I have noticed that as people age, they become finer and finer versions of themselves. Their eccentricities become sharper and more pronounced; their opinions and ideas more pointed and immutable; their thoughts more focussed. In short, I like to say that they become more perfect versions of themselves. We see it in our friends and acquaintances and in our parents and grandparents. It seems a part of natural human development.

Back in 2006, Netflix initiated the Netflix Prize with the intent of encouraging development of improvements in the accuracy of predictions about how much someone is going to enjoy a movie based on their movie preferences and rewarding the winner with $1,000,000. Contestants were given access to a set of Netflix’s end-users’ movie ratings and were challenged to provide recommendations of other movies to watch that bested Netflix’s own recommendation engine. BellKor’s Pragmatic Chaos team was announced as the winner in 2009 having manage to improve Netflix’s recommendations by 10% and walked off with the prize money.

What did they do? Basically, they algorithmically determined and identified movies that were exceptionally similar to the ones that were already liked by a specific user and offered those movies as recommended viewing. And they did it really well.

In essence what the Bellkor team did was build a better echo chamber. Every viewer is analyzed, their taste detailed and then the algorithm perfects that taste and hones it to a razor sharp edge. You become, say, an expert in light romantic comedies with a strong female lead, who lives in a spacious apartment in Manhattan, includes many dog owners, no visible children and often features panoramic views of Central Park.

Of course, therein lies the rub. A multifaceted rub at that. As recommendation engines become more accurate and discerning of individual tastes they remove any element of chance, randomness or error that might serve to introduce new experiences, genres or even products into you life. You become a more perfect version of you. But in that perfection you are also stunted. You are shielded from experimentation and breadth of experience. You pick a single pond and overfish it.

There are many reasons why this is bad and we see it reflected, most obviously, in our political discourse where our interactions with opposing viewpoints are limited to exchanges of taunts (as opposed to conversations) followed by a quick retreat to the comfort of our well-constructed echo chambers of choice where our already perfected views are nurtured and reinforced.

But it also has other ramifications. If we come to know what people like to such a degree then innovation outside safe and well-known boundaries might be discouraged. If Netflix knows that 90% of its subscribers like action/adventure films with a male hero and lots of explosions why would they bother investing in a story about a broken family being held together by a sullen beekeeper. If retail recommendations hew toward what you are most likely to buy – how can markets of unrelated products be expanded? How can individual tastes be extended and deepened?

Extending that – why would anyone risk investment in or development of something new and radically different if the recommendation engine models cannot justify it. How can the leap be made from Zero to One – as Peter Theil described – in a society, market or investment environment in which the recommendation data is not present and does not justify it?

There are a number of possible answers. One might be that “gut instincts” need to continue to play a role in innovation and development and investment and that risk aversion has no place in making the giant leaps that technology builds upon and needs in order to thrive.

A more geeky answer is that big data isn’t yet big enough and that recommendation engines aren’t yet smart enough. A good recommendation engine will not just reinforce your prejudicial tastes, it will also often challenge and extend them and that we don’t yet have the modelling right to do that effectively.  The data are there but we don’t yet know how to mine it correctly to broaden rather than narrow our horizons. This broadening – when properly implemented – will widen markets and opportunities and increase revenue.

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.

It’s all the rage right now to be viewed as a leader in the mobile space.  There are many different sectors in which to demonstrate your leadership.  There are operating systems like iOS and Android and maybe even Windows Phone (someday).  There’s hardware like Apple, Samsung, HTC and maybe even Nokia.  And of course there’s the applications like FourSquare, Square and other primarily mobile applications in social, payments, health and gaming and then all the other applications rushing to mobile because they were told that’s where they ought to be.

Somewhere in this broad and vague classification is Facebook (or perhaps more properly “facebook”).  This massive database of human foibles and interests is either being pressed or voluntarily exploring just exactly how to enter the mobile space and presumably dominate it.  Apparently they have made several attempts to develop their own handset.  The biggest issue it seems is that they believed that just because they are a bunch of really smart folks they should be able to stitch a phone together and make it work.  I believe the saying is “too smart by half“.  And since they reportedly tried this several times without success – perhaps they were also “too stubborn by several halves”.

This push by facebook begs the question: “What?” or even “Why?”  There is a certain logic to it.  Facebook provides hours of amusement to tens of millions of active users and the developers at facebook build applications to run on a series of mobile platforms already.  Those applications are limited in their ability to provide a full facebook experience and also limit facebook’s ability to extract revenue from these users.  Though when you step back, you quickly realize that facebook is really a platform.  It has messaging (text, voice and video), it has contact information, it has position and location information, it has your personal profile along with your interest history and friends, it knows what motivates you (by your comment contents and what you “like”) and it is a platform for application development (including games and exciting virus and spam possibilities) with a well-defined and documented interface.  At the 10,000 foot level, it seems like facebook is an operating system and a platform ready-to-go.  This is not too different from the vision that propelled Netscape into Microsoft’s sights leading to their ultimate demise. Microsoft doesn’t have the might it once did but Google does and so does Apple.  Neither may be “evil” but both are known to be ruthless.  For facebook to enter this hostile market with yet another platform would be bold. And for that company to be one whose stock price and perceived confidence is faltering after a shaky IPO – it may also be dumb. But it may be the only and necessary option for growth.

On the other hand, facebook’s recent edict imploring all employees to access facebook from Android phones rather than their iPhones could either suggest that the elders at facebook believe their future is in Android or simply that they recognize that it is a growing and highly utilized platform. Maybe they will ditch the phone handset and go all in for mobile on iOS and Android on equal footing.

Personally, I think that a new platform with a facebook-centric interface might be a really interesting product especially if the equipment cost is nothing to the end-user.  A free phone supported by facebook ads, running all your favorite games, with constant chatter and photos from your friends? Talk about an immersive communications experience. It would drive me batty. But I think it would be a huge hit with a certain demographic. And how could they do this given their previous failures? Amongst the weaker players in the handset space, Nokia has teamed up with Microsoft but RIM continues to flail. Their stock is plummeting but they have a ready-to-go team of smart employees with experience in getting once popular products to market as well as that all-important experience in dealing with the assorted wireless companies to say nothing of the treasure trove of patents they hold. They also have some interesting infrastructure in their SRP network that could be exploited by facebook to improve their service (or, after proper consideration, sold off).

You can’t help but wonder that if instead of spending $1B on Instagram prior to its IPO, facebook had instead spent a little more and bought RIM would the outcome and IPO lauch have been different?  I guess I can only speculate about that.  Now, though, it seems that facebook ought to move soon or be damned to be a once great player who squandered their potential.