In any event, the conference is usually interesting and a few nuggets are typically extracted from the superficial, mostly promotional aspects of the presentations.

What was clear was that every start-up and every business plan was keyed on data collection. Data collection about YOU. The more – the better. The goal was to learn as much about you as possible so as to be able to sell you stuff. Even better – to sell you stuff that was so in tune with your desires that you would be helpless to resist purchasing it.

The trick was – how to get you to cough up that precious data? Some sites just assumed you’d be OK with spending a few days answering questions and volunteering information – apparently just for the sheer joy of it. Others believed that being up-front and admitting that you were going to be sucked into a vortex of unrelenting and irresistable consumption would be reward enough. Still others felt that they ought to offer you some valuable service in return. Most often, this service, oddly enough, was financial planning and retirement saving-based.

The other thing that was interesting (and perhaps obvious) was that data collection is usually pretty easy (at least the basic stuff). Getting details is harder and most folks do expect something in return. And, of course, the hardest part is the data mining to extract the information that would provide the most compelling sales pitch to you.

There are all sorts of ways to build the case around your apparent desires. By finding out where you live or where you are, they can suggest things “like” other things you have already that are nearby. (You sure seem to like Lady Gaga, you know there’s a meat dress shoppe around the corner…) By finding out who your friends are and what they like, they can apply peer-pressure-based recommendations (All of your friends are downloading the new Justin Beiber recording. Why aren’t you?). And by finding out about your family and demographic information they can suggest what you need or ought to be needing soon (You son’s 16th birthday is coming up soon, how about a new car for him?).

Of all the sites and ideas, it seems to me that Intuit‘s Mint is the most interesting. Mint is an on-line financial planning and management site. Sort of like Quicken but online. To “hook” you, their key idea is to offer you the tease of the most valuable analysis with the minimum of initial information. It’s almost like given your email and zip code they’ll draw up a basic profile of you and your lifestyle. Give them a bit more and they’ll make it better. And so you get sucked in but you get value for your data. They do claim to keep the data separate from you but they also do collect demographically filtered data and likely geographically filtered data.

This really isn’t news. facebook understood this years ago when their ill-fated Beacon campaign was launched. This probably would have been better accepted had it been rolled out more sensitively. But it is ultimately where everyone is stampeding right now.

The most interesting thing is that there is already a huge amount of personal data on the web. It is protected because it’s all in different places and not associated. facebook has all of your friends and acquaintances. Amazon and eBay have a lot about what you like and what you buy. Google has what you’re interested in (and if you have an Android phone – where you go). Apple has a lot about where you go and who you talk to and also through your app selection what you like and are interested in. LinkedIn has your professional associations. And, of course, twitter has when you go to the bathroom and what kind of muffins you eat.

Each of these giants is trying to expand their reservoir of data about you. Other giants are trying to figure out how to get a piece of that action (Yahoo!, Microsoft). And yet others, are trying to sell missing bits of information to these players. Credit card companies are making their vast purchasing databases available, specialty retailers are trying to cash in, cell phone service providers are muscling in as well. They each have a little piece of your puzzle to make analysis more accurate.

The expectations is that there will be acceptance of diminishing privacy and some sort of belief that the holders of these vast databases will be benevolent and secure and not require government intervention. Technologically, storage and retrieval will need to be addressed and newer, faster algorithms for analysis will need to be developed.

Looking for a job…or a powerful patent? I say look here.