Category Archives: Business as unusual

Notes from ACM Webinar on blockchain (etc.)

The Next Radical Internet Transformation: How Blockchain Technology is Transforming Business, Governments, Computing, and Security Models

Speaker: Mark Mueller-Eberstein, CEO & Founder at Adgetec Corporation, Professor at Rutgers University, Senior Research Fellow at QIIR

Moderator: Toufi Saliba, CEO, PrivacyShell and Chair of the ACM PB Conference Committee

Warning: These are notes taken live. Errors and omissions will occur. No responsibility whatsoever.

  • intro: old enough to remember the discussions in the early 90s about how the internet would change mail services – completely forgetting shopping, entertainment and others
  • Blockchain solves the problem of transferring value between Internet users without a third party
  • goes beyond the financial industry, can handle any kind of transaction
  • most of the world has access to a mobile phone, only about 20% has access to the banking system
  • Blockchain is the banking industry’s Uber movement
  • Blockchain much wider than Bitcoin, will facilitate new business models.
  • Blockchain transfers rather than copies digital assets, making sure there is only one instance of it.
    • settlement process: no clearing houses or central exchanges
    • peer-to-peer transfers, validation by network
  • Example: WeChat taking over payments in China, no link to banks
  • many commercial or government services are basically “databases” that are centrally managed, with one central point of failure
  • Blockchain allows a distributed ledger, information put in cannot be changed
    • Estonia thinking about a Blockchain in case of hacking or occupation
  • public (open), private and government blockchainsxx1
  • allows new services to existing customers, lots of inefficiencies up for grabs
    • estate records, voting, domain control, escrow, etc…
    • iPayYou allows use of Bitcoin
    • Walt Disney looking at Blockchain (DragonChain) for internal transfers, also use it for tracking supply chain to their cruise ships. Opensourced it.
  • 80% of Bitcoin mining done in China
  • regulation comes with a cost
  • Shenzhen want to be Blockchain Tech capital
  • 6-level security model, developed by William Mougayar (goes through it in detail: transaction, account, programming, distributed organizations, network (51% attacks, perhaps as low as 30%, smaller blockchains more vulnerable), governance)
  • Ethereum blockchain focusing on smart contracts: Hard forked in 2016, DAO issue where somebody hacked DAO code to siphon off money, hacking the program using the blockchain (not the blockchain),
  • credit card transaction can take up to 30 days, with disputes and everthing, Blockchain is almost instant
  • How “real” is blockchain technology
    • Goldman-Sachs invested $500m+
    • 15% of top global banks intend to roll out full-scale, commercial blockchain
    • etc.
  • what is holding it back?
    • difficult to use, understand, buy in; perception of risk and legality
    • difficult to see value for the individual
  • questions:
    • what are the incentives and adoption models?
      • different philosophies: computing power must be made available in the network: industrial mining vs. BitTorrent model, the amount of computing provided will be important, if we can find a model where just a little bit from every mobile phone is required
    • what are the hard costs of Blockchain?
      • you can google the costs. There are other approaches being developed, will post some links
    • can Blockchain be compromized by a virus?
      • theoretically, yes. Bitcoin is 10 years without, open source means verification (change is happening slowly because of code inspection)
      • comes back to incentive and governance model
  • and that was that…recording will be at webinar.acm.org in a few days.
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Norway and self-driving cars

(This is a translation (with inevitable slight edits) from Norwegian of an op-ed Carl Störmer (who, in all fairness, had the idea) and I had in the Norwegian business newspaper Dagens Næringsliv.)

A self-driving future

Espen Andersen, BI Norwegian Business School and Carl Störmer, Jazzcode AS

Norway should become the world’s premier test laboratory for self-driving cars.

Norway needs to find new areas of development after oil – and we should go for something the whole world wants, where we have local advantages, and where we will develop deep and important knowledge even if the original idea does not succeed. We suggest that Norway should become the world’s premier test laboratory for self-driving cars – a “moon landing” we can develop far further than what we have been able to do from our expertise in sub-sea petroleum extraction.

1280px-tesla_model_s_26_x_side_by_side_at_the_gilroy_superchargerSelf-driving cars will do for personal transportation what e-mail has done for snail mail. Tesla-founder Elon Musk says Teslas will drive themselves in two hears – they already can change lanes and park themselves in your garage. The “summon“-function (a “come here”-command for your car) could, in principle, work across the entire USA.

An electrical self-driving vehicle will seldom par, choose the fastest or most economical route, always obey the traffic laws, and emit no pollutants. A society with self-driving cars can reduce the number of cars by 70-90%, free up about 30% more space in large cities, reduce traffic accidents by 90%, and drastically reduce local air pollution.

Google’s self-driving carsgoogle_self_driving_car_at_the_googleplex have driven several million kilometers without self-caused accidents, but there are still many technical problems left to solve. The cars work well in the well marked and carefully mapped roads of sunny California. The self-driving cars drive well, but the human drivers do not. But we cannot execute a sudden transition – for a long time, human and automated drivers will have to coexist.

Norway has unique advantages as a lab. In Norway, we can develop our own self-driving cars, but also be the first nation to really start using them. We do not have our own car industry to protect, we are quick to purchase and start to use new technologies, we are such a small country that decision paths are short, and should an international company make a marketing blunder in Norway, the damage will be limited to a very small market. We can easily change our laws to allow for testing of self-driving cars: Oslo, Bergen, Trondheim and Stavanger has enough traffic issues and large enough populations to suffice for a serious experiment. As a nation, we are focused on environmental issues, innovation and employment.

Norway’s bad road standard is an advantage. Norway has plenty of snow and ice, bad weather and bad roads. Today’s self-driving cars need clear road markings to be able to drive safely. But Norway has world leading capabilities in communication and coordination technology: The oil industry has learned how to continuously position ships in rough seas with an accuracy of about five centimeters. Telenor is a world-leading company in building robust mobile phone networks in complicated terrain. Technology developed for Norwegian conditions will work anywhere in the world.

Norway needs self-driving cars more than most nations. Norway is the world’s richest and most equal country, creating a modern welfare state through automation and technology-based productivity improvements. The transportation industry is over-ripe for automation. The technology can maintain productivity growth and offer a new life for many people – the blind, the old and the physically handicapped – who do not have access to cheap and simple transportation today. It will create many jobs – think before and after the smart phone here – that can be created based on abundant and cheap transportation.

Norway will win even if we don’t succeed. Lots of new technology has to be developed to make self-driving cars from experiment to production: For instance, software has to be developed that can handle extremely complicated situations when autonomous cars will have to share the road with tired human drivers. More importantly, lots of products and services can be built on top of self-driving cars, business models have to be developed, and many industries will be impacted. The insurance business, for instance, will have to adapt to a market with very few accidents. Even the donor organ market will be impacted – though traffic accident organs by no means make up the majority of organs available, there might be a shortage of available organs.

Norway has faced tremendous changes before. We have transited from being harvested ice to electric refrigertation (in the process enabling our large fishing and fish farming industries), from sail to steam shipping, from fixed line telephony to mobile phones. Our politicians have, quite wisely, created an electric car policy ensuring that we have the highest density of electric cars in the world (10% of all Teslas are sold in Norway.) Norway has everything to earn and very little to lose by going all in for self-driving cars.

Let’s do it!

All the cargo in the world…

I just love this map, created by Kiln, so I wanted it on my blog for easy reference:

It is rather fascinating, and clearly shows why Singapore has acquired such an important position in the world’s logistics. Click on the play button in the top right corner for a short narration. The data is from 2012, but the pattern is largely the same today.

Elon Musk biography

Elon Musk: Inventing the FutureElon Musk: Inventing the Future by Ashlee Vance
My rating: 3 of 5 stars

This is an interesting biography because Elon Musk is an interesting person. Very capable description of the various business ventures (including a very succinct analysis of why and how Tesla is disruptive to the regular car industry, and, even more so, SpaceX to the space industry. But much of Musk as a person remains an enigma, partly because Musk keeps his cards close to his chest. This is an attempt to create a balanced account of Musk as a businessman and person, and it is worth reading to get the background of what Musk has done and how he has done it. But I doubt if I will reread it…

View all my reviews

A trendy walk through Oslo…

This video was actually quite fun to make:


My part is done in the offices of Masterstudies Marketing Group, to illustrate my point that if a small nation like Norway (or, for that matter, Europe) wants to compete on the world market, recruiting should be based on who is the best person for the job, not who fits in with the reigning culture.

Masterstudies, incidentally, is located in Oslo, is doing very well indeed, and has about 35 employees who collectively speak more than 20 languages. Two of the employees are Norwegian….

Elon, I want my data!

Last week I got a parking ticket. I stopped outside BI Norwegian Business School where I work, to run in and deliver some papers and pick up some computer equipment. There is a spot outside the school where you can stop for 10 minutes for deliveries. When I came out, I had a ticket, the attendant was nowhere in sight – and I am pretty sure I had not been there for 10 minutes. But how to prove that?

Then it dawned on me – I have a Tesla Model S, a very innovative car – not just because it is electric, but because it is constantly connected to the Internet and sold more as a service than a product (actually, sold as a very tight, proprietary-architecture product, much like whatever Apple is selling). Given that there is a great app where I can see the where the car is and how fast it is going, I should be able to get the log from Tesla and prove that I parked the car outside BI less than 10 minutes before the ticket was issued…

Well, not so fast. I called Tesla Norway and asked to see the log, and was politely turned down – they cannot give me the data (actually, they will not hand it over unless there is a court order, according to company policy.) A few emails back and forth have revealed that the location and speed data seen by the app is not kept by the internal system. But you can still find out what kind of driving has been done – as Elon Musk himself did when refuting a New York Times journalist’s bad review by showing that the journalist had driven the car harder and in different places than claimed. I could, for instance, use the data to find out precisely when I parked the car, even though I can’t show the location.

And this is where it gets interesting (and where I stop caring about the parking ticket and start caring about principles): Norway has a Personal Data Protection Act, which dictates that if a company is saving data about you, they not only have to tell you what they save, but you also have a “right of inspection” (something I confirmed with a quick call to the Norwegian Data Protection Authority). Furthermore, I am vice chairman of Digitalt Personvern,  an association working to repeal the EU data retention directive and know some of the best data privacy lawyers in Norway.

So I can probably set in motion a campaign to force Tesla Norway to give me access to my data, based on Norwegian law. Tesla’s policies may be American, but their Norwegian subsidiary has to obey Norwegian laws.

But I think I have a better idea: Why not, simply, ask Tesla to give me the data – not because I have a right to data generated by myself according to Norwegian law, but because it is a good business idea and also the Right Thing to do?

So, Elon Musk: Why not give us Tesla-owners direct access to our logs through the web site? We already have password-protected accounts there, storing documents and service information. I am sure some enterprising developer (come to think of it, I know a few myself, some with Teslas) will come up with some really cool and useful stuff to make use of the information, either as independent apps or via some sort of social media data pooling arrangement. While you are at it, how about an API?

Tesla has already shown that they understand business models and network externalities by doing such smart things as opening up their patent portfolio. The company is demonstrably nerdy – the stereo volume literally goes to 11. Now it is time to open up the data side – to make the car even more useful and personable.

PS: While I have your attention, could you please link the GPS to the pneumatic suspension, so I can set the car to automatically increase road clearance when I exit the highway onto the speed-bumpy road to my house? Being able to take snapshots with the reverse camera would be a nice hack as well, come to think of it. Thanks in advance! (And thanks for the Rdio, incidentally!)

Update a few hours later: Now on Boingboing!

Update Sept. 2: The parking company (Europark) dropped the ticket – didn’t give a reason, but probably not because I was parked too long but because I was making a delivery and could park there.

Write, that I may find thee

A Google Dance – when Google changes its rankings of web sites – used to be something that happened infrequently enough that each “dance” had a name – Boston, Fritz and Brandy, for instance – but are now happening more than 500 times per year, with names like Panda #25 and Penguin 2.0, to name a few relatively recent ones. (There is even a Google algorithm change “weather report”, as many of the updates now are unnamed and very frequent.) As a consequence, search engine optimization seems to me to be changing – and funny enough, is less and less about optimization and more and more about origination and creation.

It turns out that Google is now more and more about original content – that means, for instance, that you can no longer boost your web site simply by using Google Translate to create a French or Korean version of your content. Nor can you create lots of stuff that nobody reads – and by nobody, I mean not just that nobody reads your article, but that the incoming links are from, well, nobodies. According to my sources, Google’s algorithms have now evolved to the point where there are just two main mechanisms for generating the good Google juice (and they are related):

  1. Write something original and good, not seen anywhere else on the web.
  2. Get some incoming links from web sites with good Google-juice, such as the New York Times, Boing Boing, a well-known university or, well, any of the “Big 10” domains (Wikipedia, Amazon, Youtube, Facebook, eBay (2 versions), Yelp, WebMD, Walmart, and Target.)

The importance of the top domains is increasing, as seen by this chart from mozcast.com:

image

In other words, search engines are moving towards the same strategy for determining what is important as the rest of the world has – if it garners the attention of the movers and shakers (and, importantly, is not a copy of something else) it must be important and hence, worthy of your attention.

For the serious companies (and publishers) out there, this is good news: Write well and interesting, and you will be rewarded with more readers and more influence. This also means that companies seeking to boost their web presence may be well advised to hire good writers and create good content, rather than resort to all kinds of shady tricks – duplication of content, acquired traffic (including hiring people to search Google and click on your links and ads), and backlinks from serially created WordPress sites.

For writers, this may be good news – perhaps there is a future for good writing and serious journalism after all. The difference is that now you write to be found original by a search engine – and should a more august publication with a human behind it see what you write and publish it, that will just be a nice bonus.